Top Customer Experience Analytics Trends to Watch for in 2024

Published on June 27, 2024 by Irisha Boruah

Businesses are finding it challenging to understand customer perspectives and to keep up with customers’ evolving needs as factors such as technological advancements, shifts in customer priorities, access to the global marketplace and social media platforms continue to shape and change customer behaviour rapidly. New-age customers are also more aware, knowledgeable, highly experience-driven and ready to switch to the next best alternative at the slightest discontent. To stay competitive and stand out in the market, it has become critical for organisations to be early-movers in the customer experience space and understand the forces influencing customers’ everyday decisions to deliver novel solutions.

Businesses are, therefore, investing heavily in tools and technologies to collect and analyse customer data for more informed decision-making to create seamless positive experiences for their customers. The global customer experience analytics market was worth USD11.0bn in 2023 and is likely to reach USD23.4bn in the next five years.

In this blog, we look at some of the major trends likely to play a pivotal role in shaping the customer experience analytics market in 2024.

Investment in advanced tools and technologies for extensive data collection and high-end analytical capabilities: Businesses will likely continue to leverage emerging technologies such as AI, ML, NLP and speech-to-text analytics to collect large volumes of customer data and gain real-time insight on customer needs and sentiment. AI-powered solutions can help organisations analyse every aspect of the customer experience and get to know their customers faster and better, in terms of what pages they visit, where they click and the issues they face, so as to build data-driven customer experience strategies. Meanwhile, predictive models will likely be used not only to call out disruptive customer behaviour in advance, but also to avoid negative encounters with customers in situations such as service disruptions and equipment failure and maintenance.

Examples:

Netflix uses AI for customer sentiment analysis, to identify pain points and to make improvements for a better viewing experience
Amazon uses AI to analyse factors such as customer purchase history, product reviews and search history to provide personalised product recommendations to customers

Rise in investment in Voice of the Customer (VoC) platforms: VoC platforms capture, analyse and interpret customer feedback from different channels, such as customer satisfaction surveys, social media, website reviews and customer support interactions, to provide aggregated qualitative and quantitative data for actionable insights on customer preferences, sentiment and needs. Customers now expect not only to be heard via a channel of their preference, but also to see their feedback being implemented. Organisations are, therefore, investing in diverse listening tools to know and understand what their customers are saying. This momentum is likely to continue in 2024.

Data-driven personalisation solutions: This is another customer experience strategy likely to gain momentum in 2024 as customers expect tailored experiences that resonate with their individual preferences and behaviour. New-age tools and technologies such as predictive analytics, big data and chatbots are likely to empower more businesses with data-driven insights to offer personalised interactions and experiences across touchpoints, helping to foster strong customer relationships and drive customer loyalty.

Examples:

Medallia launched four AI-based solutions in 2024 to help companies gain data-driven customer insights to create more personalised solutions for customers
Zendesk launched no-code tools to help businesses customise their workspaces without code and create tailored, efficient workflows for a differentiated customer experience
In 2023, Qualtrics launched XM/os2, a next-gen AI-based platform to recommend and generate personalised responses based on each customer’s profile data

Real-time feedback analysis: Tech-savvy customers expect businesses to listen to their needs, preferences and concerns instantly and provide quick resolutions. This has made it vital for businesses to collect customer data and feedback on a real-time basis through real-time surveys, online feedback widgets, live chat tools and social media monitoring.

Businesses are also resorting to technologies such as automation and generative AI to analyse customer data on a regular basis, immediately identify changing trends and proactively cater to new needs with innovative solutions. Real-time analysis of customer feedback also enables brands to boost customer engagement and demonstrate a sense of value to customers, fostering positive customer sentiment.

Customer journey-mapping analytics: Customer journey mapping is like creating a roadmap of every step of a customer’s journey when interacting with a brand across different channels. This enables a brand to better understand customer needs and behaviour from an end user’s perspective and identify the larger common areas that need immediate attention. Businesses are now adopting sophisticated approaches to journey mapping, incorporating data-driven insights and behavioural analysis to better understand the customer experience from end to end.

The customer experience analytics space is undergoing rapid transformation. Embracing cutting-edge technologies and data-driven methodologies is the need of the hour for businesses that seek to deliver exceptional customer experience and ace the competition. The power of advanced tools and technologies such as generative AI, ML, new-age VoC platforms, real-time analytics and personalised solutions can go a long way in helping organisations keep up with the evolving needs of modern customers and establish strong connections with them.

How Acuity Knowledge Partners can help

We provide customer experience research and insight support to stakeholders in the B2B and B2C space and help companies comprehend new-age customer needs. Equipped with a 360-degree view, we understand how customer data can be captured and analysed and how the results can be leveraged to deliver a seamless customer experience and achieve better business outcomes. We help Fortune 500 technology corporations, mid-tier companies and startups leverage customer feedback on people, products and processes to remain flexible and better serve their customers.

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About the Author

Irisha Boruah

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Irisha is a part of Acuity's Corporate & Consulting vertical, wherein she is responsible for project execution, management, and delivery for diversified clients across sectors, including Technology, Infrastructure, Consumer Goods and Retail sector. Her functional expertise includes market research, company profiling, competitor analysis & benchmarking, social media sentiment analysis, and survey analytics. Irisha has an MBA in Finance from IFIM Business School, Bangalore.