This article was written by Damien Griffin, Director at Baringa, an independent consultancy group.
In the past 15 years, digital trailblazers have revolutionized the landscape of customer experience (CX). Companies like Amazon, Apple, Microsoft, Google, Meta, Tesla and Nvidia have set the gold standard for acquiring, selling to and retaining customers across business-to-consumer (B2C), business-to-business (B2B), and B2B2C markets. These companies, often called the “Magnificent Seven” have demonstrated the transformative power of exceptional CX in driving exponential growth and market dominance.
Today, customer expectations are at an all-time high, with 90% of CX leaders reporting increased demands, according to the 2024 Annual State of Service Trends Report from HubSpot. And 86% of consumers worldwide surveyed for “The state of customer experience” report by Genesys say a company is only as good as its customer service.
However, modern service functions are struggling to keep up with higher, more complex omnichannel contact volumes — often failing to meet basic service expectations. In our experience, we see companies dealing with soaring abandonment rates, plummeting first-contact resolution (FCR) rates, increasing call transfers and longer wait times. Top-down expectations continue to strain front-office operations, pushing them to do more with less money and faster.
Why the Service Experience Is More Critical Than Ever
In today’s AI-led, “attention economy” driven by social media, organizations have only one chance to get things right. Consumers are fickler and more digitally empowered and value-driven than ever before. While CX roots are in sales and marketing, service is now equally important in delighting customers and building customer loyalty.
How good – or poor – a customer service interaction is has a direct effect on brand loyalty. The “State of customer experience” report found that 31% of consumers surveyed stopped using a company after just one negative CX interaction in the past year. It’s clear that customers expect low-effort, personalized and secure experiences – in the moments that matter most.
There’s increasing recognition of the direct link between CX and long-term value growth — not just efficiency gains, but the role that well-executed service plays in making customer relationships stickier, driving revenue and boosting loyalty. The 2023 Genesys report “Generational dynamics and experience,” shows that 65% of consumers surveyed rank a brand’s reputation for customer service as one of the most important factors when considering a purchase. It’s clear that CX has emerged as a central differentiator for companies in all industries – and has become a key factor in their resilience and growth.
Traits of Leading Service Experience Delivery
Exceptional service experience design starts with an aligned North Star vision, securing cross-organizational buy-in, shaping and prioritizing investment decisions, and acting as the cornerstone for delivery. Understanding key customer journeys and the moments that matter is essential.
Companies must be clear on how channels come together to deliver these journeys and what roles they play — reactively or proactively — as primary or secondary options. This can best be reflected in a customer interaction model.
AI’s Role in Leveling the Playing Field
Integrating AI into service experience design across various journeys or touchpoints is now commonplace to deliver efficiency outcomes or increase personalization. AI processes vast amounts of customer data to predict needs, automate solutions and provide real-time assistance. For example, virtual agents can offer guidance precisely when needed; and predictive insights can proactively address issues before they impact satisfaction.
Companies leveraging AI in their customer experience strategies expect the technology to drive significant measurable outcomes. According to the 2024 Genesys report “Customer experience in the age of AI,” 83% of CX leaders surveyed worldwide believe AI will be a clear differentiator for them in the future. And 59% of CX leaders in the survey say adopting AI in customer experience will lead to increased customer loyalty and lifetime value in the next five years.
The digital age has elevated customer experience to a critical business function that directly impacts growth and loyalty. Companies that prioritize and innovate in CX — leveraging AI and data-driven insights — are better positioned to meet the high expectations of today’s consumers.
By aligning technology, data, people and processes, Baringa and Genesys enable businesses to improve customer engagement, support and retention. This partnership aims to provide a seamless and personalized experience that meets customer needs and supports business growth.
Baringa is an independent consultancy armed with unparalleled industry specialization across utilities, government, banking, retail and insurance. We are practitioners with real-world, customer service experience, meaning we have walked in our clients’ shoes. This allows us to have a greater understanding of your customer, business, and technology challenges. This experience allows greater collaboration with you to co-define your bespoke ambitions and help you succeed. We do this through leveraging proven frameworks and tools to quickly identify value and opportunities both short and long term. For more information, please contact [email protected]
