Every year we publish a wide-ranging, forward-looking set of predictions exploring how we see the coming year playing out for key industries, regions, and roles. This year we are making our European predictions in the shadow of war, soaring energy prices, a looming recession, and political upheaval in countries including the UK and Italy. But in the depths of the gloom, we see a source of hope for high-performing CX teams.
We know it’s going to be a year of tight budgets, cost control, and an increased focus on proving the value that your team brings by aligning CX and business metrics. Forrester Analysts Oliwia Berdak and Joana de Quintanilha shared their thoughts with me recently on a LinkedIn Live session, looking at the implications for European CX teams in particular.
When it comes to broader predictions about how we see CX teams and the profession at large evolving in 2023, we expect:
- Floundering European CX teams will disappear — but leading teams will be stronger than ever. We estimate that some 80% of organizations don’t see delivering great CX as a fundamental part of their proposition. What’s more, many European CX teams are struggling to close the loop between insight into customer pain points and action to solve those pain points. In the face of budgetary pressures, many of these brands will dissolve CX teams that can’t show numbers. Teams that can demonstrate clear cause and effect between what the CX team does and how their actions drive growth and save money, will thrive.
- CX differentiation will erode – but a handful of leaders will differentiate. Our European CX Index results this year point to two macro trends: 1) a majority of brands are increasingly undifferentiated, with their CX Index scores clustering around mediocrity, and 2) a handful of leaders are increasing their lead on the pack. Lower-performing brands are solving basic CX problems, while top brands like Starling, First Direct, HUK-Coburg, ING Direct, Hyundai, and Toyota are increasing their lead in the eyes of their customers with strong customer-centric differentiation. This trajectory will continue.
- CX tech platform players will go on a shopping spree. Point solution providers that offer a single specialty product or service — like a journey mapping application, design tool, or chatbot — will be on the shopping list for major platform players. Adobe’s acquisition of Figma and Medallia’s acquisition of Mindful are the canaries in the coalmine that signpost market consolidation. We’ve seen it in other industries — commerce platforms, CMSs, and more. The CX tech market is increasingly crowded, and poised for upheaval. Expect many of your point solution vendors to have a new owner by the end of 2023.
Explore the predictions hub here.
This post was written by VP, Research Director Martin Gill and it originally appeared here.
