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The State of MarTech Report

There has never been a more exciting time to work in marketing and technology. The world was already digitising rapidly, but the pandemic has accelerated this digital transformation. Companies that have been forced to adapt to evolving customer behaviours to survive now have an opportunity to thrive.


The state of CX 2022:CMO trends & insights

WebSesh now available to watch on-demand

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Customer experience (CX) has become the new battleground for marketers today. The State CX Report, produced in partnership with Treasure Data, revealed that:

“72% of CMOs agree that an amazing customer experience is a powerful competitive advantage.”

In a digital-first world where customers' last best experience anywhere becomes the expected experience everywhere,  marketers are left wondering how to keep pace with ever-increasing customer expectations.

Watch our WebSesh with authors of The State of CX Report 2022 Andrew Stephenson (Treasure Data’s Director of Marketing) & Carlos Doughty (our CEO & founder) to learn how you can use data and technology to deliver amazing customer experiences and a superior CX strategy

Video transcript

Carlos Doughty 0:00
Hello, welcome everybody joining us today we are here for a fantastic MarTech WebSesh, and this one is all about the State of CX in 2022. It's always a little bit of a hot word, but now more than ever. So let's dig in. First and foremost, joining me is Andrew Stephenson, Marketing Director at Treasure Data. Andrew, welcome. Great to have you with us.

Andrew Stephenson 0:25
Yeah, thanks, Carlos.

Carlos Doughty 0:26
For everyone that doesn't know me, I am the course instructor, founder and a bunch of other titles are sitting in here at the Alexei. But let's get into cmo CX trends and insights. So each year or two years running now, me and Andrew buddied up and we wanted to find out more, we want to find out more about the landscape of customer experience. And to help inform us that a few things we do one of them is we got to the market. And we survey over 200 CMOS across the UK, France and Germany. We focus here on medium to enterprise across b2b and b2c. And we're essentially asked some key questions that gives a really good grasp of what's happening in the market. This is beyond the different activities we both do. That gives a good grounding and insight of how the space is changing. And since the second year, and it's super interesting, what we found. Let's jump in. And on this, I'm going to hand over to Andrew, to talk us through.

Andrew Stephenson 1:24
Great, thanks. Thanks, Carlos. So I guess I'll read the questions, talk through the results, so that we can all move through it at the same time. So to what extent do you agree with the following statement, delivering an amazing customer experience is a powerful competitive advantage. And you can see 72% of people. And I'm agree with that, I think three, three quarters of CMOS agree or strongly agree, it's not not a huge surprise. And I think we'll look at why this is so important. I think in a nutshell, that happy customer is one that they're going to be more loyal. Right. So I think there's so many alternative choices out there for our customers and consumers. And it's so easy for them to get them kind of online through the app. There's there's there's very little barriers these days. So why should they choose you, your brand your product or service. And I think it's actually customer experience that gives you that, that competitive advantage. And even when you look at it from a kind of a macro level, I think it was highlighted during lockdown globally, that all the businesses who kind of had this super connected experience already in place saw the biggest gates, you know what the rest of while the rest of businesses kind of struggled to get connected to get stronger online, etc. I think if someone if you think about it, if someone can, like a product on social, have it presented to them, the next time they visit your site, along with, you know, three or four other relevant items. You know, they can shop throughout the day across three devices on their mobile, desktop and tablet, and then purchase seamlessly through PayPal in one click and have it delivered the next morning. That kind of experience, you know, that's going to win every time. And I think an added driver for this, especially most recently, and this is globally, but particularly here in Amir is that the economy, you know, it's struggling for various reasons. And I think the disposable income lower than it has ever been for a long time. People were very specific about where they spend their hard earned money. And I think they consider every every pound or euro a lot more than they did with bull. So I think yes, people will be price sensitive to a point. But after that, I think they'll spend it where their guests get the best experience. Next slide, Carlos.

