In 2009 one of the foremost Financial Services industry experts was giving my team a deep dive into the Global Financial Crisis (GFS) and its ramifications. According to him, one of the key reasons why it happened was that most people in key positions in both industry and government had probably never seen a full downturn in their careers. There was a bit of a hiccup during the dot com bust but nothing that seriously interrupted the long boom that began somewhere in 1988. They had never experienced anything quite like 2008; so they never imagined that such a crisis could actually happen.
Similarly, 2020 was an unprecedented year – in our lives and certainly for the tech industry. The GFC (as the name suggests) was a financial crisis. A lot of people lost their jobs, but after the bailouts things went largely back to normal. COVID-19 is something different altogether – the impact will be felt for years and we don’t yet know the full implications of the crisis.
While we would like to start 2021 with a clean slate and never talk about the pandemic again, the reality is that COVID-19 will shape what we will see this year. In the first place it looks like the disease will still be around for a substantial part of the year. Secondly, all the changes it has brought in 2020 with entire workforces suddenly moving to operating from home will have profound implications for technology and customer experience this year.
As we ease into 2021, I look at some of the organisational and technology trends that are likely to impact customer experience (CX) in 2021.
#1 All Business is Now eBusiness
COVID-19 has ensured that the few businesses which did not have an online presence became acutely aware that they needed one. It created a need for many businesses to quickly initiate eCommerce. Forbes reported a 77% increase in eCommerce infrastructure spending YoY. This represents about 4 years of growth squeezed into the first 6 months of 2020!
From a CX point of view there is going to be far more interaction with brands and products through online channels. This is not just about eCommerce and buying from a portal. It is also about using tools like Instagram, Facebook and other social media platforms more widely. It is about learning to interact with the customer in multiple ways and touching their journeys at multiple points, all virtually using the web – mostly the mobile web.
Ecosystm research shows that almost three out of four companies have decided on accelerating or modifying the digitalisation they were undergoing (Figure 1). It is fair to expect that this gives a further boost to moving to the cloud. For the customer it will mean being able to access information in many new ways and connect with products, services, brands at multiple points on the web.
Since interacting with the customer at multiple points is new for most services, I foresee a lot of missed opportunities as companies learn to navigate a completely different landscape. Customers pampered by digitally native organisations often react harshly to even a small mistake. It will become critical for companies to not just become a bigger presence online but also to manage their customers well.
New solutions such as Customer Data Platforms (CDP), as opposed to CRM will become common. Players who are into Customer Experience management are likely to see huge business growth and new players will rapidly enter this space. They will promise to affordably manage CX across the globe, leveraging the cloud.
#2 Virtual Merges with Real
AR/VR has so far been seen mainly in games where one wears an unwieldy – though ever-improving – headset to transport oneself into a 3D virtual world. Or in certain industrial applications e.g., using a mobile device to look at some machinery; the device captures what the eye can see while providing graphical overlays with information. In 2021 I expect to see almost all industrial applications adopting some form of this technology. This will have an impact on how products are serviced and repaired.
For the mainstream, 2020 was the year of videoconferencing – as iconic as the shift to virtual meetings has been, there is much more to come. Meetings, conferences, events, classrooms have all gone virtual. Video interaction with multiple people and sharing information via shared applications is commonplace. Virtual backgrounds which hide where you are actually speaking from are also widely used and getting more creative by the day.
Imagine then a future where you get on one of these calls wearing a headset and are transported into a room where your colleagues who are joining the call also are. You see them as full 3D people, you see the furniture, and the room decor. You speak and everyone sees your 3D avatar speak, gesture (as you gesture from the comfort of your home office) and move around. It will seem like you are really in the conference room together! If this feels futuristic or unreal try this or look at how the virtual office can look in the very near future.
While the solutions may not look very sophisticated, they will rapidly improve. AR/VR will start to really make its presence felt in the lives of consumers. From being able to virtually “try” on clothes from a boutique to product launches going virtual, these technologies will deeply impact customer experience in 2021 and beyond
In the immortal words of Captain Kirk, we will be going where no man has gone before – enabled by AR / VR.
#3 Digital CX will involve Multiple Technologies
AI, IoT and 5G will continue to support wider CX initiatives.
The advances that I have mentioned will gain impetus from 5G networking, which will enable unprecedented bandwidth availability. To deliver an AR experience over the cloud, riding on a 5G network, will literally be a game changer compared to the capabilities of older networks.
Similarly, IoT will lead to massive changes in terms of product availability, customisation and so on. 5G-enabled IoT will allow a lot more data to be carried a lot faster; and more processing at the edge. IoT will have some initial use cases in Retail, Services and other non-manufacturing sectors – but perhaps not as strongly as some commentators seem to indicate.
AI continues to drive change. While AI may not transform CX in 2021, this is a technology which will be a component of most other CX offerings, and so will impact customer experience in the next few years. In fact, thinking of businesses in 2025 I cannot believe that there will be a single business to customer (B2C) interaction which will not feature some form of AI technology.
I’d be interested to hear your thoughts on the technologies which will impact CX in 2021 – Connect with me on the Ecosystm platform.