03 Dec 2021
IDC FutureScape: Top 10 Predictions for the Future of Customers and Consumers
NEEDHAM, Mass., December 3, 2021 – The Future of Customers and Consumers predictions for 2022 from International Data Corporation (IDC) show that technology will be the cornerstone of brands that try to reestablish relationships with customers and consumers in a new version of the physical and digital world. Organizations that focus on resiliency in systems, processes, and business models that influence how companies and brands engage with customers will find success in the future of customers and consumers.
The COVID-19 pandemic revealed the lack of resiliency in many organizations, specifically in how companies and brands engage with customers and deliver differentiated experiences that keep customers coming back. As the pandemic forced an accelerated rate of digital transformation, it became obvious that most companies had done little to build out good customer engagement models. This showed business leaders how essential it is to establish loyalty through contextually relevant, differentiated experiences that will help avoid chaotic disruptions in the future.
"COVID-19 caused significant shifts in almost everything, including how companies and customers interact, engage, and transact," said Alan Webber, program vice president, Digital Strategy and Customer Experience at IDC. "The key finding is that so many companies spoke about how far along they were in the digital transformation, but this didn't include digitally transforming how to engage customers and consumers. When the pandemic forced their hand, it became obvious that they might have digitally transformed their ERP system or components of their procurement system but had not done the hard work necessary to really engage digitally with customers."
Organizations must adopt and employ customer engagement and experience technologies, services, and strategies based on whether they improve customer experience or make customer engagement more resilient. IDC's ten predictions address the most urgent technology issues and concerns that companies must master to differentiate themselves and maintain engaging relationships with customers.
IDC's Future of Customers and Consumers 2022 top 10 predictions are:
- Prediction 1: By 2024, 35% of brands will openly incentivize consumers to share personal data in exchange for cash rewards, services, and exclusive experiences.
- Prediction 2: By 2024, 25% of brands will partner to build shared customer data hubs to deliver innovative connected experiences and reduce data acquisition costs.
- Prediction 3: By 2023, 25% of global banks will use AI-based sentiment analysis to improve customer experience on current and future products and services.
- Prediction 4: By 2025, 50% of the Global 2000 will increase data scientist diversity by 50% to improve trust in customer engagements, driven by data privacy and trustworthy AI regulations across the globe.
- Prediction 5: By 2026, B2B companies will use AI interactions and analytics technology to deliver deeply personalized journey engagement, eliminating 40% of marketing and sales human touch points.
- Prediction 6: By 2023, 25% of companies will offer tracking transparency for customer complaints, and this will become a best practice and a driver of brand choice, causing broader adoption by 75% of companies by 2025.
- Prediction 7: By 2024, 30% of Fortune 2000 companies will deploy next-best action across their omni-channel environment, driving demand for CDPs, omni-channel management, and customer service solutions.
- Prediction 8: By 2024, organizations will be forced to revamp their customer authentication process to reduce friction and recognize and authenticate customers securely within five seconds of connection.
- Prediction 9: By 2023, to counter digital fatigue, 60% of leading organizations will look to differentiate by delivering trusted and memorable engagements that recreate physical experiences.
- Prediction 10: By 2025, more than 65% of luxury hotels worldwide will have deployed a customer-facing smart assistant that leverages AI to drive a better customer experience.
These predictions are discussed in greater detail in a new IDC FutureScape report, IDC FutureScape: Worldwide Future of Customer and Consumer 2022 Predictions (IDC #US48297321), which is available for download at: https://www.idc.com/events/futurescape?tab=latest-research.
The Future of Customers and Consumers predictions were also presented in a webinar featuring IDC's Alan Weber. Details and registration for an on-demand replay of the webinar can be found at: https://goto.webcasts.com/starthere.jsp?ei=1494493&tp_key=173287efd5.
Finally, IDC has published a blog which further explores the implications of this year's Future of Customers and Consumers Ecosystems. The blog can be found at: https://blogs.idc.com/2021/12/02/idc-futurescape-future-of-customers-and-consumers-2022-predictions/.
About IDC FutureScape
IDC FutureScape reports are used to shape IT strategy and planning for the enterprise by providing a basic framework for evaluating IT initiatives in terms of their value to business strategy now and in the foreseeable future. IDC's FutureScapes are comprised of a set of decision imperatives designed to identify a range of pending issues that CIOs and senior technology professionals will confront within the typical 3-year business planning cycle.
To learn more about IDC FutureScape reports for 2022, please visit: https://www.idc.com/events/futurescape.
About IDC's Future of Customers and Consumers Practice
Success in the future of customers and consumer requires an empathetic relationship between customers and brands built on what the customer wants and how they want to be treated through the technology lens of awareness, engaging, learning, and measuring. IDC's Future of Customers and Consumers research practice helps organizations make a fundamental change to how they view and engage with their customers. To learn more about IDC's Future of Customers and Consumers research practice, please visit https://www.idc.com/promo/future-of-x/customers-and-consumers.
International Data Corporation (IDC) is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. With more than 1,100 analysts worldwide, IDC offers global, regional, and local expertise on technology, IT benchmarking and sourcing, and industry opportunities and trends in over 110 countries. IDC's analysis and insight helps IT professionals, business executives, and the investment community to make fact-based technology decisions and to achieve their key business objectives. Founded in 1964, IDC is a wholly owned subsidiary of International Data Group (IDG), the world's leading tech media, data, and marketing services company. To learn more about IDC, please visit www.idc.com. Follow IDC on Twitter at @IDC and LinkedIn. Subscribe to the IDC Blog for industry news and insights.
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