Spending on customer experience technologies will reach $641 billion in 2022
Worldwide spending on customer experience (CX) technologies will total $508 billion in 2019, an increase of 7.9% over 2018, according to the inaugural Worldwide Semiannual Customer Experience Spending Guide from International Data Corporation (IDC). As companies focus on meeting the expectations of customers and providing a differentiated customer experience, IDC expects CX spending to achieve a compound annual growth rate of 8.2% over the 2018-2022 forecast period, reaching $641 billion in 2022.
IDC defines customer experience as a functional activity encompassing business processes, strategies, technologies, and services that companies use, irrespective of industry, to provide a better experience for their customer and to differentiate themselves from their competitors. The term customer refers to individuals (B2C) as well as groups (B2B). IDC focuses only on business process and therefore does not include the customer’s experience of the actual design of the product that the company sold to the customer, nor does it include aspects specific to the product or service such as the user interface or the product aesthetics.
“Customer experience has become a key differentiator for businesses worldwide. New innovation accelerator technologies like artificial intelligence and data analytics are at the forefront in driving the differentiation for businesses to succeed in their customer experience strategic initiatives,” said Craig Simpson, research manager, Customer Insights & Analysis.
CX spending will be distributed somewhat evenly across the 16 use cases identified by IDC. In fact, the top six use cases will account for less than one third of overall spending this year. The CX use case that will see the most spending in 2019 and throughout the forecast is customer care and support followed by order fulfilment and interaction management. The use cases that will see the fastest spending growth over the five-year forecast period are AI-driven engagement, interaction management, and ubiquitous commerce.