CMO survey projects CX spending to climb by a third over the next three years
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Spending on customer experience (CX) already makes up 15 per cent of marketing budgets today, but even that level of investment — and the hiring of a chief experience officer — may not be enough, according to a survey from Duke University.
According to the research, which was conducted by the Fuqua School of Business in partnership with Deloitte, CX budgets have already climbed by 71 per cent since 2017. By 2023, it will make up approximately a fifth of what CMOs spend.
Christine Moorman, a professor at the university, wrote a recent AMA article where she critiques the way CX dollars are allocated today.
“A lot of companies aren’t getting what they could out of it,” she writes. “They haven’t really thought about building their capabilities throughout the customer journey. They also often forget the importance of a customer-focused culture as an essential ingredient in getting the entire company to focus on creating and delivering an outstanding customer experience.”
Even if the whole company has to embrace CX, hiring in specific roles is likely to continue. MarketPro’s Bob Van Rossum sums up some of the key CX traits recruiters will be looking for on Business2Community. These include the expected, like change management skills, strategic mindsets and “sensational analyzing abilities.” The bit about being visionary is worth thinking about if you’re drafting a job description.
On Street Fight, which focuses on local marketing strategies, there’s an interesting piece on how to make voice-based applications part of a great customer experience. Most of the insight comes from vendors, but there’s a good analogy with the early days of mobile apps that brands should probably keep in mind if they’re planning anything involving Alexa or Siri.
Before they get serious about voice tech, of course, companies will probably want to master the art of deploying chatbots. ClickZ published a case study about how Citi Financial is augmenting its commercial cards division with chatbots that shows the difference a thoughtful and consultative approach can make. This is still a pilot project but there’s at least one standout metric worth considering, especially if you have call centres.
I don’t believe chatbots are the answer for everything, just like I’m not completely against the use of paper at work. On Total Retail, however, the CEO of an employee experience software firm takes issue with old-timey performance reviews, arguing that companies like Old Navy may not realize the impact this has on CX over time. Definitely a self-interested take, but worth hearing for though ways the pros and cons of automation.
And finally, a director of customer marketing known only by the initials MX suggests on Demandgen Report that the importance of emotional connections with customers should lead to a shift from CX to personal experience, or PX. This debate over whether personas get in the way of personalization will likely continue this year. Whatever side you’re on, don’t take it personally.
Shane Schick tells stories that help people innovate, and to manage the change innovation brings. He is the former Editor-in-Chief of Marketing magazine and has also been Vice-President, Content & Community (Editor-in-Chief), at IT World Canada, a technology columnist with the Globe and Mail and Yahoo Canada and is the founding editor of ITBusiness.ca. Shane has been recognized for journalistic excellence by the Canadian Advanced Technology Alliance and the Canadian Online Publishing Awards.