Digital crisis or redemption - The uncomfortable truth - accelerate your ambition - Cisco
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2017 Global Customer Experience (CX) Benchmarking Report Global APAC/Singapore comparison Digital crisis or redemption - The uncomfortable truth accelerate your ambition
20 years of benchmarking The transformation of CX Broader and centralised Consistent cross-channel support for AI enabled automation via channel access options customers, via integrated digital behavioural and profile Birth of contact centre channels personalisations 2000s Omnichannel a top priority Robotics reimagining world of CX 2016 – 2018 2018 – 2020 1990s 2010s 2017 Traditional call centres Multichannel the norm CX – proactive & customised telephone replaced telephone and digital improve New trend towards pushed CX, face-to-face customers’ channel options tailored and enabled by analytics and an ease of contact and technology Telephone-primed CX Digital-primed CX
About the 2017 over 20 country specific data Global CX Benchmarking Report 63% B2C 23% B2B 950+ data points, 90+ analysis charts 8% IT Helpdesk supported by 40+ industry groups 6% Sales Operations 1351 participants from… view data at 10 levels …80 countries contributed to including: geography, size, sector, brand positioning, service, contact and this year’s global research provider type Research spans 14 CX industry sectors analysis with context and 15% 11% 11% 17% 9% 8% 7% 22% recommendations banking professional Service Insurance Technology Retail & Public from and services providers/ consumer sector additional on best practices investment comms goods 7 sectors
What’s included in the 2017 Global CX Benchmarking Report? Strategy CX Analytics Digital Service strategy Service differentiator Data collection Transformation factors Multi-skilling CX drivers BI systems Channel interaction splits Omnichannel Capability Segmentation Customer preferences Strategic drivers Responsibility Personalisation Mobile, Chat, etc. Business transformation Trends Customer journeys Social CX Evolving workforce Benefits Performance impact Proactive outbound Operations Efficiency Technology CSAT practices Operations model and Key technology trends Quality management structure Architecture models Ops and agents’ KPIs Training and HR models Standardised systems Performance statistics Employee engagement IT sourcing, design and support Response and WFO approach Current and future needs handle times Absence and attrition Cloud usage and experience Productivity by channel Budget allocations
Digital crisis or redemption Key findings 1: Digital 2: Conscious 3: Data 4: Man vs dominance journeys supremacy machine The The world has Journeys Analyse CX robotics Digital uncomfortable formed a digital should be or creating a new crisis or truth skin. intuitive. die. reality. redemption Introduction Key findings Conclusion
The uncomfortable truth High-performing disruptors are outpacing established market leaders by committing to the opportunity created by the digital revolution. Just 13% self-rate their CX delivery at 9/10 or 81% of companies recognise CX as a better competitive differentiator Only 10% consider their digital business CX is the no1 most important strategic strategy to be optimised performance measure 36% don’t have a single manager 79% can evidence cost savings; 84% an uplift in responsible for CX; Of those who do, just 36% revenue/profits are at board level
Top strategic performance measures CX remains most important strategic measurement for organisational performance APAC Singapore Customer experience 73.6 70.4 Sales revenues or profits 33.6 22.2 Customer advocacy or loyalty (e.g. NPS) 33.1 22.2 First contact resolutions (right first time) 24.6 40.7 Complaint levels (service quality) 28.7 44.4 Productivity and cost to serve 26.7 18.5 Employee engagement 31.7 25.9 Customer effort scores (ease of doing business) 12.2 11.1 Migration to digital assisted services 10.8 14.8 Security systems or services 7.1 3.7 Other 7.1 Migration to fully automated services 5.7 3.7 What are the top three performance measurements according to your company’s board or executive team?
Benefits evidenced by improving CX Business benefits increased significantly, once CX improved 79% can evidence cost savings, 84% an uplift in revenue/ profits, and 85% appreciate its impact on employees 91.7 Increased customer loyalty (incl. value) 91.0 87.5 Increased employee engagement 88.3 91.3 Increased company revenue/profits 84.7 87.5 Reduction in costs 81.5 Reduction in contact volumes 77.1 SG APAC What business benefits can be evidenced by an improving CX capability?
Digital business strategy Less than 10% of respondents have an optimised digital business strategy 51% are at best in the process of developing the company’s strategy for digital business APAC Singapore Optimised 10.1 3.7 Delivering 31.1 40.7 Being developed 45.1 37.0 Separate strategy for each contact channel 10.1 11.1 Don't have one 1.3 7.4 How would you describe your company’s strategy for digital business?