Carlos Doughty 3:40
Lovely over to me. I think that's a lovely opening from Andrew and it, you know, in case anybody you hadn't really recognized just how important customer experience is. There's a number nearly three quarters of CMOS. But we didn't just want to understand how important is we want to dig into a few different dimensions. And one of them was the role of compliance privacy and ethics when it comes to customer experience. And that might not sound directly connected off the cuff. But actually, when we dig in, you'll see why it makes so much sense. So we asked to what extent do you agree with the fact that data compliance privacy and ethics are critical to customers being brain trust that 64% of CMOS agreed or strongly agreed with that statement that compliance privacy and ethics are critical to gaining that brand trust. Now what's what's definitely true, and it's certainly more so over the pandemic than ever before, has been that brand trust is critical is absolutely critical in an environment where the availability and accessibility of products is easier than ever because everything's online. Suddenly, you're competing with everybody. And if you have a scenario where suddenly you're competing everybody the opportunity to lose customers is more important. It's more risk. They're never. And so digging into why why compliance? Why privacy? Why affects me and Andrew kick this rounded at wellness are saying, why is it that it's so important? What could the reasons underpinning this importance be? And when you think what's in the news, you think about sort of data breaches, you think about people becoming more aware than ever, and how their data is being used, start to realize that customers are more educated than ever around how their data information is managed. And therefore their expectation has changed. Their expectation is that you treat it with respect, and that you treated fairly. And that also that you dig into, there's a word here there's one part which is compliance, and one part which is ethics. And somewhat subjective, but you might say compliance is a must have, because of the risks associated with being fined and legal issues and challenges. And the ethics is optional. But that optionality of how do you want customers to feel about your brand, is the difference. And so the association of if you treat my data with respect and carefully and considerately and think about privacy and ethics, then you will end up in a scenario of building great brand trust. And I think, in tougher markets, which potentially are now around the corner, brand trust is going to come more important than ever. So it'll be interesting to see those that appreciate the importance of this. And they actually adapt their strategy to lean into data compliance, privacy and ethics, from the perspective of not just I need to do this, to keep the legal and compliance team happy. But actually, it's my opportunity. It's my opportunity to elevate that customer experience, gain brand trust and ultimately help deliver that competitive advantage that Andrew talked about earlier. Karen is on we wanted to dig in more, we wanted to get into the the data landscape, all the data, and legislation changes landscape. And in that we wanted to look at what was most challenging when it came to delivering that exceptional customer experience. So we dug in, and we kind of broke out the three key areas. We talked about customer privacy expectations. We talked about single and multi country and region legislation. And then we talked about the demise of the third party cookie, I'm not gonna lie me and address well, that last one not really, all of these options, people are more worried and concerned about the demise of a third party cookie. That seems strange. But it's not that strange one because arguably the other two are integrated and connected to third party. But the other is that perhaps people are not paying as much attention to third party. Yes, because it's next year. And so there may be a little bit of a right here, right now, it's less top of mind. But I'll be shocked if by January or February of 2020. Free isn't suddenly top of people's agenda. But well, when we dig into the customer privacy expectations. And legislation, you could also say that actually, when you start tackling those, the byproduct of getting them right, the byproducts of meeting, customer's privacy expectations and ensuring you're compliant based on your local country or region. Legislation means that you are essentially tackling the challenge that will come with that death of a third party. And then the other part just on that third bite and cookie is potentially the other thing is that people are leaning into it as an opportunity is the ability to now move to first party data and the importance of being able to actually connect with customers in a smart, intelligent way. Carrying it through, we wanted to dig into that point, which we're just talking about.

How do how do you expect the decline of third party cookies to impact your organization's ability to deliver amazing customer experience? This was fascinating. More than half said it's positive or somewhat positive. So I won't say you know, the reverse might have been this, we might have thought negative surely surely if I lose the third party cookie, what a terrible thing. I can't get access to so many more profiles and audiences. I won't get the same reach on my on my advertising. But no, it's an opportunity. And so this was this was fascinating is that people are seeing that third party means that suddenly we've got to be smarter, we've got to get engaged audiences, we've got to be real communities, we've got to find customers that want to share their information at first party and zero party data. And so I think it's it's really interesting to see that CMOs are seeing this as an opportunity, not as a challenge. Andrew, back to you.

