Technological developments have consistently reshaped consumer expectations throughout the years, granting them more power and say in their interactions with brands. And, according to new research findings by leading data-driven customer experience management company Merkle, consumer choice is influenced by an average of only 2.5 sources of information. With little room for error, it’s become even more imperative for brands to recognize and cater to an increasingly empowered consumer base.

To stand out in a competitive space, Merkle advises addressing consumers’ explicit preferences regarding their brand experiences. Its research, gathered through a survey of 2,100 consumers and 820 brands across 18 countries (including Canada), was carried out in the last quarter of 2023. Part one of the report zeroes in on consumer perspectives, with topics including the use of AI in marketing, consumer data usage preferences and the integration of new technologies. Insights from brand participants will inform the second part of the report slated for release in the spring.

Here are the six essential strategies for brands aiming to provide outstanding customer experiences (CX) outlined in the report.

Grasp the essentials of CX from the perspective of customers.

Customers are looking for the “3 Cs” (cost effectiveness, convenience and consistency) in their customer experiences with brands. These fundamental requirements form the core of what businesses need to offer to meet customer expectations. The basics, essentially. And although specific preferences might slightly vary by industry, these three aspects stand out as critical. Merkle suggests building a culture that prioritizes customers across every department, and continuously and thoroughly assessing the quality of the customer experience.

Leverage customer data to benefit the customer.

Most consumers feel relatively at ease when it comes to entrusting their personal information to brands, highlighting significant advancements in customer experience over the years and the aging of younger digital natives demographic into adulthood. In exchange for their personal data, consumers anticipate receiving tangible benefits such as affordability, ease of use and reliability from brands (or the 3 Cs). It’s important to note, however, that despite a general feeling of trust, consumers often remain skeptical about a brands’ intentions in the usage of their data. How to get around this? Merkle says implement a data strategy and organize customer data to enable the identification of individual customers.

Employ ethical AI to offer convenience and nurture trust.

As content creation is slowly being transformed by generative AI, consumers envision an opportunity for brands to leverage AI-driven technologies to elevate their experiences. But amidst the enthusiasm for this automated evolution, customers have some apprehensions with regards to privacy and security taking precedence. And so brands have the responsibility of ensuring transparency and providing assurances about their AI applications. Unsupervised, AI is capable of leading to unintended, negative consequences that can compromise trust in brands. Establish frameworks that ensure AI is deployed in a secure, unbiased and permission-based manner. Committing to ethical AI practices is vital for alleviating consumer concerns, Merkle reveals.

Satisfy the demand for real human interaction.

The research suggests that brands might be overvaluing a consumer’s preference for digital interactions throughout their purchasing journey. Despite digital technology’s widespread adoption, there remains a clear demand and appreciation for human contact, particularly in scenarios involving complex decisions or customer service. Simply put, the value of in-person support cannot be overlooked. The virtual and the physical are becoming increasingly interconnected, with consumers often viewing them as complementary rather than distinct. A lack of this integration can lead to experiences that feel impersonal and frustrating, rather than cohesive and satisfying.

Prioritize the post-purchase journey.

Marketing efforts frequently concentrate on leading customers from initial awareness to the point of purchase. Yet, feedback from survey respondents reveals a significant demand for enhancements in the stages following a purchase, indicating that the entirety of the customer experience presents ample opportunities for growth and value creation. If a brand’s objective is to retain customers and increase their lifetime value, then aspects such as product utilization, personalization, maintenance and support play an important role. In an economy where experiences are as valuable as the products or services purchased, it’s the post-purchase phase that often holds the most significance for consumers.

Explore new technologies to create innovative ways of empowering customers.

For customers, not all new tech advancements are viewed equally. Some are perceived as relatively ineffective in enhancing the consumer experience. Respondents shared that the technologies they considered to have minimal impact include self-service checkout/payment systems and personalized emails/messages. Chatbots/virtual assistants, personalized advertisements and video chat platforms, for example, were even sometimes associated with negative reactions (annoyance or intrusion).