Businesses struggle with consistent customer experience, says Harvard study
MUMBAI, INDIA — A recent study by Harvard Business Review (HBR) in collaboration with Tata Communications has unveiled significant challenges in customer experience (CX).
Despite the widespread adoption of digital tools designed to enhance CX, only 38% of surveyed organizations feel they are very successful in delivering positive customer interactions.
This suggests that simply implementing digital solutions is not enough; they must be thoughtfully integrated to truly benefit the customer.
The critical role of CX
The study surveyed 264 senior executives and CX leaders from various global industries, including telecommunications, finance, retail, and healthcare.
An overwhelming 92% of participants acknowledged that every customer interaction impacts CX, and 93% agreed that CX is crucial for organizational success. Surprisingly, 7% of respondents do not view CX as important, raising questions about their industry perspectives.
The complexity of multiple channels
A significant revelation from the study is the downside of having too many customer interaction channels. While offering multiple channels seems beneficial, it can lead to increased confusion and frustration.
Mauro Carobene, VP and Global Head of Customer Interaction Suite at Tata Communications highlighted this issue, noting that changing channels often require customers to start over.
In a Brainfluence interview, Carobene explained that “a bad interaction is when you repeat the same experience, the same information,” emphasizing the need for seamless interactions even when switching channels.
Balancing opportunity and frustration with chatbots
The study also highlights the growing role of chatbots in customer interactions. While chatbots offer instant, 24/7 availability, customer opinions are divided. Many find interactions with chatbots frustrating, as they often seem to delay or prevent human interaction.
Carobene sees chatbots as a significant opportunity to improve customer interactions, provided they are well-trained to understand customer nuances.
He is optimistic that AI-driven chatbots will eventually handle up to 80% of customer issues, offering substantial savings for companies and time savings for customers.
Aligning customer and employee experience
Carobene emphasizes the importance of aligning customer and employee experiences. In a hyperconnected ecosystem, creating superior experiences for employees, customers, partners, and users is essential.
A tech support representative who is unhappy or struggling can negatively impact customer experience, while a satisfied employee can deliver a positive interaction.
Organizations committed to CX improvement
Encouragingly, 97% of respondents indicated their organizations are focused on improving customer interactions over the next 12 months. Key areas for improvement include making interactions more seamless (55%), enhancing personalization (50%), and delivering a more consistent experience (50%).
These initiatives reflect a commitment to addressing the challenges identified in the study and improving customer experience in the future.
The findings of this study underscore the critical importance of a cohesive and integrated approach to customer experience, highlighting the need for organizations to prioritize both technological and human elements in their CX strategies.