Organisations’ rating of CX capability Just over a third of the respondents believe their CX will receive a rating of eight out of ten, or more. One in five (22.0%) organisations self-rate CX delivery at five out of ten, or worse. 24.5 24.9 24.3 24.5 16.9 16.3 12.4 10.2 9.3 9.2 5.5 4.6 4.0 3.6 3.4 2.5 1.1 0.6 1.2 1.1 1 2 3 4 5 6 7 8 9 10 How do you rate your CX How do customers rate your CX On a rating of 1-10, how would you/ your customers’ rate your organisation’s CX capability?
Digital dominance Key finding
Digital dominance The world has formed a digital skin. Business, service, technology and commercial models have changed forever. Organisations are strategically challenged to keep pace with customer behavior. 9 channel choices the norm, will rise to 11 by Customer awareness of solution and 2018; CX no1 driver for digital functionality not meeting user needs top factors hindering digital transformation 70.7% forecast increases in assisted-service volumes; 78% a rise in fully Actual split of interactions falling short of automated contacts desired model Virtual assistant (Chat bots) top growth focus Majority are not tracking cost per transactions in 2017 ; IoT to double on digital solutions
Services supported Average of nine channel choices now the norm, it’ll soon rise to 11 Virtual assistant (chat bots) provide largest area for growth; IoT surging in tandem with proactive automation services APAC Singapore Telephone (contact centre 95.4 1.8 96.3 operations) Email 94.7 3.2 96.3 Website (incl. knowledge 79.2 13.0 7.8 85.2 11.1 3.7 portals, peer-to-peer… Back office admin support 77.1 6.7 16.1 81.5 18.5 IVR (touch-tone/speech) 76.2 8.7 15.1 88.9 3.7 7.4 Social media (Facebook, 67.5 18.6 13.9 74.1 11.1 14.8 Twitter, etc.) SMS text 59.7 22.8 17.5 70.4 14.8 14.8 Mobile application (smartphone, 56.7 27.2 16.1 59.3 18.5 22.2 tablet apps) Web chat (incl. instant 52.8 31.8 15.3 40.7 25.9 33.3 messaging, co-browse) Physical location (inc. service 48.4 10.2 41.6 63.0 7.4 29.6 kiosks) Proactive automation services 31.8 34.7 33.5 51.9 22.2 25.9 Internet of Things 26.2 24.2 49.6 48.1 7.4 44.4 Video chat 18.4 27.8 53.8 11.1 25.9 63.0 Virtual Assistant (Chat Bot) 13.5 35.0 51.4 22.2 29.6 48.1 Now Within 1 year No plans What services can your organisation support, now and in the future?
Digital transformation of CX in next two years 62% forecast a rise in overall customer interaction levels in coming two years 71% anticipate increases to fully automated contacts volumes, while 56% expect transactions via telephone to fall APAC Singapore Digital assisted service 78.7 11.1 2.8 7.5 69.6 13.0 4.3 13.0 volumes will … Fully automated volumes 73.6 12.1 2.2 12.1 69.6 13.0 8.7 8.7 will … CX via social media will … 65.4 20.5 1.9 12.2 69.6 8.7 8.7 13.0 Overall interactions (spanning all channels) will 64.5 22.3 8.5 4.7 56.5 21.7 8.7 13.0 … Proactive automation 60.2 18.1 4.0 17.8 43.5 21.7 8.7 13.0 volumes will … Headcount employed will … 24.0 35.1 35.4 5.5 47.3 47.8 4.3 Telephone volumes will … 13.5 25.3 57.0 4.1 13.0 17.4 65.2 4.3 Increase Stay the same Decrease Not applicable How will digital transform your CX operations in the next two years?
Desired interaction split Actual split of interactions falling way short of desired model Evidence of a pragmatic and balanced approach towards migrating agent based interactions towards partial/full automation 2017 Actual 2017 Desired 19 21.4 APAC 38 34.1 APAC 39.5 40.8 53.3 Singapore 21.3 58.5 25.3 Singapore 26.4 21.3 Telephone Assisted-service Automated channels What is your desired split of customer interactions by channel grouping?
