The Decline in CX Quality: Insights and Best Practices from Derek Slager, Co-founder & CTO of Amperity
Welcome to this MarTech Series chat with Derek Slager, where we discuss the current state of customer experience (CX) in the digital marketplace. Slager is the Co-founder & CTO of Amperity, an end-to-end Customer Data Platform (CDP) that aims to revolutionize how brands identify, understand, and connect with their customers. In this conversation, Slager shares his observations and best practices for driving exceptional CX in today’s evolving landscape.
Amperity’s Latest Innovations
Amperity is an innovative CDP that seamlessly connects with leading marketing, analytics, customer service, and data management tools. By pulling in data from digital and offline touchpoints, Amperity builds unified customer profiles, allowing brands to gain a comprehensive understanding of their customers. Amperity utilizes AI to deliver actionable customer profiles, turning complex data into business value. Their platform solves the fundamental data quality problem and provides brands with an accurate, reliable, and interoperable view of the customer.
Common Mistakes in CX and Best Practices
One of the key challenges brands face is the impending deprecation of third-party cookies. This loss of external data sources hinders organizations that rely on third-party data for customer insights. Outdated and disjointed data often leads to missed opportunities for brands to understand their customers fully. For instance, customers may receive ads for products they’ve already purchased, which negatively impacts CX and erodes trust in brand loyalty. A recent survey revealed that in 2022, 19% of brands experienced a decline in CX quality, with 49% of customers leaving a brand due to poor CX within the last year. To counteract this trend, brands must prioritize identifying customer preferences to improve retention and drive company growth.
However, the landscape of data ownership and accessibility has significantly shifted, presenting unique challenges for brands. Finding the right balance between accuracy, reach, privacy, and agility is crucial for serving a diverse range of channels, divisions, and teams. The abundance of software companies offering conflicting narratives further complicates decision-making for brands. As a result, many brands face analysis paralysis and struggle to make comprehensive decisions that benefit their entire organization.
CDPs and Identity Resolution
CDPs offer a viable solution for brands seeking to overcome these challenges. These tools allow companies to learn and predict customer needs based on clean, unified first-party data. By implementing CDPs, brands can obtain a 360-degree view of their customers, enabling them to create marketing and advertising strategies that align with buyer preferences while complying with privacy laws.
Identity resolution plays a crucial role in creating comprehensive customer profiles and improving CX. With a fragmented digital customer journey, brands struggle to recognize and connect various touchpoints to individual customers. Identity resolution tools leverage artificial intelligence and machine learning to separate clean data from unreliable sources. Accurate matches are made using messy and often unreliable data like last names, addresses, and email addresses. Additionally, advanced identity resolution requires integrations with multiple data sources and continuous monitoring to stay updated with privacy regulations and new requirements.
Implementing ID Resolution and Setting Up a Tech Stack
Before implementing ID resolution tools, it’s crucial for brands to consolidate their customer data into a centralized location. This can be achieved using a comprehensive customer data platform. Brands should also prioritize privacy compliance and view privacy regulations as an opportunity to build customer trust rather than a barrier. Some CDPs, like Amperity, have designed their solutions with ID resolution in mind, offering flexible tools that empower brands to leverage customer data ethically and responsibly.
Personalization Mistakes to Avoid
Despite having access to advanced tools, brands often make personalization mistakes that hinder their CX efforts. Here are the top five mistakes brands should be aware of:
1. Not pulling data from multiple channels: As customer engagement expands beyond email to SMS, mobile, and social media, brands must gather data from these various channels to gain an omnichannel view of the customer.
2. Neglecting real-time data: Brands should strive to use real-time data to personalize customer interactions and stay relevant.
3. Overlooking context: Personalization efforts should consider the context in which the customer is engaging with the brand to provide relevant and timely recommendations.
4. Lack of test and learn mentality: Brands should continuously experiment with personalization strategies and gather insights through testing to optimize performance.
5. Failing to align personalization with the overall customer journey: Personalization efforts should be cohesive and aligned with the customer journey, ensuring consistency and continuity across touchpoints.
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