Challenges in Driving CX Transformation for Enterprises

Published on Dec 13, 2023

Customer experience (CX) has recently become a top business priority. With the rise of digital transformation and the increasing expectations of customers, enterprises are realizing the importance of delivering exceptional CX to stay competitive.

However, driving CX transformation for enterprises is a challenging task. It requires a significant shift in mindset, processes, and technology. In this article, we will explore enterprises’ challenges in driving CX transformation and how they can overcome them.

Importance of CX Transformation for Enterprises

Before we dive into the challenges, let’s first understand why CX transformation is crucial for enterprises.

Meeting Customer Expectations

Customers have high expectations regarding their business interactions in today’s digital age. They expect seamless, personalized, and convenient experiences across all touchpoints. Enterprises that fail to meet these expectations risk losing customers to competitors.

CX transformation allows enterprises to understand customers’ needs and preferences and tailor their experiences accordingly. This not only helps in meeting customer expectations but also leads to increased customer satisfaction and loyalty.

Staying Competitive

In a crowded marketplace, delivering exceptional CX can be a crucial differentiator for enterprises. Customers are more likely to choose a business that provides a better experience, even if it means paying a higher price.

By investing in CX transformation, enterprises can stand out from their competitors and attract and retain more customers.

Driving Business Growth

CX transformation can also significantly impact a business’s bottom line. According to a PwC study, companies prioritizing CX see a 17% increase in revenue and a 16% increase in customer retention.

By improving CX, enterprises can increase customer lifetime value, reduce churn, and drive business growth.

Challenges in Driving CX Transformation for Enterprises

While the benefits of CX transformation are clear, enterprises face several challenges in implementing it successfully. Let’s take a look at some of the most common challenges.

Siloed Data and Systems

One of the enterprises’ most significant challenges driving CX transformation is siloed data and systems. Many businesses have different departments and systems that need to communicate with each other, resulting in fragmented data.

This makes understanding the customer journey and their needs and preferences difficult. It also hinders delivering a seamless and consistent experience across all touchpoints.

Lack of CX Analytics

CX transformation requires data-driven decision-making. However, many enterprises need more tools and capabilities to gather, analyze, and act on customer data.

With proper CX analytics, enterprises can measure the effectiveness of their CX initiatives, identify improvement areas, and make data-driven decisions to drive CX transformation

Resistance to Change

Implementing CX transformation requires a significant shift in mindset, processes, and technology. This can be met with resistance from employees who are used to working in a certain way.

Resistance to change can hinder the adoption of new processes and technologies, making it challenging to drive CX transformation successfully.

Lack of Executive Support

CX transformation requires buy-in from all levels of the organization, including top-level executives. Securing the necessary resources and budget to drive CX transformation can be easier with executive support.

Additionally, with executive support, getting buy-in from employees and driving a culture of customer-centricity within the organization can be easier.

Overcoming the Challenges in CX Transformation

While the challenges in driving CX transformation for enterprises may seem daunting, they can be overcome with the right strategies and tools. Here are some ways enterprises can overcome these challenges.

Breaking Down Silos

To overcome the challenge of siloed data and systems, enterprises need to break down silos and create a unified view of the customer journey. This can be achieved by integrating data from different systems and departments and using a centralized platform to manage and analyze customer data.

By breaking down silos, enterprises can gain a complete understanding of their customers and deliver a seamless and consistent experience across all touchpoints.

Investing in CX Analytics

To overcome the challenge of lack of CX analytics, enterprises need to invest in the right tools and capabilities. This includes implementing a CX analytics platform that can gather, analyze, and act on customer data in real-time.

With the right CX analytics tools, enterprises can measure the effectiveness of their CX initiatives, identify improvement areas, and make data-driven decisions to drive CX transformation.

Communicating the Benefits of CX Transformation

To overcome resistance to change, enterprises need to communicate the benefits of CX transformation to their employees. This includes explaining how it will improve the customer experience, drive business growth, and benefit employees in the long run.

By communicating the benefits of CX transformation, enterprises can get buy-in from employees and drive a culture of customer-centricity within the organization.

Securing Executive Support

To overcome the lack of executive support challenge, enterprises must involve top-level executives in the CX transformation process from the beginning. This includes educating them on the importance of CX and how it can benefit the organization.

By securing executive support, enterprises can ensure that they have the necessary resources and budget to drive CX transformation successfully.

Real-World Examples of CX Transformation for Enterprises

One example of a successful CX transformation is Starbucks. The coffee giant invested in a mobile app allowing customers to order and pay for their drinks beforehand. This improved the customer experience, increased sales, and reduced store wait times.

Another example is Amazon, which uses data and analytics to personalize the customer experience. By analyzing customer data, Amazon can recommend products and offers that are tailored to each customer’s preferences, leading to increased sales and customer satisfaction.

