The State of CX 2023 report presents emerging consumer trends, innovation opportunities, and best practices by some of the leading firms in the Asia Pacific region. The report is divided into three main sections:

1. Recap of top 2022 consumer trends
2. Key trends and companies shaping our future
3. Partners for CX success: Vendors and BPOs

#1 Recap: Top 2022 consumer trends

i. Social searching on the rise

Search habits are changing.

• The traditional “just Google it” approach is being replaced by the discovery page or FYP (For You Page) on social media platforms.
• Common among Gen Z: using social media (Instagram and TikTok) to find new content, products, brands, and information

ii. It’s the customer’s world (and we are just living in it)

• Customers are now putting themselves first – interest in self-care has been rising steadily in the last 5 years

• Consumers are worried about their finances, with 61% globally showing concern. To cope, customers plan to increase saving habits and prioritize essential items over “nice-to-have” expenses.

iii. Securely personalising to win customers’ hearts

Hyper-personalisation is now the top priority – but companies need to handle customer data with care while perfecting offerings suited for different individuals. Here are some observations:

• Gen Zs and millennials are generally willing to share their data in exchange for personalised experiences
• 60% of customers states transparency as brands’ most important, when compared to other traits
• 48% of companies understand the pertinence of data security and have made plans to improve cybersecurity

iv. We are starting to define how the metaverse will look like, but more has to be done

2022 is a year where brands experimented with creating authentic experiences on the metaverse. While that has laid the foundation for building an immersive and extensive environment, the space is still far from mature – more building and testing has to be done.

v. Conversational AI supercharged by ChatGPT

ChatGPT has gained traction since its launch last November – it is now one of the fastest growing platforms. Attracted to its ability to contextualise and orchestrate intelligent conversations, it is being used for multiple purposes:

• Text summarising
• Answering complex questions
• Marketing and social media copywriting
• Text translation
• Code debugging

The platform powered by generative AI has sparked discussion around future possibilities. The industry is keen to unfold its potential in supporting customer service roles.

#2 Key trends and companies shaping our future

i. Orchestrating a purpose-driven CX

Making good products alone is no longer sufficient. Brands need to incorporate a bigger purpose into their day-to-day operations. Brands can do this by:

• Integrating sustainable practices for a better tomorrow
• Building meaningful communities
• Fostering brand authenticity

Case study: Lululemon “Connect ꞏ Grow ꞏ Sweat”

• Collaborates with local “Ambassadors” who are athletes, trainers, influencers, artists, chefs or studio owners
• Ambassadors connect the brand with communities and motivate them “to get sweaty” and active
• Asia-wide “Be You Be Well” festival: mindful yoga, crystal bowl meditation and barre sessions
• 4.3 million followers on Instagram
• #thesweatlife hashtag on Instagram garnered >1.5 million posts of users on their fitness journey

ii. Winning in the digital age

twimbit believes companies should measure their digital success with 3 core metrics:

1. Digital engagement value

Evaluates how engaged one is towards the brand – ensuring customers’ time is well spent.

Case Study: Alibaba

• Livestreaming interaction encourages a strong recurring relationship between hosts and viewers

• >300 million consumers watched livestreaming sessions on Taobao Live during Singles’ Day 2022

2. Digital efficiency value

Evaluates how easy products or processes are – ultimately helping customers save time and effort

Case Study: Kakao Bank

• Account opening process takes only 7 steps under 7 minutes, with intuitive guides

• 20 million users and the #1 mobile banking app in Korea

3. Digital ecosystem value

Measures the value generated by offering interconnected services that address different customer needs across life journeys

Case Study: Ping An

• Insurance + health management all-in-one service catered to the young, retired and old age segments
• 30% of Ping An Life’s new customers acquired through healthcare services

iii. Unlocking the value of data with AI analytics

Consumers want effortless interactions and only vouch for brands that adapt to their needs rapidly. AI will help companies extensively in building meaningful relationships. Use cases of AI include:

• Robotic Process Automation (RPA)
• Natural Language Processing (NLP)
• Computer vision