Conscious journeys Key finding
Conscious journeys Seamless, proactive, reactive, connected, automated and analysed. Omnichannel is a priority but the customer journey patterns need to be understood, designed and personalised. 8% have all channels connected; just another Connecting customer journeys 2nd top factor 22% have most connected to transforming CX in next 5 years; 76% already have some channels connected 58% channels are being managed in silos; 42% channel data not actively shared between 67% can now track customer journeys in some teams form, of those 44% have automated processes available 72% fail to collect data to review and optimise journey patterns; 76% can’t identify blockages in process that will impact CX
Omnichannel strategy 41% now have, or are striving towards, a full omnichannel strategy 70% currently have no, or very few channels connected APAC Singapore All channels 5.9 43.4 40.0 connected Most channels 22.4 34.2 23.8 35.0 connected A few channels 45.2 12.5 66.7 15.0 connected None 26.6 10.0 9.5 10.0 Now Within 2 years How many of your contact channels are covered by an omnichannel (connected customer journey) strategy?
Tracking customer journeys Noticeable improvements but visibility of the CX journey still low Just 38% can track an interaction that spans multiple channels; A third have no ability to track 42.9 Interactions can be tracked across multiple channels 36.4 42.9 Key decision points can be identified 33.4 23.8 We can't track the customer journey 38.8 38.1 Blockage points in process (that can affect the CX) can be located 22.8 Other 5.6 SG APAC How well can you track the customer journey across your service channels?
Challenges of tracking customer journeys System integration issues are still the biggest challenge 58% compound the problem by operating channels in silos; and a quarter of technology teams are unclear on operational needs Global Singapore Our systems are not integrated 67.9 81.3 Channels are operated in silos 63.8 75.0 Data content is inconsistent across 43.1 43.8 channels Channel data not actively shared between teams 42.8 50.0 Technology team unclear on operational needs 26.2 31.3 We can't see which channels are being used 17.2 25.0 What are the main challenges you face when attempting to track customer journeys?
Methods to track customer journeys across multiple channels Manual systems remain the norm Automation levels are rising though, and 44% are using data analytics to track interactions across multiple channels APAC Singapore Customer feedback 83.2 93.8 Automated through data 51.2 43.8 analytics Manual process maps 47.2 56.3 Other 8.0 6.3 What methods do you use to track customer journeys spanning multiple channels?
Data supremacy Key finding
Data supremacy The importance of understanding and harnessing (mass) data is now critical to performance, the number one trend to reshape the industry – analyse or die. Customer analytics was no2 factor towards Only 48% have customer analytic systems; positive improvement in last 5 years; it’s been 36% possess big data analytic solutions voted no1 for next 5 years 29% using analytics to inform channel/contact Top benefit (58%) of analytics is improving management strategy customer journey Just 54% have agent analytics; 42% of analytic 42% can now offer customised CX systems don’t meet current needs
Trends that will reshape CX – next five years Analytics voted top factor that will reshape CX industry - for third year running Personalisation rising at pace, as attention shifts to robotics and automation Customer analytics 59.1 70.1 Connected customer journeys (i.e.… 50.0 47.7 Personalised customer service 40.9 47.7 Digital channel capability 50.0 37.4 Proactive automation services 9.1 17.8 Executive commitment to CX 31.8 19.5 Artificial intelligence (internet of… 17.2 22.7 CX enabled social media 13.6 19.5 Introduction of cloud solutions 4.5 6.9 Enhanced security 4.5 10.9 Other 4.5 0… SG APAC What are the top three things that will reshape your CX capability during the next five years?
Positively transforming services - last five years Technology flexibility is key to transforming CX Business intelligence is powering new strategies, capability, and an evolution in operating models APAC Singapore Access to new technology (e.g. via cloud solutions) 50.5 55.6 Analytics and business intelligence 61.3 48.1 Customer experience led strategy 57.7 51.9 Agent multiskilling 45.4 48.1 Growing digital capability 48.5 51.9 New operating structure 26.8 37.0 Our product diversification 26.3 25.9 New market accessibility 22.2 14.8 Our response to new threats from competitors 16.0 14.8 Other (please specify) 1.0 3.7 Which factors have contributed most to positively transforming your services in the last five years?
What business information tools are available? Usage of Big Data analytics has grown by 75%, but it’s only available to a third Capability beneath expectation – only half have customer analytic systems in place APAC Singapore Customer surveys 74.2 85.7 Agent performance scorecards 69.5 66.7 Business performance scorecards (real- time/historic data) 59.2 47.6 Customer analytics 48.1 52.4 Web based review/feedback mechanisms 37.7 38.1 Big Data analytics (combining data from all channels) 36.0 33.3 Interaction analytics (e.g. speech analytics on phone calls or text analytics on webchat) 25.0 33.3 Sentiment analytics 12.7 9.5 None of above 4.7 4.8 What business information tools are available?
