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GoTo 2023 Predictions: Shrinking IT Budgets and Preserving Customer Loyalty - Preparing for The Year Ahead

vmblog-predictions-2023 

Industry executives and experts share their predictions for 2023.  Read them in this 15th annual VMblog.com series exclusive.

Shrinking IT Budgets and Preserving Customer Loyalty - Preparing for The Year Ahead

By Paddy Srinivasan, CEO of GoTo

As we head into a new year, businesses are preparing to face worsening economic conditions, meaning they must think fast to devise a well-thought-out plan and consider steps which will condense budgets while still preserving customer loyalty. While IT will remain an area of prioritized spend, it is critical that leaders identify the areas of their IT budget that are essential, and those that are not. This can certainly be challenging and tedious, but as we head into 2023, businesses should consider what they can do to encourage more effective utilization of their budget and resources.

Consolidation Will Be Key for IT Teams to Achieve More with Shrinking Budgets

Gartner projects that 2023 IT spending will only grow by 3%, down from a 10% growth rate the year before. With anxieties high over an anticipated economic recession, the name of the game for IT departments in 2023 will be consolidation. Solution providers are often the first place where businesses look to cut budgets, but by consolidating their vendors and tech solutions, IT teams can cut these costs and simplify billing while simultaneously streamlining workflows and interoperability between the tools they need. Fewer vendors mean fewer bills to pay, and a unified tech stack ensures that team members do not waste time and resources jumping between multiple applications for different tasks. In short, consolidation will allow IT teams to do more with less as budgets continue to tighten in the coming year.

Preserving Customer Loyalty Without Cutting Technology Corners

Companies are reevaluating their priorities for the year ahead, and cost savings will no longer be enough to keep their business. At a time of uncertainty, businesses need to provide extra reassurance and show they are willing to go the extra mile to connect with customers wherever they are - whether that's on the phone, web, or mobile experience. Customer service will be the make-or-break factor that preserves relationships and loyalty, and it needs to be simple, pleasant, and accessible from anywhere. This applies to both B2B customer relationships and B2C customer relationships. In fact, recent studies from Salesforce show that increasing your customer retention by just 2% is equal to cutting costs by 10%.

Customer service is not the place to make significant technology cutbacks because it can preserve customers relationships and strengthen loyalty. A unified and consolidated tech stack should still support foundational aspects of the business that can help it survive and grow during uncertain economic times. That means companies need to invest now in tools like unified contact center solutions to ensure they are ready to meet new customer engagement demands in 2023.

This coming year will certainly be different, but through these challenges and testing times opportunities will arise for businesses to refine and re-evaluate the ways in which they are investing their technology, resources, and interactions with customers. The businesses that rise to the challenge by prioritizing their IT needs and customer relationships will have the best chance at coming out on top in 2023 and beyond.

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ABOUT THE AUTHOR

Paddy-Srinivasan 

Paddy Srinivasan is GoTo's Chief Executive Officer. During his eight years at the company, he's also served as Chief Product & Technology Officer and Senior Vice President and General Manager for the company's Customer Engagement and Support Business and VP Products & Engineering for Xively (Acquired by Google). Outside of his time at GoTo, Paddy recently served as General Manager for Machine Learning Data Services for Alexa AI at Amazon. He also founded Opstera, a Cloud Monitoring & Management start-up that was acquired by a Microsoft subsidiary in 2012. Before that, Paddy held various product and engineering leadership positions at Oracle and Microsoft.

Published Friday, January 20, 2023 7:37 AM by David Marshall
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