STATE CONNECTED CUSTOMER - THIRD EDITION Insights from over 8,000 consumers and business buyers worldwide - Fink & Fuchs
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THIRD EDITION STATE CONNECTED CUSTOMER Insights from over 8,000 consumers and business buyers worldwide
About This Report State of the Connected Customer 2 For this third edition of the “State of the Connected Customer” report, Salesforce Research surveyed over 8,000 consumers and business buyers worldwide to discover: • How customer expectations continue to shift • Which emerging technologies are transforming standards for engagement 1,590 3,222 • The role of trust in customer relationships • The rising importance of corporate values in buying decisions Data in this report is from a double-blind survey conducted April 2–18, 2019, that generated responses from 8,022 individuals in Australia/ New Zealand, Canada, France, Germany, Hong Kong, India, Italy, Japan, Singapore, Spain, 3,210 Switzerland, Thailand, the United Kingdom/ Ireland, and the United States. All respondents are third-party panelists (not limited to Salesforce customers). See page 61 for detailed respondent demographics. Percentages may not total 100 due to rounding. All comparison calculations are made from total numbers (not rounded numbers). Salesforce Research provides data-driven insights to help businesses transform how they drive customer success. Browse all reports at salesforce.com/research. Salesforce Research
About This Report State Stateofofthe theConnected ConnectedCustomer Cutomer 3 We examine survey results from three primary groups: Consumers Those reporting on their interactions with companies when purchasing for themselves Business Buyers Those reporting on their interactions with companies when purchasing on behalf of their employers Business Buyers Consumers Customers Aggregated consumers and business buyers All Customers We also examine survey results across three generations of customers: Respondents were required to be 18 years of age or older. Millennials/Gen Zers Born between 1981–2000 Millennials/Gen Zers Gen Xers Gen Xers Born between 1965–1980 Silents/ Silents/Baby Boomers Baby Boomers Born before 1965 Salesforce Research
Contents State of the Connected Customer 4 Executive Summary.............................................................................................................................................5 Introduction..........................................................................................................................................................6 01 Extraordinary Experiences Raise the Bar for Customer Engagement..............................................8 02 New Expectations Shift the Digital Transformation Playbook........................................................ 14 03 Trust Becomes More Important, Yet More Elusive........................................................................... 19 04 Corporate Values Sway Buying Decisions.......................................................................................... 22 Last Look: How Well Are Industries Engaging Customers?.......................................................................... 25 Country Profiles................................................................................................................................................. 26 Regional Profiles................................................................................................................................................ 41 Appendix............................................................................................................................................................. 45 Survey Demographics...................................................................................................................................... 61 Salesforce Research
Executive Summary State of the Connected Customer 5 Companies are being challenged to Extraordinary Experiences Raise the Bar for Customer Engagement rethink not just the individual 01 (see page 8) experiences they provide Customers’ standards for modern engagement are a far cry from the transactional, one-size-fits-all customers, but their entire experiences that were once de facto. Tailored, contextualized engagement across multiple touchpoints approach to customer engagement. is the benchmark, and disruptive business models are further raising the bar. Seventy-three percent of customers say one extraordinary experience raises their expectations of other companies. Twenty-five years since the popularization of the internet and 12 years after the introduction New Expectations Shift the Digital Transformation Playbook of the iPhone, customer 02 (see page 14) expectations keep soaring. Innovation is accelerating across industries thanks to emerging technologies like artificial intelligence Companies are in a race to (AI) and the Internet of Things (IoT). With many consumers and business buyers willing to pay a transform themselves to foster the premium for