Article

10min read

Overcoming the Challenges of Customer Experience Optimization (EXO): Strategies and Tips

The combination of intense competition and rapidly evolving technology requires businesses to prioritize customer experience optimization (EXO) to stay ahead.

The fact is, the cost of poor customer experience is high. According to a PWC survey, a third of consumers would stop using a brand they love after just one negative interaction.

In this article, we look at some common EXO challenges businesses face and strategies to overcome them, including practical insights for enhancing the digital customer experience. By implementing these strategies, you can ensure your business takes a customer-centric approach to optimizing the customer experience and building brand loyalty.

What is customer experience optimization?

Customer experience optimization refers to everything your business does to improve the customer’s experience at every touchpoint of their journey. It entails deeply understanding your customer’s needs and preferences and leveraging these insights to develop strategies to improve their interactions with your brand.

In today’s digital landscape, customers are flooded with choices across most categories of products and services. As a result, if you fail to deliver a positive experience, your customers will simply switch to a competing brand. EXO strategies are designed to keep customers satisfied and engaged, build brand loyalty, and reduce churn.

With EXO, it’s essential to deliver an experience that surpasses customers’ expectations and provides them with a seamless experience across all touchpoints and channels, including websites, mobile apps, social media accounts, and email.

Why customer experience optimization is important for business growth

First and foremost, EXO streamlines the customer’s path to purchase. Offering customers a frictionless, positive journey that makes it easy for them to get the information they need to make their purchase decision increases the likelihood of a successful transaction.

Customer EXO is also an ideal way to foster brand loyalty. Customers who have a superior experience with your brand are more likely to become repeat buyers. In fact, Deloitte research shows that a high-quality customer experience makes a customer 2.7 times more likely to keep buying from a business than a low-quality experience. Not only are customers likely to return, but they will also pay up to 16% more for an optimized experience, depending on the product category.

Positive experiences also trigger word-of-mouth recommendations, enhancing your brand’s reputation. Recommendations don’t entail the same acquisition costs as traditional marketing methods, making EXO a comparatively cost-effective way to boost sales and expand your customer base.

Challenges and solutions to customer experience optimization

We recognize there are challenges associated with EXO that may prevent you from delivering the best possible experience to your customers. Here are some strategies for tackling these challenges.

Compiling the right data for accurate measurements

Thanks to the various technologies available, we can now access a wealth of customer data. If interpreted and applied correctly, this data offers invaluable insights into the customer experience and ways of enhancing it. However, the sheer volume of these metrics can lead to information overload. It’s easy to get distracted or focus on the wrong metrics, including pitfall metrics that result in misinformed conclusions when considered in isolation. Some metrics, like cost of sale or cross-sell, don’t offer any meaningful insights into EXO.

The solution is to prioritize the metrics that matter. These include:

  • Customer satisfaction (CSAT)
  • Churn rates
  • Bounce rates
  • Customer retention rates
  • Trust ratings, conversion rates
  • Customer journey analytics
  • Repeat purchases
  • Customer segmentation
  • Buyer personas
  • Customer lifetime value (CLV)
  • Net Promoter Score (NPS)

Keep in mind that this data may reside in various departments across your organization, extending beyond sales, marketing and customer service teams. Consolidating this disparate data is essential to gaining a complete and accurate picture of customer experience in your organization.

Developing the right hypothesis

Experimentation is a powerful tool for delivering an optimal customer experience. However, randomly choosing hypotheses to test is a quick route to overlooking optimization opportunities. For example, simply changing the location of the checkout button in response to low conversion rates may not address the underlying issue.

Effective experimentation requires a considered approach to develop the correct hypothesis to test. The first step is identifying the genuine problem that needs addressing. You can then formulate a hypothesis to test to uncover the root cause of the issue and identify a concrete solution.

This second step requires a critical analysis of your current site and potential improvements from the customers’ perspective. Sourcing a range of data, including web analytics, user tests, and customer feedback, can help guide your analysis. You should also consider the psychology of the prospective customer. Getting in their mindset can guide you toward potential solutions.

If we continue with our checkout button example, the core issue may extend beyond conversion rates to a more specific concern: high cart abandonment rates. A hypothesis with a potential solution to this issue may be: “Many customers exit the checkout process at step 5. Reducing the number of steps in our checkout process will reduce cart abandonment rates.” Crafting the right hypothesis is a crucial step in optimizing customer experience.

Resource constraints

Ideally, businesses would have unlimited resources to optimize customer experiences. However, in reality, EXO usually competes with numerous other business priorities, all vying for time, human, and financial resources. Investing in the infrastructure and technology for EXO can be costly. Hiring and retaining people with the necessary skills to implement effective optimization strategies can also be challenging. Data availability is another common resource issue, especially for businesses with lower website traffic who feel they need more information for optimization.