Andrew Stephenson 9:41
Yeah, great. I think that's really interesting. And I think when you start to look at the next section as well, so CX expectations versus reality, you know, you'll we start to kind of really pull to the fore some of the kind of the real experiences versus what they should be getting versus what they think they're getting. I think This question, which of the following best describes the customer experience your organization delivers relative to customer expectations? So, you know, are your customers getting what they expect from your brand? Essentially? Are you able to deliver it? When we look through some of these results, significant exceeding 33%? I mean, I mean, this is great good for you, when the rest of us can go home, I think no jobs are done. But I would say, you know, don't get too complacent. There's not a set and forget, kind of program or process that we put in place in these to constantly be refined. You know, I think we've been very fortunate in that most of 22 was spent in lockdown. And so as a result, ecommerce was at the forefront. And, you know, as we move out of this period into one we're in store and face to face start to increase. Again, I think it'll be interesting to see how this this bears next year. And I think, in terms of meeting expectations, 40% getting better versus last year, definitely. I mean, I think that's really good to see, definitely positive momentum, though, possibly still not where we would expect it to be in terms of the level. And again, the reason for this, Carlos and I were discussing that the speed at which customer expectations increase. If, for example, the IBM quote, you know, the last best experience you have anywhere, becomes the expected experience you have everywhere, right? So the speed at which these customer expectations increase, there's a concern that they will start to outstrip your business's ability to deliver it. So I think it's great to be meeting expectations, but let's keep focused on this area. And for those of you below expectations, again, that three out of every 10 of you, here watching today, not meeting your customer expectations, but this is this is a challenge that we discussed earlier in it CX is and will continue to be the new battleground, right. And so you really need to be prepared to fight hard for every consumer pound or euro, you know, expectations are high. And funnily enough, actually is represented by the next slide. Got a lot in that, you know, 67% of people agree that customers expect a super relevant, personalized, and integrated omni channel experience. And I think, if we just break this down, because this is this is a big question with, you know, three massive kind of projects within it. So to what extent do you agree with the following statement? Customers expect highly relevant, personalized, integrated omni channel messaging and experiences? You know, these are huge projects within a business in their own right, and customers. And consumer, they're expecting all of this, you know, right now. But funnily enough, it's not just customers, right? And here's the thought it's also actually us. You know, we have very high expectations, and arguably, you know, those of you listening today, even more so because of our roles, right? In the business that we're in, it's probably one at least once every couple of weeks, when I'm kind of dealing with a brand. And I think, you know, they really should know about this, me, you know, they've got this data, or why do you need my password again, you know, and I think we become a lot less forgiving. And again, it's understandable, because when you think of Uber, you know, they let you pick your own music, and, you know, adjust the chattiness of the driver, as it was, you know, Netflix and starting to let you curate your own content, Amazon, who did most things pretty well, you know, and then tick tock whose algorithms kind of understand exactly what you want, and what mood you're in within, you know, five to seven seconds, I think, their attention to personalizing every part of their customer experience is incredible. And I guess if you, if you think of your own last bad experience, lots of people talk about being retargeted, right for an item they've already bought, or when you close your laptop, you know, with an item in your shopping basket, and then go home, maybe on your mobile app, and it's not there, right? That's frustrating. And I read a while ago that 40% of consumers would switch to another brand. After just two bad experiences. I mean, Carlos color. What what do you think of that two bad experiences?

Carlos Doughty 14:18
Is the one maybe it's you said exactly right. Customers are much less forgiving, much less forgiving than ever before. There was maybe a time when you got when you'd love to brand. And I think the point I mentioned earlier around, you have this unbelievably competitive environment. Everybody's online, everybody's accessible, everything is an option. The options of alternatives massively increased. So if you don't deliver on that promise, I'm sure someone else will.

Andrew Stephenson 14:51
I think we can move on to the next slide.

Carlos Doughty 14:52
Right. Back to Me, back to me. So we've heard from Andrew we've clearly seen and heard there's a massive opportunity here. Yeah, if we can get the right customer experience, we can have that competitive advantage. And from that customer experience means more than what we might think it means. It's more than just how we craft and communicate. It's also about compliance. It's about ethics is about privacy. And the other part, which I think we all know, we will experience expectations have risen, you know, customers expect a hell of a lot more. So if all of that in mind, what is the road to CX success? I have to say this one particularly carefully that. So this what we want to get dig into what are the key customer experience initiatives that CMOS have delivered in the last year, let's help him form. What was it that a year ago CMOS thought was absolutely critical that they want to double down on to help elevate, and then we're going to bounce over to the next one, which we'll talk about the year ahead. So top three real time experiences, followed by connecting physical and digital experiences. And third, good old personalization. The first one doesn't surprise me, it doesn't surprise me that there needs to be real, the need to be current to the second Yeah, the availability of information that I've just bought the item, as Andrew mentioned, that don't retarget me with it yet. But with with, we want it instantly, though, we don't just want, I bought that item two days ago, it's if I bought it four minutes ago, don't show me the banner ad, it four minutes later, is that level of real time experience that customers are looking for now. And so it's interesting, just how important CMOS have placed this top of their list. Next is physical and digital. And this was important also last year, I think this for me, probably reflects the landscape, the changing kind of world in which we live, you know, digitization of the world. But we had kind of this period where you know, we're all locked away with a pandemic. And suddenly it was a digital only world, or very occasionally physical world. And as we come back to new ways and new norms, then we have a mix, we have this mixed physical and digital ends, we now want to connect those experiences. We want personalization, we want that personalization, across every experience. So that was the focus for the last year. Let's have a look at the year ahead. Not a great deal of change. Yeah, real time experiences top of the list again, personalization is crept up from third to second. And connected a fizzle still remains incredibly important. This makes a lot of sense, and is a hell of a lot of sense. And I'm sure many people listening now are thinking Absolutely. Personalization is always on my list. I'm always focused there. I would expect probably quite a few people are focused on that next stage, because I would connect real time with personalization as well as the best type of personalization is in real time. And equally from the personalization perspective, I do think personalization should be physical and digital. And I think they're intrinsically connected. But it's interesting to place them in this kind of ranking order. What about the reverse? Andrew, tell us about the barriers?

