WHAT DOES THE INCREASE IN “CUSTOMER EXPERIENCE” SPENDING MEAN FOR CONTRACTORS?

Customer Experience, or “CX” has exploded as a priority in government acquisition over the past 18 months.  DHS is setting up an agency-wide directorate just to handle CX implementation, while Technology Modernization Fund (TMF) money is being re-routed away from replacing legacy systems and into CX solutions.  The ascendency of CX spending poses opportunities and challenges for contractors.  First, the growth of CX projects means that companies have a new way in which they can cast their technology and service solutions.  Answering the question of how your solution helps improve services to veterans, Social Security recipients, or other key groups can be crucial even if your company never thought of its solutions in that manner.  Becoming fluent in “CX speak” will also be of help.  Conversely, it is very possible that the trend in CX spending is temporary.  The emphasis on CX solutions is being primarily driven by political appointees who may or may not be in place two years from now.  Any new administration will have its own priorities.  Becoming overly reliant on CX as a way to promote technology and services may end up being a stumbling block when political winds shift, or a new priority emerges among current leaders.  Contractors need to anticipate such a change and be able to promote solutions across an array of use cases.   There’s no harm in jumping on the CX bandwagon now and, as with category management, it’s possible that CX will transcend any shift in political control.  Just make sure your company remembers all of the ways its solutions can benefit federal customers and provide them with a great experience, regardless of who the “customer” ends up being.