9 Biggest Customer Experience Challenges and How to Overcome them in 2023

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Harsha Khubwani

February 21, 2023

According to Clootrack's 102 CX Expert report, 1 out of 8 survey respondents says brands are reluctant to build their CX environment with the customer-first mindset.

In today's highly competitive business landscape, delivering a great customer experience is no longer just a nice-to-have - it's a must-have. CX managers play a crucial role in every organizational activity linked to customer experience as they give direction to them. So, it is critical that the managers possess clarity regarding each single CX initiative to gain success.

But, there is a high chance that managers face uncertain customer experience challenges that directly hamper the performance of operations they control. It is necessary for customer experience managers to understand those complications and their solutions to avoid unnecessary trouble.

In this article, you will gain knowledge of the basics like, what CX managers do, what's their role in creating positive consumer experiences, and 9 customer experience challenges that a CX manager faces and how to overcome them.

What Does a Customer Experience (CX) Manager Do?

A Customer Experience (CX) Manager is responsible for assuring that your customers have positive interactions with your business. They focus on the entire customer journey, from the initial point of contact to the post-purchase stage, and work to improve every touchpoint. The CX manager conducts research to gain customer insights into customer needs and preferences and uses this information to devise a customer experience strategy with the help of the CX team to enhance the overall customer experience.

CX managers collaborate with other departments, such as marketing, sales, and customer care, to ensure that all customer-facing activities align with the company's CX goals. In addition, they monitor customer feedback and use it to identify areas for improvement, such as product features, pricing, and customer support channels. To be effective, a CX manager possesses strong communication and interpersonal skills as they work closely with customers and various teams within the company.

Apart from that, they have a deep understanding of customer behavior and psychology, as well as, a strong analytical and data-driven approach to decision-making. CX managers also have experience with customer research and data analysis tools, such as surveys, focus groups, and data visualization software. Ultimately, the CX manager ensures that customers are satisfied and loyal to the company, leading to increased revenue and a positive reputation.

Role of CX Manager in Creating a Positive Customer Experience?

CX managers are the lifeline of CX initiatives and programs your company conducts. A customer experience manager keeps an in-depth knowledge of customer needs, demands, and pain points to get the most out of CX endeavors.

Some of the ways a CX manager helps a brand in creating a positive customer experience include:-

Developing and implementing a customer-centric culture throughout the organization.
Identifying and resolving customer issues promptly and efficiently.
Conducting research to gain insights into consumer behavior and preferences.
Monitoring customer feedback and using it to identify areas for improvement.
Developing and enforcing strategies to enhance the end-to-end customer experience.
Collaborating with other departments to ensure all customer-facing activities align with the CX goals of the company.
Delivering personalized CX and proactive customer support.
Measuring and tracking customer satisfaction metrics to continually improve customer experience efforts.

Ultimately, a CX Manager's role is to create an environment where customers feel valued, respected, and appreciated, leading to increased customer acquisition, retention, and ROI for the company.

9 Biggest Challenges That a Customer Experience Manager Faces and How to Overcome Them in 2023

From managing complex communication channels to dealing with changing customer expectations, a CX manager has to navigate a variety of obstacles to deliver a superior customer experience.

Here are the 9 biggest customer experience challenges that a CX manager can expect to face while operating:-

1) Poor Customer Data Quality

Customer data can be incomplete, inaccurate, or outdated, leading to incorrect assumptions about customer choices and behaviors. This can result in ineffective marketing campaigns, irrelevant product recommendations, and inadequate customer support, impeding the goal a CX manager wants to achieve. Poor data quality can also lead to missed opportunities to improve the customer experience, as important insights and trends may be overlooked.

Solution:- To overcome this challenge, CX managers should:-

Implement processes to ensure that customer data is accurate, complete, and up-to-date. This may involve cleaning and validating existing data, implementing automated data collection processes, and training staff on data quality best practices.
Collaborate with other departments, such as IT and data analytics, to ensure that necessary data infrastructure and tools are in place.

By improving data quality, CX managers can gain a better understanding of customer needs and wants, leading to more personalized experiences and improved customer satisfaction.

