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CX Trends 2021: Here’s how businesses are winning Customer Experience moments

5 minutes read

In the pandemic era and the subsequent lockdowns around the country, in-person customer experience seems like a far-fetched dream for most of us who have made our homes into our offices, our beds, or living rooms into our conference rooms, and vice versa.  

While brands across the globe are building processes for the new normal, where the virtual world continues to gain popularity, even as the second wave of the COVID-19 pandemic rages on, with a third wave expected to hit soon enough. 

The last 18 months since the pandemic struck have taught a crucial lesson to every business and marketeer by disrupting set notions and practices. The key to a thriving business in questionable times like these is to understand the importance of customer experience and travel up the graph from a good to a great one, in order to sustain oneself. Simultaneously, it’s important to workaround forecasts in a volatile setting for every business type to ensure preparedness.  

What began as a global healthcare crisis also led to a significant transition into a digital-friendly world. From work-from-home setups to e-commerce, getting food home delivered, and more, customers are more online than ever before, leading to a rise in digitally-savvy professionals driving and engaging in better CX.

If you are investing in CX, where do you begin?

According to research conducted by Gartner, companies that successfully implement customer experience projects begin by focusing on how they collect and analyze customer feedback.

Despite these turbulent times for people and businesses, customer expectations have seen an upward graph and so providing a top-notch customer experience is a challenge everyone is trying to meet in order to retain their loyal customer base. 

PwC, through their future of CX report, surveyed 15,000 consumers and found that 1 in 3 customers will leave a brand they love after just one bad experience, while 92% would completely abandon a company after two or three negative interactions. 

Whether you use surveys, web forms, or Net Promoter Score (NPS) programs, read through customer comments, suggestions, and opinions to see what they expect from you. Then, invest in those projects to meet their expectations.

Read on for trends we are seeing and expect to see in 2021: 

CX Trend 1: Going digital for customer interaction in the pandemic era: 

The shift to digital that has been aided manifold amid the pandemic, has seen consumer behavior move on for all services including e-commerce, finance, healthcare, wellness, and more. Forrester has predicted that 2021 will see digital customer service interactions increase by 40%.

According to Gartner, the new normal makes it mandatory for the service industry especially to transition to a “digital-first” strategy, thereby enabling improved customer interactions via proactive engagements on messaging platforms. By the year 2025, 80% of customer service organizations are expected to abandon native mobile apps in favor of messaging platforms for a more seamless customer experience.

Even at the workplace, a digital transition means conferences and seminars move to Zoom conferences (and other related apps) and webinars. The year 2020 also made way for a paradigm shift in the Ed-Tech space when educational models have moved online and full-time courses too are being held on the web. 

All Images Courtesy: zendesk.co.uk/CX Trends report 

CX Trend 2: The rise and stay of contactless service in the new normal: 

As the COVID-19 pandemic continues to impact both customers and organizations, it has instead generated a shift to a contactless approach as the best alternative of providing a service without person-to-person contact. According to a survey by IDC, over 36% of manufacturers said that their service or product installation will now have a contactless approach. The survey also predicts that by 2021, 65% of organizations will have shifted to a digital-first approach through automated ‎operations and ‎contactless experiences. However, it is also imperative that technicians, as well as customers, are safe amid this transition which might also see an increased implementation of the latest technologies and capabilities including artificial intelligence and augmented reality, and mixed reality for optimized service. 

This prediction by IDC also aligns with Forrester’s 2021 prediction that says that consumers will continue to prefer digital interactions and customer service, to keep themselves safe.

CX Trend 3: Emotive technology and why there’s a noticeable rise:  

The pandemic and the subsequent lockdown also led to an all-time high of reported mental health problems, which were largely said to have been triggered by social media. It is thus a need-based search for a solution to overcome issues such as these which also benefit consumers and businesses. 

According to Harvard Business Review, “When companies connect with customers’ emotions, the payoff can be huge.” The ability to generate positive emotions in a customer and leaving a good lasting impression is called brand intimacy which helps brands drive conversions and customer loyalty. 

