Lessons from digital leaders on customer experience

Our recent webinar on ‘The cost of getting customer experience wrong’, brought together industry experts to discuss the critical challenges facing organisations in their quest to deliver exceptional customer experiences. The panel highlighted some stark findings from our recent report, Know me or lose me, which revealed that over half of the 250 business leaders surveyed admitted poor CX has cost them millions in revenue, with a similar percentage believing they've already lost customers due to substandard experiences.

Bridging the gap between business priorities and customer needs

The conversation explored a fundamental disconnect in how businesses approach customer experience. Despite widespread acknowledgement of its importance, many organisations continue to prioritise operational efficiency over customer-centricity. As Cat Morse, Head of Digital Customer Experience at Royal London noted, companies often make decisions to satisfy stakeholders rather than customers, despite evidence showing that focusing on CX drives greater profitability in the long term.

Tim Mason, CEO of Eagle Eye and one of the pioneers behind Tesco Clubcard, agreed and emphasised that truly customer-driven strategies begin with understanding customers' lives and needs, not with data or technology. Yet while plenty of businesses "talk a good game," when it comes to offering a "genuinely customer-first strategy," not enough deliver on their promises. Too often, the tech comes before the people

The importance of the customer-first approach

The role of data in customer experience formed a central thread of the discussion. Rich Bovey, Chief for Data at AND Digital, observed that "data reveals what people do, but rarely why."

He highlighted the need to combine quantitative insights with qualitative understanding of customer motivation. Data may be essential, but its true value is only realised when integrated into a customer-first approach. With that focus, Tim Mason noted, businesses will naturally "buy the right systems" and "use data in the right way to benefit customers."

The AI arms race and the key to a flying start

One of the most eye-opening aspects of the report was that 56% of respondents said they had made AI-based decisions despite knowing the data on which those decisions were based may have been flawed.

This rush to adopt AI without adequate data foundations represents a significant risk to customer trust and brand reputation. It’s something enterprise organisations are taking increasingly seriously. Rich Bovey pointed to Salesforce's recent acquisition of Informatica, a data management platform. At $8 billion, the price was four times what Salesforce has to date invested in AI specifically, a powerful acknowledgement that the quality of AI rests on the quality of the data that underpins it.

But what about the mid-market? The report highlighted a developing 'AI arms race' between enterprise and mid-market companies. Despite the democratisation of AI tools, the panel agreed that data quality and maturity create the real competitive advantage. Organisations with historic investments in their data infrastructure have a significant head start, regardless of their size.

The cultural north star

Despite the power and scope of data and AI, the panel agreed that perhaps the most crucial factor in delivering exceptional customer experiences remains cultural alignment. That is what creates the 'north star' that guides employee decisions, even in uncharted territory. When staff understand and internalise customer-centricity, said Tim Mason, they naturally make choices that enhance the customer experience.

Royal London's approach is a good example of this. Cat Morse described how the organisation has embedded customer focus in everything from organisational purpose to individual team objectives, so that everyone has "a clear line of sight between what they are doing and how it connects to the wider ambition."

Empathy + data

What does customer-first really look like? To round off, the panel gave some examples. It’s the restaurant that changes its napkin colours to avoid leaving guests with white lint on dark skirts and trousers. It’s the airline that supports parents travelling with children and helps take the stress out of their journey.

In each instance, customer first is a business able to combine empathy with data to show a real understanding of customer pain points and then address their needs.

To watch the webinar on-demand, or to read the full Know me or lose me report, click here.