2) Friction From Top Executives

Some executives may prioritize short-term profits over long-term customer satisfaction, leading to decisions that may negatively impact the customer experience. This can include cost-cutting measures that affect the quality of customer support, product features that are not aligned with customer needs, or marketing campaigns that are not tailored to the target audience. Additionally, some executives may not fully understand the importance of a positive customer experience, leading to a lack of support for CX initiatives and investments, troubling the CX manager to monitor and proceed with customer-pleasing operations.

Solution:- To address this challenge, CX managers should:-

Educate top executives on the importance of a positive customer experience and the long-term benefits it brings to the company. They can use data and key metrics to demonstrate the financial impact of a positive customer experience, such as increased customer loyalty, retention, and revenue.
Build relationships with key executives and involve them in CX decision-making processes to gain their support and buy-in. Also, a customer experience manager can take measures to create a customer-centric company where top executives support customer-related strategies and procedures.

By aligning CX initiatives with your business goals and demonstrating their impact, CX managers can overcome the friction from top executives and ensure that the customer experience remains a top priority.

3) Organizational Silos

Organizational silos refer to the barriers existing between different departments or teams within an organization, which can hinder communication, collaboration, and information sharing. When departments work in silos, they may not be aligned with the same CX goals and may prioritize their individual objectives over the overall customer experience. This can lead to fragmented customer experiences, where customers receive inconsistent or conflicting information or face unnecessary hurdles during their interactions with the company.

Solution:- To overcome organizational silos, CX managers should:-

Conduct inter-departmental collaboration activities to promote cross-functional cooperation and communication within the organization. They can facilitate regular meetings and workshops with different teams to share information, identify areas for improvement, and develop solutions that align with CX's goals.
Work closely with other departments to ensure all customer-facing activities are aligned and consistent across the organization. This can involve developing a company-wide CX framework, providing training and resources to different teams, and measuring and tracking CX metrics across all departments.

By breaking down silos, CX managers can create a more cohesive and consistent customer experience, meeting customer expectations and overcoming CX challenges.

4) Resistance to CX Transformations

CX transformations involve significant changes to the ways a company operates, such as adopting new technology, redesigning business processes, or implementing a new CX governance strategy in favor of customers' requirements. Resistance to change can come from employees, who may feel that the changes will disrupt their work or that they lack the skills or resources to adapt to the new ways of working. Resistance can also come from customers, who may be hesitant to adopt new products or services or who may prefer the status quo. Eventually, increasing the troubles for a customer experience manager.

Solution:- To overcome resistance to CX transformations, CX managers should:-

Engage stakeholders at all levels of the organization and create a shared vision for the future of the customer experience. They should communicate the benefits of the CX transformation and address any concerns or fears that stakeholders may have.
Involve employees in the transformation process, providing training and resources to help them adapt to new ways of working. Additionally, CX managers should gather and incorporate customer feedback throughout the transformation process to ensure that the changes are aligned with customer needs and preferences.

By addressing resistance to CX transformations, CX managers can create a more positive and collaborative work environment and reduce customer churn.

5) Lack of Awareness Regarding CX Initiatives

CX initiatives often involve multiple touchpoints across different channels and departments, making it challenging to ensure that all stakeholders are aware of the initiatives and their objectives. Without sufficient awareness, stakeholders may not be motivated to participate or may not understand how their role impacts the customer experience. This can result in missed opportunities to improve the customer experience, as well as a lack of accountability and ownership for CX initiatives.

Solution:- To address this challenge, CX managers should:-

Promote awareness and engagement with CX initiatives across the organization by running CX awareness programs. This can involve developing a communication plan that highlights the benefits and objectives of CX initiatives, as well as, the role that different stakeholders play in the customer experience.
Use data and customer experience metrics to demonstrate the impact of CX initiatives on the business and on customer perception of your brand. Additionally, CX managers should involve stakeholders in designing and implementing CX initiatives to create a sense of ownership and engagement.

CX managers can use digital tools to improve awareness regarding CX initiatives. By using digital collaboration platforms or an intranet, they can create a centralized hub where stakeholders can access information regarding CX initiatives. They can share updates, performance metrics, and success stories regarding the CX program.

6) Absence of Required Tools & Technology

Effective CX management requires the use of specialized tools and technology to collect, analyze, and act on customer data. However, many organizations may lack the necessary infrastructure, resources, or budget to implement and maintain these tools, making it challenging for the CX manager to manage customer interactions and deliver a customer experience that makes the consumers happy.

