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What is Customer Experience Optimization?

Reading Time 4 mins | May 25, 2021 | Written by: AX Semantics

What is Customer Experience Optimization?

Customer Experience Optimization, sometimes referred to as CXO, is a suite of different software with the same goal in mind; make the customer’s experience as personalized and seamless as possible. The idea takes many different forms, but the general goal is to increase online conversion rates and combat shopping cart abandonment.

To date, experience optimization tools have generally used basic marketing segmentation, dividing list of website visitors into categories, and changing the experience to serve those categories. But this is about to change.

Why Conventional Customer Experience Optimization Doesn’t Work

Conventional customer experience optimization tools use the following approach:

  1. Segment the list of site viewers
  2. Change the recommended products, design or sale offer for each segment
  3. Use an A/B testing approach to see which combination of the above changes results in the highest conversion rates
  4. Use results of A/B testing to change the experience in hope of increasing conversion rates.

In early 2021, AX Semantics ran a survey targeting 3,020 Retail CEOs (not just ecommerce pure players). We asked these CEOs if they had tried experience optimization for their business and brand and what the results were. The vast majority of respondents knew of ‘experience optimization’ (84%) but only a minority (24%) had actually implemented customer experience optimization solutions. When we asked those who had implemented projects 58% were negative about the project, saying they had seen no change or were unhappy with the ROI and 42% saw some change in conversion rates.

Why Conventional Customer Experience Optimization Doesn’t Work and How to Fix it

The survey results show that customer experience optimization isn’t giving nearly 60% of users the results they want. Why is this? To understand this, you need to go back to what these tools do. They change the ‘look and feel’ for the most part. Yes, some of them change the pre-written sales promotion that each viewer is shown, but the problem is that the majority of the customer experience isn’t driven by look and feel, it’s driven by content.

In marketing there is a huge debate between what is more important: content or design. Many marketers argue that content, not design is the most important. They point to the work of behavioral researchers like Daniel Kahneman who in his bestselling book, “Thinking Fast, Thinking Slow” argued that human beings decision making is driven by storytelling not numbers or pictures.

In marketing, the truth is that content may be slightly more important than the look and feel for the customer but regardless of the debate over content versus design you need both to truly optimize the customer experience. Conventional customer experience tools fail because they don’t optimize content and content is what drives conversions. 

Customer Experience Optimization 2.0

There is no question that buyers want personalization. A recent Accenture study found over 90% of buyers wanted a personalized online experience. The problem is, conventional customer experience optimization tools have forgotten about content and only focus on design. But this is changing. This change is brought on by two factors: the information that websites capture about visitors and customers, and the maturation an AI-powered technology called Natural Language Generation.

How to achieve effective optimization of the customer experience

How New Technology is Ushering in Experience Optimization 2.0

Natural Language Generation Software (NLG) is a powerful SaaS tool that automatically generates written content in 110 languages (in the case of AX Semantics). Without getting into too much detail, NLG software connects to a structured data set and then using a mix of machine learning and rules optimized for each customer, it writes unique text.

eCommerce websites collect a lot of information about viewers: where did they come from, what keywords did they use, where are they located, etc. At the same time, companies have information about existing customers: past purchase history, past shopping cart abandonment, etc. At its heart, all of this information is structured data and is ripe to be exploited by NLG-powered experience optimization tools.

Optimize Content to Supercharge Your Product Page And Boost Conversions

The ideal for all marketers is to talk to each person like the individual that they are. The advent of new technology brings us one step close to this goal of a hyper-personalized customer experiences.

AX Personalized Commerce is the only digital Customer Experience tool on the market that optimizes content to drive conversion rates and turn product pages into personalized proposals.

With this service we help the management of mid-sized to large brands increase sales with personalized product pages focused on customer motivations, individualizing the content and experience of each unique viewer of the website. Market directly to each individual viewer to your site.  Show the right message to the right person and drive conversion rates, reduce shopping cart abandonment, and increase sales. 

AX Semantics’ AI Powered Software leverages user data in real time to generate automated product descriptions, category pages and shopping cart incentives that are specifically targeted towards each unique viewer.

Infographic: 4 steps of how personalized Commerce works
Personalized Commerce: Data gathering, data analysis, generation of personalized content, digital content displayed

AX Personalized Commerce is the only experience optimization platform focused on personalization of the customer facing content.  AX Semantics’ proprietary software includes AI, among other features, to find the best wording and sentence structures for conversions, so that experiments are driven autonomously and are constantly evolving.

AX Semantics