8 Challenges of Delivering High-Quality Customer Experience in 2023 [+Stats]

Nowadays, consumers are more powerful than ever - they have access to the latest technologies and unlimited information, which has only skyrocketed their bargaining power and gives them freedom to choose and switch between competing brands whenever they want. They’ve also got access to a larger pool of choices and alternatives than ever before, meaning businesses have to work harder than ever to stand out from the crowd. As a result, the only way organizations can differentiate themselves in this extremely competitive market is by offering top-notch customer experience (CX).

The era of COVID-19 altered and reshaped customer demands, and what they valued and wanted three years ago is no longer the same. Therefore, marketing leaders need to adapt and make CX and customer service their top priority and integrate it with every department of their business. After all, focusing on these efforts will only lead to a higher ROI and produce better customer loyalty and retention.

To better understand the state of CX and the challenges that modern organizations are facing, we surveyed 230 senior business professionals to obtain their insights and experiences and discover their priorities for the future.

When we asked our respondents to identify their main reason for investing in CX:

• 45% said they want to increase customer satisfaction
• 32% want to increase cross-selling and upselling opportunities
• Only 12% want to increase customer retention
• Only 10% said they want to increase profitability
• Less than 1% want to better their reputation management

What are the top CX challenges that are holding organizations back?

1. Understanding customers

Understanding customers whenever they interact with your product or service is crucial to delivering a seamless customer experience, yet two-thirds (66%) of companies identify this as a significant challenge. Companies should invest in understanding the needs, wants and preferences of both existing customers and their target audience to help them create experiences tailored to each person’s unique needs.

2. Mapping and analyzing the customer journey

A customer’s buying journey isn’t a linear and simple process anymore, as consumers now go through multiple complex touchpoints and decision making steps before making a purchase. Unsurprisingly, 61% of organizations struggle to analyze their customers’ journeys effectively.

It’s crucial for businesses to map out the reasons why consumers behave a certain way, and one way to do this successfully is by using a combination of customer surveys, interviews, analytics and data, along with studying patterns online through heat maps.

Learn more: The Power of Moments: How to Create a Customer Journey Map

3. Managing and accessing data

Managing and accessing customer data is a major customer experience challenge for 60% of our respondents. To do this effectively, businesses need to have an effective data management system in place with relevant tools, security protocols and processes for accessing, sharing and storing customer data. One solution to this is using a customer data platform, which helps centralize your data and prevents it from being siloed or lost.

4. Developing a customer-centric mindset

Gaining an understanding of the customer perspective is important if you want to be successful at delivering excellent CX. Without stepping into the shoes of your customers, you won't be able to truly understand the pain points they’re experiencing. Establishing this Unfortunately, 60% of organizations say it’s still a major challenge that hinders their CX efforts.

Learn more: How to Achieve Customer-Centricity (and Fuel Better Pesonalization)

5. Implementing a multichannel strategy

Customers want smooth service, regardless of the digital or physical channels they choose to use. For example, Gen Z consumers are more comfortable browsing social media platforms, mobile apps, ecommerce sites and even physical stores before making a final purchase decision. However, many companies are still struggling to stay consistent and efficient across all channels they’re using in their marketing strategy. In fact, 57% of our respondents find it tough to implement a multichannel strategy successfully.

6. Insufficient customer feedback

Customer feedback is a crucial part of delivering a high customer experience, yet nearly 48% of our respondents struggle with gathering a sufficient amount. Customers' opinions and thoughts play an important role in spotting problems with a business’s CX efforts and help shape solutions for it. Sometimes, without incentives or rewards, it can be difficult for businesses to gather sufficient customer feedback. Creating a customer feedback loop can help solve this issue and allow businesses to collect the necessary feedback they need through different channels.

7. Outdated technology and tools

Technology is evolving rapidly, providing businesses with current tools to evaluate, inspect and enhance customer experience, which in turn helps to minimize customer service errors. 44% of our respondents suffer from using legacy and outdated tools which prevent them from adapting to their customers’ changing demands. This in turn could severely hurt a business’s ability to satisfy and retain their customers. Therefore, it’s paramount to keep up-to-date with the newest technologies and software, including your MarTech stack, by reading on and adapting to the latest trends. However, you need to ensure that the new technology you decide to employ aligns with your overall business goals and objectives to avoid using unnecessary tools.

Learn more: Which Marketing Tools Does Your Business Need?

8. Cross-departmental silos

Cross-departmental silos are another obstacle to delivering a high quality customer experience, and 42% of organizations list it as a major challenge. When data isn’t properly unified and organized, employees don't have access to a comprehensive view while analyzing the data. By having all of your data in one centralized location, you can improve the general data quality by uncovering precise and powerful insights.

To learn more about how to break down silos between teams and departments, listen to our interview with Myriam Jessier on The Strategic Marketing Show:

Listen to the episode via your preferred pocast platform:

• Spotify
• Audible
• Apple Podcasts
• Google Podcasts
• Amazon Music

Learn more: How Marketing Silos Jeopardize Your Team's Efforts (and How to Avoid Them)

Access The State of CX Research Report

For more detailed insight into the current state of CX, including businesses’ leaders' priorities to improve their CX and customer service, and what solutions they’re currently using and if they’re willing to switch vendors, download the full report today.