Forrester's North America Predictions 2023: To Thrive, Organizations Will Make Consumer And Employee Trust Their Business Imperative

Rhea-AI Summary

Forrester's 2023 predictions emphasize the critical role of trust in business as economic instability and scandals erode consumer confidence. Key forecasts include a 15% decline in trust in consumer technology companies and at least 10 firms incurring $5 million or more in fines due to greenwashing. Increasing reliance on AI for monitoring employee productivity is expected to lead to higher employee turnover. Despite declining trust in banks, government trust is projected to increase. Emphasizing trust will be crucial for long-term growth and resilience.

Positive

• Focus on building trust among consumers and employees for long-term growth.
• Predictions emphasize the importance of consumer trust as a business imperative.

Negative

• Trust in consumer technology companies will decline by 15%.
• At least 10 companies expected to incur $5 million or more in greenwashing fines.
• AI monitoring of employee productivity could lead to increased turnover.

CAMBRIDGE, Mass., Oct. 25, 2022 /PRNewswire/ -- According to Forrester's (Nasdaq: FORR) 2023 predictions, released today, trust will be at the forefront of organizations' business operations in the year ahead as business and technology leaders focus on prioritizing long-term growth. Current factors, including economic and financial instability, geopolitical uncertainty, company scandals, and climate change, are undermining consumers' trust in organizations — nearly 40% of US consumers will stop doing business with a brand following a damaging headline.

Firms that earn greater trust with consumers and employees drive loyalty behaviors such as retention and advocacy, helping to ensure resiliency and long-term growth. As customer and employee distrust continues to rise, in 2023, regulators will step in and crack down on greenwashing, misinformation, and employee surveillance practices. Forrester predicts that multiple companies will incur millions in greenwashing fines, while a C-level executive will be fired for their firm's use of employee monitoring.

Forrester's predictions analyze the dynamics and trends in different topics and industries, including technology and innovation, customer experience (CX), the metaverse, artificial intelligence and automation, and the future of work. These insights help business and technology leaders see around the corner and gain a competitive edge to thrive in the year ahead.

Highlights from Forrester's 2023 predictions include:

• Trust in consumer technology companies will decline by 15%. Waning tech dependency, combined with tech company scandals, an inability to protect users from emerging risks, and lack of effective ethical measures in their digital environments, will progressively erode consumers' trust.
    
• At least 10 companies will incur $5 million or more in greenwashing fines. Greenwashing scrutiny from distrustful consumers and empowered watchdogs will significantly increase, pushing regulators to target companies that spend more time and money on marketing themselves as environmentally conscious than actually minimizing their environmental impact.
    
• AI usage to monitor work-from-home productivity will batter employer trust. Rising firm and business-leader usage of AI to track knowledge worker productivity will result in more than half of employees actively seeking new opportunities at new organizations in the next year, Forrester finds. Employee distrust will be further fueled by 40% of hybrid-working companies attempting — and failing — to undo their anywhere-work policies.
    
• Banks will lose consumer trust during economic turmoil. Consumer trust in banks is falling for the first time in several years, as many consumers believe that their bank lacks empathy and isn't following through on lessons learned from the pandemic, according to Forrester.
    
• People's trust in government will increase in the US. In 2023, the US will build on dependability — the ability of a government to keep people safe, foster economic growth, and ensure an effective recovery from crisis — as a core lever of trust while also investing heavily in trust levers such as accountability, competency, and transparency.

"In 2023, successful leaders will focus on eliminating wasteful efforts and prioritizing long-term growth," said Sharyn Leaver, chief research officer at Forrester. "Building trust among customers, employees, and partners is a critical component to that long-term growth. When individuals have greater trust in companies, they are more deeply engaged and more willing to forgive a company's mistakes. In making smart investments, focusing on their organization's mission and strengths, and establishing long-term trust with customers and employees, leaders will fuel their firms' resiliency for the future."

Resources:

• Download Forrester's 2023 Predictions complimentary guide, covering 12 big-impact predictions for the coming year.
• Visit Forrester's 2023 Predictions hub to explore additional resources.
• Register to attend Forrester's Security & Risk and Data Strategy & Insights Forums, where analysts will unpack these critical dynamics for the year ahead.

About Forrester

Forrester (Nasdaq: FORR) is one of the most influential research and advisory firms in the world. We help leaders across technology, customer experience, digital, marketing, sales, and product functions use customer obsession to accelerate growth. Through Forrester's proprietary research, consulting, and events, leaders from around the globe are empowered to be bold at work — to navigate change and put their customers at the center of their leadership, strategy, and operations. Our unique insights are grounded in annual surveys of more than 700,000 consumers, business leaders, and technology leaders worldwide; rigorous and objective research methodologies, including Forrester Wave™ evaluations; 70 million real-time feedback votes; and the shared wisdom of our clients.

Media Contact: 
Ira Kantor 
Public Relations 
Forrester Research, Inc. 
ikantor@forrester.com 

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SOURCE Forrester

FAQ

What are Forrester's predictions for 2023 regarding consumer trust?

Forrester predicts a 15% decline in consumer trust towards technology companies due to scandals and risks.

How many companies are expected to face greenwashing fines in 2023?

At least 10 companies are predicted to incur fines of $5 million or more related to greenwashing.

What impact does AI monitoring have on employee trust according to Forrester's predictions?

AI usage for monitoring work-from-home productivity is expected to increase employee turnover and distrust.

What does Forrester predict about trust in banks in 2023?

Forrester forecasts a decline in consumer trust in banks due to perceived lack of empathy and responsiveness.

How will government trust change in the US according to Forrester's predictions?

Trust in the US government is expected to increase, supported by efforts to ensure safety and accountability.