Customer experience (CX) spending amounted to $97 billion in 2018 and is expected to increase to $128 billion by 2022, growing at an annual rate of 7%, according to IDC. The European industries that will spend the most on CX in 2019 will be banking, retail and discrete manufacturing. Together, these verticals will absorb 33% of European spending on CX this year. Retail will be the fastest-growing sector for CX spending in 2022, outpacing banks in 2021.
Customer support and support, digital marketing and purchase orders are the most spent customer experience usage cases today and will continue to be a strong investment area throughout 2022. Investing in CX represents a clear opportunity for industries to differentiate, implementing these use cases to shape a public brand sense around the customer, improving websites, social network interactions, and product and service promotions. In terms of long-term opportunities, omnicanal content will be the fastest growing CX usage case by 2022. Omnicanal content reflects the fundamental foundation of CX’s future by optimizing content on channels at every point of the customer’s journey, creating a non-linear experience around the user.
Emerging technologies such as AI, IoT and AR/VR, and hyper-micro personalization are driving CX investments in the face of growing customer expectations, intensified competition, changing customer behaviors and increased demand for personalization. Innovations in CX focus on the experience of a product or service around the user, approaching each customer as an individual in real time, and moving away from segment-based approaches to connecting with the customer.
“The customer experience is the top business priority for European companies in 2019,” says Andrea Minonne, senior research analyst at IDC Customer Insight & Analysis in Europe. “Companies are moving away from traditional ways of reaching customers and are adopting more digitised and personalised approaches to empathy, where the focus is on constantly learning from customers. Retail spending at CX will grow rapidly as retailers understand how important it is to integrate CX into their business strategy.