[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/07\/customer-data-trends-in-2020\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/07\/customer-data-trends-in-2020\/","headline":"Customer data trends: Impacting business and CX for years to come","name":"Customer data trends: Impacting business and CX for years to come","description":"Learn the top three customer data trends in 2020 that will have the most impact on customer experience and the future of business.","datePublished":"2020-01-07","dateModified":"2021-04-26","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/ben-jackson\/#Person","name":"Ben Jackson","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/ben-jackson\/","identifier":356,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/82c64e3f861af891d7fdc34c2ae77a6fdeb6a52e0a5b7c173aff9d148ca8e11a?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/82c64e3f861af891d7fdc34c2ae77a6fdeb6a52e0a5b7c173aff9d148ca8e11a?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Commerce","logo":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","width":172,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2020\/01\/thumbnail-b230a5e163ed795fc7168eaaad4c3d35.jpeg","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2020\/01\/thumbnail-b230a5e163ed795fc7168eaaad4c3d35.jpeg","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/07\/customer-data-trends-in-2020\/","about":[{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/customer-data\/","name":"Customer Data","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_data","http:\/\/www.wikidata.org\/entity\/Q56278300"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/","name":"Customer Experience","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_experience","http:\/\/www.wikidata.org\/entity\/Q984142"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/cdp-customer-data-platform-solution\/data-privacy\/","name":"Data Privacy: Laws, Consumer Expectations","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Consumer_privacy"]},"Wholesale Distribution"],"wordCount":1081,"keywords":["2020 Trends","Customer Data","Living Profile"],"articleBody":"We can’t address customer data trends in 2020 without acknowledging that the impact of customer data on customer experience has reached\u00a0seismic\u00a0levels.\u00a0\u00a0At the start of\u00a0the\u00a0digital era, a business\u2019 marketing, commerce, sales, and service operations collected and managed their own customer data in silos. The result: fragmented customer experiences and business inefficiency.\u00a0\u00a0A few years ago,\u00a0companies\u00a0began implementing solutions to fuel e-commerce, marketing automation, and CRM systems with unified customer profiles, which contain\u00a0all of\u00a0the customer\u2019s identity, consent, and preference data. Their objective was nothing short of the holy grail for a business in the digital age: personalized customer experiences that differentiate the brand from the competition\u00a0and fuel growth.\u00a0\u00a0More recently, organizations have realized how accurate, permission-based customer data can increase the effectiveness\u00a0of\u00a0cutting-edge\u00a0technologies such as machine learning \/ artificial intelligence\u00a0and\u00a0Customer Data Platforms\u00a0(CDPs), which enable personalization at the scale necessary to\u00a0dominate in the customer–first era.\u00a0This impact\u00a0is\u00a0so important\u00a0because it reflects a critical customer demand. Eighty-four\u00a0percent of\u00a0consumers think being treated like a person, not a number, is very important\u00a0to winning their business.\u00a0And without a successful customer data strategy, businesses will struggle to meet this demand.\u00a0Put simply:\u00a0They won\u2019t know who their customers are or how they like to be engaged.\u00a0So, as we look forward into 2020 and beyond, where will customer data impact customer experience the most? Top 3 customer data trends of 2020Digital Identity Will Redefine \u201cFrictionless\u201d Customer\u00a0Experiences\u00a0There are several staples of the traditional digital customer experience; the most recognizable being manual entry of names, passwords, addresses, and payment information as steps of a purchase. In 2020 and beyond, we predict these staples will increasingly become a competitive liability.\u00a0Today\u2019s consumers don\u2019t have time to spare. They want relevant, personalized experiences\u00a0with as little friction as possible.\u00a0The way businesses across consumer-facing industries respond to this trend will play a major role in their success. And their response will hinge, in large part, on their ability to fuel experiences with customer data.\u00a0As an example,\u00a0banks are investigating the benefits of equipping ATM machines with biometrics.\u00a0This would enable customers to skip the traditional card-and-PIN number ATM experience and instead\u00a0face\u00a0a camera, which would authenticate their identity and provide account access. Not only would this speed and streamline the customer experience, but banks could potentially reduce costs incurred by customer service calls dealing with lost cards or forgotten PIN numbers.