Solution:- To address this challenge, CX managers should:-

Identify the required tools and technology needed to manage the customer experience effectively. This may include customer relationship management (CRM) software, customer feedback management tools, customer experience analytics platform, or other specialized software.
Work with their IT department or external vendors to evaluate and implement these tools in a cost-effective and efficient manner. Additionally, CX managers can opt for cloud-based services or open-source software to access tools that meet their requirements and fit their budgets.

By purchasing and subscribing to needed tools and technology, CX managers can leverage the power of automation and reduce the burden on their teams, smoothening the customer journey.

7) Difficulty in Demonstrating ROI on CX Investments

CX initiatives can require significant investments of time, money, and resources, making it essential to demonstrate their influence on the business. However, it can be challenging to measure the ROI of CX initiatives, particularly as the impact of these initiatives is often difficult to quantify. Further, this makes it difficult to secure funding for future CX initiatives or gain buy-in from key stakeholders.

Solution:- To address this challenge, CX managers should:-

Develop metrics that can measure the impact of CX initiatives on the business. This can involve creating key performance indicators (KPIs) that capture customer satisfaction, retention, and lifetime value.
Create a culture of continuous improvement and data-driven decision-making to ensure that CX initiatives are optimized over time. By leveraging data analytics tools and regularly reviewing KPIs, CX managers can identify areas for improvement and make data-backed decisions to optimize customer experiences.

This continuous improvement process can help managers ensure that CX initiatives are aligned with the constantly changing opinion and expectations of customers, delivering a positive impact on the business and making it easier to demonstrate the ROI of CX investments.

8) Trouble in Aligning CX Strategy With Business Objectives

CX initiatives often require significant investments of time, money, and resources, making it essential to ensure that they align with the overall business objectives. However, the CX strategy may not always be aligned with the broader business objectives, creating challenges in securing buy-in and support from top executives and stakeholders. This misalignment can also result in CX initiatives that do not support the company's development, ending in wasted investments and poor customer experience.

Solution:- To address this challenge, CX managers should:-

Work closely with top executives to ensure CX strategy aligns with the overall business objectives. This can involve developing a clear understanding of the company's mission, vision, and goals and redefining customer experience strategy if required.
Create dashboards and reports that track the progress of CX initiatives and their impact on broader business purposes. Further, iteratively work according to and on its output.

By demonstrating how CX initiatives contribute to the company's success, CX managers can ensure that the CX strategy is aligned with the overall business objectives, securing support from top executives and stakeholders.

9) Improper Customer Experience Framework

A CX framework defines the key elements of the customer journey, including touchpoints, channels, and interactions, and guides the development and implementation of CX initiatives. Without a proper CX framework, CX initiatives may lack coherence and consistency, resulting in unsatisfactory outcomes that negatively affect the plans developed by the CX manager.

Solution:- To address this challenge, CX managers should:-

Develop a clear CX framework that aligns with the company's vision, ideals, and values. The CX framework should define the key stages of the customer journey, the channels and touchpoints that customers use, and the interactions and experiences that customers have at each stage of interaction with the brand.
Continuously monitor and evaluate the effectiveness of the CX framework, making improvements and optimizations as needed. This can involve regularly reviewing customer feedback, analyzing data and analytics, and identifying areas for transformations.

A proper CX framework can help CX managers overcome the challenges of developing and implementing CX initiatives, enabling a customer-centric approach that drives growth and success.

To Wrap Up

In conclusion, being a customer experience manager can be challenging, especially when faced with various obstacles that can hinder the effective delivery of a positive customer experience. The challenges of poor customer data quality, friction from top executives, organizational silos, resistance to CX transformations, lack of awareness regarding CX initiatives, absence of necessary tools and technology, difficulty in demonstrating ROI on CX investments, improper CX framework, and trouble aligning CX strategy with business objectives, are critical issues that CX managers must address.

To overcome these challenges, customer experience managers must work closely with other departments and stakeholders, create a coherent CX strategy, monitor and analyze customer feedback and data, leverage technology and tools, and demonstrate the impact of CX initiatives on your company's growth. CX managers can help a business deliver a positive and seamless customer experience that drives conversions and customer loyalty by creating a customer-centric approach that aligns with the brand's mission, vision, and goals.