Man vs machine Key finding
Man vs machine CX robotics in the form of automation, AI and IoT are creating a new reality, demanding a new approach. Human cost and productivity is challenged as these capabilities improve. Top 5 channel focus areas: Transaction complexity contributing to 1. Virtual assistant (chat bots) absenteeism levels double that in 1997 2. Instant messaging (incl. web chat) 3. Mobile apps Agent average length of service 28 months 4. Video chat 5. IoT First contact resolution on digital paths lagging phone, 56% say phone volumes will drop further Phone volumes have dropped by 17% through end 2018 since 2015
How does technology meet current and future needs? Digital systems fall short for 42%, the same number reporting inadequate analytics The number of companies who fear digital channel technology won’t meet future needs has increased to 81%, as more than ¼ say current systems are failing against existing requirements APAC Singapore Telephony systems - agent led 44.0 43.7 12.3 36.7 50.0 13.3 interactions Telephony systems - automated (e.g. 34.2 47.3 18.5 29.4 51.6 19.0 IVR) Security systems (e.g. fraud prevention, 25.3 52.8 21.9 27.6 52.8 19.5 etc.) Interaction optimisation systems 23.6 47.5 28.9 21.1 47.4 31.6 (WFM/recording systems, etc.) Business support systems (HR/Finance, 23.2 57.7 19.1 15.6 68.9 15.6 etc.) Knowledge management systems 21.5 46.3 32.2 12.6 40.8 45.0 Digital channel systems 18.6 39.5 41.9 14.2 48.7 38.7 Analytics systems 18.6 39.6 41.8 9.5 41.4 49.1 Meets current and future needs Meets current needs Doesn't meet current needs How well do the following technology systems items meet your current and future needs?
Response times – Assisted-services Digital response times improve; exceptional results from top quartile Compare 4.33 hour email average against the 10 mins benchmark at top quartile or 74 mins average on social to upper quartiles 10 minutes 251 Email 10 Social media (Facebook, Twitter, 74 etc.) 10 33 SMS text 5 5 Video chat 2 Web chat (incl. instant messaging, 9 co-browse) 2 Average (minutes) Top quartile What is the average response time for the following assisted-services?
Handle times – Assisted-services Handle times are decreasing quickly Top quartile performance demonstrates the “art of the possible” with handle time range of three to eight minutes 68 Email 8 94 Video chat 5 Web chat (incl. instant messaging, 50 co-browse) 5 Social media (Facebook, Twitter, 39 etc.) 5 20 SMS text 3 Average (minutes) What is the average handle time for the following assisted-services?
Digital crisis or redemption Conclusion
Digital crisis or redemption? Pioneers of the digital age have reimagined business models and processes that have changed customer behaviour forever. The choices you make in your CX and digital strategies will define the future success of your organisation. Intelligence powering new strategies, Measure capability, and operating model evolution Disparate management the biggest threat to omnichannel Top quartile performances evidencing ‘art of the possible’ Quality controls on digital up 49% since 2016, but still way behind more established phone Investment on technology and facility rises, as percentage of budget spend on Less than half of operations are fully involved human resource drops in design of technology systems
Digital crisis or redemption We say… Disjointed strategy 1: Digital 2: Conscious 3: Data 4: Man vs Robotics will add to damaging CX dominance journeys supremacy machine the dilemma CX robotics The world has creating a new formed a digital Journeys should reality. skin. be intuitive. Analyse or die. Advance – your The Commit – Connect – relevant Develop – usable Digital digital strategy uncomfortable customers demand channels by design, intelligence, with flexibility and crisis or truth a leap of faith. and review. inform and share. data. redemption Introduction Key findings Conclusion
How we deliver CX for our clients Benchmarking Comparison Technical and services Contact Centre Customer Experience Support services Benchmark your CX and Development Maturity We help you design, contact centre operations implement, support and against industry and Understand the current state of your Understand the current state of your optimise your infrastructure, contact centre and take steps to optimise customer experience and regional benchmarks, as improve operations and its integration with your organisation take steps to mature it in your organisation well as best practices. reduce cost 20 years of Managed Services benchmarking Omnichannel Digital experience We take over your day-to-day 1351 participants from operations to enhance your optimisation capability 80 countries contributed IT and business functions, to this year’s global Assess your digital experience elements Assess and optimise omnichannel and enable IT agility and research report and create a transformational plan for interactions and value, across all client scalability improvement channels and touchpoints Consulting services
Thank you. 2017 Global Customer Experience (CX) Benchmarking Report Digital crisis or redemption - The uncomfortable truth accelerate your ambition
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