What does the future of CX look like in India’s diverse market?

In today’s business world, customer experience (CX) isn’t just a priority—it’s the game-changer. With rapid technological advancements, increasing smartphone penetration, and rising customer expectations, companies are investing heavily in improving CX to stay ahead.

The afaqs! Customer First Summit, held in New Delhi on December 6, 2024, brought together CX visionaries, industry leaders, and innovators to explore the future of customer experience.

One of the key sessions, titled 'Winning in India: Tailoring CX Strategies to a Diverse Market,' discussed how businesses can adapt their customer experience strategies to meet the unique demands of India’s vast cultural, regional, and demographic diversity. Moderated by Satrajit Sen from afaqs!, the panel featured Dilpreet Singh, head-loyalty CRM and partnerships, ITC Hotels and Sandeep Singh Sachdeva, head-customer and seller experience, Snapdeal. 

Sen started off the session with a core question: "How do businesses speak a unified language to customers across regions—from someone in Kashmir to another in Kanyakumari, or from the northeast to the heart of India?"

Singh highlighted that customer experience in hospitality is rooted in making guests feel at home. He shared ITC Hotels' approach to balancing standardisation and personalisation using a ‘four-box framework’: 

1) Know Your Guest (KYG): Collect and analyse demographic, transactional, and social data to understand preferences. 

2) Mine for Insights: Turn data into actionable insights, such as tailoring flash sales based on booking patterns. 

3) Build Relevance: Automate and personalise the customer journey across all touchpoints. 

4) Monetise the Relationship: Turn satisfied guests into brand advocates by reviewing their history and exceeding expectations before their stay.

Sachdeva contrasted the e-commerce industry’s rapid evolution with the centuries-old hospitality sector. "E-commerce is still finding its footing. The good thing is we make mistakes faster and learn from them," he said.

He addressed the challenge of maintaining a unified front while catering to India’s diversity. "With 22 official languages, over 100 dialects, and diverse cultural contexts, personalisation is key."

He also discussed how e-commerce adapts to different customer segments, from tech-savvy urban customers to those in tier-3 cities, highlighting the balance between convenience and value. 

Speaking about the risk of stereotyping when creating personalised experiences for customers, Sachdeva explained that personalisation is primarily driven by data such as purchasing behaviour and search histories, not just assumptions about names or regions. For example, if someone searches for mobile phones and the price drops, they may get a notification about it.

“While personalisation can be helpful, it’s crucial to respect privacy boundaries. There are limits to how far you can go in using data, like the balance between offering personalised experiences and overstepping privacy,” he remarked.

Agreeing with him, Singh added, “As a responsible brand, it’s important to avoid crossing the line between personalisation and privacy. For example, a hotel or restaurant could send an offer for North Indian food if they know a customer likes it, but sending very specific preferences (like a love for butter chicken) might be intrusive.”

Automation and AI help in evolving personalisation, but it's important to keep track of the relevance and frequency of ads to avoid irritating customers.

Sen turned the discussion to, “How much data do brands really need to create a better customer experience? From a consumer's perspective, do they need to know everything, or just basic details like preferences and delivery address?”

Singh pointed out that in the hospitality industry, brands maintain a detailed profile for each guest, which includes contact details, dietary preferences, and special needs like allergies.

However, the key here is to ask for explicit consent before gathering any information. This guarantees that the customer comprehends the purpose of data collection and its intended use. "For example, we seek permission to send marketing communications or to gather dietary preferences to tailor their experience."

Sachdeva added that consent is key—without it, personalisation fails. But understanding context—what the customer needs—is also essential.

Personalisation should match individual preferences. Whether a customer is from a Tier 1 or Tier 3 city, offers should align with their needs. For example, in metro cities, people are willing to pay a premium for faster services, such as 10-minute deliveries, because they value convenience. In contrast, customers in tier-3 cities are more willing to wait longer, like three days, to get a better deal. 

Both experts addressed the challenges of personalisation without stereotyping and discussed future trends in customer experience, including AI integration and social selling. This discussion highlighted how industries as different as hospitality and e-commerce leverage data and insights to create tailored CX strategies, ensuring relevance while addressing India’s inherent diversity. 

As Sen aptly put it, "India’s diversity is both a challenge and an opportunity for businesses aiming to win in this market."

We would like to thank our partners:

Digital Experience Partner:

Salesforce

Gen AI Partner:

Chat360

Co-Partner:

Zoho