differentiated, first-to-market products and services that enhance their experiences, the digitally savvy relationships that pressure is on for companies to get ahead of the digital curve. Seventy-five percent of customers consumers and business buyers expect companies to use new technologies to create better experiences. alike demand. Trust Becomes More Important, Yet More Elusive At the same time, trust has become 03 (see page 19) only more relevant. Collective concern over an array of societal Trust has always been foundational in customer relationships, but it's a more nuanced subject in an era issues has prompted customers to where customers expect transparency, authenticity, and ethics. A lot goes into fostering customer trust, examine what companies stand for. and it’s an increasingly formidable challenge. Fifty-four percent of customers say it’s harder than ever for companies to earn their trust. Corporate Values Sway Buying Decisions 04 (see page 22) The days when businesses were expected to sit on the sidelines of societal issues are over. Today, customers expect companies to not only operate ethically and with their communities’ interests at heart, but in a way that advances causes such as equal rights, philanthropy, and sustainability. Seventy-three percent of customers say a company’s ethics matter more than they did a year ago. Salesforce Research
Introduction State of the Connected Customer 6 Customer experience is not a new concept, technology (IT) — once thought of as the prompts nearly three-quarters of customers to but it has never been more relevant. Case in ultimate back-office function — now cite hold other companies to higher standards. point: Salespeople — once solely focused on customer experience as their top priority.† 84% closing transactions — now track customer satisfaction more than any other metric.* These shifts in business focus are for good Nearly half of marketers — once concerned reason. Great experiences reap great rewards, of customers say the experience a only with driving new leads — now champion with almost two-thirds of customers willing to company provides is as important as its customer experience initiatives across their pay a premium for them. What’s more, a products and services – up from 80% in 2018. entire companies.** Even leaders in information standout experience with one company The Customer Experience Stakes Have Never Been Higher Consumers Business Buyers 83% 69% 59% 89% 82% 82% 84% of customers say the experience a company 73% of customers say one extraordinary experience 66% of customers are willing to pay more for provides is as important raises their expectations of a great experience as its products and services other companies * “State of Sales,” Salesforce Research, May 2018. ** “State of Marketing,” Salesforce Research, December 2018. † “Enterprise Technology Trends,” Salesforce Research, May 2019. Salesforce Research
Introduction State of the Connected Customer 7 A lot of factors – ranging from new Innovation, Connectivity, Trust, and Values technologies and products to new business Raise the Bar for Customer Engagement models and increased awareness of corporate ethics – make customer expectations a moving target. Thus, delivering the great experiences Customers Who Say These Factors Change Their Expectations of Companies that meet those changing expectations is a difficult endeavor. All Customers Consumers Business Buyers Companies are being challenged to rethink Better access to information 91% (e.g., product information, 92% how they engage with increasingly connected, reviews) 94% empowered, and discerning customers. 91% 91% 54% Increased product choice 91% 85% of customers say companies need 86% to transform how they engage with them. New types/categories of products 89% 78% 81% Ecommerce Each customer is unique, and each company 88% will use different tactics to delight them. Yet a 74% Increased awareness of corporate focus on several key principles – including values, ethics, and business practices 77% 84% treating customers like the individuals they are, connecting interactions and touchpoints across 69% Peer reviews 71% their journeys, investing in digital (e.g., Yelp, Amazon reviews) 76% transformation, and leading with trust and New business models 59% values – can help companies shape their (e.g., sharing economy, subscriptions, 65% strategy of how to best engage their customers. direct-to-consumer) 78% Ultimately, these principles can help 58% companies develop valuable one-to-one New methods of communication 64% (e.g., messaging apps.) customer relationships. 77% 52% Emerging technologies 58% (e.g., chatbots, voice assistants) 75% See page 46 for additional data segmentations. Salesforce Research
