IDC's Future Enterprise Resiliency and Spending Survey Stresses the Need for Good CX
Improving the customer experience (CX) directly impacts companies' bottom line, International Data Corp. (IDC) found in its Future Enterprise Resiliency and Spending (FERS) survey.
More than a third of respondents globally (34 percent), reported improved profit margins as one of the top five benefits arising from their CX initiatives. Organizations attributed these higher profit margins to increased revenue (27 percent), cost reductions in personnel (25 percent), marketing (22 percent), and new customer acquisition (18 percent).
The benefits also extended to customers. Companies reporting improved customer experience pointed to their efforts to reduce customer pain points (22 percent) and friction in customer engagement (19 percent).
Companies looking to anticipate customer intentions and respond with empathy at scale will need to build a thorough understanding of customer data orchestrated by the right technology solutions, the firm also concluded, noting that technology and knowledge of customer data are critical in how organizations deliver customer experience. In fact, 78 percent of companies reported that data from and about the customer is critical for CX delivery and 21 percent indicated that customer data plays an extremely significant role. Additionally, 79 percent reported that technology is critical in how they deliver CX.
IDC's FERS also revealed that modern infrastructure is foundational to building enterprise intelligence, which in turn builds greater digital resiliency. Companies that have increased and accelerated investment in technologies that synthesize information will be more digitally resilient in a post-pandemic world. Learning and knowledge sharing are also necessary for building enterprise intelligence and digital resiliency, it found.
According to FERS survey data:
- Business investments in enterprise intelligence continued or accelerated for 76 percent of survey respondents in response to the COVID-19 pandemic.
- Top factors that helped organizations be resilient in the face of the pandemic were the ability to adapt quickly (33.7 percent), learn continuously (32.6 percent), and have cloud infrastructure to support enterprise intelligence (37.5 percent).
- Enterprise intelligence skills are highest rated among the skills that enterprises are looking to hire in the next six months.
The FERS also found that regulations that enforce territorial data boundaries present obstacles and potentially limit the flexibility of global digital platforms and public cloud services. As the pace and scope of these regulations continue to expand, companies are increasingly looking to digital sovereignty as a way to gain greater self-determination in their efforts to shape their digital transformation efforts. IDC defines digital sovereignty as the capacity for digital self-determination by states, companies, or individuals. It focuses on the control over data, infrastructure, and software.
FERS survey results highlight in this area include the following:
- 67 percent respondents agree or strongly agree that digital sovereignty improves their ability to shape digital transformation efforts.
- 75 percent of respondents believe that the top regulation or guideline for digital sovereignty is to ensure providers adhere to geographic-specific measures to not monetize, sell and/or use their customers' data without intentional and expressed consent and compensation.
- 48 percent of respondents indicated that their top challenge is to protect and maintain visibility of data in public cloud providers' facilities in accordance with regulatory requirements.
- 31 percent of U.S. respondents believe that government involvement will influence investments in digital sovereignty initiatives.