With the focus around customer management being done better, faster and more efficiently via technology solutions, the pressure is on vendors of these CX tools to make the most of the current market opportunity. But, no matter the specific application, CX executives have ample choice in what is an excessively-crowded market for customer experience technology. Forward-looking, emerging CX solution players need not miss the chance to form strategic partnerships with contemporaries across the technology ecosystem as a means to better compete.
Partnerships are nothing new in the customer experience management space. But, moving into 2025 the idea of CX tech providers developing robust strategic networks of member-partners across the broader customer management technology ecosystem is one that is gaining traction, for a variety of reasons. One of the biggest is the push toward digital transformation across so many enterprise CX departments.
The reality is that many firms’ customer management capabilities have been among the first to face budgetary cuts over the past several years. However, consumer interactions are becoming much more of a strategic focus, and the need to invest in CX tech is leading many firms to push toward not just a tactical refresh of certain functions – rather, there is an understanding that a wholesale renewal across both baseline and cutting-edge customer management solutions is needed.
For many prospective clients the idea of going to larger consultancies or a systems integrator is intimidating. This is due to worries about high costs and long implementation cycles. Strategic partnerships among agile CX tech vendors that specialize in different solutions work out nicely for customer management departments needing renewed digital transformation, while concurrently driving new revenues for network member providers.
Then there is the opportunity for emerging CX tech vendors to use a partner network to strategically enter new markets. For emerging solutions providers, breaking into a new vertical or geography is both time-consuming and costly, especially given the extent to which market saturation is a reality for some solution sets. However, gaining access to new segments (and thereby experience and exposure) via a partnership network will help a growing CX tech player spread their wings accordingly. As Mark Hillary points out in his new book, The Social Sales Playbook, busy executives are much more likely to establish a business relationship on the back of a peer recommendation, as opposed to a cold email. Being part of a trusted CX tech network is an immediate advantage.
This also leads to referencability. For many innovative, upstart providers that may not be as well known in the marketplace, membership in a grouping of well-known (and respected) vendors that operate in the customer management technology domain will lead to credibility by association with the broader partner network.
A final point on the benefits of CX tech partner networks relates to inorganic growth opportunity. By working closely with multiple providers of customer management solutions, vendors that aim to expand their own capabilities and clients will have first-hand exposure to acquisition targets. The reality for any marketplace is that when there is saturation of players offering a particular solution, consolidation is inevitable. The only question is how long it takes for such a scenario to play out. As part of a strategic CX tech network, well-resourced firms with a desire to grow are uniquely positioned with firsthand knowledge of which complimentary vendors offer good value in an M&A scenario.
Moving into 2025, solutions vendors in the CX tech space that have already begun exploring strategic partnerships should accelerate such plans; those that have not considered such arrangements need to start. Clearly, the advantage will be to those operators that form part of a comprehensive industry grouping of complimentary technology offerings.
Image sourced from Focal Foto under Creative Commons license
Partnerships Crucial to CX Tech Vendor Success
By Ryan Strategic Advisory
With the focus around customer management being done better, faster and more efficiently via technology solutions, the pressure is on vendors of these CX tools to make the most of the current market opportunity. But, no matter the specific application, CX executives have ample choice in what is an excessively-crowded market for customer experience technology. Forward-looking, emerging CX solution players need not miss the chance to form strategic partnerships with contemporaries across the technology ecosystem as a means to better compete.
Partnerships are nothing new in the customer experience management space. But, moving into 2025 the idea of CX tech providers developing robust strategic networks of member-partners across the broader customer management technology ecosystem is one that is gaining traction, for a variety of reasons. One of the biggest is the push toward digital transformation across so many enterprise CX departments.
The reality is that many firms’ customer management capabilities have been among the first to face budgetary cuts over the past several years. However, consumer interactions are becoming much more of a strategic focus, and the need to invest in CX tech is leading many firms to push toward not just a tactical refresh of certain functions – rather, there is an understanding that a wholesale renewal across both baseline and cutting-edge customer management solutions is needed.
For many prospective clients the idea of going to larger consultancies or a systems integrator is intimidating. This is due to worries about high costs and long implementation cycles. Strategic partnerships among agile CX tech vendors that specialize in different solutions work out nicely for customer management departments needing renewed digital transformation, while concurrently driving new revenues for network member providers.
Then there is the opportunity for emerging CX tech vendors to use a partner network to strategically enter new markets. For emerging solutions providers, breaking into a new vertical or geography is both time-consuming and costly, especially given the extent to which market saturation is a reality for some solution sets. However, gaining access to new segments (and thereby experience and exposure) via a partnership network will help a growing CX tech player spread their wings accordingly. As Mark Hillary points out in his new book, The Social Sales Playbook, busy executives are much more likely to establish a business relationship on the back of a peer recommendation, as opposed to a cold email. Being part of a trusted CX tech network is an immediate advantage.
This also leads to referencability. For many innovative, upstart providers that may not be as well known in the marketplace, membership in a grouping of well-known (and respected) vendors that operate in the customer management technology domain will lead to credibility by association with the broader partner network.
A final point on the benefits of CX tech partner networks relates to inorganic growth opportunity. By working closely with multiple providers of customer management solutions, vendors that aim to expand their own capabilities and clients will have first-hand exposure to acquisition targets. The reality for any marketplace is that when there is saturation of players offering a particular solution, consolidation is inevitable. The only question is how long it takes for such a scenario to play out. As part of a strategic CX tech network, well-resourced firms with a desire to grow are uniquely positioned with firsthand knowledge of which complimentary vendors offer good value in an M&A scenario.
Moving into 2025, solutions vendors in the CX tech space that have already begun exploring strategic partnerships should accelerate such plans; those that have not considered such arrangements need to start. Clearly, the advantage will be to those operators that form part of a comprehensive industry grouping of complimentary technology offerings.
Image sourced from Focal Foto under Creative Commons license