Customer Experience as a Service (CXaaS) is a strategic approach that prioritizes customer satisfaction by integrating technology, data analytics, and personalized interactions across various touchpoints.
It’s a cloud-based solution fully managed by external providers that helps companies plan, execute, and optimize their customer experience.
Customer journeys are becoming more complex and require technology investment to improve the customer experience, reduce costs, and streamline employee operations. Here, by implementing CXaaS, companies can optimize customer journey mapping, from the first engagement to after-sales assistance, and deliver unified digital experiences by developing capabilities across CMS, commerce, and mobility designs.
This results in a satisfying experience, trust, and, eventually, better customer retention and lifetime value (CLV).
In this blog, we’ll understand customer experience as a service model and its implementation for businesses.
What is the Need for CXaaS?
A company’s growth is directly proportional to the customer experience it creates. This means that cultivating a customer-centric culture is a critical component of the customer experience strategy, which also calls for targeted efforts to build both technical capabilities and strategic amplification across the organization.
Organizations oftentimes don’t consider much about the data captured throughout the customer journey and keep it siloed in separate platforms, resulting in disjointed customer experiences.
However, cloud-based CXaaS platforms streamline systems and applications, such as CRM software, marketing automation tools, and analytics platforms, in one place.
As per the reports, the market potential of customer experience as a service is projected to grow to over $4 billion till 2028.
What makes CXaaS so powerful?
CXaaS’s advantage is its ability to handle massive volumes of customer data, which derives segment-based insights that allow companies to understand their customers’ specific needs and give them what they are looking for in real-time.
Activating cohesive, streamlined experiences across all channels makes CXaaS the backbone of true digital transformation.
When organizations find it challenging to scale up their efforts to improve CX, they turn to outsourcing CX and implementing customer experience as a service. This not only results in substantial cost savings but also allows businesses to sift through massive data streams, extracting valuable insights to better understand user behavior. The third-party partner may help companies adapt the approach towards establishing a more customer-centric ecosystem, as:
- The risk of failed CX strategies shifts from the organization to the CX solutions partner that drives outcomes.
- The huge technology investments shift to a flexible cloud-based platform managed by the partner.
- The customer experience tools and services can be scaled up or down within the platform in real time for continuous improvement.
How Does CXaaS Work?
Operating as a comprehensive external solution, CXaaS utilizes organizations’ customer data and implements automation and analytics. The model works based on the below-mentioned steps:
Assessment of Existing Strategies
The CXaaS efforts begin by understanding customers’ pain points and preferences, followed by a thorough analysis of the existing customer experience strategies.
The customer experience audit involves understanding the customer interactions at every touchpoint of their journey through UX assessment and competitive benchmarking.
Customer Intent Mapping
The CXaaS system gathers data and extracts meaningful insights through intent mapping from various sources, such as customer interactions, sales data, social media, and surveys, to gain a holistic view of why and how customers interact with the brand.
Customer Segmentation
The intent mapping is followed by a customer experience journey mapping, where all the individual experiences and interactions are visualized and analyzed.
By creating a unified customer profile and using customer segmentation based on demographics and psychographic analysis, CXaaS creates a personalized customer experience journey, maps individual experiences, and builds a roadmap customized to the brand’s objectives, focusing on omnichannel experiences.
Technical Capability
To streamline the processes and bind end-to-end business processes, automation solutions, and technical capabilities are incorporated, such as:
- CMS consultation solutions, including platform consultation, development, and deployment
- Establishing a commerce experience through website app development and integration
- Designing and developing highly diverse and scalable designs, prototypes, wireframes, and XR designs.
Doing this optimizes customer interactions and lets the organizations focus on more value-adding tasks.
Also read- The role of Data Analytics in crafting Superior CX
Key Features of Customer Experience as a Service
Data-Driven Insights
The capacity to handle enormous amounts of customer data makes CXaaS an effective solution for boosting customer engagement and support. CXaaS utilizes and derives segment-based data-driven Insights by utilizing analytics within the platform to gather meaningful data on customer behavior, preferences, and trends.
