31% of Leaders Say Protecting Data is a Concern with AI

Merkle dentsu’s technology-enabled, data-driven customer experience platform unveiled the second instalment of its 2024 Customer Experience Imperatives Report research series. The report revealed the attitudes and priorities of over 2,100 consumers and 820 global CX leaders across eight industries, including healthcare, retail, travel, and more. 

A company-wide commitment to the customer sets any organisation apart. While pursuing the latest trends and technologies may be tempting, maintaining a focus on the ultimate customer-centric goal is essential for brands. It’s wise to question technologies and strategies with a hint of scepticism. 

Recently, Merkle dentsu’s technology-enabled, data-driven customer experience platform unveiled the second instalment of its 2024 Customer Experience Imperatives Report research series. The report revealed the attitudes and priorities of over 2,100 consumers and 820 global CX leaders across eight industries, including healthcare, retail, travel, and more. 

What are the key attributes of CX leaders for a customer-centric approach?

Emphasising the importance of attributes in winning customers, Pete Stein, Global President of Merkle, said “Success in customer centricity requires effort and excellence across a range of related disciplines, including strategy, data management, and technology-powered innovation.”

• Around 81% of the C-suite leaders revealed that they had followed a codified customer experience strategy for several years. 
• Approximately 59% of the CX leaders look at sales/conversion data at a much higher rate than other groups
• More than 54% of leader believe that their Martech platforms are very well-integrated 
• Around 72% of C-suite leaders have already invested in or have implemented AI-driven CX solution

Be sceptical while investing in CX tech platforms

Brands often attempt to solve their data woes by investing in discrete technology platforms such as customer data platforms (CDPs). While CDPs are certainly part of the solution, they can’t solve data problems on their own. It’s best to be sceptical and ask the right questions

The problems to focus on:

• Too much complexity and departmental overlap  
• Lack of clarity/certainty about which CX initiatives to invest in
• Less coordination or cooperation between the primary roles and departments that support CX 
• Lack of ROI from past CX initiatives or investments

Winning customer loyalty in a tech-savvy world

Amazing customer experience starts with an organisational commitment to empowering customers and improving their day-to-day activities. The crux is to delve into their baseline expectations and organise a strategy around meeting and exceeding them. Here are a few strategies which C-suite leaders suggest: 

Getting teams on board with a centralised data approach 

Businesses with siloed or contradictory departmental goals can never understand the nuances of customer needs. Research found that consumers want cost-effectiveness, convenience, and consistency from their brand experiences. This is only possible when teams within an organisation share the same vision and goal. 

Centralising data in a cloud-based environment provides real-time accessibility to all teams and serves as the basis for democratised, data-driven decision-making and governance. 

Prioritising long-term success metrics

CX Leaders prioritise long-term success metrics, such as customer lifetime value(CLV), over touchpoint-specific KPIs like clicks, downloads, or leads. The research found that 87% of CX Leaders evaluate the efficacy of their CX programs through CLV and sales/conversion metrics. Meanwhile, 73% of leaders saw an increase in client retention and/or loyalty in the past 12 months. 

Additionally, the survey unveiled that 91% of CX Adopters enjoyed an increase in client retention over the past 12 months, signifying the importance of charting a path to get there. 

Choosing customer feedback over competitors 

C-suite leaders prioritise customer needs and expectations when making CX investments at a higher rate than all other groups, i.e. an average of 58% compared to 37%. They believe in  customer feedback over competitors as a driving force behind their investments.Whereas, every other group preferred competitors over customers. 

Asking customers about their preferences for data collection 

Personalisation isn’t just about targeted messaging; it’s about understanding individual needs. While customer behaviour can provide clues, the best approach is to ask for preferences directly. Businesses can gather zero-party data directly from customers, going beyond basic demographics and learning about their preferences. Companies can understand how customers feel about their brand, products, and experiences through surveys, polls, and website interactions. 

Concerns regarding AI-powered CX technologies and how can they be avoided 

Consumers are sceptical, too. It’s prudent to approach AI with a healthy dose of scepticism. Protecting consumer data and privacy is also the most cited concern among all business leaders, at 31%. 

Embracing ethical AI governance can help safeguard brands against the risks of AI-enabled technology. Ethical AI is a set of guidelines and practices designed to ensure that AI is used in a way that respects fundamental values, such as individual rights, privacy, non-discrimination, and non-manipulation. 

For instance, Temenos launched its first responsible genAI solution for core banking, revolutionising the way banks interact with their customers’ data, boosting productivity and profitability to realise a substantial ROI. 

Configuring a framework will enable businesses to embrace promising new AI-driven technology expeditiously while mitigating the risks that inevitably come with the adoption of any new, transformative technology.