It was in the 1920s the concept of market research first emerged. Rooted in advertising and marketing, this was the first-time businesses properly documented customer buying patterns, using it for more than simply post-purchase engagements.

In fact, it was a psychologist named Daniel Starch who first developed the theory, reporting how advertising had to be seen, believed, and remembered to be considered effective.

Fast forward to today and Customer Experience (CX) has taken on a much broader meaning, with a particular focus on customer behaviours, trends and ways to ensure organisations are driving loyalty and retention.

As CX begins to cover a range of different meanings, organisations are rethinking who their customers are and how to spark a long-term relationship with them. Knowing whether a business is interested in driving retention, acquisition or brand awareness is the first step; the second is determining which investments will achieve these outcomes.

The Shifting Role of the Chief Customer Officer

2019 saw the Customer Experience Division rise to board level, with the clear emergence of the Chief Customer Officer (CCO). This showcased the importance organisations were placing on the customer experience function, and the value it posed on both an operational and marketing level.

As the years developed, more C-Suite titles emerged – including Chief Marketing & Experience Officers, Chief Product Owners, Chief Digital, and the list went on. With these new roles, the CX function had a spotlight placed on it.

In 2022, 850 CX professionals with 31% of organisations today saying CX teams reports directly to the CEO. These companies vary in size, with 86% having 1500+ FTEs or above. This shows there remains a rising importance in CX, with many leaders reporting direct to the Chief Executive.

Understanding your company’s operating structure is the first step to uncovering where CX fits into your broader business model. Does it sit within its own silo, or in marketing, operations, product, or a hybrid combination of all three?

The Role of the Modern-Day Marketer

The Marketing Division has also shifted quite significantly since 2020, with changing responsibilities and internal jurisdiction. According to CX leaders, the marketing function is central for driving customer acquisition and brand awareness. Although in most instances, CX today no longer reports directly to marketing, we do see Customer Loyalty & Acquisition roles directly under this umbrella. This shows the rising importance of loyalty and retention for modern marketers.

Through 2022 survey data, the primary skills gap for marketers included:

1. Having a single and unified view of the customer
2. Having data stitched across multiple tech stacks
3. Shared ownership of CX with multiple shareholders

Refining the User Experience

Product Teams have also undergone one of the biggest shifts internally to date.

With a continued focus on driving product strategy and new initiatives for customers, data shows that product teams – including those in UX and Digital Experience – have placed a spotlight on this. This is shown through increased budgets, as well as more accountability in both CX and Customer Retention.

In 2022, the biggest challenge Product Managers faced were:

1. Internal Resourcing
2. Demand for New Services
3. Customer Journey Mapping

We’re also seeing shifts in customer-focused roles reporting directly to either the Chief Digital Officer (CDO) or Chief Information Officer (CIO).

Conclusion

As organisations continue to put a spotlight on their customers and find new ways to compete in an incredibly crowded, under-resourced market, budgets are increasing and a new spotlight is being placed on CX.

Reporting structures are changing. With this insight, the decision-making process in customer experience has become decision by committee, as opposed to decision by CCO, CMO or the equivalent. With all internal departments connected in some capacity, we see the CX department perhaps the most fluid function within Australia today