In a new report entitled Customer Service Trends and Predictions 2021, the Institute of Customer Service examines some of the issues and trends that will be significant for the customer experience environment in 2021 and highlights priorities that organisations need to consider.
It says:
“There is no doubt that 2021 looks set to be one of the most unpredictable years of recent times. A deeply uncertain economic outlook, continuing uncertainty over the economic consequences of Brexit and the evolving COVID-19 crisis are all likely to influence customer needs and behaviours and condition how organisations respond.”
Below is a summary of its predictions.
1. Organisations will focus on their core competence and reduce the scope of their activities
In response to customer demands, financial challenges and the uncertain operating environment, many established organisations are likely to reduce the scope of their activities and sharpen their focus on their core competencies and brand values.
2. Risk and resilience planning will be a leading priority for organisations
The COVID-19 crisis has exposed and tested organisations’ resilience planning in ways that few would have envisaged at the beginning of 2020. In the next year, resilience, risk management and scenario planning across a range of business areas will be a leading priority for UK organisations.
3. Customer satisfaction and employee engagement will become more prominent components of corporate governance
In 2021, there will be a growing acceptance that immediate financial reporting alone cannot be seen as a reliable indicator of an organisation’s performance and sustainability. Measures such as customer satisfaction, employee engagement and productivity will increasingly be seen as crucial components of corporate governance that indicate an organisation’s health and sustainability.
4. Leaders will need more than ever to demonstrate purpose, empathy and a willingness to engage with customers and employees
In addition to strong business acumen, leaders will need to demonstrate resilience, transparency, empathy authenticity, clarity of purpose and a willingness to engage. Organisations will recognise the importance of building leadership teams with a diversity of perspectives, background and personalities.
5. Personalised virtual experiences will become even more critical to customer engagement
In 2020, the COVID-19 crisis stimulated an abundance of online innovation as organisations and entrepreneurs sought to connect with customers, provide access to content or enable customers to maintain social interactions. In 2021 and beyond, online channels and applications will become even more important competitive environments for customer experience.
6. The green agenda will move from brand communications to a practical focus on enabling customers to make sustainable choices
In 2021, the green agenda will receive a boost. Organisations will increasingly burnish their green credentials in their communications and engagement with customers. The organisations that will be most successful in engaging customers in the green agenda will be those that give practical, credible products, services and information that deliver what customers need.
7. Deployment of artificial intelligence-enabled services will accelerate, but trust and transparency will be crucial
2021 will see an acceleration of investment in and deployment of artificial intelligence enabled services in a range of sectors and environments. Despite the potential benefits, the growing presence of artificial-intelligence technologies raises concerns about privacy, security, and ethics.
8. Improving skills and training will be central to “building back better”
Organisations will recognise the need to train and upskill their employees to “build back better”, improving productivity, customer satisfaction and performance. However, the impact of the pandemic on employment and organisations’ finances must call into question the prospects for skills and training in the next year.
9. Growing economic inequality and polarisation of attitudes will require organisations to understand evolving needs and display empathy and flexibility.
In this fluid and unpredictable environment, it will be vital for organisations to understand changing customer needs and priorities. Organisations will need to demonstrate agility in flexing and responding to changing needs. They will also need to display sensitivity and empathy in managing relationships with customers who are vulnerable, insecure or whose financial or health situations have changed.
You can download the full report here.