Hezz – User Experience Has Changed Since 2019. Did You Know?

User experience risks burning less bright By 2022, profitability will replace customer experience as the CMO’s No. 1 strategic priority, reducing investment in marketing-funded CX programs by at least 25%. Growth is the CEO’s No. 1 priority, and many CEOs look to the CMO to deliver that growth — yet there is a disconnect between this mandate and the metrics and behaviors used to track and provide it. “Many CMOs regard CX as an ephemeral concept and don’t prioritize metrics demonstrating its value.” CMO investment in customer experience (CX) remains strong. Since 2017, CMOS consistently ranked and invested in CX as a capability needed to achieve its marketing goals. Nonetheless, many CMOs regard CX as a brief concept and don’t prioritize metrics demonstrating its value to the enterprise. When asked to state the top three metrics needed to inform marketing strategy, less than 6% of CMOs mentioned key CX metrics such as Net Promoter Score (NPS) and lifetime value (LTV).

CMOS must not only align marketing programs with business success but also put in place accurate measurements to evaluate CX’s role in that success. Failure to capture business-critical metrics such as cost of acquisition, retention, and churn rates means CEOs will withdraw investments from poorly quantified CX programs.

Opt-in to value creation by going beyond opt-out In 2023, brands that put in place user-level control of marketing data will reduce customer churn by 40% and increase lifetime value by 25%. Regulatory changes and consumer privacy concerns are reshaping how companies collect, use and approach data-driven marketing. Data collection regulations in the EU (GDPR), Brazil (LGPD), India, Japan, and California force businesses to be transparent about the data they gather and enable customers to manage and edit it. “Firms that use privacy as a brand attribute receive customer satisfaction and loyalty ratings that are significantly higher.” At the same time, companies that violate privacy promises or expose customer data are at risk of customer defection and decreased engagement. Firms that use privacy as a brand attribute receive customer satisfaction and loyalty ratings significantly higher than their competitors. Showing customers the data you collect lets you clearly explain how it benefits them — from understanding their personal preferences and offering greater convenience to increasing awareness of complementary products and services. All contribute to greater customer loyalty and create an opportunity to increase lifetime value.

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Content creation will get a boost from AI By 2022, and content creators will produce more than 30% of their digital content with AI content-generation techniques, increasing productivity and advertising effectiveness but also disrupting the creative process. One of the most significant barriers to the marketer’s dream of creating effective personalization at scale is the expense and time required to create content. This challenge is the target of some of the most impactful breakthroughs in AI, specifically generative content creation — using AI techniques to synthesize realistic video, audio, images, and text. Generative algorithms can produce thousands of variants, test and evaluate them against specific target groups or individuals, and optimize campaign content in hours or days. While this will undoubtedly change humans’ role in the creative process, it is not a forecast of the wholesale replacement of talent with technology. Human oversight and judgment will still be required for the foreseeable future, but many roles will shift, and new skills will be required.