Customer Experience Trends, Challenges & Innovations - MARKET STUDY - AUGUST 2021
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CUSTOMER CONTACT WEEK AUGUST 2021 DIGITAL CUSTOMER CONTACT WEEK DIGITAL CUSTOMER CONTACT WEEK DIGITAL M A R K E T S TU DY Customer Experience Trends, Challenges & Innovations SPONSORED BY:
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations TABLE OF CONTENTS 3 Customer Experience Trends, Challenges & Innovations Review 4 Methodology & Demographics 4 About the Author 5 Key Findings 6 Customer Experiences Should Have Been Better, But Were They? 8 What’s Going Wrong With The Customer Experience? 10 What Attracts Customers? 14 Why Do Customers Choose Certain Channels? 19 What Did COVID-19 Mean For Consumer Behavior? 24 12 Customer Emotions Organizations Must Understand: Why Emotion Analysis is Key for CX 27 Appendix 27 Meet the Team 28 2021 Editorial Calendar CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 2 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations CUSTOMER EXPERIENCE TRENDS, CHALLENGES & INNOVATIONS REVIEW By the summer of 2020, the customer contact community had wholly adapted to a world dictated by the COVID-19 pandemic and social distancing. Most employees were working remotely. Many customer interactions were taking place in digital media. Concepts like “business continuity” and “operational agility” were transforming from hollow buzzwords into corporate imperatives. As the summer of 2021 commences, pandemic-fueled concerns and restrictions are significantly easing. Business leaders are subsequently facing two key questions: 1 How did the past year permanently change the way contact centers function? 2 How will the goals of the contact center evolve moving forward? As they navigate these questions, customer contact leaders will debate numerous topics. They will redefine standards for effective customer and employee experiences. They will reconsider how they define—and cultivate—essential agent skills in the era of automation and digital engagement. They will assess the long-term viability of at-home and hybrid work models. They will analyze and adapt to permanent changes in customer behavior. They will reorchestrate their journeys to better capitalize on digital platforms. CCW Digital’s Customer Contact Industry Review offers a research-driven look at these deliberations. By exploring topics related to operational strategy, employee empowerment, digital transformation, and customer experience design, it simultaneously offers a window into the current state of the customer contact function and a preview of future transformation. Discussing the extent to which the customer experience landscape changed in the wake of COVID-19 has moved distantly past the point of cliche. Evaluating how customers are responding to such transformation, on the other hand, represents a pivotal step for all businesses. It is not enough to simply observe that customers are more frequently using digital channels; it is essential to understand what kind of experiences they expect at each potential touch point. It is not enough to simply recognize that customers care more about their experiences with brands; it is essential to understand which aspects of the journey they most value, and how companies can adapt accordingly. Fueled by an extensive Consumer Preferences Survey, this market study is your window into the hows and whys of evolving customer behavior. It is your guide to what customers want when they interact with your agents and self-service tools. It is your briefing on how consumers are transforming their shopping habits in a post-COVID world. It is your chance to ensure your efforts to build a better customer experience are rooted in the actual voice of the customer. CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 3 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations METHODOLOGY & DEMOGRAPHICS Whereas many CCW Digital Market Studies draw from executive survey research, the CX Trends, Challenges, and Innovations report relies on a different source: the voice of the actual customer. In July 2021, CCW Digital conducted an extensive survey of actual consumers. This Consumer Preferences Survey inquired about the interactions consumers are having with brands, their preferences for interactions in different channels, their biggest pain points and satisfaction drivers, and their reaction to the new customer experience landscape. The respondent pool encompassed all age ranges and income levels to provide a true snapshot of what the overall market wants from brand experiences. ABOUT THE AUTHOR Brian Cantor Principal Analyst, CCW Digital Customer Management Practice CUSTOMER MANAGEMENT PRACTICE Brian Cantor is the principal analyst and director for CCW Digital, the global online community and research hub for customer contact professionals. In his role, Brian leads all customer experience, contact center, technology, and employee engagement research initiatives for CCW. CCW Digital’s articles, special reports, commentaries, infographics, executive interviews, webinars, and online events reach a community of over 150,000. A passionate advocate for customer centricity, Brian regularly speaks on major CX conference agendas. He also advises organizations on customer experience and business development strategies. CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 4 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations KEY FINDINGS Customers and brands say they care more about the experience than ever, but 1 interactions are not universally getting better. Only 43% of consumers say digital engagement experiences have improved, and just 41% have encountered better phone interactions. A mere 34% report stronger social media interactions. Excessive hold times remain the most common CX pain point, with 68% of consumers 2 saying they often wait on hold. Other leading pain points include difficulty finding the right agent or system for an 3 issue, needing to repeat information, and the requirement to use self-service before reaching a live agent.ght.” Customers value ease and warmth. Convenient experiences are the #1 way to attract 4 customers, but friendly interactions rank as a close #2. A whopping 95% of consumers, meanwhile, say that they are more likely to support 5 brands (in at least some cases) after dealing with friendly employees. Other powerful CX drivers include success in rectifying mistakes and loyalty discounts. 6 Quick remedies, make goods, legitimate sympathy and empathy, and customer- requested resolutions are the best ways to rebound from a CX mistake. Of the potential reasons to call for support in 2021, none is more significant than 7 complexity. Customers still believe voice interactions are their best option for handling complicated matters. 