In the present day, companies are dealing with a lot more data amassed from their customers which helps them figure out what their customers are feeling through the use of facial recognition, movement data, health data like heart rate and blood pressure, social media behavior, and more. 

One of the ways that this immense power on a customer’s lifestyle choices can be used for a good cause like being able to tackle mental health struggles including anxiety and depression, emotional health crisis, and more. 

Microsoft now plans to embed Teams with a series of “wellness” tools to address these crisis situations that will help monitor emotional health, mental health and provide necessary tips and tricks. Other apps including Wysa, Headspace, Calm and more help with a chat to help you feel at ease, extend therapist support when needed, and also provide guided meditation sessions to help keep your mind calm. High-stress levels and anxiety are also known to reduce immunity levels, which in turn might increase vulnerability to other health issues, and open up the unfortunate possibilities for other lifestyle disorders including hypertension and diabetes. 

CX Trend 4: Empathy, a core element in CX: 

Empathy has emerged as a core organizational capability in the year 2020 and so empathetic customer support is now imperative for customer service in 2021. According to Forrester, organizations must recognize the needs of their customers both physically and emotionally, to provide better empathetic customer support and experience. This metric has skyrocketed as consumers around the world have been adjusting to the pandemic, lockdown, and the new normal. 

A recent report published by Gartner predicts that by 2025, customers will engage a freelance customer service expert to address 75% of their customer service needs. Steven Petruk, President, Global Outsourcing Division at CGS, shares, “Amid the challenges of the pandemic, customer care centers have all but done away with any metrics around call duration and are actively encouraging agents to spend more time on the phone with clients. While empathy has not been an operational performance metric in the past, it absolutely is the prime area of focus now and will continue to be. In an effort to measure empathy, many companies are adding empathy-specific questions to their post-call surveys.” 

With an ever-changing business landscape, more so amid the second wave of the pandemic and a probable third wave expected soon, companies globally have an opportunity to re-strategize and plan their roadmap as a short-term goal depending on what might work best for them in the present situation, with the flexibility to rehash their MO every few months or annually. 

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Smart Machines & Smarter Humans: AI in the Manufacturing Industry

We have all witnessed Industrial Revolutions reshape manufacturing, not just once, but multiple times throughout history. Yet perhaps “revolution” isn’t quite the right word. These were transitions, careful orchestrations of human adaptation, and technological advancement. From hand production to machine tools, from steam power to assembly lines, each transition proved something remarkable: as machines evolved, human capabilities expanded rather than diminished.

Take the First Industrial Revolution, where the shift from manual production to machinery didn’t replace craftsmen, it transformed them into skilled machine operators. The steam engine didn’t eliminate jobs; it created entirely new categories of work. When chemical manufacturing processes emerged, they didn’t displace workers; they birthed manufacturing job roles. With each advancement, the workforce didn’t shrink—it evolved, adapted, and ultimately thrived.

Today, we’re witnessing another manufacturing transformation on factory floors worldwide. But unlike the mechanical transformations of the past, this one is digital, driven by artificial intelligence(AI) working alongside human expertise. Just as our predecessors didn’t simply survive the mechanical revolution but mastered it, today’s workforce isn’t being replaced by AI in manufacturing,  they’re becoming AI conductors, orchestrating a symphony of smart machines, industrial IoT (IIoT), and intelligent automation that amplify human productivity in ways the steam engine’s inventors could never have imagined.

Let’s explore how this new breed of human-AI collaboration is reshaping manufacturing, making work not just smarter, but fundamentally more human. 

