New research suggests that businesses are progressively looking to single-service providers for their CX needs – with more than half of today’s organisations now utilising a single provider.
The days of Companies adopting a best-of-breed strategy (i.e. utilising two or more different CX vendors to support their requirements) may have previously been a common strategy but in this market we must adapt to change and innovate, which means that a more comprehensive solution is preferred. In fact, new research has revealed that most organisations are now preferring to systematise on a single CX platform.
Ryan Strategic Advisory conducted a survey on behalf of TELUS International, which identified a significant shift in more organisations opting to consolidate CX providers in recent times.
The results revealed that:
- 51% of enterprises are now using a single-service provider, with
- 44% engaged with only two to three providers.
This is indicative of a wider trend, which has seen enterprises who were in the process of reducing their number of providers grow from 27% in 2017, to 44% in 2020, to 50% in 2022.
Why is single-service CX so appealing?
The primary reason for the consistent shift towards single-service CX is the increase in complexity of the services available to organisations, which has resulted in an increase in requirements and expectations. Ultimately, it’s the forward thinking organisations that understand and appreciate the need to adapt with the market to ensure their competitive edge.
Of the 668 global executives surveyed – “40% indicated that they would leave a CX provider if they were unable to provide all of the complex digital CX services they required”.
Furthermore – “65% revealed that they receive two or more services from a single CX partner”, with “58% of respondents stating that this number had increased since the start of the pandemic”.
These numbers were even higher for some of the more complex branches of CX services. In the following areas all respondents admitted to using a single CX partner:
- Artificial intelligence (67%)
- Digital IT (68%)
- Content moderation (72%), and
- Digital CX (77%)
When discussing the findings of this survey, CCO of TELUS International – Maria Pardee, commented:
“We’re seeing enterprises rethinking their existing CX partnerships to form fewer, stronger, trusted relationships that encompass the full spectrum of capabilities and expertise to implement, evolve and scale their end-to-end CX strategy.”
Peter Ryan – Principal analyst at Ryan Strategic Advisory, also commented on organisations looking to build trusted relationships with their CX providers:
“Companies are no longer looking to diversify their CX partner footprint, rather they are looking to form a trusted partnership with far fewer, or even just a single provider that has the breadth and scope of experience and solutions to offer end-to-end services that span across the full customer experience value chain.”
However, Ryan also discussed some of the more pragmatic elements, which he believes are affecting the relationships between enterprises and CX partners:
“Significant world events such as the pandemic exponentially accelerating consumers’ digital adoption, to having increasingly limited internal resources to manage multiple external CX partners, to not having the in-house digital expertise needed to design, build and deliver today’s more complex digital CX solutions and services.”
Here at HOED Research we have been partnering with businesses nationally and internationally for almost 30 years! Our breadth of experience has dramatically evolved over time to help us provide the best solutions and end-to-end services that span across the full customer experience value chain.
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Please feel free to contact us today to discuss how we can help you streamline all of your CX needs.