01 Extraordinary Experiences Raise the Bar 8 State of the Connected Customer for Customer Engagement The first step to understanding today’s Companies Aren’t Living Up to Customers’ connected customers is to cast aside any Personalization Expectations generalizations about their interests. Customers expect to be treated as people rather than personas. Like with friendships, customer EXPECTATION REALITY relationships bloom when individuals feel understood. But when customers feel like their needs aren't appreciated, even after multiple interactions, relationships can weaken. 73% 51% 77% 75% 63% Expectations for personalized engagement 57% 53% span generations, rebutting outdated strategies of customers expect of customers say aimed at broad segmentations and challenging companies to understand companies generally 40% companies to learn more about individuals. Yet their needs and understand their needs expectations and expectations companies haven’t caught up, with relatively few understanding customers’ needs and expectations – let alone adapting to their actions and behavior. 52% 62% 47% of customers – including 56% of consumers – say companies are 67% 65% generally impersonal. 52% 53% of customers expect of customers say 49% companies to companies generally 36% adapt based on their adapt based on their actions and behavior actions and behavior Millennials/Gen Zers Gen Xers Silents/Baby Boomers Salesforce Research
01 Extraordinary Experiences Raise the Bar 9 State of the Connected Customer for Customer Engagement If a friend ignores a call, text, or email, it Modern Customer Engagement Happens in Real Time probably doesn’t bode well for the overall relationship. The same dynamic is true for today’s customers, who live in an always-on world where an answer is just a tap away. 56% of customers expect to find whatever they 71% of customers expect companies to communicate with them in real time. need from a company in three clicks or less Expectations for timeliness start when 45% of customers can generally find whatever they need from a company in three clicks or less customers are just browsing, with more than half expecting to find whatever they need — be it pricing, inventory, or something else — in three clicks or less. It extends to when they make a purchase, with nearly six in 10 willing to switch to a competitor with quicker and cheaper shipping. It persists when they have questions for customer service: 78% of customers expect to solve complex issues by speaking to one person. 57% of customers won’t buy from a company that can’t ship quickly and cheaply Most customers won't wait for someone to give them information they can find themselves. Sixty-eight percent would rather use self- service channels – like knowledge bases or 59% of customers will take their business to Amazon if a company can’t match their shipping speed and cost customer portals – for simple questions or issues. See pages 47 and 48 for additional data segmentations. Salesforce Research
01 Extraordinary Experiences Raise the Bar 10 State of the Connected Customer for Customer Engagement Companies aren't just expected to be Preferred Channels Span Online and Offline Worlds available anytime — they're also expected to be available anywhere. Multichannel behavior is a fact of everyday life . Forty percent of Customers Who Prefer the Following Channels When Communicating with Companies customers won’t do business with a company if they can’t use their preferred channels. Email 64% 62% 64% 65% Millennials and Gen Zers are the most In-person 59% 56% 59% 62% omnichannel generations by far — citing, on average, 51% more channels as “preferred” Phone 56% 53% 57% 58% than the silent and baby boomer generations. Younger customers are, unsurprisingly, more Online chat/live support (e.g., popup windows on website) 45% 28% 45% 55% digitally savvy when engaging with companies. More than half (56%) of millennial and Gen Z customers prefer mobile apps, and are more Mobile app 43% 24% 42% 56% than twice as likely than silents/baby boomers to prefer voice assistants like Siri and Alexa. Online portals (e.g., self-service account information) 43% 29% 44% 50% Email is favored across generations. Online knowledge bases (e.g., self-service FAQs, searchable libraries) 41% 29% 41% 49% Messenger apps (e.g., WhatsApp, Facebook Messenger) 37% 21% 36% 48% 36% 55% 38% Online forms 28% 40% of customers — including 68% of millennials/Gen Zers — prefer digital channels Social media 32% 15% 30% 45% over traditional ones. Text/SMS 31% 25% 30% 35% Online communities (i.e., forums) 30% 16% 29% 39% Voice assistants (e.g., Siri, Alexa) 22% 13% 22% 28% Millennials/Gen Zers Gen Xers Silents/Baby Boomers See page 49 for additional data segmentations. Salesforce Research
