The 6 biggest trends influencing customer loyalty in 2023

Digital is everything, customer loyalty is changing and customer experience teams face unprecedented pressures. These are the key takeaways from CX Network’s latest Global State of CX report, compiled with the findings from our Global State survey completed earlier this year.

Here we dive into the trends we have identified as having the biggest impact on customer loyalty in 2023, along with advice from CX practitioners to ensure they deliver great service and retain customers despite challenging conditions.

Related content: How to use ChatGPT to elevate your CX function

1. Customers want emotional connections

Loyal customers have an emotional connection to a company or brand, which can be formed by providing exceptional service, personalizing a product or service or by developing a rapport between the employee and the customer.

Customers that have formed a bond with a company will even be prepared to turn down a lower price to continue using its services or products. André Grandt, CX and digital transformation lead for Saudi Arabia and the Gulf at Roche, explains: “During times of hyperinflation, prices can adjust as the company needs and the customer will remain loyal because they have the emotional connection.”

Interestingly, our research found that the transition from physical to digital transactions has not hindered the relationship between customer and brand, but has in fact increased opportunities to form emotional ties.

Iain Langridge, product and CX lead for Amazon Games, says that this is because of the accessibility of digital. “You have to think about the product in that context – if it is always there, always on, always accessible, what does it mean to your customers?” he notes. “As a customer buys your product they are in a relationship with your company. You have to pay off on that relationship and online is a great way to do that. It is manageable and it is where your customers are.”

2. What everyone is talking about: ChatGPT and AI

There is no doubt that artificial intelligence (AI) is revolutionizing the way businesses operate, and its impact on consumer behavior must not be underestimated. Devon Mychal, senior director of product marketing for Talkdesk, says that organizations that add AI to trigger additional touchpoints can build the emotional connections that foster loyalty.

“It is not about selling me something new based on what I have bought, but using data to engage with the customer,” he explains.

For example, if a customer searches an ecommerce store for outdoor equipment that would be needed on a cold weather trip, there could be flags in this interaction that show the customer is about to take this trip. An AI can analyze this data and produce insights that give the company several options: point the customer towards more equipment that could be useful, reach out about previous purchases and offer a free upgrade, or direct message relevant content that offers tips for a safe trip, without expecting a sale conversion.

Mychal says: “The engagements that are value adds but do not immediately lead to sales suggests a business cares. It is thinking about the experience I will have with their products, rather than selling more products.”

Additionally, AI technologies such as ChatGPT can help streamline information provided by contact centers to customers, giving fast, eloquent responses with a human tone. Customer queries can be better contained in self-service, while agents are more accurately informed on how to address intent and drive satisfaction during live service.

3. Sustainable and ethical practices are a necessity

Our survey found that 42 percent of CX practitioners agreed that customers are becoming more conscious of sustainability, with a further 19 percent saying they strongly agreed with this statement.

Additionally, 25 percent of survey respondents said that customers’ awareness of ethical working conditions was among the top three behaviors influencing their planning in 2023. 

These figures show that sustainable policies and ethical practices are no longer a “nice-to-have”, but a necessity, and adopting these into a company’s values can also a be source of emotional connection to customers – therefore boosting brand loyalty.

Related content: What is omnichannel? A CX Network guide

4. Customers are spending less

In last year’s Global State of Customer Experience report, our research found that 44 percent of customers were willing to spend more on convenience. This figure dropped to 38 percent in 2023, reflecting a wider trend of decreased spending.

Two of the top three customer behaviors influencing planning for 2023 involve spending, with 43 percent of all respondents citing the current economic uncertainty as impacting customers’ buying decisions.

In North America and Europe in particular, reduced customer spending is of the most concern. By contrast in the Middle East and Asia customers are spending more, a top-ranking factor for our respondents’ planning priorities.

5. Younger customers demand speed, but customer-centricity is more important

The rise in digital services has led to higher demand for convenience and speed, with 38 percent of CX practitioners reporting that customers will spend more for convenience, and 42 percent saying that customers are willing to self-serve at present.

Grandt says this is especially true of the younger demographic, however companies must not try to deliver fast service at the expense of everything else. “You cannot afford to lose sight of competitors, but the companies that are the most successful in a certain industry are customer centric,” he says. “Speed is very important at present, especially for the younger generation of customers, but not at all costs. If your overall experience is not pleasant because you are so focused on speed, then it will hurt you in the long run.”

6. Frictionless experiences across platforms are vital

Since the Covid-19 pandemic disrupted physical customer experiences, consumers have had more platforms to choose from when interacting with a brand. Moreover, consumers now expect to be able to switch between online, chatbot, email and social media seamlessly.

By collecting customer information at each of these touchpoints, companies can build an omnichannel model to ensure experiences are connected regardless of the platform they take place on.

In terms of the most valuable channel of communication available, Langridge says it is text messaging, because it can be automated with an AI such as ChatGPT.

“Quite simply, nobody wants to call anybody – not even their friends – although there are some instances where phone is better for more complex or more human engagements,” he says. “There is nothing you cannot do with SMS and the important thing about text messaging is that as a technology it is hugely extensible,” he says.

With the recent releases of ChatGPT-4, as well as Google’s Bard and Meta’s LlaMA, automated SMS communications could become a key customer touch point.

Unleash unrivalled loyalty: dive into the Global State of CX

Harness emotional connections, navigate shifting expectations, and align your brand values for success. Be inspired by top brands such as Amazon Games, Nike, Roche, John Holland Group, Humm Group, Wayfair and Talkdesk, explore pivotal roles of social causes and sustainability.

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