This data is then analyzed to provide actionable insights that empower businesses to enhance personalized experiences, optimize operations, and make informed strategic decisions.
Omni-Channel Support
CXaaS models integrate different channels and functions responsible for delivering CX and creating long-lasting value, accelerating growth and transformation.
By binding all the channels together, CXaaS provides a connected and consistent experience, enabling customers to connect through their preferred platform, including social media, email, or live chat, ensuring consistent support regardless of where the conversations start.
Interoperability
The cloud-based CXaaS focuses on establishing collaboration between systems that fetch correlated customer data, product data, customer service data, CX surveys, and audit data from multiple digital channels.
Simply put, the model aims to foster interoperability by enabling data to travel freely across layers of people, processes, and tools so enterprises can access customer insights from a single source of truth.
AI-Powered Automation
An efficient customer experience as a service system uses AI to handle and automate routine tasks efficiently while leaving more complex issues to human agents. This ensures quick response times without sacrificing quality service.
Critical CX Metrics that Can be Improved through CXaaS
According to a report by McKinsey, 33% of companies claim that data and analytics have helped them gradually increase revenue. Hence, once businesses implement the CXaaS system for their customer experience strategy, they can expect a massive improvement in the major CX metrics, such as:
Net Promoter Score (NPS)
Net Promoter Score or NPS is a CX survey metric, which is measured by asking respondents to rate the likelihood of recommending a company, product, or service to others.
These simple metrics are measured by asking customers questions like
“On a scale from 0 to 10, how likely are you to recommend this product/company to a friend or colleague?”
How CXaaS can help?
CXaaS aims to improve Net Promoter Score by delivering consistent and high-quality service based on customer behavior.
Read more about – The role of data analytics in crafting superior customer experience.
Customer Churn Rate
Customer churn rate is an important CX metric that significantly impacts the brand’s revenue and profitability. Calculated through customer data platforms, a high churn rate indicates product or customer service issues, while a low churn rate indicates increased customer satisfaction and loyalty to the company.
Here’s the formula to calculate the churn rate.
(Lost Customers ÷ Total Customers at the start of the period) X 100
How CXaaS can help?
Through predictive analytics, CXaaS proactively assesses the customer’s behavioral pattern to identify potential pain points based on past feedback and current interactions.
Customer Lifetime Value (CLV)
Customer lifetime value determines the total revenue an organization can expect from a single customer account over its relationship with the brand.
How CXaaS can help?
CXaaS strengthens customer relationships, increases customer retention, and drives revenue growth by personalizing customer interactions.
CXaaS for a Solid Pulse on Evolving Customer Expectation Trends
The true transformation of CX strategy is so much more than just technology transformation and the cultivation of advanced technical capability.
While technology remains a crucial lever, organizations should also include all integrated strategies and process optimization in their transformation plans.
Here, customer experience as a service, or CXaaS serves as a fully managed approach that combines strategy, data integration, automation, and IT infrastructure to expand customer-centric initiatives quickly.
Successive’s approach to CXaaS is to become more than just another technology partner with “as a service” at the end of it.
We offer an advanced CXaaS solution for planning, designing, and executing activities that encompass all parts of the customer experience.
Our Customer Experience-as-a-Service (CXaas) solution is a combination of CX strategies across:
- CMS development and deployment for better and consistent content distribution
- Creative designs and wireframes for user-friendly interfaces
- Integrated commerce for a connected and consistent shopping experience
As a leading customer experience consulting company, our team adheres to industry regulations and compliance standards relevant to your business and prioritizes robust security measures to protect customer data and sensitive information through comprehensive CXaaS solutions.
This CXaaS model allows organizations to make customer experience a central component of digital transformation as it integrates all the tools and services needed to manage content, UX designs, and commerce experience, taking care of everything from start to finish.
Connect with our solution experts to master and enhance end-to-end customer journeys with a unified CXaaS solution.