01 Extraordinary Experiences Raise the Bar 11 State of the Connected Customer for Customer Engagement Customers prefer a variety of channels, at least Context Matters for Connected Customer Engagement in part, because of context. It may be most convenient to use a mobile app while riding transit, for example, or to send a detailed email to customer service when there’s a complex Customers Who Say the Following issue at hand. But as lives get busier and attention spans shorter, cross-channel I prefer different channels 82% engagement isn’t as cut and dry as it once was. Today’s customer journeys are complex, 78% depending on context (i.e., where I am and what I'm doing) 67% 80% nonlinear, and fragmented across touchpoints. I prefer different devices 79% The majority of consumers and business buyers across generations have used multiple channels 73% depending on context (i.e., where I am and what I'm doing) 61% 76% to start and complete single transactions — such as when they first see an ad on social media 79% only to make a purchase on a website later. What’s more, nearly two-thirds (64%) of 71% I have used multiple channels to start and complete a single transaction 55% 73% customers have used multiple devices to 75% start and complete transactions — such as browsing on a smartphone only to sign up for an account on a desktop later. 64% I have used multiple devices to start and complete a single transaction 44% 67% Millennials/Gen Zers This multichannel, multi-device reality poses a Gen Xers vexing question: How can companies foster Silents/Baby Boomers great customer engagement across nonlinear journeys? In other words, how can they keep experiences connected? See page 49 for additional data segmentations. Salesforce Research
01 Extraordinary Experiences Raise the Bar 12 State of the Connected Customer for Customer Engagement Effective customer engagement isn't just Customers Expect Unity but Often Face Silos personalized, timely, and omni-channel. It's also connected, meaning that customers' preferences are known across touchpoints, and any required information can be quickly accessed. 78% of customers expect 59% of customers say it generally feels consistent interactions like they’re communicating with across departments separate departments, not one company 69% of customers expect connected experiences. Omni-channel and omni-device behavior makes connected experiences challenging enough, but customers also expect the representatives they encounter across those touchpoints to have the same information. In customers' minds, for example, a service agent should know about a recently signed sales contract, or the details of a recent ecommerce transaction, and engage accordingly. Sixty-four 72% of customers expect all 66% of customers say they often have to company representatives to have repeat or re-explain information to percent of customers expect tailored the same information about them different representatives engagement based on past interactions. For many companies, this is easier said than done. The average enterprise uses 900 different applications, 29% of which are integrated.* Customers feel the effects, with nearly three- fifths reporting experiences that generally reflect separate departments rather than unified companies. * “MuleSoft Connectivity Benchmark Report,” February 2019. See pages 47 and 48 for additional data segmentations. Salesforce Research
Spotlight State of the Connected Customer 13 Direct to Consumer Sixty-five percent of customers say new Direct-to-Consumer Models Are a Hit with Younger Generations business models are changing their expectations of companies. Direct-to-consumer sales is a prime example. Consumers Who Say the Following Pioneers such as Warby Parker and Dollar Shave Club disrupted entire industries by cutting out 58% intermediaries and offering products directly to end users. Established branded manufacturers such as adidas are embracing the direct-to- 49% I buy at least one product directly from a brand on a regular basis 39% 49% consumer model, with 99% of them investing 54% in such initiatives.* The impact has been huge not only for revenue streams and retail 47% I identify more with the brands I buy than the retailers I buy from 45% 40% relationships, but for customer expectations. Seventy-three percent of consumers expect 53% to be able to buy directly from a brand as well as from a retailer. 44% I expect to buy more products directly from brands in the future 34% 43% Millennials/Gen Zers 76% Gen Xers Silents/Baby Boomers of consumers expect the same level of engagement when buying from a brand as when buying from a retailer. Today, nearly half of consumers buy at least one product directly from a brand on a regular basis. Much like digital channels, millennial and Gen Z consumers are particularly fond of this new way to shop. * “Consumer Goods and the Battle for B2B and B2C Relationships,” Salesforce, May 2019. Salesforce Research