8 Many customers choose to message or chat to avoid long wait times, because they cannot find the appropriate phone number, to take advantage of the added flexibility, or to avoid dealing with an IVR . Top self-service use cases include informational inquiries, transactions, and situations 9 in which fast resolutions are the priority. The majority of consumers do not engage in meaningful customer service interactions 10 on social networks, but many do follow brands – and review the issues others are facing. COVID-19 restrictions have loosened, but many customers are still forgiving of the 11 “COVID explanation” for longer wait times or other service limitations. Following their experience in COVID-19 lockdown, many customers are eager to 12 continue using online finance, mobile payments, curbside pickup, and online shopping for tangible items like beauty and clothing products. 13 Moving forward, nearly 50% of consumers will prefer to shop in retail establishments with clear safety protocol. CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 5 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations CUSTOMER EXPERIENCES SHOULD HAVE BEEN BETTER, BUT WERE THEY? Over the past year, CCW Digital research has revealed A non-trivial 32% of consumers, meanwhile, feel phone that consumers and companies care more about the experiences have gotten worse. customer experience than they ever have. Granted, meaningfully elevating phone experiences was Over the past year, companies have had ample obviously going to be challenging for many companies. opportunity to adapt to changing consumer expectations, Phone volume surged at the same time employees began as well as significant increases in digital engagement and working in remote environments far less conducive to remote work. high-quality voice interactions. These two realities, in fact, explain why digital engagement rose to prominence over Collectively, these realities confirm that companies should the past year. have markedly improved their customer experiences over the past year. Aware of the greater stakes and how to Unfortunately for customer contact optimists, the handle the new normal, they simply had no justification for statistics for digital channel improvements are far from complacency. They had every incentive - and opportunity impressive. Many consumers experienced little-to-no - to make customer centricity a reality. improvements when interacting via digital means; some even encountered reductions in quality. Based on what consumers are actually experiencing, however, many brands did not seize this opportunity. Forty-three percent (43%) of consumers experienced better chat and messaging interactions over the past Only 41% of consumers, for instance, feel that companies year, but 34% saw no change and 23% encountered have improved their phone/voice experiences over the degradations in quality. past year. A mere 14% believe they have made significant improvements CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 6 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations A mere 34%, meanwhile, report improvements in social improvements they did make. One should not, therefore, engagement quality. Forty-five percent (45%) witnessed treat the aforementioned statistics as proof that the no change, and 21% faced a decline in social service majority of businesses made little-to-no attempts to experiences. elevate their digital experiences in 2020 and 2021. Companies may have been able to ignore the digital hype Companies do not, however, receive participation prior to 2020, but there was no denying their importance trophies. Their success hinges on outpacing consumer during the COVID-19 pandemic. Digital became the expectations. Given that CSAT scores for digital channels heart of the customer experience for many brands and trail those for the traditional voice environment, and that consumers, meaning improvement should have been a consumers sense a lack of meaningful improvement paramount priority. in chat, messaging, and social interactions, it is simply impossible to say the typical company met this standard. It To companies’ credit, it is possible that rising customer is simply impossible to say that heightened passion for the expectations for digital channels negated some of the customer experience translated into meaningful action. Over the past year, do Over the past year, do Over the past year, do you feel companies have you feel companies have you feel companies have gotten better or worse at gotten better or worse at gotten better or worse at delivering great customer delivering great customer delivering great customer support/service over the support/service via live web support/service via phone? chat or messaging? social networks (Twitter, Facebook, etc)? 14.35% Much better 15.80% Much better 9.98% Much better 26.40% Slightly better 27.65% Slightly better 24.12% Slightly better 27.23% No change 33.68% No change 45.32% No change 21.00% Slightly worse 16.42% Slightly worse 13.31% Slightly worse 11.02% Much worse 6.44% Much worse 7.28% Much worse CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 7 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations WHAT’S GOING WRONG WITH THE CUSTOMER EXPERIENCE? Clearly, consumers do not yet feel they are in the “era of Other common pain points — all similar to those customer centricity.” They are not blown away by their reported in 2020 — include difficulty finding the right experiences within the omnichannel journey. agent or system for their issue (53%), the need to repeat information (43%), and a requirement to use self-service What is going wrong? What “pain points” are inhibiting prior to reaching a live agent (43%). their satisfaction? Growing comfort with digital channels is obviously a positive The answers are similar to what CCW Digital uncovered sign, but it does come with a potential cost: more complex in 2020. journeys. As the majority of customers have found, it can become harder to identify the right touch point at which Excessive waiting again ranks as the most common pain to begin the process. Inconsistent channel experiences point, with a whopping 68% of consumers saying they further exacerbate the issue, as there often will be a right often wait on hold. Alarmingly, this percentage actually and wrong place to begin an inquiry. If this information is not exceeds the 2020 figure of 56%, which was gathered apparent, let alone intuitive, to the customer, a frustrating, at a time when pandemic resourcing issues and digital effort-intensive journey will likely result. inexperience should have been far bigger factors. The fact that contact center data remains tribal – agents One can counter that business (and thus contact volume) do not all have access to the same product and process has grown amid 2021’s lighter lockdown restrictions, but knowledge, let alone customer insights – increases the risk is that really an admirable justification for longer wait that customers will end up on ineffective, inefficient journeys. times? More