As companies increasingly embrace data-driven strategies to enhance customer experience (CX), they are encountering significant challenges. In an era where customer experience (CX) is a key differentiator for businesses, the shift towards data-driven strategies has become imperative. However, while the intent to harness data for enhancing CX is widespread, organizations often find themselves grappling with significant challenges.From fragmented datasets to misaligned organizational strategies, the journey to a seamless, data-driven customer experience is fraught with complexities. Amit Sanyal, EVP and COO – MarTech Solutions at Comviva emphasized the widespread intent among enterprises to adopt data-driven approaches but pointed out that “the intent is limited by the ability.” He highlighted that one of the biggest challenges companies face is dealing with “fragmented and siloed datasets.”
While the data exists, it often isn’t usable in a way that can lead to actionable insights. This has resulted in slow and rudimentary execution of data-driven initiatives, which are typically confined to small use cases. Sanyal further mentioned the disconnect between senior management’s strategic intent and the execution at the ground level. “While the top believes it’s a strategic direction imperative for the organization to embrace, the execution machinery is still very IT driven,” he explained. This underscores the need for organizational alignment, where AI or analytics-driven initiatives are viewed as business imperatives rather than just IT projects.
Manas Agrawal, CEO & Co-Founder at Affine highlighted the need for a holistic approach, stating that data-driven transformation “must be a business strategic decision.” He stressed the importance of having all key stakeholders—business, IT, analytics—seated at the same table, working towards a singular goal of transforming customer experience. Agrawal also pointed out the emerging challenge of leveraging user-generated content, such as emails and documents, through Generative AI (GenAI). “Firms do not have the time to really twiddle their thumbs and take a long time to get on that bandwagon; they’ll get left behind,” he warned, emphasizing the need for timely adoption of new technologies.
Shaveen Garg, MD & Partner at Boston Consulting Group (BCG) discussed the focus of companies on areas where they can see a clear return on investment (ROI). He noted that the strategic intent varies depending on the aspect of customer experience being targeted—whether it’s ease of information finding during a purchase, customer engagement, or handling complaints. “The factor the clients can put on getting an ROI on the growth or a customer retention and churn reduction is much higher than some of the hygiene factors today,” Garg observed. He also highlighted the critical role of AI and analytics in proactive customer engagement, where the aim is to resolve issues before they escalate, thus reducing the need for customer-initiated interactions.
Dr. Arnab Bhattacharya, Professor for Computer Science and Engineering at IIT Kanpur provided insights from the academic perspective, acknowledging that while the curriculum in computer science and data science is increasingly aligned with industry needs, there is still a gap. “We would not say it’s a shortage of talent,” he says.
“What you learn, when you graduate from the college, you are not considered industry-worthy right at that point. You have to be on the job for at least six months, one year. Now fortunately or unfortunately in computer science that’s not the case. Industry expects a student to be working on a critical project on a critical mode from day one of the graduation.” Bhattacharya emphasized the importance of collaboration between academia and industry to provide students with real data and domain knowledge, which would better prepare them for the challenges they will face in the workforce. He noted that “industry readiness is not just about technical skills but also understanding the real-world complexities of data, including how to navigate and integrate fragmented datasets effectively.”
As companies digitize their processes, the importance of cybersecurity and ethical considerations cannot be overstated. Amit Sanyal noted that “privacy and security have really taken center stage in the last about three, four years,” but acknowledged that the field is still evolving.
Manas Agrawal added that security and resilience should be integral to the design and architecture of data systems, rather than being treated as separate budget items. He emphasized the importance of having a “human in the loop” to handle contingencies and ensure the system’s reliability. Shaveen Garg stressed that avoiding conversations about cybersecurity and privacy is not feasible. Instead, companies need to focus on mitigating these risks while also demonstrating the value of new technologies. “The benefit and the cost equation is yet to be proven, and that’s what we are trying to create at BCG—marquee accounts at scale where they have deployed it and have done it with the right investments,” Garg explained.
