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3 Top Technology Investment Priorities for CX 2016

A recent Fifth Quadrant report conducted in partnership with Interactive Intelligence has revealed how organisations will be managing and improving their CX ecosystems. Titled ‘The Technology Investment Priorities for Customer Experience in 2016’, the report was based on responses from respondents in the services, distribution, government and manufacturing sectors. About 60 per cent of respondents had an employee size of less than 1000 employees, while the rest were larger, with 1000+ employees.

Key findings

In most organisations, it is the IT department that owns the CX technology budget, followed by the finance department. Few organisations had dedicated CX groups making investment decisions. This isn’t a surprise given that the scope, responsibility and risks of technology delivery fall within the sphere of the IT department. Also, as IT holds the overall organisational technology budget, they are in a better position to make calculated decisions on CX technology allocations.

Most organisations expect to increase their CX budgets or maintain the current level of spending. The total CX technology budget is expected to stay in the ballpark of $9 million.

Get the whole report here: The Technology Investment Priorities for Customer Experience in 2016

Technology is an important component to enhance customer experience especially in today’s omnichannel environment where consumers have access to and use multiple digital and mobile touchpoints. In this regard, the technology-led CX priorities planned by organisations this year are: 

  1. Improving channel experiences, with a focus on seamless and personalised interactions (among B2B, services, distribution and government sectors)
  2. Capturing valuable customer insights for end-to-end CX by leveraging data analytics (manufacturing sector)
  3. Increasing investment in marketing and sales

It is critical for businesses to develop a robust CX technology foundation from which they can evolve in sync with customer expectations. The technologies that make up this basic plumbing - which organisations will prioritise - include digital technologies to manage web presence; contact/call centre technologies; social media; personalisation; mobile optimisation; CRM and channel integration.

There will be a strong focus on implementing newer technologies, integrating what organisations already have with emerging solutions.

In terms of specific technology investments, the top three priorities will be social media, mobile customer service applications, and telephony infrastructure.

On the topic of technology delivery method, 44 per cent have a preference for cloud while 39 per cent will keep their technology on-premise.

It appears as if organisations are yet to consider the potential benefits of SaaS subscription services that allow infrastructure scalability in an elastic, cost-effective manner. Cloud native architectures are different from traditional tiered applications. They allow organisations to tap into new features as they rapidly develop, allowing the creation of a baseline capability of new services and technologies, and removing the need to re-architect the eco-system and go through new projects to enable new capabilities.

Get the whole report here: The Technology Investment Priorities for Customer Experience in 2016

Research by Steve Nuttall, Research Director at Fifth Quadrant.

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If you liked this article consider reading Creating a Customer Centric Culture

Brad Arsenault

Written by Brad Arsenault

Brad is the Head of Marketing at Fifth Quadrant. For over 16 years he's worked across digital marketing and content production. He actively publishes content on LinkedIn and Medium.

Topics: Customer experience CX investment priorities CX Articles & Insights

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