importantly, is it a wise one? If companies are subjecting all these new, enthusiastic customers to A notorious contact center issue, the challenge of poor service experiences, they are making a bad first repetitive questioning is only intensifying in today’s impression and thus squandering their opportunities for landscape. For starters, the addition of new channels long-term loyalty and revenue growth. automatically heightens the risk of data fragmentation. CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 8 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations The growing emphasis on complex, personalized service Although customers are demonstrating an unprecedented also increases the likelihood that agents will need specific comfort with self-service, they still seek agent assistance customer data to proceed, therefore increasing the in certain situations. Forcing them to engage with a bot likelihood that they will need to clarify information that or IVR in these situations – especially if the self-service customers feel they have already provided elsewhere. portion does not demonstrably improve the agent’s ability to provide fast, personalized service – will register as a point of frustration. Which of the following issues do you often experience when communicating with companies? Hard to find the right person or system to contact 53.18% Long wait time before getting help 68.01% Representative is slow, frequently goes silent, and/or puts you on hold 36.86% Have to repeat account/issue information or re-ask questions 43.43% Can’t use the channel I want (I want to call, they only offer email, etc) 27.54% Transfers to other representatives or supervisors 28.60% Told they can’t help you due to policy 16.31% Support is too generic - can’t get specific help for my issue 27.33% Can’t contact them when I want (support not available at night or weekends, etc) 26.27% Different employees tell me different things or promise different resolutions 29.66% Difficult to switch between channels (move from chat to phone, etc) 9.75% No option to request a call back at a more convenient time 15.89% Forced to use self-service - chatbot, automated voice response - before reaching a live representative 43.01% Forced to talk to a live representative; no way to solve problem on your own 11.23% Representative doesn’t seem to know much about you or why you’re contacting 17.16% Representative doesn’t seem like an expert in their brand or products 22.67% No issues - most of my customer service interactions are perfect 4.66% CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 9 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations WHAT ATTRACTS CUSTOMERS? If companies indeed want to make customer centricity a ATTRACTING CONSUMER SPENDING reality, they cannot allow the common pain points to stand. They cannot continue subjecting customers to challenges For many consumers, those experiences will be like long wait times, complicated journeys, and repetitive convenient. A substantial 62% say that they are more likely questions. Disappointing in the “call center” of old, these to spend with brands that deliver easy experiences. issues are downright inexcusable now that customer contact teams have better technology, more data, Consumers have long demonstrated a preference convenient channel options, and stronger corporate buy-in for frictionless experiences, and recent marketplace at their disposal. developments have only strengthened that demand. Having spent eighteen months interacting with new brands, often But while eliminating pain points will minimize customer via convenient online and mobile platforms, consumers frustration and churn, it does not necessarily elevate customer know that they do not have to take inefficient, unintuitive satisfaction. It does not guarantee marked increases in journeys for granted. They can find companies that leverage customer delight, let alone acquisition and retention. personal data and astute experience design to deliver quick, simple interactions on the customer’s terms. Indeed, true customer centricity also hinges on delivering positive sources of value for customers. It involves Other key drivers include offering warm and friendly delivering the kinds of experiences they actually want. experiences (59%), handling mistakes well (51%), and offering discounts for loyalty (39%). All three drivers make sense in the contemporary customer experience landscape. CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 10 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations Today’s customers may oppose long conversations, but they Granted, it takes more than a favorable impression to still want them to be warm. They still prefer to interact with win business. Consumers also appreciate direct financial agents who demonstrate a legitimate interest in their needs incentives; loyalty discounts meet this need by providing and an undeniable passion for providing great assistance. a tangible reason to spend more money. Admittedly, they also provide a hedge in the face of experiential Not simply useful during the sales and relationship-building imperfection — leaving for a competitor becomes more processes, those elements of empathy and urgency are difficult when staying comes with a financial reward. also important when things go wrong. Consumers have no illusion that all experiences will be perfect, but they do prefer brands that make an honest effort to identify — and correct — the imperfections that emerge. Which of the following will make you more willing to shop at or otherwise support a business? Customer experiences that are consistently easy and convenient 62.00% Customer experiences that are consistently warm and friendly 59.24% Customer experiences that are consistently “magical” and above and beyond 23.35% When an experience does go wrong, the company handles it really well 51.38% Discounts for loyal/repeat customers (gold customers save 10%, etc) 39.49% Rewards programs (buy 5 cups of coffee, get the 6th free, etc) 32.70% Targeted discounts and offers based on your personal profile, past purchases, etc 26.33% Company reaches out to you proactively to check-in, provide help, recommend new products 10.19% Business has a favorable brand reputation; social media channels are cool, etc 16.14% Company makes it easy to renew (auto refills, subscriptions, etc) 22.93% Company continuously upgrades its products, inventory, features, etc 17.83% Company proves it listens to customer feedback 32.27% Company demonstrates social responsibility and/or supports the same causes as you 19.75% Company never talks about social or political issues 16.14% Company partners with some of your other favorite brands, making it easier to buy and use their products 15.50% Company gives you an incentive for reviewing or promoting the brand online 14.65% Your friends/social media contacts love the brand 7.43% CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 