As businesses continue to navigate the complexities of data-driven customer experience, it becomes clear that the path to success is not just about adopting the latest technologies but about aligning organizational strategy, fostering cross-functional collaboration, and addressing ethical concerns such as privacy and cybersecurity. There is a need for a unified approach, where business, IT, and academia work in tandem to overcome challenges and unlock the full potential of data-driven CX. Ultimately, the companies that can navigate these challenges with agility and foresight will be the ones that set new benchmarks in customer experience, driving growth and innovation in the digital age.
While the data exists, it often isn’t usable in a way that can lead to actionable insights. This has resulted in slow and rudimentary execution of data-driven initiatives, which are typically confined to small use cases. Sanyal further mentioned the disconnect between senior management’s strategic intent and the execution at the ground level. “While the top believes it’s a strategic direction imperative for the organization to embrace, the execution machinery is still very IT driven,” he explained. This underscores the need for organizational alignment, where AI or analytics-driven initiatives are viewed as business imperatives rather than just IT projects.
Manas Agrawal, CEO & Co-Founder at Affine highlighted the need for a holistic approach, stating that data-driven transformation “must be a business strategic decision.” He stressed the importance of having all key stakeholders—business, IT, analytics—seated at the same table, working towards a singular goal of transforming customer experience. Agrawal also pointed out the emerging challenge of leveraging user-generated content, such as emails and documents, through Generative AI (GenAI). “Firms do not have the time to really twiddle their thumbs and take a long time to get on that bandwagon; they’ll get left behind,” he warned, emphasizing the need for timely adoption of new technologies.
Shaveen Garg, MD & Partner at Boston Consulting Group (BCG) discussed the focus of companies on areas where they can see a clear return on investment (ROI). He noted that the strategic intent varies depending on the aspect of customer experience being targeted—whether it’s ease of information finding during a purchase, customer engagement, or handling complaints. “The factor the clients can put on getting an ROI on the growth or a customer retention and churn reduction is much higher than some of the hygiene factors today,” Garg observed. He also highlighted the critical role of AI and analytics in proactive customer engagement, where the aim is to resolve issues before they escalate, thus reducing the need for customer-initiated interactions.
Dr. Arnab Bhattacharya, Professor for Computer Science and Engineering at IIT Kanpur provided insights from the academic perspective, acknowledging that while the curriculum in computer science and data science is increasingly aligned with industry needs, there is still a gap. “We would not say it’s a shortage of talent,” he says.
“What you learn, when you graduate from the college, you are not considered industry-worthy right at that point. You have to be on the job for at least six months, one year. Now fortunately or unfortunately in computer science that’s not the case. Industry expects a student to be working on a critical project on a critical mode from day one of the graduation.” Bhattacharya emphasized the importance of collaboration between academia and industry to provide students with real data and domain knowledge, which would better prepare them for the challenges they will face in the workforce. He noted that “industry readiness is not just about technical skills but also understanding the real-world complexities of data, including how to navigate and integrate fragmented datasets effectively.”
As companies digitize their processes, the importance of cybersecurity and ethical considerations cannot be overstated. Amit Sanyal noted that “privacy and security have really taken center stage in the last about three, four years,” but acknowledged that the field is still evolving.
Manas Agrawal added that security and resilience should be integral to the design and architecture of data systems, rather than being treated as separate budget items. He emphasized the importance of having a “human in the loop” to handle contingencies and ensure the system’s reliability. Shaveen Garg stressed that avoiding conversations about cybersecurity and privacy is not feasible. Instead, companies need to focus on mitigating these risks while also demonstrating the value of new technologies. “The benefit and the cost equation is yet to be proven, and that’s what we are trying to create at BCG—marquee accounts at scale where they have deployed it and have done it with the right investments,” Garg explained.
As businesses continue to navigate the complexities of data-driven customer experience, it becomes clear that the path to success is not just about adopting the latest technologies but about aligning organizational strategy, fostering cross-functional collaboration, and addressing ethical concerns such as privacy and cybersecurity. There is a need for a unified approach, where business, IT, and academia work in tandem to overcome challenges and unlock the full potential of data-driven CX. Ultimately, the companies that can navigate these challenges with agility and foresight will be the ones that set new benchmarks in customer experience, driving growth and innovation in the digital age.
