Top 5 Customer Service & CX Articles for Week of April 29, 2024

Each week, I read many customer service and customer experience articles from various resources. Here are my top five picks from last week. I have added my comments about each article and would like to hear what you think too.

5 Reasons Why VIP Customers Are the Key to E-Commerce Growth by Josh Kim

(Total Retail) VIP customers significantly impact a business’ bottom line, often contributing a substantial portion of total revenue. For context, these are the customers who continue to buy from you over and over again, and should account for the majority of your total sales. In fact, we’ve found that at least 50 percent of a company’s revenue should come from these VIPs in order to maintain steady growth.

My Comment: I’ve been studying how different brands are creating successful loyalty programs. This article includes five ways to manage the VIP experience, and of course, there’s technology, personalization, and more. While the article focuses on retail (especially e-commerce), anyone from any type of company (B2B and B2C) that has “VIP customers” will want to read this article.

3 Trends That Will Likely Dominate Customer Loyalty Programs In 2024 by Zsuzsa Kecsmar

(Forbes) Loyalty programs are often recognized as a way to retain customers and let companies showcase their brand values. Yet, in the current economic landscape, the stakes are higher than ever. Marketers and loyalty professionals need to figure out a way to create innovative and engaging loyalty programs that are flexible enough to adapt to current and future market challenges. To create an actionable plan, you need the right information and a wide-angle look at the industry.

My Comment: And as long as we’re on the topic of loyalty programs, here’s another informative article. One of the trends, “Micro-Targeting,” is about creating a highly personalized program. Years ago, the term “Big Data” became popular. It allowed companies to spot larger trends based on the buying habits of a large number of customers. I came up with the concept of “Micro Data,” which is about very personalized information about a smaller set of customers. This concept is easier to deliver than ever, thanks to how we collect data and track customers. In addition, the author includes two additional trends.

4 Emerging Customer Journey Trends to Test by Applause

(Applause) Our modern day tech evolution has enabled new ways for customers to interact with brands — and vice versa. Retail brands know that brick-and-mortar experiences alone just won’t cut it, nor will insufficient digital experiences that fail to account for the evolving customer experience. The brands that win are the ones who find a way to engage, personalize and reduce friction in their experiences.

My Comment: Let’s move away from loyalty programs but stay with trends. Here are four trends tied to the overall experience. Of course, the trend in AI is at the top of the list. The use of generative AI technology is easier than ever to implement and cost-effective. You can’t ignore the power of personalization, and more companies recognize this valuable strategy. Loyalty and self-service round out the four.

AI Overload: the Good, the Bad, and the Ugly Impact on Customer Experience by Tomer Azenkot

(Retail Customer Experience) Many companies today depend on artificial intelligence to handle customer interactions online. From chatbots and voice assistants to recommendation engines, brands are integrating AI wherever they can, and for good reason.

My Comment: AI continues to be the most talked-about and written-about topic in customer service and CX. I chose to include this article because it points out something I’ve been preaching for years: There must be a balance between technology and the human-to-human experience. The article points out the positive and negative uses of AI and more.

10 Ways to Nurture Customer Confidence by Katie Navarra

(The Ascent) Customer confidence drives sales and supports long-lasting loyalty among customers. Nurturing customer confidence is an important part of your retention strategy. Expensive marketing and advertising campaigns only provide a return on investment when customers make a purchase. More importantly, advertising aims for conversions that produce long-term loyalty rather than a one-time purchase.

My Comment: We wrap up this week’s Top Five with an excellent list of 10 ideas, strategies, and tactics on how to build trust and confidence with your customers. Our annual CX research found that 87% of the more than 1,000 US customers we surveyed this year say that great customer service increases their trust in a company or brand. Without trust and confidence, you can’t have loyalty. Here’s a great list to help build the trust your customers have with you and your company.

Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops. Connect with Shep on LinkedIn.