Customer Experience trends in 2024: meeting evolving expectations

Customer Experience trends in 2024: meeting evolving expectations

Time Stamp: January 11, 2024 5:11 AM
Source Node: 3066199

The landscape of brand-customer relationships has shifted dramatically over the past few years, and there’s no question that customers today wield unprecedented power in this space, demanding more than ever from the financial brands with which they interact. Indeed, expectations are at an all-time high, particularly in the customer experience (CX) arena, where customers expect excellent quality service, whenever and however they want.

Considering 90% of customers claim that the experience a brand provides is as important as its products or services, and that CX drives over two-thirds of customer loyalty, it’s key that financial brands deliver on what customers are demanding. In 2024, the trajectory of CX is steering towards a more personalised, compliant, and AI-driven approach. Let's delve into the three prominent trends shaping the CX landscape this year:

1. Personalisation: enhancing the human touch
Personalisation will remain a cornerstone of an exceptional customer journey in 2024. Whether it’s being greeted by name when they speak to a service agent, or receiving information via their channel of choice on the products and services that matches their unique interests, almost three-quarters of customers expect the businesses they interact with to offer a human touch by recognising them as individuals and knowing their interests.

If this personalisation isn’t there, customers will look elsewhere to brands that can offer the experience they’re demanding. A whopping 76% of customers get frustrated when they don’t receive a personalised experience from a brand – putting them at risk of jumping ship to a competitor. In today’s competitive market, financial brands can’t afford to miss out on customers because CX expectations aren’t being met. Personalisation then isn’t just a ‘nice-to-have’ anymore – it’s a necessity in meeting customer expectations that are intrinsically tied to customer loyalty. Indeed, 60% of consumers report that they will become repeat buyers after a personalised purchasing experience.

Leveraging data-driven insights to tailor personalised experiences will be key in meeting this expectation in 2024. Whether it’s making use of tools such as speech and text analytics to spot trends in customer interactions or integrating CRM systems into contact centres so agents have the most up-to-date information when speaking to customers, data insights will be invaluable in delivering CX personalisation.

2. Improving CX and achieving compliance
Compliance is more than just a buzzword in the CX space, especially in the financial services industry where the FCA’s Consumer Duty regulatory framework has come into force. But ensuring compliance and ensuring customers’ needs come first doesn’t have to be a burdensome, bureaucratic process.

When brands get the customer experience right, compliance naturally falls into place. With the next Consumer Duty deadline set for 31st July 2024 financial brands can work to improve CX and simultaneously meet the regulation’s requirements that requires firms to “act to deliver good outcomes” and “sets higher and clearer standards of consumer protection across financial services” to better protect customers across the sector.

So, by delivering the service customers expect – such as personalisation – financial services brands will not only provide positive experiences for customers, but will inherently meet regulatory demands and fortify customer trust. Indeed, positive experiences significantly influence purchasing decisions, and when customers have a good customer experience, the chances of them buying into the services and products a brand offers will increase exponentially. For instance, 74% of consumers are at least somewhat likely to buy based on experiences alone.

By reframing compliance as a beneficial outcome of enhancing customer experiences, brands can mitigate the perceived burden of regulations while leveraging these moments to build customer trust and loyalty.

3. AI proliferation: balancing efficiency and data integrity
According to PwC, 52% of organisations now have a customer transformation strategy that incorporates AI. This proliferation of AI in the CX sphere presents financial brands with an avenue for streamlining transactional tasks and delivering personalised experiences at scale. However, the success of AI-driven initiatives hinges on robust data infrastructure - to be successful, AI tools must have the data to back them up.

Indeed, game-changing technology such as AI-powered agent-assist for example, is reliant on having an array of actionable data to be truly effective. Whether this information is sourced from the likes of a CRM system or a Knowledge Base, it’s imperative that the data is there for the AI to reliably deliver the CX customers expect.

Of course, this will raise pertinent concerns regarding data security and privacy, and addressing these apprehensions and ensuring data integrity, all while harnessing AI's potential, entails a delicate balance. Striking this equilibrium in 2024 will allow brands to leverage AI technologies effectively, improving the customer experience and operational efficiency without compromising data security.

Embracing the future of CX
As customer expectations continue to evolve, brands must pivot towards customer-centricity over the next year. The combination of personalisation, compliance, and AI-driven initiatives underscores a shift in how brands engage with their audience. In 2024, the key to success lies in leveraging these trends to forge deeper, more meaningful connections with customers, fostering loyalty and trust in an increasingly competitive landscape. Brands that navigate these developments adeptly will be poised to thrive and drive the CX evolution in the years to come.

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