IDC FutureScape: Worldwide Future of Customer Experience 2024 Predictions

Description

This IDC study explores 10 of the most urgent business and technology issues that customer experience (CX) executives across the C-suite must address to differentiate and prepare themselves to thrive in the age of intelligence-first customer experiences.According to Sudhir Rajagopal, research director, Future of Customer Experience, at IDC, "We have entered the age of intelligent experiences and there is no doubt that generative AI will create a sea change for customer experiences, as well as inform future customer expectations. Brands that lead the charge will be those that have a strong foundation of customer data, adapt to new digital business models, industrialize customer intelligence, prioritize customer trust, and crucially deliver memorable experiences that are purposeful and achieve value parity with customers and the organization, alike."

Product Code: US50111423

IDC FutureScape Figure

Executive Summary

IDC FutureScape Predictions

Summary of External Drivers
Predictions: Impact on Technology Buyers
- Prediction 1: With the Rise in Digital Self-Service, Organizations Will Shift 35% of Their Customer Communications to Support Dynamic Updates by 2026 to Meet Expectations and Provide Context Continuity
  - Associated Drivers
  - IT Impact
  - Business Impact
  - Guidance
- Prediction 2: As Sentiment and Intent AI Improve Real-Time Contextual Awareness, 55% of G2000 Firms Will Fulfill All Customer Journeys Primarily Through Conversations by 2025, Boosting Revenue and Customer Loyalty
  - Associated Drivers
  - IT Impact
  - Business Impact
  - Guidance
- Prediction 3: By 2027, 60% of F500 Firms Will Leverage Ubiquitous Experiences, Edge Analytics, and GenAI to Enable Customers to Create Their Own Experience Journeys, Improving Customer-Desired Outcome and Value
  - Associated Drivers
  - IT Impact
  - Business Impact
  - Guidance
- Prediction 4: By 2027, 65% of G2000 Firms Will Reallocate 40% of CX Spend on Emerging Products and Skills as Improved GenAI Renders Entire Software Categories Obsolete
  - Associated Drivers
  - IT Impact
  - Business Impact
  - Guidance
- Prediction 5: By 2026, 45% of G2000 Firms Will Eclipse Competitors by Leveraging Real-Time AI-Mined Data on Product Usage, Interactions, and Sentiment to Direct the Service and Support Experience
  - Associated Drivers
  - IT Impact
  - Business Impact
  - Guidance
- Prediction 6: Customer Data Platforms Will Deliver High-Quality Data for Predictive AI and GenAI, Activating 80% of Real-Time Personalized Customer Interactions at Scale for G2000 Firms with 4x Engagement Gains by 2026
  - Associated Drivers
  - IT Impact
  - Business Impact
  - Guidance
- Prediction 7: By 2028, Powered by CX Analytics at the Edge, Real-Time Sentiment Analytics Will Drive 40% of Customer Engagements, Delivering 10% Growth in Customer Loyalty, and Retention for G2000 Firms
  - Associated Drivers
  - IT Impact
  - Business Impact
  - Guidance
- Prediction 8: Data Availability, Customer Expectations, and Competitive Pressures Will Drive 35% of Large Enterprises to Establish Formal Trust Scores for All Customers/Prospects by 2028
  - Associated Drivers
  - IT Impact
  - Business Impact
  - Guidance
- Prediction 9: To Ensure Customer Retention and Reduced Effort, 65% of G2000 Firms Will Design New Product Features Primarily Based on Service Interactions and Customer Usage, Improving Profitability by 2028
  - Associated Drivers
  - IT Impact
  - Business Impact
  - Guidance
- Prediction 10: By 2026, to Differentiate and Drive Loyalty, 30% of Organizations Will Undergo Structural and Technological Changes to Deliver Value Outcomes, Shifting Focus from Providing Experiences to Value Parity
  - Associated Drivers
  - IT Impact
  - Business Impact
  - Guidance

Advice for Technology Buyers

External Drivers: Detail

AI Everywhere - Generative AI Takes the Spotlight
The Drive to Automate - Maximizing Efficiency and New Opportunities
Economic Uncertainty - IT Malaise and Market Volatility
The Digital Business Imperative - Competitiveness and Outcomes
Everything as a Service Intensifies - Transforming Models to Drive Change
Operationalization of ESG - Measuring and Implementing Sustainability

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