The roller coaster ride of 2020 dramatically changed how we think about engaging and connecting. Businesses have had to rapidly adapt with new models, employees have adjusted to new ways of working and collaborating, and consumers have become more deeply entrenched in all things digital.
Like most people, we’re ready for a fresh new year. Time for our annual trendspotting on the road ahead! What will 2021 look like? We think it’s all about Digital.
Here our Beyond the Arc team shares our vision on top trends that will influence customer experience in the new year.
7 Trends to Watch in Digital-first Customer Experience
2020 took the slow, steady, evolution of digital transformation and turned it upside down. Banking, retail, entertainment, restaurants and more learned that digital capabilities are about much more than differentiating — they help you adapt to overnight changes in consumer needs and market realities.
In 2021, digital-first experiences will become preeminent, as legacy business models are jettisoned. Born out of necessity during the pandemic, restaurants and retail jumped on digital ordering and curbside contactless payments. Hollywood studios retooled distribution to focus on streaming first-run movies. And financial institutions saw a 200% surge in new mobile banking users in the early months of lockdown, and an 85% rise in mobile app usage.1
These dramatic shifts to digital won’t fade, they will escalate. To keep pace with changing expectations and conditions, creating and optimizing digital experiences will take the top spot on corporate agendas in the year ahead. Here are our predictions on how digital-first customer experience will dominate the horizon.
1 — Hyper-personalization will be the new standard
The events of 2020 forced dramatic increases in digital commerce, and that growth comes with rising consumer demand for contextual, personalized experiences. Gavin James, a CX consultant and Beyond the Arc’s Creative Director, thinks more businesses will follow the lead set by tech giants:
“Apple and Google excel at hyper-personalization. Banking and retail companies will need to substantially up their game to stay competitive. Consumers want a digital experience that knows their habits, preferences, needs and even location, so interactions are seamless and offers are directly relevant to them. Personalization will be a key driver to attract and keep millennials and Gen-Z consumers, and a critical path for profitability: personalizing the (banking) customer journey can drive a 10-30% increase in revenue.”2
David Jeong, a data analyst adds:
Personalization will also factor into customer retention. Michelle Espinoza, a designer, notes:
2 — Machine learning & AI will be essential for contextual experiences
As our resident expert in machine learning, data scientist Bruce Johnson expects the winners will be those that master contextual insight.
We can also expect more AI during in-store shopping, says Jacqueline Espinoza, a CX consultant.
AI will surface more in healthcare as well, driven by the need to focus more on outcomes than treatment. As an example, David suggests:
Clear, effective communications will continue to be key for AI solutions to gain traction, notes Gavin.
3 — Payments will be a starting point in designing new experiences
Companies like Uber and Apple have taught us to love the simplicity of embedded payments. But it may be the Amazon Go stores that give the best glimpse into the future. Patrons use the mobile app to gain entrance to the store, then simply choose their items and leave — no checkout is required. This isn’t just a seamless way to pay, it’s a more convenient way to shop.
Beyond the Arc CEO Steven Ramirez sees it like this:
4 — Technology will foster a new Hybrid CX
2021 will see businesses finding new ways to add value with a hybrid of digital+human interactions. Nina Katz, a CX consultant and training expert says:
Steven takes it a bit further:
5 — Digital engagement will focus on financial health
The pandemic has been stressful, leaving many people struggling to manage debt and just get by. 56% of American consumers are not financially healthy, according to a J.D. Power report.3 It signals a significant need and opportunity for companies to increase engagement — with both customers and employees — by directly or indirectly supporting financial wellness.
Focusing on financial health may become a differentiator. Christine Matteo, a CX consultant predicts:
6 — Remote work will tap into new power
The future of work may be a hybrid of home+office, but we’re also seeing tech innovations emerge that make remote work possible like never before. As Steven points out:
Finding new ways to empower employees at home will also be critical to help increase efficiency and productivity, notes Gavin.
7 — Digital experiences will leverage diversity for breakthrough thinking
No discussion of CX is complete without considering the strategy, data-driven insights, and empathetic messaging that go into creating compelling experiences. Afterall, digital-first isn’t really about tech, it’s about people. And that’s where diversity, which got a fresh boost in 2020, can play an important role.
Going forward, companies will focus less on personal characteristics, and make diversity more about doing business in ways that include a broad range of perspectives. It might include more voices from within an organization but also leverage outside thinking. As an example, Bruce looks at our own diverse team:
“It can be hard to retool internally, so a nimble approach is to integrate diverse firms like Beyond the Arc into your functional teams. We focus first on our clients’ needs and then add our spin to make their work even better. Our spin comes from years of different experiences in the world and the workplace, and from being a minority-owned agency. Coming from differing backgrounds allows us to have empathy and sensitivity towards a variety of life experiences, and look at things through a customer’s eyes.”
Despite an unprecedented year of change and challenge, we’re optimistic about the opportunities ahead for businesses and consumers. 2021 will still have a long climb, but we think a focus on digital-first will make a powerful difference — and we’re ready to help make it happen.
Interested to learn more? Let’s Connect
1 Coronavirus crisis mobile banking surge is a shift that’s likely to stick, CNBC May 2020
2 Personalization Pays Off Big Time for Financial Marketers, Financial Brand, May 2019
3 Digital Wellness Tools Embraced by Financially Stressed Consumers, The Financial Brand, Month 2020
Images: Pixabay, iStock