Almost half of consumers are willing to spend
more for an improved customer experience, according to Broadridge's
6th Annual CX and Communications Survey
NEW
YORK, Feb. 20, 2024 /PRNewswire/ -- Amid today's
uncertain economic environment and companies' increasing dependence
on technology to provide customer service, consumer patience has
dwindled with the rate of consumers who feel that companies need to
improve their customer experience doubling (70%) since 2019,
according to the latest CX & Communications Consumer
Insights survey from global Fintech leader, Broadridge Financial
Solutions, Inc. (NYSE:BR). The research underscores the pressing
need for companies to further enhance the customer experience and
emphasizes the crucial role of personalization and empathy in
addressing customer concerns, particularly in the age of AI.
"The survey's message is clear: companies need to ensure their
technology and communications strategies go hand in hand," stated
Dave Zamorski, general manager of
digital solutions for Broadridge Customer Communications. "It is
mission critical for companies to transform their digital
communications with best-in-class security and omni-channel
platform modernization to meet market demands."
There is still time for businesses to turn things around.
Despite economic challenges, 47% of consumers are willing to spend
more for an improved customer experience. Notably, Gen Z (53%) and
Millennials (57%) are more inclined to invest in superior CX
compared to Baby Boomers (34%).
AI's CX Promise Is Still Premature
"While we've seen significant excitement around the potential
for generative AI to enhance business processes, the research
underscores the importance of trust, personalization, and human
interaction in shaping consumer perception when it comes to this
technology," said Matt Swain, head
of communications insights and experience at Broadridge. "While
there's no doubt that AI can improve customer experience, it's
critical to identify the right use cases and regularly gather voice
of customer feedback to ensure it is working for and not against
you."
While emerging technologies, like generative AI (GenAI), hold
promise for enhancing CX, the data highlights the importance of
thoughtful implementation of these technologies. As the
experimentation phase continues, more than three quarters (76%) of
Gen Z have used GenAI in the last year and almost half (46%) say
that it has improved their overall experience.
However, when support is needed, sentiment shifts. Sixty-five
percent of consumers feel that AI lacks a sense of empathy and 82%
prefer to communicate with a human if an issue arises, emphasizing
the need for a balanced approach that is coupled with human
interaction and works across different preferences.
Data Security & Privacy are Top of Mind
Privacy and security are especially critical in the age of AI.
The survey indicates a growing awareness and concern among
consumers around the importance of data privacy, with two thirds of
respondents reporting being concerned about their data being
compromised due to AI. This is especially true for Baby Boomers
(74%) compared to Gen Z (58%).
While more than half (54%) of consumers are open to sharing
their personal information for a more customized experience, they
also want to make sure that information is secure and advocate for
businesses to adopt advanced technologies to enhance the overall
security of their digital interactions. A majority of consumers
(77%) believe there should be more legislation in place to protect
personal data.
For Gen Z and Millennials, Proper Personalization is
Key
The impact of poor personalization continues to be a looming
threat for companies that don't invest in their CX and
communications experience. The data shows the need for firms to
better understand the potential revenue lost from poor experiences,
as nearly half (45%) of consumers have stopped doing business with
a company because it did a poor job of customizing their
experience. This is especially true for both Gen Z and millennials
(55%).
Communicating with customers through the proper channels is just
as critical, with 90% of respondents stressing the importance of
honoring preferred communication channels and only 31% of
respondents believing companies overall are doing it right.
The Future of Next Generation Experiences
For companies to remain competitive, they must learn to strike a
balance between technology and personal, human-led communication.
The future of successful communication and elevated customer
experience depends on companies achieving the right balance of both
to meet the needs of tomorrow's consumer.
For more information, view Broadridge's full report here.
Methodology
Broadridge commissioned Big Village to conduct this CARAVAN
survey. This survey, as part of Broadridge's annual series, was
conducted in a fashion consistent with previous years. The survey
was taken by 4,010 U.S. and Canadian residents aged 18 and older.
The U.S. data was weighted by age, sex, geographic region, race,
and education. The Canadian data was weighted by age, sex, and
geographic region to ensure accurate representation of each
population.
About Broadridge
Broadridge Financial Solutions (NYSE: BR), a global Fintech
leader with over $6 billion in
revenues, provides the critical infrastructure that powers
investing, corporate governance, and communications to enable
better financial lives. We deliver technology-driven solutions that
drive business transformation for banks, broker-dealers, asset and
wealth managers and public companies. Broadridge's infrastructure
serves as a global communications hub enabling corporate governance
by linking thousands of public companies and mutual funds to tens
of millions of individual and institutional investors around the
world. Our technology and operations platforms underpin the daily
trading of more than $10 trillion of
equities, fixed income and other securities globally. A certified
Great Place to Work®, Broadridge is part of the S&P 500® Index,
employing over 14,000 associates in 21 countries.
For more information about us, please visit
www.broadridge.com
Media Contact:
Marie
Matta
Prosek Partners
+1 646-818-9106
mmatta@prosek.com
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SOURCE Broadridge Financial Solutions, Inc.