02 New Expectations Shift the Digital 14 State of the Connected Customer Transformation Playbook Direct-to-consumer sales is an example of Innovation Commands a Premium, Especially for Business Buyers something more critical than ever as customer expectations soar: innovation – the adaptation to customer needs or technological change. Customers Who Say the Following 67% All Customers Consumers Business Buyers of customers expect companies to 65% provide new products and services more I expect the rate of innovation 68% from companies to accelerate frequently than before — up from 63% in 2018. 78% It takes more for a company to 59% impress me with new products/ 62% Innovation can come through new products or services than ever before 72% new ways of engaging customers. Whatever the 59% form factor, the bar for innovation is higher If a company doesn’t adapt to than ever, with the majority of customers saying my changing expectations, it 61% feels like they don’t care 65% companies must do more in order to impress them — let alone capture their attention. A lack 42% of innovation, in fact, now signals a company’s I will pay more for 50% differentiated products apathy toward its customers. 70% 31% Innovation is particularly critical for business I will pay more for a product or buyers, whose purchasing decisions can impact 40% service that’s first to market 62% their own competitiveness. Seventy percent of business buyers will pay more for differentiated products, and nearly as many (62%) will pay more for products that are first to market. See pages 50 and 51 for additional data segmentations. Salesforce Research
02 New Expectations Shift the Digital 15 State of the Connected Customer Transformation Playbook There is a common thread across the factors Customer Expectations Are Driving Digital Transformation redefining customer engagement and driving innovation: technology. As a result, digital transformation initiatives – which have historically entailed digitizing or modernizing back-end systems at a company – are now Consumers Business Buyers much more customer-facing. Acutely aware of what’s possible, customers are pressuring companies to use technology to deliver 72% 71% 83% 81% better experiences. 67% of customers say the way a company uses technology indicates how it operates in general. 75% of customers expect companies to use 74% of customers expect companies to use new technologies existing technologies New use cases for existing technologies – like to create better experiences in new ways more engaging mobile apps or more tailored to create better experiences emails – go a long way. But a crop of newer technologies enabled by data proliferation are upping the ante even more. Fifty-eight percent of customers say emerging technologies are changing their expectations of companies. See pages 50 and 51 for additional data segmentations. Salesforce Salesforce Research Research
02 New Expectations Shift the Digital 16 State of the Connected Customer Transformation Playbook The backbone of today’s emerging AI Has Gone Mainstream, but Reservations Remain technologies, artificial intelligence (AI), is well appreciated among business buyers. Only one-third of consumers, on the other hand, can name an example of AI they encounter Customers Who Say the Following every day. But the fact is that someone is using AI whenever they do things as common as All Customers Consumers Business Buyers buying a recommended item on Amazon, using Waze to shorten their commute, or 56% I’m open to the use of AI to 62% discovering a new favorite song on Spotify. improve my experiences 77% Wittingly or not, data proliferation — paired with increasingly refined modeling capabilities — is 53% AI will revolutionize how I making AI a mainstay of everyday life and 59% interact with companies fundamentally altering expectations. 74% 48% I trust companies to use AI 54% 62% in a way that benefits me 70% 45% of customers are open to the use AI will play as big of a role in 52% of AI to improve their experiences — up from my life as smartphones 69% 59% in 2018. 42% AI is the most significant 48% technology of my lifetime 65% However, companies have work to do in articulating AI’s role, particularly to consumers. 33% I can think of an example 40% Fewer than half of consumers trust companies of AI I use every day 60% to use AI in a beneficial manner, and just shy of one-third think companies are transparent 32% Companies are transparent 39% enough on the matter. enough about how they use AI 58% See page 50 for additional data segmentations. Salesforce Research
Spotlight State of the Connected Customer 17 Voice Technologies A prime – and increasingly common – example Voice Technology Makes a Splash, Particularly with Business Buyers of AI in everyday life is voice technology. Already, 23% of customer service organizations Customers Who Say the Following are using AI chatbots, which are often in voice form, and an additional 31% plan to within All Customers Consumers Business Buyers 18 months.* 52% Certain instances of voice technology also 57% Voice assistants are revolutionary 70% come in the form of connected devices, such as Siri voice assistants on iPhones or smart 35% Voice assistants will play as big of 43% speakers using Amazon’s Alexa or Google a role in my life as smartphones 63% Assistant. Twenty-seven percent of customers use a voice assistant daily. New 36% I would rather talk to my 42% form factors such as smart speakers that are device than type in it 58% always at the ready are becoming a mainstay of domestic life. Voice Assistant Users Who Have Done the Following 29% of consumers have a smart speaker in their home. 57% ordered a 92% searched for information product or The impact of voice technology isn’t limited to service 75% set a customer engagement. Fifty-one percent of reminder the workforce believes that voice assistants will transform how they work, and 38% report that they already use one during 61% sent an 73% their workday. email sent a text message 61% taken a 69% booked a memo calendar * “State of Service,” Salesforce Research, March 2019. event See page 50 for additional data segmentations. Salesforce Research
