Top CX Predictions for 2025
- January 16, 2025
It’s that time of year again, the one in which customer experience observers the world over lay out their predictions around what the CX market has in store for the coming 12 months. Not to be left out of this cavalcade of crystal balls, in full Zoltar mode, Ryan Strategic Advisory provides its take on what key trends in this sector are most likely to have everyone talking during 2025. Here goes…
- Agentic functionality drives CX interest in AI – it’s no secret that enterprise buyers and their BPO partners have grown weary of the nebulous hype-cycles around artificial intelligence that have polluted networks like LinkedIn the past couple of years. Use cases around how this technology can actually be leveraged in a CX setting are required to maintain any type of attention span for a prospective investor. Customer management decision-makers are rapidly concluding that replacing large swaths of front-line workers with generative AI functions in the near-term is unrealistic. However, empowering them with tools that ensure greater levels of efficiency and quality, thereby driving better satisfaction, lower attrition and longer-term value is the way forward with this advanced technology in the CX context. Thus, watch for agentic AI to gain traction over the course of 2025, in the sense of how this technology will assist agents to do their jobs better.
- Consolidation of mid-market CX services players – watch for interest in medium-sized BPO players (e.g. revenues from $100m – $500m USD) to drive merger & acquisition activity in 2025. This trend was picking up steam at the end of the previous calendar year, with industry chatter gleaning that this segment was of specific interest to global outsourcers as a means of re-enforcing their positioning in certain verticals or regions. Highly-capitalized BPOs falling within the mid-sized category will also seek similar buy opportunities over the next 12 months, as a way of quickly growing their own scale and subject matter expertise.
- Offshore delivery begins to feel impact of real-time automated voice translation – the game changes for many destinations in the nearshore and offshore in 2025, as real-time automated voice translation (RTAVT) becomes a mainstream CX delivery technology tool. Already there are solutions on the market that are proving the value of investment for a growing number of enterprises, which have either chosen to deploy RTAVT on their own or via a BPO partner. Smaller, more expensive countries that cater to niche linguistic consumer groups (such as Dutch or those languages found in Scandinavia) will likely feel the impact of this technology sooner rather than later, as delivery for these pricier customer segments shifts toward destinations with larger populations and lower price points.
- Global uncertainty impacts demand for CX services – among many economists, there is a sense that the coming year will be a strong one from a commercial standpoint. However, there are storm clouds across the horizon in a number of demand markets that could dampen growth – notably, the impact of proposed tariffs from the world’s biggest consumer market on its trading partners looms large. This is in addition to domestic political and economic uncertainty menacing France and Germany (the two largest Eurozone economies), as well as in Canada. And, then there is the ever-present menace of inflation that may or may not crest over the next 12 months. Combined, these headwinds could very well lead to slower consumer activity, which will immediately have a negative impact on interaction volumes. Captive CX budgets and volumes of workstations contracted with outsourcing service partners will be the first victims of such a 2025 scenario.
- Know-the-customer becomes a key CX procurement criterion for enterprises – in 2025 look for enterprise customer service executives to put a priority on having a better line of sight to their individual consumers. This trend was picked up in the recent 2025 CX Technology and Services Buyers’ Outlook published by Ryan Strategic Advisory, in which captive contact center managers identified having such tools at their disposal as key for their operations moving forward. Research has shown that front-line analytics is among the most underserviced technology suites in the CX space but watch for this to change in the next 12 months as boardrooms look to hold their existing customers close. Technology players with analytics offerings of this nature should fare well, and outsourcing partners must make KYC solutions an integral part of their USPs.
Source: Ryan Strategic Advisory
