User Experience

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

Date: December 26, 2022
David Pinian

User Experience Overview

How will UX (user experience) factor into advancements in artificial intelligence, the web, and digital experiences?

Digital experiences are more critical to business success than ever before. Due to the pandemic, the race to digitize has reached top speed. Enterprises are under pressure to evolve, compete and disrupt in the face of an increasingly uncertain global economic climate. Consumers and businesses alike have raised the stakes in terms of what they expect and demand from digital. As business leaders recognize that human-centered, ultra-personalized digital experiences are in high demand, UX design is coming into the spotlight like never before. Enterprises instinctively understand the importance of optimizing how customers interact with their brand. But how can they tell the UX hype from the long-term trends? Let’s take a closer look at five UX trends to watch in 2023.

History & Future Of User Experience

Changes to user experience, analytics, the expanding influence of Amazon, and more mean marketers must effectively balance competing demands. Equilibrium was the name of the marketing game in 2019. Consumers seek greater convenience and constant connection with everything and everybody and, as a result, embrace voice interfaces and bite-sized videos. Yet consumers and legislators demand more privacy and better data stewardship due to companies’ overreach and missteps. This moving target of consumer trends means marketers must re-evaluate their communication strategies in light of changes in regulations, behaviors, organizations, and automation. “By 2022, profitability has replaced customer experience as the CMO’s No. 1 strategic priority.” The call to balance competing demands cuts across marketing disciplines and budget categories and required marketing leaders to do three things differently since 2019:  

  • Build a long-term quantifiable customer experience capability while delivering a visible, shorter-term business impact.
  • Deliver more personalized customer experiences that rely on increased automation.
  • Reduce customer churn by giving users more control, not less, over the data brands store about them and how they use that data.   

“Recovering a modicum of equilibrium across consumer behaviors and technology innovation will require organizational alacrity, a laser focus on customer needs, and a balanced embrace of automation,” says Charles Golvin, Senior Director Analyst Gartner for Marketers.

 

User Experience for CMO's

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.

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. 

How will User Experience look at 2023?


Analytics teams bust after booming By 2023, 60% of CMOs will slash the size of their marketing analytics departments by 50% because of a failure to realize promised improvements. Marketing analytics (next to CX) is a top investment area for many CMOS. According to the 2018-2019 Gartner CMO Spend Survey, 62% of CMOs believe they’ll increase their marketing and customer analytics budget in 2019. Teams have ballooned over the past three years to absorb this investment increase. Between 2015 and 2018, the headcount for an average marketing analytics team grew from 22 to 45 full-time employees. “Data scientists perform basic activities, such as data visualization and preparation, in more than 45% of marketing organizations.” Despite growing C-suite support, marketing analytics teams have yet to progress much in advancing their maturity. According to the Gartner 2018 Marketing Data and Analytics Survey, 66% of marketers ranked themselves as an “intermediate” Level 3 or below on the Gartner Data-Driven Maturity Model. At the same time, expensive, talented analytics resources must be aligned. Data scientists perform basic activities, such as data visualization and data preparation, in more than 45% of marketing organizations. Most analytics teams say integrating and formatting messy data — and not high-value activities such as using data and insight to demonstrate business value — is consuming much of their time. Read more: Build Stronger Marketing Analytics With Cross-Training.

User Experience Automation?

Automation optimizes multichannel marketing. By 2023, autonomous marketing systems will issue 55% of multichannel marketing messages based on marketer criteria and real-time consumer behavior, resulting in a 25% increase in response rates. More automated and more mature multichannel marketing is on the rise. According to the 2017 Gartner Multichannel Marketing Effectiveness Survey, 38% of marketers in 2015 said their marketing mainly involved event triggers. In 2017 that number rose to 43% and was expected to reach 59% in 2019. “Algorithms will replace rule-based channel selection based on an individual’s propensity to respond.” To fuel this rise in automation, Gartner predicts that by 2020, more than 50% of deployed multichannel marketing hubs will include a productized AI solution. In pilot tests, the campaigns employing predictive segmentation and content selection will outperform manual selection by 100%. Algorithms will replace rule-based channel selection based on an individual’s propensity to respond. When consumers don’t take the desired action or don’t respond, algorithms will re-engage select audience members with additional messages or identify complementary channels such as display advertising or SMS. If an email fails to drive the desired response, there is no longer a need to schedule one manually — an automated solution will execute the follow-up.  

Short video ads go mainstream. By 2023, consumers will watch 20% fewer minutes of video advertising per day than they do today. Brands will adapt by embracing short-form video ads. After initial resistance, traditional ad sellers will embrace the shift to shorter ad-unit sizes. These ad units respond to shifting attention patterns and the growth of ad-free subscription services. Early entrants, such as Google’s YouTube, and new entrants, like Roku, offer innovative ad products. In September 2017, YouTube noted that one in three large customers used six-second “bumper” ads to quickly deliver messages to viewers — a 70% increase in adoption over the first half of that year. New, shorter ad formats are already in use in National Football League (NFL) games during the short breaks when referees review a contested call. They are more akin to a pop-up or interstitial ad unit familiar to an online media buyer than a traditional 15-second commercial.

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