Five Customer Experience Trends to Look Out for in Insurance in 2023
According to a report from McKinsey, “Insurers that offer superior customer service earn more profit than their competitors..."
Read moreRetail Customer Experience: 5 Trends Businesses Must Watch Out for in 2023
Retail brands have to battle to be unique among many others frequently. Businesses need to do more than offer the widest range of products at an amazingly discounted price and other exciting offers. With an ever-increasing competitor list, a good option of products and discounts aren’t enough to attract and retain consumers. The only deciding factor that can distinguish your brand from the crowd is the retail customer experience (CX) you offer.
According to a recent survey, 78% of retail customers have not made an intended purchase due to a poor service experience. That’s not all; another survey revealed that 89% of consumers switched to buying from a competitor because of a poor customer experience in retail.
According to research reports, a good retail and customer experience can help win customers from your competitors even at lower prices. That’s not all; research by Bain & Co revealed that 86% of consumers are likely to pay more for a better customer experience, whereas a Capgemini finding showed that 8 in 10 customers are ready to increase spending with a company if they offer them better experiences in return.
Through the delivery of an unforgettable CX, you are not only setting yourself apart from the competitors but are also strengthening customer relationships with the brand and establishing trust and credibility on positive emotions. A happy customer will therefore gravitate towards businesses that meet their expectations and make them feel good and valued.
If your team wants to stay up-to-date on the latest trends to build their retail customer experience strategy, below are some of the significant customer experience trends that need attention to succeed in 2023 and beyond.
1. Hybrid and Omnichannel Customer Journeys
Customer journeys have evolved over the years and now include more complex hybrid models. Research shows that, on average, companies that use omnichannel customer engagement strategies for enhancing customer experience in retail can retain 89% of their existing customers.
Customers utilize several channels throughout their experience, requiring retailers to provide seamless care for all points on that path without losing sight of or understanding who you’re serving at any given moment. To do this successfully, companies need accurate knowledge about customer paths across different platforms so they can invest resources accordingly – like technology tools designed around single views rather than piecemeal information collected from various places at once (both online/offline).
2. CX Success to Be a Shared Business Responsibility
The future of retail is now at your fingertips. With hybrid and omnichannel customer journeys, CX’s success will be a shared responsibility across the business with AR/VR technology driving immersive experiences that are contactless or autonomous for an unforgettable shopping experience.
CX’s success will require a significant partnership between all departments. The marketing team has traditionally been tasked with creating the customer experience. Still, this responsibility extends beyond just online media into every aspect of their business. So they must align themselves towards one goal: providing an excellent service or product through every touchpoint, no matter how small!
3. Increased Use of Technologies to Felicitate Experiential Shopping
Augmented reality (AR), virtual reality (VR), and the metaverse are immersive technologies used to create experiential shopping experiences.
For example, IKEA has developed an app that allows customers to see how furniture would look in their homes before they buy it. Sephora has created a virtual makeup artist that uses AR to help customers try on makeup products before they purchase them. These immersive experiences are becoming more common as businesses look for ways to engage with customers in new and innovative ways.
4. More Businesses to Offer Cashless and Contactless Shopping and Delivery
Several factors are driving changes in the way we shop. First, there has been a shift in consumer behavior as people are increasingly looking for ways to save time. In fact, according to a study by PwC, 43% of consumers say they would be willing to pay more for goods and services if it meant they could save time. This desire for convenience will only increase as our lives get busier and busier.
Second, there has been a proliferation of new technologies that have made cashless, contactless, and autonomous shopping possible. Mobile commerce apps like Amazon Go use cutting-edge technologies like computer vision and artificial intelligence to allow customers to make purchases without waiting in line or going through a traditional checkout process.
Adopting cashless, contactless, and autonomous shopping technologies is also helping businesses streamline their operations and reduce their overhead costs while enhancing retail customer experience at the same time. For instance, by using an autonomous delivery vehicle, a business can eliminate the need for a human driver, saving them money on labor costs. In addition, businesses can also use data collected from cashless transactions to understand customer behavior better and optimize their inventory levels which can help them save money on inventory costs.
5. Experimentation to Be the New Business Norm
Experimentation is essential for businesses that want to stay ahead of the curve in today’s rapidly changing world. This means trying new things and failing quickly to learn from your mistakes and adapt to change so that you can constantly innovate and improve your CX offerings.
There are a few key things businesses need to do to embrace experimentation. First, they need to have a culture of openness and transparency where new ideas are encouraged, and mistakes are seen as learning opportunities.
Second, businesses must invest in experimentation tools and infrastructure to test new ideas and iterate on them quickly.
Final Thought
To stay ahead of the competition, businesses need to invest in technology that provides a single view of the customer journey, align all departments around the customer experience, create immersive experiences using AR/VR/metaverse technologies, offer cashless/contactless/ autonomous shopping experiences, and embrace experimentation as part of their culture. By doing so, retail businesses will be well-positioned to meet the needs of today’s discerning consumers.
At Quinnox, we understand retail and strive to provide solutions to bridge the gap between you and your end goal – satisfied customers. Our team of experts is ready to assess your needs and provide a comprehensive plan that puts your customers first.
Connect with us today, and let’s improve your customer journey together!
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