02 New Expectations Shift the Digital 18 State of the Connected Customer Transformation Playbook The next technology to normalize as part of Connected Devices Power Customer Engagement everyday life may be increasingly ubiquitous connected devices — such as smart speakers, fitness trackers, smart thermostats, and countless other examples — that are collectively referred to as the Internet of Things (IoT). Millennials/Gen Zers Millennials/Gen Zers Today, more than three-quarters of customers Gen Xers Gen Xers have at least one connected device, and their Silents/Baby Boomers Silents/Baby Boomers influence on expectations is increasing. 82% 65% of customers say connected devices have transformed or are transforming their expectations of companies — up from 80% 76% of customers use connected devices 53% of customers want more connections 60% in 2018. between their devices 64% With use cases and impacts as diverse as their 37% form factors, consumers and business buyers 61% 56% alike have come to rely on connected devices in a variety of ways. Seventy-seven percent of users say connected devices make their lives easier. Particularly among Gen Xers and millennials/Gen Zers, customers crave more connectivity between their devices. See page 51 for additional data segmentations. Salesforce Research
03 Trust Becomes More Important, Yet More Elusive 19 State of the Connected Customer In last year’s report, we explored a growing crisis Earning Customer Trust Is a Multifaceted Pursuit of trust as questionable business practices and related scandals made headlines. Since then, the topic has become even more relevant. Customers Who Strongly Associate the Following with Trust 73% of customers say trust in companies matters more than it did a year ago. Honesty 82% Now, customers are even more more selective 78% than they once were in which brands they trust. Fifty-four percent of customers say it’s harder than ever for a company to earn 61% Authenticity Security their trust. A company’s trustworthiness is inextricably tied to its bottom line. Eighty-nine percent of customers are more loyal to companies 61% Confidence Reliability 76% they trust, and 65% have stopped buying from companies that did something they consider distrustful. Honesty is the best policy for earning customer 64% Ethics Privacy 75% trust. And while security and reliability serve as baseline indicators of trustworthiness, other factors such as transparency, ethics, and authenticity come in striking distance. 70% Transparency See pages 52 through 56 for additional data segmentations. Salesforce Research
03 Trust Becomes More Important, Yet More Elusive 20 State of the Connected Customer More devices, more channels, and more Lax Security Hurts Trust and Sales customer data have elevated customer engagement and created new ways for companies to differentiate. In some cases, however, they’ve introduced vulnerabilities and anxieties. 41% of customers don’t believe companies care about the security of their data. 46% of customers feel they’ve lost control over their own data. 84% Distrust has become so prevalent that a significant number of customers now view companies as indifferent to the matter. Security has always been important, and customers of customers are more loyal to companies with strong security controls. treat it as a standard requirement for doing business. Eighty-four percent of customers are more loyal to companies that have strong security controls. See pages 52 and 54 for additional data segmentations. Salesforce Research
03 Trust Becomes More Important, Yet More Elusive 21 State of the Connected Customer Security is just one part of the trust equation Customers Seek Value in Exchange for Their Data as data – and lots of it – increasingly fuels elevated experiences. Customers need to 17% 58% know that their data is not only safe, but being used legitimately. disagree agree When applied for their benefit, the majority of customers are comfortable with this data-value exchange. The problem is, with so many I'm comfortable with opaque or complex privacy policies, many 25% customers are confused about how their data is relevant personal used in the first place, let alone whether or information being not that use helps or harms them. neutral used in a transparent and beneficial manner 63% of customers say most companies aren’t transparent about how their data is used. Businesses that articulate how their data is – and isn’t – used gain a selling point. Seventy- eight percent of customers are more loyal to companies that are transparent about how 72% 63% their data is used. That nearly half of of customers would stop buying from a company/ of customers say most companies aren't customers have abandoned companies over using a service due to privacy concerns. transparent about how their data is used. privacy concerns – along with laws such as the European Union’s General Data Protection Regulation (GDPR) – provides additional incentive for transparency. 48% 54% of customers have stopped buying from a company/ of customers say most companies don't use using a service due to privacy concerns. their data in a way that benefits them. See pages 52 and 54 for additional data segmentations. Salesforce Research
