Customer experience is getting worse not better: how can you stand out?

Customer experience (CX) is widely discussed but seldom executed with the precision it demands. While the concept is not new, it is evolving at an unprecedented pace. As customer expectations shift, economic and political pressures mount, and advancements in artificial intelligence (AI) redefine business interactions, companies must adapt swiftly.

Today, CX is not just a differentiator—it is a core driver of business success. Yet, study after study confirm that customers are becoming less and less happy with levels of service. According to the Wall Street Journal, customer experience has fallen for 3 consecutive years, across 223 brands in 13 sectors. Do not let your company get caught in this downward spiral. Those who act proactively now can set themselves apart from the competition.

Achieving excellence in CX requires a well-defined organizational structure, robust data governance, and the right technologies to drive impactful strategies. Here’s how you can stand out.

#1 Adapt or fall behind: why customer-centricity is non-negotiable

Customer-centricity is often treated as a buzzword, but in reality, it is the foundation of business success.

If companies are serious about thriving in customer experience, ensuring it’s part of your DNA and that the customer is at the heart of all decisions is the only way to do it.

True customer-centricity requires a fundamental cultural and structural transformation. It must be woven into an organization’s core values and reflected in daily operations. When executed effectively, it not only meets customer needs but also drives innovation, fuels growth, and strengthens operational resilience. Investing in cutting-edge technology to enhance customer journeys will be key to long-term success.

Building a truly customer-centric culture requires consistent effort across multiple dimensions.

Key elements include:

• Cultivating empathy: Embedding customer understanding into decision-making
• Defining ambition and behaviors: Setting clear expectations and rewarding customer-focused actions
• Establishing governance: Ensuring accountability and coordinated CX efforts
• Understanding capabilities: Identifying the skills needed to deliver great CX
• Sharing best practices: Encouraging cross-functional learning and innovation
• Gathering feedback: Using customer insights to drive continuous improvement
• Sharing insights: Breaking silos and ensuring CX knowledge is accessible
• Reviewing remuneration structures: Aligning incentives with customer-centric goals

#2 From click to loyalty: crafting seamless customer journeys

A well-designed customer journey is the foundation of an exceptional CX strategy. Creating experiences that deliver value at every touchpoint, across both digital and physical channels is a non-negotiable.

As Generation Z enters the market with new expectations for customer experience, it’s crucial to consider the needs of all generations and individuals. Companies must create unified, consistent experiences across all channels that cater to diverse and highly personal customer preferences, ensuring that every interaction builds loyalty and strengthens the brand.

AI-powered insights can tailor interactions to individual preferences, fostering deeper customer connections. AI-powered agents are transforming how businesses engage with customers by acting as virtual personal advisors. These agents analyze customer habits and preferences to offer tailored recommendations, such as suggesting beauty products that suit an individual’s skincare routine, providing recipe ideas based on dietary preferences, or curating outfit suggestions for specific occasions. By integrating customer behaviors and habits into their algorithms, these agents deliver highly personalized and context-aware advice. Beyond simple chat interactions, they create seamless, value-driven experiences, enhancing customer satisfaction and fostering deeper engagement.

However, personalization must be executed with empathy and respect, ensuring that customers feel valued rather than experimented upon. AI alone cannot and should not be used for interactions that require human empathy, but it still has an important role to play in reshaping customer service operations.

#3 No data, no party: unlocking actionable customer insights

Data quality is not a topic that will disappear – it’s the foundation of a successful CX strategy.

Yet, many organizations continue to struggle with fragmented, siloed data. According to Wavestone’s Global Technology & Data Leaders Survey, 31% of technology leaders cite poor data quality as the primary barrier to implementing GenAI projects, underscoring the urgent need for clean, consolidated data. Without it, valuable insights remain untapped, leading to inconsistent customer experiences and missed opportunities.

To ensure data is reliable and usable, a solid data governance structure is essential. Clear policies for data handling, quality assurance, and security, establish a culture of data stewardship, empowers teams to collaborate effectively while adhering to compliance standards, such as user consent management. Tools like Preference Management Platforms (PMPs) help ensure regulatory compliance and respect customer preferences, building trust and engagement.

Of course, with the implementation of any new technology, robust cybersecurity measures must be implemented. Data breaches remain a top threat, with 77% of cyberattacks resulting in proven data theft, as highlighted in the CERT-Wavestone 2024 Report. Centralizing data improves insights and customer interactions, it also increases vulnerability, making security a non-negotiable investment.

High-quality data empowers businesses to anticipate needs, resolve pain points, and refine CX strategies proactively. Notably, 49% of technology leaders expect GenAI to enhance customer satisfaction, service, and experience within the next three years, demonstrating the transformative power of data-driven innovation.

Implementing a robust data strategy may seem like a daunting task, but taking the first step is what sets leaders apart. A clear roadmap makes all the difference:

1. Identify the technologies that deliver the highest value
2. Integrate the right tools seamlessly into your existing ecosystem
3. Leverage these assets across all CX touchpoints to maximize impact

By approaching data strategically, you will unlock more interactive, personalized, and unique customer experiences.

Measuring success: why CX metrics matter

Economic pressures have placed cost-cutting at the forefront for many organizations, often to the detriment of CX. The challenge for CX leaders is securing senior buy-in and proving that investment in CX delivers long-term value. Position CX as a strategic investment by aligning improvements with measurable efficiencies and customer retention metrics. For instance, linking personas with service expectations can help organizations identify where to focus efforts, reducing over-servicing while enhancing satisfaction. KPIs serve as a roadmap for continuous improvement. By tying CX initiatives to measurable outcomes—such as increased efficiency or enhanced retention—organizations can build a compelling case for sustained investment and innovation.