There is a prevailing philosophy in customer experience (CX) that customers do not evaluate their interactions with a business solely against its direct competitors. Instead, they compare it to the last positive experience they had – regardless of industry.
It's called expectation transfer and this insight is critical because it means that simply outperforming a competitor within your sector is no longer enough. For instance, if you operate a bank, delivering a superior experience compared to the bank across the street does not guarantee customer satisfaction.
Your customers’ expectations may instead be shaped by seamless interactions with brands outside the banking sector, such as streaming service apps like Netflix or Apple Music.
This shift in customer expectations presents two key dilemmas:
- How can businesses meet customer expectations when those expectations are shaped by an infinite range of brand interactions?
- Are there inherent limitations to the level of customer experience a business can provide based on its industry or nature of service?
The second question is particularly intriguing – not from a budgetary perspective, but in terms of fundamental industry constraints.
For example, a funeral parlor does not necessarily need a mobile app, and when messaging your corner fruit and vegetable supplier on WhatsApp, customers likely prefer a human response over an AI chatbot. These examples highlight that not all businesses require the same digital CX innovations to be effective.
Beyond industry leadership: The true competition in CX
Given this reality, businesses must recognize that being an industry leader is not enough. The true competition in CX extends beyond industry peers to any company that has delivered an exceptional experience to your customers.
So, what is the common thread among great customer experiences across different industries? How can businesses deliver consistently outstanding CX that stands up to any other positive interaction a customer has had?
The answer: Empathy and personalization
The cornerstone of all great customer experiences is empathy and personalization. Technology should serve as an enabler of these two principles, ensuring that every customer interaction feels intuitive, relevant and human-centered.
Personalization can take various forms:
- AI and machine learning to tailor product recommendations for music streaming or e-commerce platforms.
- Chatbots that provide instant, accurate answers, saving customers valuable time.
- Traditional customer service channels where speaking to a human agent or visiting a physical location offers reassurance and clarity.
The ultimate CX goal: How customers feel at every touchpoint
When designing CX strategies and implementing technology, the primary consideration should always be how the customer feels at every point of contact with the business.
Whether through digital innovation or human interaction, companies that prioritize emotional connection and seamless service will set themselves apart in an increasingly competitive landscape.
In the end, the businesses that thrive will be those that recognize CX is not just about transactions – it’s about creating meaningful, effortless experiences that resonate with customers, no matter where their expectations come from.
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