Case study: Jio Mart “Do you grocery shopping on chat”

• End-to-end grocery shopping experience from browsing items, adding to cart and making payments on WhatsApp
• Chat-based search helps customers better navigate and personalizes suggestion based on location
• WhatsApp now handles 40% of customer support
• Average customer spend increased by 20% in 3 months

iv. Reimagining customer journeys

Brands need to meet customers where they are. They should:

• deliver consistent experiences through both brick-and-mortar stores and digital channels
• go that extra mile to meet customers where they are
• set up interaction platforms which are easily accessible to all

Case study: Pasar Polis “Transforming customers into partners, making insurance more accessible”

• Converts customers (ride-hailing drivers, stay-at-home mums, furloughed employees) into partners to distribute and sell insurance polices
• 35 million customers (2015 – to date)
• 90% customers are insured for the first time

v. Experiential stores: the future of retail

Stores posing as experiential stores can provide customers with an avenue to interact deeper with their employees and other consumers. These stores can:

• Provide an other-worldly experience with immersive installations and futuristic technology
• Cultivate communities that are advocates and fans of their brands

Case study: Gentle monster “Refining eyewear with immersive experiences”

• Stores with avant-garde designs mimic art museums
• Store display changes every 21 days
• 1 million followers on Instagram
• 40 stores globally

vi. Building a future-ready workforce

Great EX = great CX. Companies need to create a positive workplace culture that fosters innovation and productivity by:

• Instilling purpose at work
• Placing high importance on employee upskilling
• Making flexibility the priority

Case study: Atlassian “Prioritising workplace agility to play as a team”

• “TEAM Anywhere” flexible work model enables 5,700 staff to work from any location within countries it operates in
• Agile pod structures allow teams from different disciplines to work on the same project at the same time to eliminate bottlenecks
• 98% employees say it is a great place to work

#3 Partners for CX success: Vendors and BPOs

2022 was a great year for both CX vendors and BPOs. Some of their achievements include:

i. Strong revenue growth

Vendors:

BPOs:

*Revenues for some are estimated figures as these companies have yet to release their annual financials

ii. Acquisitions to create value

Vendors:

• Zendesk was acquired by an investor group led by Hellman & Friedman and Permira for $10.2 billion
• Zoom acquired Solvvy, a leader in conversational AI and automation
• twilio acquired Boku Identity to enhance the security offerings of its platform

BPOs:

• Majorel acquired:
  • IST networks: a CX technology services provider headquartered in Egypt
  • Findasense: a CX design and consulting company to help further expand the tech and expert services line of business
  • Alembo: BPO company from Suriname catering to Dutch-speaking markets
• TaskUs acquired heloo, an outsource provider specializing in digital solutions
• Teleperformance acquired PSG Global Solution, a leader in digital recruitment process outsourcing at $300 million
• Webhelp welcomed 500 employees from H&M Nuremberg customer service centre to continue delivering exceptional service

iii. Geographical expansion broadens horizons

Vendors:

• twilio is entering Canada, targeting the public sector, healthcare and life sciences, financial services and retail industries
• freshworks plans to expand in Southeast Asia, target Philippines as the key market
• Five9 established data centres in Frankfurt and Armsterdam while fulfilling data residency needs

BPOs:

• ttec set up new global delivery centres in South Africa and Columbia
• TDCX entered Turkey to serve the growing Middle East market
• Webhelp opened its newest site in Mexico and has more plans expanding within the country
• TaskUs set up its fourth site in India in Navi Mumbai to support its growing operations in the country
• Teleperformance added 20 new sites, 7,000 workstations across Europe, Africa, the U.S., Peru and India
• Majorel entered Ghana, Greece, North Macedonia, Suriname, Turkey, Japan, Lithuania, South Korea and Thailand

iv. Venturing into the metaverse

Vendors:

• NICE staged its annual conference Interaction Live on the metaverse
  • 25,000 attendees from >2,000 companies and 30 countries
• Avaya is working with Avanza Solutions to help companies better decide their expansion in Dubai on metaverse