Andrew Stephenson 18:10
Yeah, absolutely. I was super interested in this actually. This question, in particular, how many marketing and sales channels are you using to engage with your customers? More than 10 52%? You know, like, we don't make it easy for ourselves. Like marketers, I don't think, you know, and it's to me, it's not a surprise, as you were just mentioning that you know, that connecting channels is becoming a core focus for us, right. And I think that's great. But what this does do however, it does make the connected experience that again, you're just talking about makes it much harder, you know, more channels used means so much more to connect, so much more to orchestrate than to control. And I think those of you kind of unknown to four channels, I think, you know, maybe sitting fairly smuggling, I mean, yes, this is easier. But remember what we discussed earlier, right? Our customers, they expect us to be available for them however they want to interact with us. They expect us even if we don't we don't offer them their preferred channel, they can easily go elsewhere. Next slide, please. And this is kind of I was really wanted to get to this slide based on what Carlos was just talking about. So which of the following platforms is your customer experience delivered? On the left, you see, you see the dotted line on the left actual physical channels and on your right, that's your digital channels. It's fascinating how you know kind of what we're talking about the top three intersect but in store is in third place. You know, it wasn't that long ago that this was the primary channel for customer experiences. So top three channels on the right hand side, the first two, web 62 And app 54. And then on the left hand side, it's 47% for install, so again, not surprising that connecting these Express It says is super high on our agenda. At the moment, the off and online worlds really do need to sink or start sinking for, for most of us. That interestingly, again, when you're when you're in store, right or kind of IRL, you know, as, as the kids say, a live event, I think it's, you know, it's easy to deliver that kind of personal customer experience, you know, where you, you preempt the customer needs, and kind of experience that delights every time. Like in a store, I always use this as an example, in store, you know, someone can read my body language, they can see my size and shape my style, get a feel for the way that I'm wired. And then they can interact with me in a very empathetic way that they feel, you know, I'd be quite receptive to, and that kind of works easy to do in, kind of in real life. But as we have so few physical channels now on the prevalence of digital, I think a lot of that same kind of experience is actually expected and has to be delivered online. And that's where it gets harder, right. And this highlights the kind of the number of digital channels available, right, which is, which is great, because there is so much data, but then it's also a curse, in that there is so much data, right? And again, it just highlights the need to connect it to enable that kind of expected customer experience that cars just discussing. Next slide.

In terms of what's going to read the slide again, what are the biggest barriers to realizing your customer experience patient? So left to right, top four, we did compare it to last year as well. Purple is current results. So number one, lacking the necessary marketing tech vendor solutions, I think that's interesting, as companies grow and develop, they're seeing that that kind of business needs driven by these super high expectations of their customers outstrip their current tech stack. So, you know, I'm not surprised that 55% Don't feel that they don't have the right kids at the moment. I think second, in terms of lack of staff and resources, you know, 43%, I think this is headcount related, yes. But not not due to organic workload increase, I think it's more that we in marketing, we're taking on a lot more within the business, right, we're taking ownership of the data, also of the technology that enables our roles, you know, the challenges, if we don't have the right people to operate it, it'll start to take longer. And one step in the right direction in this instance, could be to look at your team structure, like, is it still fit for purpose? Do you need new teams, if people are CX specialist, you know, a data scientist or whatever, and start to look at your, your team structure. Number 330 2%, see a lack of skill set or knowledge. Again, similar kind of my thoughts are similar to the one before in in terms of lacking skills or knowledge. When you think of how our roles and departments are evolving within the business, and about how data and analytics are increasingly, personalization police on the move. I think when you think about how data and second analytics are increasingly falling under the marketing domain, right, and they're owned by marketing, we have a wide variety of shoes to fill within our department, right? For our teams, we need this kind of evolved skill set. You know, we have to have the creative side, but also the tech side, we need the left and the right brainers and we've got all the tech and data from the entire business, right falling into marketing, but we have kind of a limited number of people who were particularly proficient in using it. And I think my response to this would would delight Carlos, but it would be to keep upgrading. Right. I think. Joking aside, I think something that Alexei does really, really well is actually help organizations decide if you need to either upskill reskill or recruit to enable your business to succeed in the current climate. Next slide.

