Trend 5

The digital tipping point

Companies are adopting technology at light speed, and it’s adapt or get left behind.

Section 1

Invest now, or risk playing catch-up later

Forget multi-year plans for a digital transition, the time to act is now. 75% of company leaders agree that the global pandemic has compressed the timeline for acquiring new technologies as companies seek new ways to reach customers and connect distributed teams.

A rapidly accelerating digital timeline

50%say that digital adoption has accelerated by 1-3 years

25%say it’s accelerated by 4-7 years

Section 2

Digital for all

Innovative solutions and technologies are no longer just for the digitally savvy, but for all teams and those that don’t evolve risk getting left behind. More than half of companies say they want to invest more in technologies that can help them better manage distributed workforces, adapt to keep up with customers, and add new ways to offer support. Even companies that ranked these initiatives as low priorities before the pandemic are getting on board.

Companies are investing in their customers and employees

0%40%20%60%100%80%
Percentage of technology decision makers
Offering multiple channels
Improving information security
Tech that’s agile or easily adjusted
Internal collaboration tools
Digital employee workplaces
Data-driven decision making
Business process automation
Switching to cloud-based solutions
Managing a distributed workforce
Tech with a fast time to value
Self-service
AI or machine learning
High or increasing investment
Moderate investment
Low or decreasing investment
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0%40%20%60%100%80%
Percentage of technology decision makers
Offering multiple channels
Improving information security
Tech that’s agile or easily adjusted
Internal collaboration tools
Digital employee workplaces
Data-driven decision making
Business process automation
Switching to cloud-based solutions
Managing a distributed workforce
Tech with a fast time to value
Self-service
AI or machine learning
High or increasing investment
Moderate investment
Low or decreasing investment
Internet Explorer doesn’t support these charts.

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0%40%20%60%100%80%
Percentage of technology decision makers
Offering multiple channels
Improving information security
Tech that’s agile or easily adjusted
Internal collaboration tools
Digital employee workplaces
Data-driven decision making
Business process automation
Switching to cloud-based solutions
Managing a distributed workforce
Tech with a fast time to value
Self-service
AI or machine learning
High or increasing investment
Moderate investment
Low or decreasing investment
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0%40%20%60%100%80%
Percentage of technology decision makers
Offering multiple channels
Improving information security
Tech that’s agile or easily adjusted
Internal collaboration tools
Digital employee workplaces
Data-driven decision making
Business process automation
Switching to cloud-based solutions
Managing a distributed workforce
Tech with a fast time to value
Self-service
AI or machine learning
High or increasing investment
Moderate investment
Low or decreasing investment
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Filter by:

Overall
80%100%60%40%20%0%
Percentage of technology decision makers
Offering multiple channels
Improving information security
Tech that’s agile or easily adjusted
Internal collaboration tools
Digital employee workplaces
Data-driven decision making
Business process automation
Switching to cloud-based solutions
Managing a distributed workforce
Tech with a fast time to value
Self-service
AI or machine learning
Moderate investment
High or increasing investment
Low or decreasing investment
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SMB
80%100%60%40%20%0%
Percentage of technology decision makers
Offering multiple channels
Improving information security
Tech that’s agile or easily adjusted
Internal collaboration tools
Digital employee workplaces
Data-driven decision making
Business process automation
Switching to cloud-based solutions
Managing a distributed workforce
Tech with a fast time to value
Self-service
AI or machine learning
Moderate investment
High or increasing investment
Low or decreasing investment
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Midsize
80%100%60%40%20%0%
Percentage of technology decision makers
Offering multiple channels
Improving information security
Tech that’s agile or easily adjusted
Internal collaboration tools
Digital employee workplaces
Data-driven decision making
Business process automation
Switching to cloud-based solutions
Managing a distributed workforce
Tech with a fast time to value
Self-service
AI or machine learning
Moderate investment
High or increasing investment
Low or decreasing investment
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Enterprise
80%100%60%40%20%0%
Percentage of technology decision makers
Offering multiple channels
Improving information security
Tech that’s agile or easily adjusted
Internal collaboration tools
Digital employee workplaces
Data-driven decision making
Business process automation
Switching to cloud-based solutions
Managing a distributed workforce
Tech with a fast time to value
Self-service
AI or machine learning
Moderate investment
High or increasing investment
Low or decreasing investment
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A third of companies that ranked CX investment areas as low priorities prior to COVID-19, now plan to spend more

35%plan to invest more in adding service across channels

29%plan to invest more in agile technologies

27%plan to invest more in the digital workspace

Section 3

A tale of two budget outlooks

These digital transitions are happening quickly, but companies are split between having the resources to make these changes now and having to play catch up later. Though many are optimistic that budget increases will help to narrow this gap over the next two years, there will be a deepening divide between those that have been able to invest proactively and everyone else.

When it comes to CX maturity, companies are already on a diverging path. Those furthest along in their CX journey are seven times more likely to significantly increase their investment in CX over the next year, compared to their early stage peers. And in doing so, they’re more than six times more likely to exceed their customer retention goals.

Companies expect their CX and Internal Help Desk (IHD) budgets to increase

202120202023
Percentage of surveyed technology decision makers who expect bigger budgets
0%20%40%60%80%
Overall
Enterprise
Midsize
SMB
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202120202023
Percentage of surveyed technology decision makers who expect bigger budgets
0%20%40%60%80%
Overall
Enterprise
Midsize
SMB
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IHD
80%60%40%20%0%
Percentage of surveyed technology decision makers who expect bigger budgets
Overall
Enterprise
Midsize
SMB
2021
2020
2023
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CX
80%60%40%20%0%
Percentage of surveyed technology decision makers who expect bigger budgets
Overall
Enterprise
Midsize
SMB
2021
2020
2023
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More mature CX organizations are more likely to make significant investments and exceed retention goals

0%20%40%60%80%100%
Source: ESG Master Survey Results, What It Means to Champion Customer Service and Support, survey commissioned by Zendesk, October 2020.
Investment increase significantly
Exceed customer/user retention targets
Stage 4 are 6.1x more likely to expect to exceed customer retention goals than Stage 1
Stage 1
Stage 2
Stage 3
Stage 4
 0%20%40%60%80%100%
Exceed customer/user retention targets
Investment increase significantly
Source: ESG Master Survey Results, What It Means to Champion Customer Service and Support, survey commissioned by Zendesk, October 2020.
Stage 4 are 6.1x more likely to expect to exceed customer retention goals than Stage 1
Stage 2
Stage 1
Stage 3
Stage 4
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“If you’re not investing in digital right now, I think you need to reassess your business model and whether you’ll be around in the next five to ten years. There’s not going to be a single company that doesn't have a digital business model.”

Ray Wang

Principal Analyst, Founder and Chairman, Constellation Research

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