CX News
 

CEOs spend just 3% of time with customers

 

A new study of CEOs of large corporations finds that 72% of their work time goes to meetings and just 3% goes to spending with customers. 

 

It’s well proven that investments in the customer experience pay off - but how can CEOs get on board if they are so removed from the customer?

 

Some examples of companies that facilitate leaders spending time on the front lines include:

 

  • Corporate Home Depot employees do an 8 hour shift in a store each quarter 
  • The Raising Cane’s CEO does cashier shifts and corporate employees filled labor shortages during the pandemic
  • Amazon managers must work 2 days each year in a company call center
  • Dutch Bros Coffee requires that all regional store operators and leaders have experience working in the stores before taking on those bigger roles

 

There’s nothing like building empathy to help get buy-in for investments in CX. This doesn’t all have to fall on the CEO. Find ways for leaders to get in front of customers more frequently; perhaps they can pull some customer service shifts over the upcoming holiday season (or maybe shadowing as a start).

 

Majority find Gen-AI powered CX positive but concerned about lack of empathy

 

American Express’ Trendex survey studied how U.S. consumers feel about AI–powered customer service and had some notable points:

  • 70% of respondents have interacted with a Gen AI-powered customer service tool, and of those, 74% reported the experience was positive.
  • 53% of respondents are concerned about a potential lack of human empathy and understanding in Gen-AI-powered customer service.
  • 84% want customer service actions to reflect their preferences and previous behavior, but just 60% are comfortable with Gen AI analyzing their personal data to provide tailored recommendations and rewards.

 

Chart showing data for how important different generations feel personalized customer service is and their comfort level with Gen AI analyzing their data to offer more personalized rewards or recommendations

 

The great news is that consumer sentiment generally is accepting of AI-powered service, meaning you can start or continue rolling it out and will not be jarring for your customers. Clearly, though, there are generational differences at play with younger consumers embracing AI-powered CX at higher rates, and all consumers still want a human touch. 

 

Keep these in mind as you prepare your AI strategy, but if your brand’s customer demographics lean younger, this is encouraging to start or continue considering AI-powered personalization.

 

Consumers want control over loyalty programs

 

A new survey of over 10,000 global consumers found that 4 in 5 consumers prefer to shop with brands that allow customers more control over how they earn and use loyalty program rewards. The top motivators to join? Earning rewards, discounts or cashback on future purchases are the main reasons why 70% of consumers join rewards programs.


I did a roundup on new loyalty programs a few weeks ago and I’ll reiterate the same point I made then: with AI-powered customer support taking on more of the workload from incoming customer conversations, loyalty is an area where you can redeploy team members. Find ways to enhance customization in your loyalty program to improve the customer experience and showcase how your team is a revenue driver.

 

Dillard’s buys a mall

 

The department store Dilliard’s has purchased the Longview Mall in Texas, an unusual transaction for a retailer. Anchor stores have a big connection to the malls and shopping centers where they are based. Taking ownership of the mall can be a way for a brand to protect their brand association.

 

It’s an interesting strategy to enhance the customer experience by shaping the customer’s wider shopping experience, such as crafting a more upscale shopping destination.

 

We’ll have to see how this plays out for the brand and if others follow suit. In February, Walmart purchased a mall as part of its expansion plans; this could be the beginning of a wave.

 

Levi’s VP: elevating the customer experience has paid off

 

Levi’s has doubled its e-commerce business in five years by staying disciplined around three pillars: fixing the fundamentals, evolving its assortment, and elevating the consumer experience. From faster site performance and enhanced search tools to localized storytelling and curated lifestyle edits, Levi’s is driving personalization at scale and focusing on storytelling. Its Red Tab® loyalty program now reaches 38 million members worldwide, fueling 12 straight quarters of double-digit e-commerce growth and setting a strong foundation for future innovation.

 

 

AI Headlines

 

  1. More than half professionals say learning AI feels like another job

  2. Now live in Kustomer: Multi-Brand Support Is Here for AI Agents for Reps

  3. Thoma Bravo Acquires Verint to Join Forces with Calabrio

  4. LivePerson integrates with Amazon Connect to unify customer service

  5. Databricks buys Tecton to give context to AI agents

  6. How to stop AI agents going rogue

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