CX transformation is crucial for enterprises to meet customer expectations, stay competitive, and drive business growth. While there are challenges in implementing it successfully, enterprises can overcome them by breaking down silos, investing in CX analytics, communicating the benefits, and securing executive support.

By driving CX transformation, enterprises can deliver exceptional experiences that keep customers returning and drive business success.

Let’s take a trip back in time—2008. Netflix was nothing like the media juggernaut it is today. Back then, they were a DVD-rental-by-mail service trying to go digital. But here’s the kicker: they hit a major pitfall. The internet was booming, and people were binge-watching shows like never before, but Netflix’s infrastructure couldn’t handle the load. Their single, massive system—what techies call a “monolith”—was creaking under pressure. Slow load times and buffering wheels plagued the experience, a nightmare for any platform or app development company trying to scale

That’s when Netflix decided to do something wild—they broke their monolith into smaller pieces. It was microservices, the tech equivalent of turning one giant pizza into bite-sized slices. Instead of one colossal system doing everything from streaming to recommendations, each piece of Netflix’s architecture became a specialist—one service handled streaming, another handled recommendations, another managed user data, and so on.

But microservices alone weren’t enough. What if one slice of pizza burns? Would the rest of the meal be ruined? Netflix wasn’t about to let a burnt crust take down the whole operation. That’s when they introduced the Circuit Breaker Pattern—just like a home electrical circuit that prevents a total blackout when one fuse blows. Their famous Hystrix tool allowed services to fail without taking down the entire platform.

Fast-forward to today: Netflix isn’t just serving you movie marathons, it’s a digital powerhouse, an icon in platform engineering; it’s deploying new code thousands of times per day without breaking a sweat. They handle 208 million subscribers streaming over 1 billion hours of content every week. Trends in Platform engineering transformed Netflix into an application dev platform with self-service capabilities, supporting app developers and fostering a culture of continuous deployment.

Did Netflix bring order to chaos?

Netflix didn’t just solve its own problem. They blazed the trail for a movement: platform engineering. Now, every company wants a piece of that action. What Netflix did was essentially build an internal platform that developers could innovate without dealing with infrastructure headaches, a dream scenario for any application developer or app development company seeking seamless workflows.

And it’s not just for the big players like Netflix anymore. Across industries, companies are using platform engineering to create Internal Developer Platforms (IDPs)—one-stop shops for mobile application developers to create, test, and deploy apps without waiting on traditional IT. According to Gartner, 80% of organizations will adopt platform engineering by 2025 because it makes everything faster and more efficient, a game-changer for any mobile app developer or development software firm.

All anybody has to do is to make sure the tools are actually connected and working together. To make the most of it. That’s where modern trends like self-service platforms and composable architectures come in. You build, you scale, you innovate.achieving what mobile app dev and web-based development needs And all without breaking a sweat.

Is Mantra Labs Redefining Platform Engineering?

We didn’t just learn from Netflix’s playbook; we’re writing our own chapters in platform engineering. One example of this? Our work with one of India’s leading private-sector general insurance companies.

Their existing DevOps system was like Netflix’s old monolith: complex, clunky, and slowing them down. Multiple teams, diverse workflows, and a lack of standardization were crippling their ability to innovate. Worse yet, they were stuck in a ticket-driven approach, which led to reactive fixes rather than proactive growth. Observability gaps meant they were often solving the wrong problems, without any real insight into what was happening under the hood.

That’s where Mantra Labs stepped in. Mantra Labs brought in the pillars of platform engineering:

Standardization: We unified their workflows, creating a single source of truth for teams across the board.

Customization: Our tailored platform engineering approach addressed the unique demands of their various application development teams.

Traceability: With better observability tools, they could now track their workflows, giving them real-time insights into system health and potential bottlenecks—an essential feature for web and app development and agile software development.

We didn’t just slap a band-aid on the problem; we overhauled their entire infrastructure. By centralizing infrastructure management and removing the ticket-driven chaos, we gave them a self-service platform—where teams could deploy new code without waiting in line. The results? Faster workflows, better adoption of tools, and an infrastructure ready for future growth.

But we didn’t stop there. We solved the critical observability gaps—providing real-time data that helped the insurance giant avoid potential pitfalls before they happened. With our approach, they no longer had to “hope” that things would go right. They could see it happening in real-time which is a major advantage in cross-platform mobile application development and cloud-based web hosting.

The Future of Platform Engineering: What’s Next?

As we look forward, platform engineering will continue to drive innovation, enabling companies to build scalable, resilient systems that adapt to future challenges—whether it’s AI-driven automation or self-healing platforms.

If you’re ready to make the leap into platform engineering, Mantra Labs is here to guide you. Whether you’re aiming for smoother workflows, enhanced observability, or scalable infrastructure, we’ve got the tools and expertise to get you there.

Challenges in Driving CX Transformation for Enterprises