04 Corporate Values Sway Buying Decisions 22 State of the Connected Customer A company’s ethics are becoming more Values Can Make or Break Customer Relationships important as customers gain awareness of business practices, and privacy policies are just the tip of the iceberg. Increasingly, the principles that a company stands for factor into decisions of whether or not to buy from 80% 68% a company. 73% of customers say a company’s ethics matter more than they did a year ago. of customers are more loyal to companies with good ethics of customers won’t buy from companies with poor ethics Over two-thirds of customers refuse to buy from companies with poor ethics. In the Fourth Industrial Revolution, technology and ethics are intertwined, as customers recognize that how It’s Up to Companies to Use Technology for Good emerging technologies like AI are used – rather than the technologies themselves – will influence the trajectory of society. 71% of customers believe emerging technology 88% of customers believe companies are responsible can make the world for ensuring they use a better place technology ethically See pages 57 and 58 for additional data segmentations. Salesforce Research
04 Corporate Values Sway Buying Decisions 23 State of the Connected Customer A key aspect of the ethics of technology is the Customers Look to Companies to Step Up for Equality distribution of its benefits among all people. Like with the industrial and digital revolutions that preceded it, the Fourth Industrial Revolution provides more opportunity, but also Customers Who Say the Following shifts in-demand skills. More than half of customers are concerned about equal opportunity as technology advances. I want companies to advocate for equal rights 76% Over three-quarters of customers think I'm more loyal to companies that value equality 73% companies are responsible for ensuring that everyone has a fair shot at technology-driven I expect companies to clearly state their opportunities. A separate study found an position on equal rights 71% overwhelming share of people want companies I won’t buy from companies that to prepare their existing and future workforces don’t value equality 55% for new careers as technology evolves.* Views on equal access to technology-driven opportunities are an example of a broader Equal Opportunity Is Top of Mind as Technology Advances trend: the rising importance of a company’s stance on equal rights. 71% of customers expect companies to clearly state their position on equal rights. 77% 67% 56% of customers think of customers think of customers are worried companies are responsible emerging technology will about equal opportunity as for ensuring equal access provide opportunity to technology advances to technology-driven more people opportunities * “Ethical Leadership and Business,” Salesforce Research, February 2019. See pages 57 and 58 for additional data segmentations. Salesforce Research
04 Corporate Values Sway Buying Decisions 24 State of the Connected Customer Shareholder interest is the guiding light of Corporate Responsibility Factors into the Path to Purchase business. But customers expect companies to consider a broader set of stakeholders who may or may not benefit financially. For instance, companies benefit a great deal Millennials/Gen Zers Millennials/Gen Zers from the communities where they do business, Gen Xers Gen Xers be it from local talent pools, civic infrastructure, Silents/Baby Boomers Silents/Baby Boomers or other resources. The majority of customers believe this relationship should be mutually 56% 65% beneficial, and seek to buy from companies that give back. Seventy-six percent of customers think companies are responsible for giving back to the communities where of customers actively of customers actively they do business. seek to buy from seek to buy from philanthropic companies environmentally Weighing even more on customers’ minds is 70% sustainable companies business’ role in tackling humanity’s greatest challenge: climate change. Seventy-eight 64% 58% percent of customers think companies are 61% 50% responsible for taking steps to reduce 55% climate change. The youngest generations, who will experience the greatest effects, are the most likely to shun companies that prioritize short-term profits over the planet’s wellbeing. 74% of customers say a company’s sustainability practices matter more than they did a year ago. Salesforce Research See pages 57 and 58 for additional data segmentations.
