More than half of companies across Europe, the Middle East and Africa (EMEA) expect to return to pre-pandemic revenue and profit within the next 12 months, new Experian research reveals.
According to findings, more than 80% expect to recover their position within 18 months. But, despite the optimism and resilience, more than a third (34%) of decision-makers admit they’re also now struggling to get a complete picture of indebtedness or identify financially at-risk customers.
Analysts already warn of an after-shock with a significant spike in non-performing loans, financial over-commitment, exposure and default. As a result, nearly four out of five (77%) CEOs are now increasing or retaining their investment in improved customer insight.
It’s also clear there’s no going back to pre-pandemic business models, with lack of automation across all commercial functions now a critical challenge for more than one in four (26%) of businesses.
Mark Wells, chief customer officer at Experian Africa, says: “Despite the pandemic’s profound impact on the global economy, many decision-makers now recognise the need to take action to manage both their customers’ and their businesses’ futures.
“It’s also clear there’s now no going back to old operating models. From here on digital technology is the key enabler, with more than half now pro-actively planning to invest in artificial intelligence and machine learning to help drive their growth.
“There’s also clear recognition that making the customer relationship the top priority and consistently delivering better experiences, are the keys to locking in loyalty and favourable long-term sentiment.”
The research polled more than 1 000 senior decision-makers from across the region during June 2020.
Around two-thirds (60%) of firms across EMEA are now actively seeking growth initiatives including new digital strategies, while nearly half (48%) are increasing investment budgets in advanced analytics to enable them to better understand and respond to their customers’ needs.
Decision-makers also expect artificial intelligence and machine learning to drive their business from here on. Within the next three years, more than one in three (34%) plan to leverage these technologies to optimise customer services, improve fraud and risk management.
The new Experian-commissioned study, conducted by Forrester Consulting, is called Enterprise Agility and Smart Routes to Digital Transformation. It looks at businesses’ approach to resilience and takes a deep dive into the key drivers, pain points and innovations underway throughout the EMEA region.