5 things to know about the state of CX in APAC in 2024

Automation is rapidly becoming a cornerstone of CX strategy, but omnichannel integration remains a significant hurdle

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Jerome Smail
08/28/2024

As the CX landscape continues to evolve, businesses in the Asia-Pacific (APAC) region are navigating a unique set of challenges and opportunities.

Our 2024 Global State of CX report shows a region in transition, where automation is rapidly becoming a cornerstone of CX strategy, but omnichannel integration remains a significant hurdle.

CX leaders are juggling competing priorities while facing increasing pressure to prove the return on investment (ROI) from their initiatives.

Despite these challenges, there is a growing recognition of the importance of CX, although the success with which it is integrated into organizational strategy varies widely.

Here, we delve into five key insights from the report, giving you a snapshot of the current state of CX in the APAC region – and what brands are doing to stay ahead in this competitive and dynamic market.

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1. Automation takes center stage in APAC's CX strategy

Automation is at the forefront of CX strategies in the APAC region in 2024. A substantial 44 percent of businesses told us they plan to invest in the automation of CX and service functions, reflecting a strategic shift towards enhancing operational efficiency and customer interaction through technology.

This investment in automation isn't happening in isolation; it's part of a broader technological upgrade, with 26 percent of companies also prioritizing customer relationship management (CRM) systems, customer engagement platforms, business continuity plans, and data insights and analytics capabilities.

The interest in automation is further evidenced by the 24 percent of respondents who are focusing on conversational AI chatbots and virtual assistants, and the 22 percent who are investing in artificial intelligence (AI) and machine learning (ML) for business operations.

This focus on automation and AI signals a strong commitment in the APAC region to leveraging advanced technologies to stay competitive in a rapidly evolving market.

2. Omnichannel integration remains a challenge

Despite the growing emphasis on omnichannel strategies as a cornerstone of effective customer experience management, full implementation remains elusive for many APAC organizations.

Only 16 percent believe they have successfully implemented a comprehensive omnichannel model and strategy, which means that the majority are still navigating significant challenges in this area. A telling 35 percent of businesses admit to operating with a multi-channel model where the connections between channels remain fragmented, leading to disjointed customer journeys and potential friction points.

Furthermore, 22 percent of businesses report having only one or two key customer contact channels, which limits their ability to offer a truly seamless experience. While 17 percent of respondents have managed to establish connections between all their channels, these connections are not yet completely seamless, indicating ongoing integration issues.

These findings highlight the need for continued investment and focus in creating a unified and cohesive omnichannel experience.

3. Competing priorities are the top challenge for CX leaders

The complexity of managing CX in APAC is reflected in the fact that when asked to select their top three challenges, 33 percent of CX leaders cited competing priorities. This underlines the difficulty of balancing immediate business demands with long-term customer-centric goals. The challenge of building a customer-first culture, which was identified by 31 percent of respondents, further complicates this balancing act.

For many organizations, aligning business objectives with CX initiatives is a significant hurdle, with 29 percent of leaders highlighting this as a key issue. Additionally, 24 percent are grappling with the digitalization of existing platforms, solutions, and services – a task that often requires significant resources and strategic focus.

Assigning internal responsibility for CX and creating actionable insights from data – challenges cited by 22 percent of respondents – also remain critical areas of concern.

All of these hurdles to conquer reflect the multifaceted nature of CX management in APAC, where leaders are constantly navigating a complex landscape of competing demands.

4. Pressure to prove CX ROI is intensifying

The demand for tangible results from CX initiatives is becoming more pronounced in APAC, with 58 percent of respondents reporting that the pressure to prove the ROI of their initiatives has increased over the past 12 months. This growing emphasis on ROI reflects a broader trend towards greater accountability and scrutiny in CX spending.

Interestingly, 31 percent of respondents noted that this pressure has remained steady, indicating that for some, the focus on ROI has long been a critical aspect of their CX strategy.

Notably, however, no respondents reported a decrease in pressure to demonstrate ROI – a sign of the unrelenting demand for CX leaders to justify their budgets and showcase measurable outcomes.

This heightened focus on ROI is a double-edged sword for CX professionals; while it can drive more strategic and data-driven approaches to customer experience, it doubtless places added stress on CX leaders to deliver results that align with broader business objectives.

5. CX as a strategic function is still gaining traction

While customer experience is becoming increasingly recognized as a strategic priority in APAC, the maturity of CX functions varies widely across organizations.

Our report revealed that for 30 percent of businesses, CX is central to everything they do, with a strong emphasis on making it everyone’s responsibility. These organizations see CX as a critical driver of business success and have integrated it into their core strategy.

However, 25 percent of businesses are still in the process of gaining buy-in for CX initiatives, often leveraging early wins from CX projects to secure broader stakeholder support. This suggests that while CX strategy is gaining importance, it is not yet fully placed at the heart of all organizations.

Moreover, 22 percent of respondents expressed a belief that CX needs to deliver clear returns to be taken more seriously within their business, indicating a more cautious approach to CX investment.

Interestingly, nine percent of respondents feel trusted to be more experimental with CX due to solid past returns, while six percent highlighted that CX is still not invited to the table when deciding organizational strategy.

Alarmingly, however, eight percent of businesses do not have a dedicated CX department or function, pointing to a significant gap in CX maturity in some parts of the region.

Progress and challenges

As brands in the APAC region continue to refine their approach to CX, the progress being made is clear. However, significant challenges remain.

Success in the coming months will depend on how well businesses can address these obstacles while staying committed to enhancing customer-centric practices.

With the right focus, organizations across APAC are well-positioned to elevate their CX efforts further, ensuring they meet – and even surpass – the evolving expectations of customers in the region.

Special Report: The Global State of CX 2024

Now in its eighth year, this edition of our flagship annual report is also the first in the Global State series to examine the profit and loyalty benefits delivered by disruptor technologies such as generative AI and virtual reality. Download the Global State of CX 2024 now.

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Topics: Customer Experience