A prediction of the five CX trends to watch for in 2023

Editor’s note: Blake Morgan is This is an edited version of an article that originally appeared under the title “5 Customer Experience Trends to Watch in 2023.”

We’ve all faced challenges, change and uncertainty over the last few years and learned that customer experience is more important than ever. In 2023, companies face a difficult crossroads. Inflation has consumers on edge, staffing shortages impact frontline workers and technology continues to grow and evolve. Even with all these changes and challenges, the best customer experiences are focused on one thing: people. It’s never been more important to understand your customers and be willing and able to change and evolve.

Five trends to anticipate in 2023

1. An increase in automation.

Staffing concerns remain a problem for all companies but brands can’t make excuses – they need to find creative solutions to work around challenges. Automating contact centers and warehouses reduces the need for human workers without sacrificing customer experience. In 2023, self-service options will soar to allow customers to solve problems and get answers on their own time.

2. The rise of phygital experiences.

Phygital experiences, those that blur the line between physical and digital, will reign supreme in 2023 and will expand to new industries, especially banking and insurance. Phygital will expand beyond just kiosks and apps to innovative experiences allowing customers to make large purchases like cars and houses.

3. Experiences matter more amid inflation.

Consumer spending growth is expected to drop in 2023 as most customers are feeling the strain of inflation and a looming recession. Non-essential spending will decrease, which means every experience matters. Brands need to showcase empathy and build relationships for the future.

4. The popularization of immersive experiences.

Immersive AR and VR experiences will become the norm in 2023. Immersive experiences will go beyond trying on clothing and makeup virtually to showcasing products, brands and building virtual worlds around products.

5. Fluctuating customer experience budgets.

The majority of CX leaders think their budgets will increase in 2023, but a fragile economy puts those budgets at risk. CX teams will have to do more with less and focus on projects with the highest ROI. In 2023, we’ll also see the separation between great and mediocre CX teams, with the teams that thrive being the ones that can consistently showcase their value.

2023 brings new challenges and opportunities for brands. Understanding customer demands and the trends coming down the pipeline can help brands prepare to adapt and deliver amazing experiences this year and in the future.