In November of 2019 we speculated what 2020 was going to bring us. No one could have known the curveball that was in store for us, but it is still interesting to look back on our predications. Some of our predictions came true, most notably the multi-cloud processes gaining traction, you can read that here. Now that we are wrapping up 2020 it is time to look forward into 2021. While we hope the year is a bit less dramatic, here at Intellective we know each year is an opportunity for new and exciting changes in the world of Digital Transformation!
First Prediction: Customer Data Platforms will become more popular.
A Customer Data Platform (CDP) is software that compiles and organizes customer data, which can then be used by other software and systems. It essentially takes all the information about a customer, whether that be demographic information, or actions on the web, and compiles it into one persona.
A CDP differs from a CRM tool, which only collects data when a person interacts with the given company. Additionally, while CRM’s can only collect information on known or potential customers, CDPs can collect anonymous visitors’ information. This paired with tracking both online and offline customer data, means it is a superior method of monitoring a customer journey.
The holistic view that CDPs offer can then be used by multiple teams inside your organization. Most notably, marketing can use this to help create a better lead life cycle. From there, information collected from CDPs can help companies create a more seamless customer service experience and give them a better overall picture of their patrons. In addition, engineers can highlight what can be automated based on customer needs, which in the long run, will save the company time and money.
Most companies use a CRM currently. We predict that large players will switch to using a CDP or use it in tandem with a CRM. According to The CDP Institute, “Over a thirty month period, from December 2016 to June 2019, the number of CDP vendors increased from 23 to 96.” This may include employing a new integration system or using one supplied by the CDP software.
We will see better targeted ads at the beginning of 2021, leading to better customer service as the year goes on. This may pop up in ways that didn’t seem obvious before, such as better navigation menus on websites, more intuitive chat boxes, and longer tenure of customers with businesses that truly listen to their needs.
Prediction Two: IoT will become more mainstream.
If you remember in 2020 we touched on the ways digital transformation and IoT were integrating more closely in our day to day lives. In 2021, we predict that this will continue, and the general population will be more responsive.
There are people who are shy about the idea of deeply ingrained technology in their lives, from using Alexa to add things to your wish list, to the infamous case study of Tesla allowing cars to be used as delivery spots for packages. With companies pushing this integration and pairing 5g technology, people will have no choice but to allow certain aspects of IoT into their day to day lives. Much like our predecessors having to adapt to carrying around a cellphone with them, future generations will not know a time before every item is connected to each other.
So, what does this mean for companies? Most likely a push to optimize mobile apps, and a change in the way they sell their service or product. Since more and more people will be able to and want to, access information about your company from anywhere in the world, it is imperative to have a mobile optimized website. In addition, superior customer service via apps will be non-negotiable. We have seen this technology with car insurance companies for a few years now, but retailers, health insurance, and banking are predicted to follow suit in 2021.
Also, with the spike of internet connected devices, and the older generations slowly fading out, sales departments may consider changing their tactics. Millennials are infamous for not picking up their phone for unknown numbers, even at work. Pairing that with a global pandemic that is Covid19, cold phone calls
, and phone sales, in general, may be dying in 2021.
Prediction Three: The XaaS and PaaS Sectors will see huge expansion in 2021
Everything as a Service (XaaS) and Platforms as a Service (PaaS) have been on a steady climb over the last few years. As necessity is the mother of invention, 2020 pushed companies to offer online versions of their products and added to the XaaS industry. Pair that with major companies like IBM pushing Cloud options, more companies offering monthly subscription models of their service, and creating new platforms to meet this cloud technological boom and you can see the incoming expansion in this industry. On the positive side, with new technologies and companies being creative, there has never been a better time to invest in these sectors.
It is said everything in life is cyclical, even cable television. Think back to when we were introduced to buying additional channels to customize our viewing experience, and how exciting that was. Then fast forward to where the packages offered were too expensive and people started to ditch cable entirely. Enter services such as Hulu and Netflix. At first, they provided on demand services, and then a monthly package for whatever they had licensing. But alas, you couldn’t find everything all on one platform, so you ended up getting both, and then the behemoth Disney+ entered fracturing the crowd even more. Eventually, the people ended up with 3+ subscriptions to cobble together what we once got with Cable television. Interesting isn’t it?
So that being said, it seems we are headed back into that realm of everything being offered as a monthly service, verse outright buying software for our company. Is this better or worse in your opinion? Let us know via our Contact Page, or on Social!
If you found this blog interesting or informative, please join us on Dec 16th, 11AM PST for our webinar discussing these topics at length, plus additional Digital Transformation predictions for the coming year! We will be featuring Intellective’s own CRO, Michael Rooney, and a special guest! RSVP today to save your seat!