11 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations WINNING BACK CUSTOMER TRUST Money talks, and companies that are willing to pay in the form of discounts, replacement products, or freebies Consumers are less willing than ever to endure bad are demonstrating a clear desire to keep the customer’s experiences. Previous CCW Digital research confirmed that business. Whether because the compensation makes it roughly two-thirds will look to competitors after just one or easier to forget their anger or because they assume the two bad experiences. brand will clean up its act to avoid continually paying out make-goods, consumers tend to appreciate this gesture. All hope is not, however, lost in the face of mistakes. As evidenced by the premium they place on brands that The fact that it costs money, of course, means a make-good rebound from challenges, consumers are willing to give policy is not a sustainable strategy. It works in cases where brands new opportunities to regain their support. the business made an unavoidable or at least unexpected mistake, but no company can afford to keep offering make- The most effective way to seize such an opportunity is goods instead of addressing root causes. also the most straightforward: providing a quick, and easy, solution to the problem. A whopping 69% of consumers In an era of blame-passing, brands that not only accept appreciate this gesture, making it the most popular method ownership for the situation but demonstrate clear sympathy of rebounding. for the impact on customers stand out from the crowd. If customers feel the brand understands why the mistake Other noteworthy ways to regain customer trust include was so important, they are more likely to trust the brand to offering a make good (48%), demonstrating legitimate eliminate such mistakes moving forward. sympathy or empathy for the situation (46%), and providing the specific resolution the customer requests (42%). The Although they want companies to address mistakes quickly, resonance of each strategy is decidedly intuitive. consumers still care about the content of the resolution. Naturally, many believe the right resolution is the one they are specifically requesting. Suppose you had an issue with an order or service experience. Which of the following would help win back your trust and support? Sincere apology 38.64% They seem legitimately empathetic about your situation and/or interested in your feedback 45.65% They provide a resolution quickly and easily 68.79% They provide the specific resolution you ask for 42.46% They offer a “make good” coupon, discount, gift, etc 48.20% They provide instructions/assurance on avoiding the issue in the future 26.11% They assign you a personal support agent to avoid future problems 18.90% They proactively reach out to you with help (before you complain) 27.60% They promise to do better in the future 15.29% CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 12 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations USER EXPERIENCE DESIGN A non-trivial 32%, in fact, say that the online and mobile user experiences almost always impact their appreciation Although they care deeply about the interactions they for a brand. Another 58% say that the user experience have with bots and live agents, consumers do not matters in at least some cases, with only 10% ruling out its exclusively judge brands based on conversations. Many impact altogether. make judgements based on the initial user experience, including the appeal and intuitiveness of their online and The most customer-centric companies, therefore, are focusing mobile channels. intently on first impressions. They are ensuring that even those customers who never need to call customer service know how much the brand values great experiences. Does the quality of a company’s website or mobile app (ease of use, value of information, types of features, appeal of design, etc) impact your willingness to buy from or otherwise support them? 32.02% Almost always 58.42% Sometimes, depending on the type of company/product/industry 9.56% Almost never FRIENDLY INTERACTIONS A significant 52% of consumers note that they are almost always more willing to support brands after encountering Friendliness, whether in the form of an enthusiastic friendly employees. Forty-three percent (43%) say “hello” to new shoppers or a pro-customer attitude during friendliness matters in at least some cases. complex service interactions, also plays a pivotal role in shaping consumer perception. Only about 5%, therefore, downplay the importance of friendliness in today’s environment. Indeed, the rise of technology-driven experiences has not negated the importance of human connections. Does the friendless of a company’s employees impact your willingness to buy from or otherwise support them? 51.77% Almost always 43.24% Sometimes, depending on the type of company/product/industry 4.99% Almost never CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 13 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations WHY DO CUSTOMERS CHOOSE CERTAIN CHANNELS? Sports programs have varsity and junior varsity teams, Indeed, the only way to truly master the omnichannel each with their own sets of starters and backups. experience is to understand why customers pursue interactions in different channels. From there, companies can This hierarchical concept does not apply to the simultaneously tailor their channel experiences accordingly omnichannel experience. Thought leaders have long while also uncovering any operational issues that may be cautioned businesses not to think of their channels causing customers to abandon their true preferences. as “A team” and “B team.” Instead, they have advised companies to ensure they are delivering consistently great experiences at all touch points. WHY CUSTOMERS CALL This is not a call to treat all channels as identical. Just as When discussing the ideal customer contact hierarchy, different players are best-suited for different positions on thought leaders often note that “digital is best for simple the field, different channels do have different communication issues, whereas the phone is ideal for complex ones.” limitations. Different channels do attract different customers. Consumers are at least somewhat on board with Ignoring these differences, and trying to make every that sentiment. channel “just like the phone,” can prove as unproductive and Complexity is the #1 motivation for voice interactions, with anti-customer as simply ignoring certain channels. 