\u00a0For another example, retailers like\u00a0Warby\u00a0Parker and Rolex are reinventing their customer experiences\u00a0by adding augmented reality functionality to their mobile apps. Customers can virtually try on a pair of glasses or a watch and then buy with one click.\u00a0As these examples show,\u00a0digital identities are already playing a role in the\u00a0revolution\u00a0of\u00a0traditional\u00a0customer\u00a0experiences. In 2020, more brands will realize the customer\u2019s definition of \u201cfrictionless experiences\u201d will require new levels of technical solutions and creativity\u00a0based on digital identity.\u00a0\u00a0 \u00a0 2. To Up-Level Customer Experience, Businesses Will Prioritize the Employee ExperienceUp until recently, strategies to accomplish digital transformation initiatives covered a host of customer engagement-related projects. The most common examples include redesigning Web sites to make information easier for customers to find, improving the incorporation of customer feedback into products and service development, and fueling engagements with customer data to make them more relevant and personalized.\u00a0For 2020, we predict an increasing number of digital transformation strategies will add a new element: tying the employee experience tighter to the customer experience.\u00a0\u00a0If employees have positive experiences with their employers,\u00a0they\u2019ll be more willing to be brand ambassadors\u00a0and better positioned to help customers solve challenges. And since\u00a0reviews,\u00a0survey results, in-store\u00a0encounters, or social media posts\u00a0can make a significant impact on\u00a0an\u00a0organization, engaged employees are invaluable.\u00a0They\u2019ll not only reduce the number of negative reviews but will also have a beneficial effect on retention rates.\u00a0There are many examples of companies who have gotten off to a fast start on this topic already:\u00a087% of customers\u2019\u00a0affinity for Starbucks\u00a0is driven by the way the company treats its employees.\u00a0\u00a0Zappos works to ensure\u00a0every employee plays a role\u00a0in the company\u2019s customer-first culture\u00a0\u2014\u00a0even call center employees are referred to as customer loyalty team members.\u00a0Chick-Fil-A gives franchise owners extensive training on\u00a0how to empower employees\u00a0to\u00a0make decisions and\u00a0build relationships with customers.\u00a0\u00a0Yet many businesses are still playing catch-up to this trend, and we think their efforts will gain momentum in 2020. An engaged, creative,\u00a0and energetic workforce outperforms the competition in performance, customer service, valuation, and revenue.\u00a0So, if\u00a0companies invest in their people and the employee experience\u00a0wisely, the ROI on\u00a0the\u00a0critical business metric\u00a0of customer experience\u00a0is clear.\u00a0\u00a0 \u00a0 3. The B2B Customer Experience Will Catch Up To Its B2C Counterpart\u00a0The trend to enhance B2B buying journeys, coined\u00a0industrial consumerism, has taken root in industries such as manufacturing, wholesale distribution, consumer products, and high tech – and it’s going to impact customer data trends in 2020.\u00a0As the potential benefits of online marketplaces have become more evident,\u00a0B2B brands have jumped in with both feet into the direct-to-consumer trend. This not only has opened more revenue-generating opportunities, but the customer data collected through these platforms is a treasure trove for future improvement.\u00a0In 2020, we predict more benefits will come to the market, and elevate the B2B buyer journey. Specifically, we see 3 areas where B2B brands have the chance to differentiate:\u00a0Onboarding:\u00a0Brands who can accelerate the onboarding process of\u00a0business\u00a0customers and partners at scale will speed time-to-market and get to value faster.\u00a0Lifecycle Management:\u00a0Too often, IT teams are overburdened by managing the networks of customers and partners. The businesses who find ways to streamline lifecycle management will reduce costs and free up their own IT teams to focus on growth-related projects, as opposed to fixing problems.\u00a0\u00a0Access Control:\u00a0As they launch online e-commerce platforms, companies can break the trust of their\u00a0business\u00a0customers and partners if intellectual property or sensitive data isn\u2019t protected to the highest standard.\u00a0At the same time, it can be broken if users meet too many roadblocks when they try to perform tasks appropriate for their roles and responsibilities. Achieving this balance between access and security will strengthen brand reputation and lower business risk.\u00a0  59% more contactable customers. 100% data security compliance. 10%-20% above average email open rate. Find out how it’s done HERE."},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2020","item":"https:\/\/www.the-future-of-commerce.com\/2020\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"01","item":"https:\/\/www.the-future-of-commerce.com\/2020\/\/01\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"07","item":"https:\/\/www.the-future-of-commerce.com\/2020\/\/01\/\/07\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Customer data trends: Impacting business and CX for years to come","item":"https:\/\/www.the-future-of-commerce.com\/2020\/01\/07\/customer-data-trends-in-2020\/#breadcrumbitem"}]}]