Tools and Techniques Enhancing Workforce Productivity

1. Augmented Reality: Bringing Instructions to Life

AI-powered augmented reality (AR) is revolutionizing assembly lines, equipment, and maintenance on factory floors. Imagine a technician troubleshooting complex machinery while wearing AR glasses that overlay real-time instructions. Microsoft HoloLens merges physical environments with AI-driven digital overlays, providing immersive step-by-step guidance. Meanwhile, PTC Vuforia’s AR solutions offer comprehensive real-time guidance and expert support by visualizing machine components and manufacturing processes. Ford’s AI-driven AR applications of HoloLens have cut design errors and improved assembly efficiency, making smart manufacturing more precise and faster.

2. Vision-Based Quality Control: Flawless Production Lines

Identifying minute defects on fast-moving production lines is nearly impossible for the human eye, but AI-driven computer vision systems are revolutionizing quality control in manufacturing. Landing AI customizes AI defect detection models to identify irregularities unique to a factory’s production environment, while Cognex’s high-speed image recognition solutions achieve up to 99.9% defect detection accuracy. With these AI-powered quality control tools, manufacturers have reduced inspection time by 70%, improving the overall product quality without halting production lines.

3. Digital Twins: Simulating the Factory in Real Time

Digital twins—virtual replicas of physical assets are transforming real-time monitoring and operational efficiency. Siemens MindSphere provides a cloud-based AI platform that connects factory equipment for real-time data analytics and actionable insights. GE Digital’s Predix enables predictive maintenance by simulating different scenarios to identify potential failures before they happen. By leveraging AI-driven digital twins, industries have reported a 20% reduction in downtime, with the global digital twin market projected to grow at a CAGR of 61.3% by 2028

4. Human-Machine Interfaces: Intuitive Control Panels

Traditional control panels are being replaced by intuitive AI-powered human-machine interfaces (HMIs) which simplify machine operations and predictive maintenance. Rockwell Automation’s FactoryTalk uses AI analytics to provide real-time performance analytics, allowing operators to anticipate machine malfunctions and optimize operations. Schneider Electric’s EcoStruxure incorporates predictive analytics to simplify maintenance schedules and improve decision-making.

5. Generative AI: Crafting Smarter Factory Layouts

Generative AI is transforming factory layout planning by turning it into a data-driven process. Autodesk Fusion 360 Generative Design evaluates thousands of layout configurations to determine the best possible arrangement based on production constraints. This allows manufacturers to visualize and select the most efficient setup, which has led to a 40% improvement in space utilization and a 25% reduction in material waste. By simulating layouts, manufacturers can boost productivity, efficiency and worker safety.

6. Wearable AI Devices: Hands-Free Assistance

Wearable AI devices are becoming essential tools for enhancing worker safety and efficiency on the factory floor. DAQRI smart helmets provide workers with real-time information and alerts, while RealWear HMT-1 offers voice-controlled access to data and maintenance instructions. These AI-integrated wearable devices are transforming the way workers interact with machinery, boosting productivity by 20% and reducing machine downtime by 25%.

7. Conversational AI: Simplifying Operations with Voice Commands

Conversational AI is simplifying factory operations with natural language processing (NLP), allowing workers to request updates, check machine status, and adjust schedules using voice commands. IBM Watson Assistant and AWS AI services make these interactions seamless by providing real-time insights. Factories have seen a reduction in response time for operational queries thanks to these tools, with IBM Watson helping streamline machine monitoring and decision-making processes.

Conclusion: The Future of Manufacturing Is Here

Every industrial revolution has sparked the same fear, machines will take over. But history tells a different story. With every technological leap, humans haven’t been replaced; they’ve adapted, evolved, and found new ways to work smarter. AI is no different. It’s not here to take over; it’s here to assist, making factories faster, safer, and more productive than ever.

From AR-powered guidance to AI-driven quality control, the factory floor is no longer just about machinery, it’s about collaboration between human expertise and intelligent systems. And at Mantra Labs, we’re diving deep into this transformation, helping businesses unlock the true potential of AI in manufacturing.

Want to see how AI-powered Augmented Reality is revolutionizing the manufacturing industry? Stay tuned for our next blog, where we’ll explore how AI in AR is reshaping assembly, troubleshooting, and worker training—one digital overlay at a time.

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