50% of consumers noting that they call when the issue seems too challenging for digital. CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 14 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations On the one hand, the statistic does confirm the inherent questions, and IVR inefficiencies — was the fastest option, validity of the voice-digital hierarchy. Some consumers the statistic offered a damning commentary on the state simply feel more comfortable talking through complex of digital engagement. Channels that were literally built for service issues. convenient were not even as fast as the dinosaur channel they were replacing! On the other hand, it is worth considering whether the 50% statistic is rooted in organic preference or past experience. In 2021, however, only 23% of consumers call because It stands to reason that if digital interactions were markedly they believe it will be their fastest option. Indeed, digital better, some customers would feel less pressure to take channels are catching up. Some of their potential is starting their complex matters to the phone. to come to fruition. Thirty-six percent (36%) of consumers, in fact, say that Granted, the growing viability of digital channels will not they have chosen to call after enduring an unhelpful prompt all customers to put down their phones. Thirty-nine digital experience. percent (39%) of consumers say they prefer voice for most or all issues. Digital channels definitely are becoming more viable, however. Three years ago, consumers identified speed as A preferred option for complex issues, the phone channel their #1 motivation for calling. In proving that consumers also represents a popular choice for personal matters. felt that voice — with its notorious hold times, repetitive About 33% of consumers prefer to call when dealing with these high-stakes situations. What would make you choose to call customer service (via the phone number), as opposed to using online or mobile options like chat, messaging, email, social media, etc? I prefer to call for most or all issues 38.56% Issue was personal or otherwise very important (related to something like family, legal, healthcare, finance, etc) 33.05% Issue felt too complicated, unusual or difficult to explain in a digital interaction 49.79% Wanted to share feedback or complaints, not just ask a question 14.62% Wanted to talk to someone to get a refund, coupon, apology, etc 25.64% Wanted to get specific/personal advice, such as whether to upgrade a plan, change services, etc 16.10% Needed to reach support as fast as possible 23.31% Already tried the company’s online or mobile option(s), and the support wasn’t helpful 35.59% Already tried the company’s online or mobile option(s), and they were too slow or otherwise inconvenient 20.34% Couldn’t find the right online or mobile option 25.85% I would never call for support at this point - I only use online or mobile options 5.51% CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 15 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations WHY CUSTOMERS CHOOSE landscape. Messaging, therefore, represents a consumer- backed solution to a longstanding contact center challenge. MESSAGING OR CHAT About 36% of consumers appreciate the flexibility of Whether in the form of SMS texting or app-based messaging and chat, which more commonly allow for communication, today’s consumers routinely use live chat interactions outside traditional business hours. Thought and messaging in their everyday lives. As CCW Digital’s leaders often talk of an empowered customer that gets 2020 Consumer Preferences survey revealed, they are also to set the terms and conditions for brand interactions. increasingly choosing to message and chat with brands. Chat and messaging are one avenue for recognizing Admittedly, their choice is not always of the emphatic variety. such empowerment. Forty percent of consumers (40%) choose to message or chat Whereas some consumers message because they cannot not because they necessarily love those options but because find the brand’s phone number, others do so because they cannot easily find the customer service phone number. they do not like what happens when they call. A whopping Many customers do, however, derive positive value from chat 36% of consumers say they chat or message specifically and messaging experiences. Forty percent (40%) see it as an to avoid interacting with an IVR. The statistic really speaks option for avoiding long waiting, which incidentally happens to how the IVR of old — conceived as a customer-centric to be the most common pain point in today’s experience enhancement to the experience — ended up becoming a source of frustration. What would make you choose to contact customer service representatives using online/ mobile interaction channels, like chat or messaging? Don’t like talking on phone - will always prefer text or video option if available 28.18% Can’t find customer service phone number 40.47% I require flexibility (I can message with an issue at 10PM but can only call during business hours) 36.23% Don’t want to deal with automated voice menu before reaching a phone agent 36.23% Don’t want to deal with a long wait time before speaking to a representative 39.83% When I am in a rush or just don’t want to spend too much time on this issue (online channels seem faster) 22.67% Issue seems easier to handle via online channel (related to a mobile app or website issue, it’s easier if I login to my account, etc) 18.22% Issue just doesn’t seem like it needs a phone call 23.73% I want to converse at my own convenience (can start a text conversation, go do something, and then come back to it) 15.04% Want to use multimedia (share pictures of problem, screenshot of billing issue, etc) 11.02% In a situation where talking isn’t an option (crowded room, private issue, etc) 15.25% It’s payment or bill related (since I can easily go from chat to payment screen, don’t have to give my credit card out over phone, etc) 11.23% Seems easier to explain my issue/need in writing than verbally 11.23% Worried that I will get too emotional if I call 4.87% Will never prefer these options; will only use if phone isn’t an option 9.96% CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 16 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations WHY CUSTOMERS CHOOSE As consumers not only become comfortable with digital payments but arguably more confident sharing payment SELF-SERVICE information with an encrypted automated platform than with Although historical iterations of the IVR gave self-service a a human agent, self-service’s viability as a transaction tool bad rap, consumers are not at all averse to handling their will only grow. The added convenience is icing on the cake; own issues. The overwhelming majority, in fact, say they are paying via a technology platform is far easier in 2021 than comfortable solving problems without agent assistance. reading a credit card to a live phone agent. They are particularly willing to self-serve for informational As it eliminates the need to wait for a live agent, speed is an issues. Just under 49% of consumers prefer to use self- inherent benefit of self-service. Consumers are starting to service for inquiries like account balance checks and delivery appreciate this reality, but many still require