Providing a differentiated customer experience is becoming more difficult for brands. Yes, customers are integrating more technology into their lives that results in more channels engage with and more data for the brand, it also makes it more difficult to provide a consistent experience across those channels to effectively and contextually target those customers with the right experience without more technology. It is becoming a never-ending cycle.
To understand where CX is going, it is important to understand that there are two sides to customer experience: the experience that a company provides and the experience that a customer has. Yet the company has little control over the customer and can only control its own actions. From the perspective of a company, customer experience provided is following business services and strategies that are enabled by technologies, processes, and data. Historically, companies have focused on areas such as CX leadership, making the organizational culture more customer centric, and improving communications channels. And though these changes are important, the impact of technology has eclipsed these practices as the area of focus for improving the customer experience.
IDC presents the top 10 predictions and key drivers of customer experience for the next five years:
- Prediction 1: Customer consent is key. By 2020, to meet GDPR-type regulations and improve the customer experience, 50% of global companies will integrate progressive consent opportunities into all stages of the customer journey.
- Prediction 2: Fulfillment and customer experience. By 2024, 45% of organizations will differentiate their customer experience with IoT order signals, real-time status visibility, and granular delivery times to portfolios of heterogeneous locations.
- Prediction 3: Frictionless experience. By 2021, businesses offering frictionless experiences across their ecosystem will experience a decrease of 20% in customer attrition.
- Prediction 4: Digitalization of the physical outlet. By 2024, 20% of B2C companies will digitize, automate, and animate physical outlets so that their processes and people create new customer learning, enjoying, purchasing, and fulfillment journeys.
- Prediction 5: Buying journey as entertainment. By 2022, 20% of buyer journeys will be transformed into joyful, exciting, colorful, fun experiences through the provision of integrated, personalized, digitally connected multimedia.
- Prediction 6: Commerce everywhere. By 2022, 35% of CX-focused organizations will adopt “commerce everywhere” business models and generate 50% of revenue through contextual discovery experiences.
- Prediction 7: The brand becomes the experience. With the adoption of technologies like AI, analytics, and big data, by 2020, 10% of companies will begin to integrate personalized brand promises into the experience a customer receives.
- Prediction 8: Always-on experience. The adoption of IoT, mobile devices apps, and NLP will by 2021 allow 10% of companies to be interacting overtly and covertly with consumers through these channels almost 24 hours a day, every day.
- Prediction 9: Conversational interaction experience. By 2022, 30% of enterprises will use interactive conversational speech technologies to power customer engagement across marketing, sales, and service.
- Prediction 10: CX as a driver of innovation. By 2021, 30% of enterprises will exploit AI and advanced customer analytics to suggest innovative customer experience actions that deliver value from a segment, persona, or individual customer perspective.
Learn more about the 2019 Customer Experience Predictions
For context around these predictions, including the IT impact and guidance on how to integrate each prediction in the digital strategy of the enterprise, view the IDC FutureScape: Worldwide Customer Experience 2019 Predictions web conference on-demand.