Decoding Customer Experience Challenges – A Quick Guide for CX Leaders

Feb 29 2024

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Rethinking Customer Experience: Innovative Strategies for a Transformative Business Landscape

Amidst the winds of change sweeping across industries in the aftermath of the global pandemic, there is a resounding call to tackle surging customer experience challenges. To thrive in the competitive digital landscape, prioritizing customer experiences is not a novel concept. However, only 54% of consumers strongly believe customer service is an afterthought for most of the businesses they buy from, contrasting with the 73% of tech companies that believe they offer the best quality of their services.

Post-pandemic, many businesses claim to have excelled in CX strategies, yet it's surprising to witness some leaders clinging to outdated strategies and techniques from the pre-2020 era when the world first encountered unprecedented challenges. The evolving business landscape demands a fresh perspective on CX, the need for strategies to improve CX, urging organizations to shed old paradigms and embrace innovative strategies for a customer-centric future.

In this blog, we delve into the blunders some business leaders are making by sticking to old approaches and explore why it's high time to evolve these strategies.

The Modern Customer Experience Challenges

Modern customers need modern experiences. However, many businesses forget to adapt the latest strategies to improve CX. Here, we are discussing the top three areas where businesses are not improving and still opting for outdated ways which are hindering modern digital customer experiences.

Let’s begin!

Prioritizing Cost Management Over Strategic Investment:

One of the glaring blunders observed is the continued prioritization of cost management at the expense of strategic investment. While cost control is undoubtedly crucial, a myopic focus on cutting corners is hindering most of the organization's ability to adapt and innovate, hindering the organization's capacity to deliver exceptional and competitive customer experiences.

Businesses, to cut immediate expenses, may compromise on critical investments that drive innovation and enhance customer interactions. This approach often leads to outdated technologies, inefficient processes, and a lack of agility in adapting to evolving customer expectations. As consumers increasingly demand seamless and personalized experiences, companies that skimp on strategic investments may struggle to meet these heightened standards.

Related: A Comprehensive Guide to Customer Experience Management Best Practices

How to improve customer experience?

To overcome this CX challenge, businesses need to follow three simple steps:

a. Shift to Value-Based Costing: Move away from a strict cost-cutting mindset and adopt a value-based costing approach. Assess the impact of each cost on the overall value delivered to customers. Prioritize investments that align with long-term strategic goals and positively impact the customer experience.

b. Strategic Resource Allocation: Develop a comprehensive understanding of where strategic investments can make the most significant impact. Allocate resources strategically by identifying areas such as technology, employee training, and customer-centric initiatives that drive innovation and enhance overall customer satisfaction.

c. Long-Term Vision: Encourage leaders to adopt a long-term vision rather than focusing solely on short-term gains. Understand that strategic investments may have upfront costs but can lead to sustainable growth and competitive advantages in the future to improve CX.

Focusing on Old Segmentation Strategies:

The second customer experience blunder that some leaders are making revolves around clinging to old customer segmentation strategies. Customer demographics and behaviors have undergone significant shifts since the pandemic began. Sticking to outdated segmentation models may result in misaligned marketing efforts and a failure to understand the evolving needs and preferences of today's consumers.

Traditional segmentation often fails to capture the nuanced shifts in consumer behavior and preferences that have emerged in response to the pandemic. Overreliance on static demographic data may lead businesses to misinterpret evolving customer needs and fail to tailor experiences accordingly. In a landscape characterized by rapid changes and digital acceleration, clinging to obsolete segmentation models risks offering generic solutions that do not resonate with the current consumer mindset.

How to improve customer experience?

To truly enhance customer experiences, businesses must

a. Embrace Dynamic Segmentation: Recognize the evolving nature of customer demographics and behaviors. Embrace dynamic segmentation models that leverage real-time data and analytics to understand current market dynamics. This approach enables personalized and targeted experiences that resonate with the diverse and changing customer base.

b. Continuous Market Research: Implement a continuous market research strategy to stay attuned to shifting customer needs and preferences. Regularly update segmentation models based on real-time insights to ensure that marketing efforts remain aligned with the current market landscape.

c. Utilize Technology: Leverage advanced technologies such as artificial intelligence and machine learning to analyze vast datasets. These technologies can provide valuable insights into customer behavior, allowing for more accurate and up-to-date segmentation strategies.

Treating EX and CX as Separate Silos:

Another critical customer experience blunder is the persistence of treating Employee Experience (EX) and Customer Experience (CX) as separate silos. The relationship between employee satisfaction and customer satisfaction is symbiotic; one significantly influences the other. Leaders stuck in the past fail to recognize the interconnectedness of EX and CX, resulting in missed opportunities to create a holistic and positive organizational culture.

In a landscape where remote work, digital interactions, and adaptability are paramount, the synergy between EX and CX becomes crucial. Failing to integrate the two can result in disjointed services, inconsistency in communication, and an overall disconnect between employees and the brand, ultimately compromising the ability to provide cohesive and resonant customer experiences in a rapidly evolving business environment.



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How to improve customer experience?

To overcome this CX challenge, businesses need to follow three simple steps:

a. Foster Cross-Functional Collaboration: Break down silos by fostering collaboration between CX and EX teams. Encourage regular communication and collaboration to ensure a holistic understanding of both employee and customer needs. This approach helps in aligning internal processes with external customer expectations.

b. Integrated Training Programs: Develop integrated training programs that focus on both customer service skills and employee well-being. By investing in training that emphasizes the interconnectedness of EX and CX, organizations can create a culture that values both employee and customer satisfaction.

c. Employee Feedback Mechanisms: Implement mechanisms for gathering employee feedback on customer interactions and experiences. This feedback loop ensures that employees are actively involved in shaping the customer experience and that their insights contribute to continuous improvement efforts.

Jump on the Wave of Improving CX Now!

Apparently, the pandemic has largely shifted consumer preferences where businesses cannot remain static in their CX strategies. Businesses must refine their approaches and avoid customer experience blunders to stay competitive, adapt to changing consumer expectations, and foster long-term growth and success.

At Icreon, we understand the critical importance of navigating through CX challenges. Our innovative solutions empower businesses to thrive in the digital era, ensuring seamless customer experiences that drive success. Start a conversation with our customer experience experts.