5 Trends in Digital Customer Engagement for 2022

Responses to the COVID-19 pandemic have sped up the adoption of digital technologies by several years, according to McKinsey & Company research.

Yet, perhaps it is a little easy to point only toward the pandemic. Advancements in low code technologies, AI, and the introduction of the metaverse are pushing digital transformation projects forwards at a remarkable pace.

Sitting back and assessing the developments of these projects across numerous sectors, seven trends emerge that may well dictate the future of digital customer engagement.

1. The Metaverse

The metaverse provides a virtual environment that allows creators to recreate lifelike interactions in a digital world. 3D avatars, renditions of physical spaces, spatial anchoring, and many more advanced technologies help hold this structure together.

Despite its infancy, companies are harnessing the metaverse to engage with customers in a futuristic manner, creating everything from virtual storefronts to amusement parks.

An excellent example of metaverse innovation is Nike, which has its own Nikeland virtual world on Roblox. There, users can enjoy personalized gaming, shopping, and social experiences.

2. Digital Communities

Digital customer communities offer a platform for customers to contribute their insights. Customers like sharing their opinions and expertise about products and services with other customers and prospects, which can positively influence brand reputation.

Further, customer observations prompt brands to reply with their own insights and engage in conversations. As a result, consumer involvement, satisfaction, loyalty, and advocacy are all fuelled by “two-way” customer dialog.

An excellent example of a digital community is Sephora’s Beauty Insider. The community, which has nearly 1.5 million members, attracts people who share a passion for beauty and makeup.

The digital community, designed to look like a social media site, provides cosmetic tutorials, and other content relevant to the brand.

3. Live Streaming

Live streaming allows customer service representatives to respond to clients or potential buyers in real-time while reaching out to large audiences.

Such a strategy often proves captivating for customers as it breaks geographical barriers and drives a consistent brand experience.

Live streaming also enables companies to express their value proposition, share their brand story, and create consumer relationships.

Yahoo research also finds that viewers experience feelings of exhilaration, immediacy, and connection during a live stream. Meanwhile, live streams can boost organic traffic by 157 percent and conversations by 30 percent. Finally, live video viewers are 67 percent more inclined to buy a product or service.

While this trend can support customer service, it will most likely help supercharge marketing strategies. An excellent example is this live stream of a product launch by Fenty Beauty, as they released a new makeup line.

4. Hyper-Personalization

Hyper-personalization uses artificial intelligence and real-time data to provide each user with more relevant content, products, and services.

The approach takes customer journey design to the next level, especially at marketing-related touchpoints. For example, the department may tailor proactive communication to customers’ specific interests. Doing so increases engagement rates and improves customer convenience.

Meanwhile, businesses may get to grips with how to safely harness user data, provide more personalized experiences, and drive conversions.

5. Artificial Intelligence

AI facilitates a better understanding of the customer by processing large volumes of structured and unstructured data. Combined with machine learning to gather and analyse social, historical, and behavioural data to improve insights over time, it enables brands to better understand customer behaviour.

Unlike traditional analytical software, AI is constantly learning and improvising to anticipate customer behaviour, allowing the brand to provide more relevant content, increase sales opportunities, and improve the customer journey.

Also, AI enables hyper-personalization and proactive customer support strategies. Yet, this is perhaps still scraping the barrel with other AI-driven technologies – such as virtual assistants, biometrics, and predictive routing – also playing a central role in digital engagement strategies.

Source: CX Today