The good news is you can tailor your approach to EXO to align with your business’s circumstances. This includes starting with smaller-scale initiatives and expanding your efforts as your optimization strategies gain traction or more resources become available. Another option is to outsource EXO by engaging the services of a specialist customer optimization agency.

It’s also important to note that high-volume website traffic isn’t a prerequisite for identifying and implementing effective EXO strategies. While a 95% confidence level is often cited as the magic number for drawing meaningful conclusions from your data, you can still optimize websites with less traffic by lowering the threshold. Focusing on optimizing the top of the funnel, where there may be greater opportunities for EXO, is another useful strategy for low-traffic websites.

Related: How to Deal with Low Traffic in CRO

ROI tunnel vision

When a company works on improving EXO, its main focus is often on immediate ROI in experimentation, sometimes at the expense of other important metrics. While the bottom line is relevant to any business strategy, focusing solely on the financial outcomes of EXO can lead to short-sighted decision-making, jeopardizing longer-term sustainability.

Prioritizing immediate revenue gain above all else can negatively impact the customer experience. It makes it almost impossible for an organization to adopt a customer-centric approach, a fundamental requirement for EXO.

Experimentation isn’t always neatly quantifiable. Experiments are typically run within complex contexts and are influenced by various factors. While measuring ROI may be a criterion when assessing the success of your EXO strategies, it should never be the primary or sole one. Instead, shift your focus to the broader impacts of experimentation, like its contribution to better, more informed decision-making.

Not knowing what your customers want

A customer-centric approach is vital to delivering an optimal customer experience. This requires an in-depth understanding of who your customers are, their needs and preferences, and precisely how they interact with your business. Without these insights, you’re in the dark about what your customers want and when they want it. Meeting—let alone exceeding—customers’ expectations is impossible.

Customer wants and needs are as diverse as your customer base. They may include a desire for higher levels of personalization, seamless online interactions, flexible payment methods, faster customer support, better pricing, transparency or increased mobile responsiveness. What customers want also evolves as their journey progresses. If your EXO strategies fail to align with your customers’ desires at the right time, they are unlikely to succeed.

While there are several ways to uncover customer needs and wants, one of the most effective methods is to go directly to the source. Collecting customer feedback at each stage of their journey—via surveys, feedback management systems, voice of customers, and user interviews—lets you tailor your EXO strategies and deliver the improvements your customers truly want.

Lack of customer experience optimization tools

Successful EXO relies on quality data for insights into your customers’ journeys, needs, and preferences. To achieve this, you need the right tools to capture and analyze accurate data in real-time across multiple channels.

These tools include:

  • CRM systems to track historical customer behavior and relationships
  • Customer feedback and survey software to collect individual feedback for deep insights into what your customers want
  • Behavior analytics tools to interpret your customers’ interactions and identify opportunities to improve their experience
  • Experience optimization platforms, like AB Tasty, to design and deliver digital omnichannel customer experiences via experimentation

It’s important to review the needs of your EXO strategy and the available tools to choose the ones that best align with your customers’ and business’s needs.

How to improve the digital customer experience

  • Observe user behavior patterns

A robust data foundation lets you observe and understand customer behavior individually and identify broader trends. This information serves as a compass, guiding your EXO efforts.

Customer insights may reveal common pain points. For example, a frequently searched term may highlight a topic customers want more information on. These insights also help you understand how users interact with your site, how that impacts their journey, and potential improvements. Is there a particular page where customers spend a lot of time? Do they have to navigate back and forth between pages to find the details they need?

Behavior patterns also reveal customer preferences, allowing you to personalize touchpoints within their journey and identify what triggers customers to complete their purchases. These insights serve as a powerful foundation for developing EXO strategies and hypotheses for A/B testing.

  • Create a journey map to understand the user flow

EXO involves optimizing every customer interaction with your business. A common pitfall to avoid when addressing EXO is approaching it narrowly from a specific touchpoint rather than considering the entire customer journey. A holistic approach delivers more impactful insights that help you manage the root causes of negative or neutral customer experiences.

A great way to understand your user flow and how it affects customer experience is to create a journey map, setting out every touchpoint during the buying process. Navigate your website like a potential customer, systematically stepping through the user journey and noting your findings.

Putting yourself in the customer’s shoes ensures you don’t overlook opportunities to optimize customer experience. This approach can also help you prioritize measures that make the user journey frictionless, improving customer experience and your site’s performance.

  • Develop a roadmap and set parameters to measure success

The list of available EXO measures is endless. Aligning your strategy with your business objectives requires a considered approach to implementation. To do this, develop a roadmap that outlines your goals, priorities and milestones.

