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Being customer-obsessed a major competitive strategy

Sibahle Malinga
By Sibahle Malinga, ITWeb senior news journalist.
Johannesburg, 20 Feb 2017
Digitisation will bring a clear correlation between customer experience and revenue growth, says a Forrester report.
Digitisation will bring a clear correlation between customer experience and revenue growth, says a Forrester report.

This year will see many organisations shifting their focus on technology to improve customer experience. However trying to play catch-up with early technology movers could spell disaster for companies who are unprepared.

This is according to research firm Forrester's Series of 2017 Predictions that looks at business strategy, leadership, customer experience, and technology dynamics to examine progress and predict the key events, changes, and trends that will occur in 2017.

Forrester predicts that the next wave of customer experience will profoundly impact companies, pointing to a clear correlation between customer experience and revenue growth. According to the report, company leaders who can navigate the new digital and are obsessed with the customers' requirements will result in extensive staff turnover, with up to a third of current chief marketing officer positionsbeing exited.

"Your business model is under attack. And it's not by your competitors. It's under attack from your customers," says Cliff Condon, chief research and product officer at Forrester. "Our research shows that more than a third of all US online adults want new and engaging digital experiences. They will switch companies to find these experiences. In this environment, being customer-obsessed can be your only competitive strategy."

Condon points out that technology has been one of the key drivers in empowering customers and will now play an intrinsic role in allowing companies to serve these same customers. Newer technologies such as artificial intelligence, virtual reality (VR) and Internet of things will be employed to drive the change.

Ian Goss-Ross, CEO of ICT services and solutions firm Elingo, says in today's 'digital-first service-first' business environment, companies are under pressure to deliver customer service and a 'real customer experience', through implementing innovative technologies.

"2017 will see more businesses focusing on digital transformation and the primary motivation behind this strategy will be to align and improve customer experience - which may catch some decision-makers off guard. Those businesses that do position themselves to integrate technology and automate systems will be able to guarantee that customers enjoy a streamlined experience on all levels of engagement with a company. Constant disruption will happen and we will experience the secondary effects of the disruption as digital disruption will create more opportunities," he explains.

According to research by Oracle, innovations such as artificial intelligence and VR will reshape customer experience by 2020, allowing brands to better cater to digital customers who increasingly favour self-service to human interaction.

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