more convincing. date confirmations. Companies have to provide first-hand proof that interacting with a chatbot or IVR will actually save time. Other popular self-service drivers include transactions (38%), desire for a fast resolution (30%), and situations in which Similar to the motivation for chatting or messaging, time connecting with an agent would be inconvenient (26%). flexibility is also a noteworthy driver. Since no agent is required whatsoever, self-service literally takes place at the customer’s own leisure. It thus has appeal for those who want to resolve issues late at night or while in a crowded place. In what situations would you prefer to use self-service (chatbot, instructional video, automated phone voice menu, etc) instead of working with a human employee/representative? Informational issues - what’s my account balance, when will order be delivered, etc 48.73% Transactional issues - paying a bill, requesting a return/refund, etc 37.92% Private issues - medical or financial issues that you don’t want to discuss with a person 18.86% Complicated/legal issues - don’t trust human employee to give me 100% accurate information 13.56% When you’re looking for a solution as quickly as possible 29.87% When it doesn’t seem like a good time to communicate with an agent (it’s 4AM, you’re on a crowded bus, etc) 26.06% When situation seems like a bad fit for a live agent (calling someone at a noisy restaurant when you can change an order or reservation on an app?) 16.53% It seems easier to self-serve (example - chatbot already has access to your account info, so why spend time restating for an agent?) 22.46% Haven’t had good experiences with company’s representatives in the past 13.56% You’re upset and don’t want to get into an argument with a real person 10.81% None - I require assistance from an agent every time 14.19% CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 17 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations HOW CUSTOMERS ENGAGE IN people are reacting to a brand. These people recognize social media’s power to not only amplify word-of-mouth SOCIAL MEDIA (instead of hearing from two or three friends, they can gain Much like phone and chat, social media represents a viable insights from thousands of other customers) but provide customer service environment. It allows consumers to an honest counter to marketing copy, commission-minded easily communicate with the brands for the sake of asking salespeople, and potentially biased critics. questions, sharing feedback, and making purchases. About 30% of consumers take a what’s-in-it-for-me approach; Where social media differs is in the breadth of its offerings. they follow brands to gain updates and access to discounts. Whereas phone and chat platforms are largely geared to They have come to recognize brand social media accounts as direct communication between the customer and brand, news sources and coupon books, and they are happy to trade the public nature of social media introduces a host of other their follows and likes for such incentives. applications. Consumers can interact with brands merely to Just shy of 30% of consumers do approach social media signal their preferences and interest. Companies, moreover, with customer service eyes, but not necessarily in an can use their social networks to establish a corporate identity, active context. They scan social media accounts to see informally interact with consumers, and share broad-reaching if other consumers are having the same issue, but they information and offers. do not necessarily ask their own support questions in the Today’s consumer is certainly aware of social media and its same environment. role in helping them connect to the brands from whom they Just over 29% of consumers take a completely passive buy. Because of the breadth of use cases, however, there approach to brand social accounts, doing nothing more than is no guarantee all consumers interact with brands in the following or liking brands they support. For them, corporate same way. social media is simply a way to show support and signal one’s Thirty-one percent (31%) of consumers, for instance, say that interest — it is not an engagement mechanism. a priority social use case is to review comments to see how How do you personally engage with companies on social media networks (Facebook, Twitter, LinkedIn, etc)? I like/follow/retweet companies, but I don’t actively converse with them 29.45% I follow to get updates on new product announcements, discounts, contests, etc 30.08% I comment on their posts (funny memes, product offers, etc) 16.74% I review comments to see who else likes the brand, if there are any positive/negative reviews, etc 31.14% I check to see if anyone is having the same customer service or product issues that I am 29.66% I ask general customer service or tech support questions with the expectation of a broad answer (yes, our service is out in the New York area) 14.19% I ask specific support questions with the expectation of a personalized answer (yes, your product was lost in shipping - we’ll send you a new one) 16.74% I answer questions that other fans/users may have about the company 8.69% I share positive and/or negative feedback about the company 18.01% CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 18 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations WHAT DID COVID-19 MEAN FOR CONSUMER BEHAVIOR? Amid lockdown restrictions and global health and economic Companies did not automatically win points for this strategy; concerns, consumers spent the past eighteen months a bad experience does not automatically become stellar engaging with new brands, adopting new shopping habits, because the company was transparent about it. Plus, some and communicating in new contact channels. They gained companies powered through the challenges and thus a new respect for the customer service experience, while proved themselves as truly customer-centric — they are the developing a new appreciation for what really matters during ones who won the most points. the engagement journey. On the other hand, these companies did not necessarily The question, of course, concerns the long-term impact receive the fallout they would have received in a typical of these changes. Which short-term reactions will turn into climate. Consumers are ultimately rational, and they long-term consumer habits? Which crisis response measures expressed tolerance toward some COVID-driven will turn into mission-critical strategies? service issues. Moving forward, the COVID justification will become THE COVID JUSTIFICATION objectively less valid. Even if lockdown restrictions return (a legitimate concern at the time of this report’s publication), The COVID-19 pandemic complicated the service companies have had eighteen months to learn how to excel experience, and many brands openly acknowledged that in a remote, digitally driven service environment. They have