A well-structured roadmap gives your team clear direction and deadlines while guiding decision-making to ensure the greatest impact on customer experience. Everyone understands their role, guaranteeing accountability in the execution of your EXO strategy. It also helps you prioritize initiatives and allocate the necessary resources, including EXO tools.

In your roadmap, you can list the specific metrics and KPIs to measure and track your progress. Doing this allows you to evaluate your EXO measures, readjust those not delivering results, and build on particularly effective ones.

  • Experiment and re-challenge your past experiments

You’re unlikely to unlock the secret to EXO in your organization on the first try. Instead, you’ll need to run continuous experiments using different hypotheses to find the right combination of strategies that work for your business.

The customer experience is dynamic and your EXO strategies should be equally adaptable. Continue to review your previous experiments to see what more you can learn from them, especially in terms of customer preferences. This process enables you to identify emerging opportunities for improvement and further refine the measures with the most impact to deliver an optimal customer experience.

Customer-centric EXO

Acknowledging that your business must prioritize customer EXO is just the beginning. By understanding the customer experience definition, common EXO challenges, and practical strategies to overcome them, you have the tools to deliver a consistently superior customer experience. By integrating a customer-centric ethos with your EXO strategies, you’ll not only strengthen current customer relationships but also cultivate enduring brand loyalty.

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Article

10min read

Rollout and Deployment Strategies: Definition, Types and the Role of Feature Flags in Your Deployment Process

How teams decide to deploy software is an important consideration before starting the software development process.

This means long before the code is written and tested, teams need to carefully plan the deployment process of new features and/or updates to ensure it won’t negatively impact the user experience.

Having an efficient deployment strategy in place is crucial to ensure that high quality software is delivered in a quick, efficient, consistent and safe way to your intended users with minimal disruptions. 

In this article, we’ll go through what a deployment strategy is, the different types of strategies you can implement in your own processes and the role of feature flags in successful rollouts.

What is a deployment strategy?

A deployment strategy is a technique adopted by teams to successfully launch and deploy new application versions or features. It helps teams plan the processes and tools they will need to successfully deliver code changes to production environments.

It’s worth noting that there’s a difference between deployment and release though they may seem synonymous at first.

Deployment is the process of rolling out code to a test or live environment while release is the process of shipping a specific version of your code to end-users and the moment they get access to your new features. Thus, when you deploy software, you’re not necessarily exposing it to real-world users yet.

In that sense, a deployment strategy is the process by which code is pushed from one environment into another to test and validate the software and then eventually release it to end-users. It’s basically the steps involved in making your software available to its intended users.

This strategy is now more important than ever as modern standards for software development are demanding and require continuous deployment to keep up with customer demands and expectations.

Having the right strategy will help ensure minimal downtime and will reduce the risk of errors or bugs so users get the best experience possible. Otherwise, you may find yourself dealing with high costs due to the number of bugs that need to be fixed resulting in disgruntled customers which could severely damage your company’s reputation.

Types of deployment strategies

Teams have a number of deployment strategies to choose from, each with their own pros and cons depending on the team objectives. 

The deployment strategy an organization opts for will depend on various factors including team size, the resources available as well as how complex your software is and the frequency of your deployment and/or releases.

Below, we’ll highlight some of the most common deployment strategies that are often used by modern software development and DevOps teams.

Recreate deployment

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A recreate deployment strategy involves developers scaling down the previous version of the software to zero in order to be removed and to upload a new one. This requires a shutdown of the initial version of the application to replace it with the updated version.

This is considered to be a simple approach as developers only have to deal with one scaling process at a time without having to manage parallel application deployments. 

However, this strategy will require the application to be inaccessible for some time and could have significant consequences for users. This means it’s not suited for critical applications that always need to be available and works best for applications that have relatively low traffic where some downtime wouldn’t be a major issue.

Rolling deployment

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A rolling deployment strategy involves updating running instances of the software with the new release.

Rolling deployments offer more flexibility in scaling up to the new software version before scaling down the old version. In other words, updates are rolled out to subsets of instances one at a time; the window size refers to the number of instances updated at a time. Each subset is validated before the next update is deployed to ensure the system remains functioning and stable throughout the deployment process.

This type of deployment strategy prevents any disruptions in service as you would be updating incrementally- which means less users are affected by any faulty update- and you would then direct traffic to the updated deployment only after it’s ready to accept traffic. If any issue is detected during a subset deployment, it can be stopped while the issue is fixed. 

However, rollback may be slow as it also needs to be done gradually.

Blue-green deployment

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A blue/green deployment strategy consists of setting up two identical production environments nicknamed “blue” and “green” which run side-by-side, but only one is live, receiving user transactions. The other is up but idle.

