Cracking Tomorrow's CX Code
Executive summary and key recommendations
About Cracking Tomorrow's CX Code
Research Highlights
The CMO Council, in partnership with SAS, conducted an extensive study to understand where CX gaps and opportunities lie. The findings are based on separate surveys of more than 1,000 marketing leaders and 2,000 consumers globally.
60% of marketing leaders say the digital customer journey has dramatically changed their CX strategy, but
65% of leaders say they aren’t very confident in their ability to win and retain customers.
48% think brands aren’t doing a good job at delivering the right CX.
66% don’t feel in control over what brands do with their data and privacy.
These sobering statistics make one thing clear: Brands desperately need a CX strategy makeover.
But there’s also good news: Customers are ready to reward brands that have the courage to reimagine CX.
This executive summary of Cracking Tomorrow’s CX Code highlights four key recommendations that brands must implement when evolving their CX strategy, getting ahead of consumer privacy concerns and creating the ideal MarTech stack:
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Get Ahead of Consumer Privacy Concerns
Key Recommendation
CMOs need to look closely at the value exchange they’re providing. When consumers perceive value – such as rewards or discounts – they readily share personal information that serves as the foundation for building personalized offers. There must be no privacy missteps that could damage consumer trust and cause them to withhold information. Addressing privacy concerns will positively affect the bottom line – not addressing them is sure to do the opposite.
CMOs must act now to ensure their data strategy can handle new regulations, the imminent end of cookies, expectations for personalization and consumer fears about privacy.
5 strategies for improving data privacy
Change customer data collection policies.
Rely more on first-party data.
Focus on personalization.
Explore new technology to aid in compliance.
Implement a data ethics plan.
How do consumers feel about privacy and transparency?
say brands don’t do a good job of keeping them informed on how they’re using their data.
say brands are not transparent about their privacy rules and security breaches.
say they don’t feel they have control over what brands will do with their data and privacy in the future.
of consumers are willing to share personal information with a brand if they get something of value.
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Optimize the Tech Budget to Tackle Your Greatest Tech Challenges
Key Recommendation
If your maturity level is low in data-intensive CX capabilities, if you rely heavily on third-party data or if you have significant integration issues, take a hard look at your data environment. If it is holding you back, prioritize investment in technologies such as a CDP alongside more sophisticated MarTech.
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Top CX technology challenges
- Non-integrated CX/MarTech
- Can’t integrate customer data sources
- Can’t link online and offline customer identities
- Poor data quality
- Lack of technical agility
- Can’t track online behavior
60% of marketers prefer an integrated suite over a best-of-breed approach.
Gartner 2022 Marketing and Communications Technology survey
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Technology investments for the ultimate MarTech stack
- Analytics/AI/ML
- Marketing attribution/measurement
- Digital data collection
- Customer data platform
- Consent management
- Real-time personalization
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Find and Fix the Flaws in Your Hybrid CX Strategy
Key Recommendation
CMOs should recognize that digital transformation and hybrid CX go hand-in-hand and low maturity in either of these areas can significantly affect the quality of their CX.
Hybrid CX is here to stay. Consumers began to embrace the preference for hybrid experiences during the COVID-19 pandemic – and continue to do so today at a heightened pitch.
71%
want a blend of both physical and digital channels.
How well are brands delivering hybrid CX?
More than half of consumers (56%) say brands are doing moderately well or worse when it comes to delivering a seamless experience.
By the numbers: Hybrid CX and digital transformation
1 in 5
Fewer than 1 in 5 marketers say their hybrid models are mature.
1 in 7
Fewer than 1 in 7 marketers say they have a mature digital infrastructure.
2 in 3
Marketing leaders say it’s very important, even extremely important, to deliver hybrid CX to increase personalization, innovation and customer engagement.
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Prioritize Strengthening Loyalty Programs
Key Recommendation
CMOs should prioritize strengthening their loyalty programs, which connect to the growth of first-party customer data, provide true value to customers and satisfy a highly ranked consumer loyalty driver.
The CMO Council/SAS survey asked consumers where brands fall short:
27%
of consumers feel brands are missing the mark on loyalty programs and incentives.
47%
of consumers feel loyalty programs are one of their top reasons for being loyal to a brand.
Consumer Viewpoint
4 ways brands win loyalty:
- High-quality products
- Low cost
- Loyalty programs and incentives
- High-quality customer service
Why are loyalty programs important to CX?
Loyalty programs are critical CX engines for acquiring personal information through first-party data. Without them, marketers are missing out on a treasure trove of data.
80%
of survey respondents said they’re willing to share personal information if they receive something of value from the brand.
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Take the first step in creating a winning CX strategy
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