Carlos Doughty 24:06
Thank you, Andrew. Yeah, there's a few barriers but you can get over the nm. I don't want to say that CDP is the only answer because certainly there are plenty more. But it is a piece of technology we should talk about it would be difficult not to and why because well, CDP is pretty much reverse engineered from how do you craft and deliver exceptional experiences. So let's dig into that. We wanted to quantify it. Yeah, I think fair to say somebody like myself Andrew Andrew, obviously word because he works for treasurer data CDP. But I see a lot of technologies. I see the full kind of range what's available, I see what's evolving. Every single possibility exists across a marketing stack. And whilst I certainly believe that CDP will actually become as common as a CRM, we wanted to go and ask CMOS independently What their tape was. So here's what we put in front of them. We wanted to put a statement and ask for whether they agreed or disagreed. The customer experience our organization's able to deliver will be drastically improved by introducing or better managing a customer data. Over 50% 61% 61% of CMOS agreed or strongly agreed with that statement. That's pretty significant. And it's, like I say, to me, it wasn't a surprise, perhaps some people listening that don't have a CDP in place at the moment that are perhaps operating with a CRM and mixing together a few other tools to craft their omni channel strategy or to deliver nice personalization. are probably looking at this and being like, Hmm, let me find out a little bit more. Because it, it really is a powerful tool, you know, and it's, it's still in its infancy, it's, it's still a newish category, or B, it's been around for some time, I think that the real understanding of just how powerful it is, is not truly recognized yet. And what that means is an opportunity if you don't have something in place, strong chance not all your competitors do either. And so it's an opportunity for you to elevate that customer experience exceptionally. But let's dig in when I'm saying CDP, maybe a couple of people will go, what is CDP. I'll give you the quick overview. Because if you want more, you can bounce over to our site and dig into a bunch of other resources we've got. But in short, a CDP what to do, it collects and unified your data of scoops up every single piece of data, you have more different systems, it's open, it collects those. And from that, once it produces a single customer view, so a true 360 view of your customer, you can then develop smart audiences so you can slice and dice those audiences. When you slice and dice those audiences, you can define data taxonomies quite differently, you can just apply it. If This Then That type mentality. But much more sophisticated than that, using AI and machine learning, you can take this so much further, to essentially create rules based on audiences to activate and to activate, what we mean there is to push out to a range of different channels to deliver great experiences that are omni channel base that are connected. And then at the very end, it doesn't stop there, a CDP can, rabbit, scoop it all up together to give you rich insights into the learnings. It can tell you certain audiences that are particularly powerful and convert highly their proximity SR Lerum. Their affinity, their affinity to certain topical areas, their affinity to certain contents, the channels that can give you so much insight. So you keep developing and improving your customer marketing. But let me swing back to Andrew, there are a few different types of CDP. So why don't you jump in and tell us more on this front?

Andrew Stephenson 27:56
Yeah, absolutely. So, again, we really wanted to kind of understand how the, I guess how the landscape is starting to evolve. So I have question around which of the following best describes your customer marketing platform? I'll start in the bottom right 41% hybrid. Makes sense with 30%, best of breed in the bottom left, that offering multiple vendor solutions. So point specific, and then moving up 12% Have a single vendor in place. So vendor integrated marketing suite, and then send him center kind of self build or in house or custom developed. Our overall takeaway from this, it was interesting. So customer marketing platforms seem primarily hybrid with 41%. But if we were to, I guess, look at the off the shelf options that comes in around 42%. So actually, it's the split is kind of 5050 when you're, you know, having hybrid versus a kind of vendor based solution. And of the of the vendor based kind of off the shelf options, it looks like best of breed is kind of almost three times more popular than the marketing suite. Though I wouldn't say. And again, we've talked about this, because it's an interesting piece of research for us. But anecdotally, if we start to ask a little deeper and ask those who have the hybrid solution, you know, kind of why they went down this route. What was it? A lot of the answers and responses are that it's actually a result of legacy tech, or things that legacy teams legacy people have put in place. You know, from our perspective, I think it makes sense that as the technology of CPS has evolved to a point where they can, they can kind of ingest sort of any kind of data thrown at it from your own systems or from other tech solutions can still enhance it to ensure that you could really maximize your customer experience. Think that was it what we would like to do actually on on that on that last point is, we're going to dig into it a little bit more, I think, call us, I think we really want to understand a bit more about why the hybrid solution kind of is favored, and how are people looking to move out of it or move into it? That's, that's, I

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