Thus, at any given time, only one of them is the live environment receiving user transactions- the green environment that represents the new application version. Meanwhile, teams use the idle blue system as the test or staging environment to conduct the final round of testing when preparing to release a new feature.

Afterwards, once they’ve validated the new feature, the load balancer or traffic router switches all traffic from the blue to the green environment where users will be able to see the updated application.

The blue environment is maintained as a backup until you are able to verify that your new active environment is bug-free. If any issues are discovered, the router can switch back to the original environment, the blue one in this case, which has the previous version of the code.

This strategy has the advantage of easy rollbacks. Because you have two separate but identical production environments, you can easily make the shift between the two environments, switching all traffic immediately to the original (for example, blue) environment if issues arise.

Teams can also seamlessly switch between previous and updated versions and cutover occurs rapidly with no downtime. However, for that reason this strategy may be very costly as it requires a well-built infrastructure to maintain two identical environments and facilitate the switch between them.

Canary deployment

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Canary deployments is a strategy that significantly reduces the risk of releasing new software by allowing you to release the software gradually to a small subset of users. Traffic is directed to the new version using a load balancer or feature flag while the rest of your users will see the current version 

This set of users identifies bugs, broken features, and unintuitive features before your software gets wider exposure. These users could be early adopters, a demographically targeted segment or a random sample.

Therefore, you start testing on this subset of users then as you gain more confidence in your release, you widen your release and direct more users to it. 

Canary deployments are less risky than blue-green deployments as you’re adopting a gradual approach to deployment instead of switching from one environment to the next. 

While blue/green deployments are ideal for minimizing downtime and when you have the resources available to support two separate environments, canary deployments are better suited for testing a new feature in a production environment with minimal risk and are much more targeted.

In that sense, canary deployments are a great way to test in production on live users but on a smaller scale to avoid the risks of a big bang release. It also has the advantage of a fast rollback should anything go wrong by redirecting users back to the older version.

However, deployment is done in increments, which is less risky but also requires monitoring for a considerable period of time which may delay the overall release.

A/B testing

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A/B testing, also known as split testing, involves comparing two versions of a web page or application to see which performs better, where variations A and B are presented randomly to users. In other words, users are divided into two groups with each group receiving a different variation of the software application. 

A statistical analysis of the results then determines which version, A or B, performed better, according to certain predefined indicators.

A/B testing enables teams to make data-driven decisions based on the performance of each variation and allows them to optimize the user experience to achieve better outcomes.

It also gives them more control over which users get access to the new feature while monitoring results in real-time so if results are not as expected, they can redirect visitors back to the original version.

However, A/B tests require a representative sample of your users and they also need to run for a significant period to gain statistically significant results. Moreover, determining the validity of the results without a knowledge database can be challenging as several factors may skew these results.

AB Tasty is an example of an A/B testing tool that allows you to quickly set up tests with low code implementation of front-end or UX changes on your web pages, gather insights via an ROI dashboard, and determine which route will increase your revenue.

Feature flags: The perfect companion for your deployment strategy

Whichever deployments you choose, feature flags can be easily implemented with each of these strategies to improve the speed and quality of the software delivery process while minimizing risk. 

By decoupling deployment from release, feature flags enable teams to choose which set of users get access to which features to gradually roll out new features.

For example, feature flags can help you manage traffic in blue-green deployments as they can work in conjunction with a load balancer to manage which users see which application updates and feature subsets. 

Instead of switching over entire applications to shift to the new environment all at once, you can cut over to the new application and then gradually turn individual features on and off on the live and idle systems until you’ve completely upgraded.

Feature flags also allow for control at the feature level. Instead of rolling back an entire release if one feature is broken, you can use feature flags to roll back and switch off only the faulty feature. The same applies for canary deployments, which operate on a larger scale. Feature flags can help prevent a full rollback of a deployment; if anything goes wrong, you only need to kill that one feature instead of the entire deployment. 

Feature flags also offer great value when it comes to running experiments and feature testing by setting up A/B tests by allowing for highly granular user targeting and control over individual features.

Put simply, feature flags are a powerful tool to enable the progressive rollout and deployment of new features, run A/B testing and test in production. 

What is the right deployment strategy?

Choosing the right deployment strategy is imperative to ensure efficient, safe and seamless delivery of features and updates of your application to end-users. 

There are plenty of strategies to choose from, and while there is no right or wrong choice, each comes with its own advantages and disadvantages. 

Whichever strategy you opt for will depend on several factors according to the needs and objectives of the business as well as the complexity of your application and the type of targeting you’re looking to implement i.e whether you want to test a new feature on a select group of users to validate it before a wider release.

No matter your deployment strategy, AB Tasty is your partner for easier and low risk deployments with Feature Experimentation and Rollouts. Sign up for a free trial to explore how AB Tasty can help you improve your software delivery processes.