The State of Customer Experience (CX) report presents innovation opportunities, insights and best practices by some of the top firms in Asia bringing customer journeys to the next level. We see 6 themes that are crucial for companies to win in the CX space in 2022. Below presents a summary of our study, more details can be found in our report.

Expert contributors

6 priorities for winning the Experience Economy in 2022

1. Digital-first; define the new measures of digital CX success
2. Decipher the right organisation structure for CX success
3. Build the right technology architecture – Cloud first, Conversational AI, Customer data platform
4. Capitalise on big trends – Live commerce, Phygital experiences
5. Deliver outstanding employee experiences
6. Partner for CX success

Define digital measures of success

The transition to digital requires us to establish new measures of success. In addition to using traditional measures like CSAT and NPS; digital metrics allow us to have a more comprehensive system to measure customer engagement satisfaction and growth. The world’s best companies are defining these new benchmarks for winning in the Experience Economy.

These measures should be:

1. Digital engagement value
2. Digital efficiency value
3. Digital ecosystem value

Organise for CX success

The best practices in how companies organise themselves to be customer-focused. Answering the key question, where does the buck stop? Who is best placed to lead CX in your company?

Potential leaders are:

• Head of the company – CEO
• Head of departments with close customer outcomes – CTO, CMO, CPO, CDO, Head of Sales etc
• Specialised roles for CX – CCxO

Companies can also consider adopting either one of the organisational structures below –

3 points to ensure a successful CX governance:

1. Knowing the “why”
2. Encourage “cross-pollination” of ideas
3. Link new models to clear business outcomes

Technologies in CX

To beat the competition, adopting the right CX technologies is crucial. The future lies in Cloud, with AI-enforced conversations, and building customer engagement platforms that can support a variety of customer journeys.

5 technological trends shaping CX are:

1. Cloud first
2. Automation
3. Having a frictionless customer data platform
4. Owning a composable and predictive CX platform
5. Strong cyber security

Cloud adoption is driven by 5 points:

1. Being able to skip lengthy development cycles
2. Get to remove information siloes
3. Enables remote working
4. The ability to scale quickly
5. Being able to exceed customer expectations

Conversational AI is also on the rise. We see Alibaba and Uniqlo utilising conversational AI to deeply improve CX

Live commerce

The advent of technology has changed the retail world by continually devising innovative ways to engage with customers. Enter live commerce. It is the combination of livestreaming with the ability for customers to interact with sellers and purchase goods with a mere tap on the screen. We examined the ways in which live commerce adds value to the traditional retail landscape and the emerging trends to look out for.

Live commerce creates value in several ways:

• Powerful and dynamic interactions
• Real-time feedback that shapes marketing strategies and product development
• Inclusivity, as anyone can be a livestream host
• Improves brand appeal and differentiation
• Geographical freedom for livestream hosts
• Accelerates conversion by expediting the customer journey

Given that live commerce is still relatively young, we have identified several trends to keep tabs on in the near future.

• The rise of the superhost
• Livestreaming as teleshopping 2.0
• Implementation of AI virtual hosts
• Brand-run livestreams on the rise
• Shopping beyond geographical borders

Phygital (physical + digital) experiences

The brick-and-mortar companies are fighting back the digital challenge by creating experiences that combine the best of physical and digital worlds. They are finding new meaning and purpose for orchestrating unique in-store experiences.

Here are some of the initiatives taken by Japanese retail brands to connect closer with their customers:

Case study #1: Isetan Mitsukoshi

• Isetan Remote Shopping App: allows customers to video call or live chat store assistant for fashion advice and consultation

• Rev Worlds virtual app: A virtual shopping app where customers can browse realistic items in their customised avatar characters.

Case study #2: Uniqlo

• Uniqlo set up its speciality store in Harajuku – the hotspot of pop culture and bold fashion – targeting the youth population. Customers can browse 240 touchscreen displays of various outfits on the wall and locate their preferred outfits in-store.

Employee experience for better customer experience

Wowing your customers also means creating an environment where employees are wowed. Companies are crafting employee experiences by empowering their teams to be accountable for their actions while encouraging learning and innovation.

We see 6 best practices shaping EX for 2022:

1. Transforming the end-to-end employee experience
2. The rise of silo-less accountability
3. The quadruple bottom line of L&D
4. Innovation as a culture
5. Ability to unlearn and relearn as the future’s no.1 skill
6. Future as a mindset, not a timeframe

The right partners – CX Solution Providers

Solution providers have had an incredible 2021 driven by cloud adoption and transition to the digital ecosystem. We see:

• A record year for CX solution spending, growth for disruptive innovators
• SaaS revenues now the dominant revenue stream, even for traditional vendors
• A big year for fund-raising
• Vendors extend offerings through acquisitions

The right partners – CX BPOs

Unlike other industries, BPOs ended 2021 with strong revenue growth, exciting partnerships and a few IPOs. We witness:

• Strong revenue growth
• Acquisitions and partnerships to strengthen digital portfolios
• Expansions to reinforce local presence; for wider geographic reach
• New milestones achieved with IPOs

For more detailed insights, download the State of CX 2022 report.