reality. They warned customers of long wait times due to had ample time to build scalable contact centers with robust high call volume. They eliminated certain channels and continuity plans. support options to consolidate customer inquiries. They pushed customers to self-service for a growing array of Many consumers are nonetheless still willing to give them issues. They even delayed addressing certain service a pass. Thirty-five percent (35%) of consumers say they are requests and changes with a promise to provide a resolution now more tolerant of these COVID-driven explanations; only when things calmed down. 31% say they are less tolerant. CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 19 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations Why are consumers — the same ones who say the unwilling to question the potential impact on service. Their experience matters more than ever and criticize brands appreciation for transparency further softens the blow. for not meaningfully improving their offerings — willing to tolerate suboptimal performance? There are key factors Consumers’ increasing comfort with low-touch and self- at play. service options, moreover, gives them less reason to stress over potential wait times. Whereas they might have once felt First, for as much as the COVID-19 vaccine and declining like they had to choose between an hour on hold or awful hospitality rates have helped restore some normalcy, some service, they now trust alternative channels for at least some consumers may scoff at the notion that society is “out of the of their issues. In turn, they need not sweat the inability to woods.” They still see this as the COVID era and are thus reach an agent. During COVID-19 lockdown, some companies began to give explanations for lesser service experiences — unusually high call volume, not enough employees, noisy work-from-home environments, etc. Now that companies and experiences are recovering, how would you feel if you encountered these kinds of “COVID” service issues moving forward? 31.21% I am now less willing to tolerate these service issues/explanations 34.82% I am now more willing to tolerate these service issues/explanations 33.97% I am indifferent to these service issues/explanations SHOPPING IN THE DIGITAL WORLD Forty-five percent also cite mobile payments – whether to pay a friend or business - as a behavioral focus moving eCommerce was hardly a new concept prior to the forward. Platforms like Venmo were already gaining COVID-19 pandemic; Amazon was already a trillion- societal traction prior to the pandemic, and the rise of dollar business in early 2020. Mandatory lockdown digital interaction only accelerated their adoption. The restrictions and societal health concerns did, however, increasing robustness of digital payment platforms — introduce a wider array of customers to a wider array of including the addition of banking and cryptocurrency digital shopping and consumption options. Many of these capabilities — is further solidifying their traction. experiences turned into preferences, and consumers have no intention of looking back. Curbside and in-store pickup options always presented some value, but such advantages were not always clear Mobile and/or online finance, for example, will be a to consumers. After all, they still required the buyer to popular option for 59% of consumers. Whether because spend time shopping online and spend time walking they could not go to physical banks or because they got or driving to the store. When they became mandatory, caught up in the “meme stock” hype, consumers spent however, consumers began to better appreciate the the past year becoming more acquainted with the world concept. They essentially represent a best-of-both worlds of financial technology. They learned that digital banking offering, allowing customers to gain the convenience of is not about sacrificing security for convenience; it, in fact, shopping online (as opposed to walking through crowded could offer an added degree of protection (and control) aisles and potentially dealing with pushy salespeople) over one’s assets. and the instant gratification of brick-and-mortar checkout. CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 20 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations Thirty-six percent (36%) of consumers, consequently, will eCommerce — can you buy pants without trying them on, adopt these pickup options as a behavioral fixture even perfume without sampling the smell, or makeup without as in-person shopping restrictions ease. seeing the color — but consumers are increasingly willing to buy without direct physical exposure. Convenience In a true testament to the rise of eCommerce, thirty-four is surely a factor, although augmented reality and “try percent (34%) of consumers express confidence buying on before you buy” options are also helping to instill beauty and fashion products online. The physical nature confidence in digital buyers. of these products long seemed to clash with the idea of Which of the following shopping options will you start, continue and/or increasingly use moving forward? Online or mobile financial services (such as banking, stocks, insurance, mortgage, etc) 58.60% Paying friends/service providers via mobile platforms (Venmo, Zelle, etc) 44.80% Online/mobile purchasing for luxury items (cars, jewelry, etc) 18.05% Online/mobile purchasing for beauty or fashion items (clothes, makeup, fragrance, etc) 34.18% Curbside/in-store pickup orders 36.31% Getting delivery from local department stores, grocery stores, etc 27.60% Reading feedback on review sites (Yelp, etc) or social networks (Facebook, Twitter, etc) before buying a product 28.87% Sharing your own feedback about brands and products on review sites or social networks 19.53% Using contactless to pay for items in-store (Apple Pay, Samsung Pay, etc) 23.78% Investing in cryptocurrency (Bitcoin, Ethereum, Dogecoin, etc) 9.77% Buying goods and services with cryptocurrency 4.88% Using new brands/products you discovered during COVID lockdown 18.47% Online wellness and lifestyle services (food box deliveries, Peloton, etc) 10.83% Online health and medical services (virtual doctor visits, prescription refills, etc) 21.44% CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 21 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations SHOPPING IN THE PHYSICAL Forty-eight percent (48%), in fact, say they would prefer to shop in an environment with enhanced safety restrictions, WORLD such as vaccine requirements or recommendations, mask recommendations, or social distancing markers. eCommerce continues to grow, but it is not replacing in-person experiences. Consumers continue to shop in Thirty-seven percent (37%) do not care either way, physical stores, and many have eagerly been going to and 16% are less willing to shop in establishments with brick-and-mortar retailers, restaurants, and restaurants to additional restrictions. Whether due to an objection over make up for the time they lost during the pandemic. what restrictions represent or a mere frustration with COVID’s enduring impact on their lives, these consumers That they are growing more comfortable with in-person seek the in-person experience of 2019 and earlier. experiences does not, however, mean all consumers are abandoning their safety concerns. Moving forward, will an establishment’s safety policy (masks required/recommended, vaccine checks, sanitizer available, mandatory social distancing, etc) make you more or less willing to shop/eat/do business there? 47.56% More willing - I will prefer businesses with stricter rules/policies 36.52% No impact - doesn’t really matter to me either way at this point 15.92% Less willing - I will prefer businesses that have fewer rules/policies CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 22 CUSTOMER
CUSTOMER CONTACT WEEK DIGITAL CUSTOMER CONTACT WEEK DIGITAL CUSTOMER CONTACT WEEK DIGITAL PRACTICALITY GUIDE: Customer experience case studies, expert tips, and practical exercises that you can bring back to the office.
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations 12 CUSTOMER EMOTIONS ORGANIZATIONS MUST UNDERSTAND: WHY EMOTION ANALYSIS IS KEY FOR CX The stakes in customer service have never been higher. intelligence (AI) and conversation analytics, organizations The rate of innovation and growing customer expectations can detect and deliver the emotional insights needed to have pushed customer experience (CX) to the forefront improve the customer journey, and ultimately connect with of market competition. Getting emotional could be the next customers on a deeper, more impactful level. big differentiator. “Emotion has a bigger impact on brand loyalty than THE VALUE OF EMOTION ANALYSIS effectiveness or ease in every industry,” according to IN IMPROVING CX Forrester Research. But for most CX professionals, emotion is undiscovered territory. Measuring, understanding and Customers who are emotionally connected to your brand responding to customer emotions has become the key are worth two times more than highly satisfied customers. for businesses seeking increased customer loyalty and Additionally, 83% of consumers indicated they were competitive advantage. more likely to purchase from a brand they are emotionally connected with. Creating an emotional connection with Delivering exceptional CX and forming emotional customers goes a long way toward building a stronger connections during every interaction begins with brand, improving loyalty, and driving revenue. understanding the customer emotions that have the deepest impact on experiences. With tools like artificial CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 24 CUSTOMER
2021 CCW MARKET STUDY | Customer Experience Trends, Challenges & Innovations But achieving this is hard. In “The New Contact Center Interest Indicators: Excitement and Surprise Powers Its People with Customer Intelligence”, a study commissioned by CallMiner, Forrester Consulting found CX can deliver excitement by ensuring your offerings meet that 57% of contact center decision makers struggle or exceed customer needs. Once you have the customer’s to determine their customers’ dynamic emotions. It attention, you can help them explore ways to solve their also asserts that “brands will find it difficult to provide problem. emotionally resonant interactions if they don’t understand Negative Interest Indicators: Fear, Guilt, and Shame what customers are trying to do and how they feel about the interaction.” CX can create fear by introducing new features without explanation. Guilt can arise when customers discover a By identifying and analyzing customers’ emotions, your fix they should have seen earlier. These emotions get business can uncover what matters most to customers, attention, but not for the right reasons. enabling you to support them with the following benefits that extend well outside of the contact center. Destructive Indicators: Anger, Irate, Contempt, Disappointment, and Disgust • Stronger emotional connections: Customers are emotionally connected with how well they feel your CX that delivers disappointment, for example, will lead brand aligns with their motivation and fulfills their to lost revenue, missed opportunities and increased needs. Emotion analysis can reveal critical drivers to resolution costs. When these emotions are identified, enable data-informed strategies. brands should intervene with appropriate efforts. • Improved customer experiences: Negative emotions, Once you begin to understand your customers’ emotional like frustration or stress, can be tracked to reveal experiences, you can determine whether that experience systemic failures across different departments, such as will drive or destroy loyalty. product, marketing or sales. • Higher performing agents: Emotions provide new perspectives on how your frontline team is representing ACTIONABLE CX INSIGHTS FROM your brand and how customers are reacting. Based on EMOTION ANALYSIS how your agents represent your brand, you can uncover opportunities to improve training. Leveraging emotion analysis reveals valuable insights into your customers’ feelings and perceptions. Driven by AI and • Emotion-driven decisions: Insights gained from machine learning, these tools provide actionable insights understanding customer emotion can impact decisions based not only on what your customers say, but how they throughout the enterprise. Sales and marketing, for say it. This allows you to develop more effective, impactful example, can easily leverage customer emotion data connections within the omnichannel customer journey, as to inform product preferences and the resonance of ad well as drive better customer experiences throughout your campaigns. business. 12 KEY EMOTIONS TO KNOW FOR CX Improve outcomes through historical analysis: The multifaceted data provided by emotion analysis gives For businesses to determine how emotions influence information on every aspect of each moment of every customer decisions, it’s important to understand the 12 key interaction, making it easier to pinpoint trends in the emotions, divided into four bundles, that either improve or appearance of negative emotion. For example, analysis hinder CX. of emotional trends within contact centers might discover that a call script creates specific customer emotions that Loyalty Indicators: Happiness and Satisfaction can then be fixed. Or departmental decision-makers Positive CX, like the best products and quick fixes, can can understand which of their products or services elicit evoke these vital emotions from customers. When specific emotions, and make more informed changes. customers are satisfied, they become more connected to your brand. CUSTOMER CONTACT WEEK DIGITAL www.customercontactweekdigital.com | 25 CUSTOMER
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