Last Look State of the Connected Customer 25 How Well Are Industries Engaging Customers? Different industries evolve at different paces, As Some Sectors Elevate Engagement, Others Stagnate and some — due to ingenuity, resources, lack of regulation, or a myriad of other factors — Customer Industry Rankings for Experience* are able to adapt to changing standards of engagement better than others. Bottom Ranking Industries Top Ranking Industries for Experience for Experience In a digital world, it may come as little surprise that customers are far and away Technology 8% 45% most likely to include technology in their lists of best industries for experience. Travel, Travel, transportation, 17% 35% transportation, and hospitality — an industry and hospitality with many businesses whose stated purpose Retail 16% 34% is to comfort its customers — also gets high marks, as does an industry that has 15% 33% Consumer goods experienced its fair share of disruption: retail. Healthcare 30% 29% Customers are least impressed with the experiences provided by governments — a Nonprofit 18% 22% likely symptom of perennial funding challenges — and are also unenthusiastic Financial services 39% 22% about the experiences afforded by the highly regulated financial services industry. Education 23% 21% Another tightly regulated industry — healthcare — gets mixed reviews, with nearly Media and 33% 21% communications the same share of customers naming it as one of the best industries as those naming Manufacturing 19% 15% it one of the worst. Automotive 21% 14% Government 60% 9% Salesforce Research See pages 59 and 60 for additional data segmentations. * Respondents were asked to rank the top three and bottom three industries by experience.
State of the Connected Customer 26 Country Profiles Please keep in mind that cultural bias impacts survey results across countries. Salesforce Research
Country Profile State of the Connected Customer 27 Australia/New Zealand (535 customers) Extraordinary Experiences Raise the Bar for Customer Engagement New Expectations Shift the Digital Transformation Playbook All Customers Millennials/Gen Zers Gen Xers Silents/Baby Boomers 68% I use a connected device 82% 82% of customers expect 63% companies to use new 66% of customers 60% of customers say it 54% of customers say technologies to create better experiences I view voice assistants as revolutionary 54% expect connected generally feels like they're companies need to 58% experiences communicating with transform how they 46% separate departments, engage with them I trust companies to use AI in a not one company way that benefits me I can think of an example of AI 46% I use every day I'm open to the use of AI to 47% improve my experiences 32% 55% 13% I would rather use self-service for I expect companies to communicate 90% questions/issues simple with me in real time 66% 74% Trust Becomes More Important, Yet More Elusive I believe trust in companies matters I don’t believe companies care more than it did a year ago about the security of my data Customers Who List the Following as Preferred Channels 77% 41% 39% I have stopped buying from a company I believe most companies aren’t Online chat/live support 17% 44% that did something distrustful transparent about how they use my data (e.g., popup windows on website) 52% 65% 66% Mobile app 35% 9% 35% 55% Corporate Values Sway Buying Decisions Text/SMS 29% 18% 31% 35% I believe a company’s ethics matter more than they did a year ago I won’t buy from companies that don’t value equality Online communities (i.e., forums) 25% 6% 25% 39% 77% I actively seek to buy from 55% I actively seek to buy from Voice assistants (e.g., Siri, Alexa) 16% 1% 19% 23% philanthropic companies 52% environmentally sustainable companies 64% Salesforce Research
Country Profile State of the Connected Customer 28 Canada (535 customers) Extraordinary Experiences Raise the Bar for Customer Engagement New Expectations Shift the Digital Transformation Playbook All Customers Millennials/Gen Zers Gen Xers Silents/Baby Boomers 64% I use a connected device 74% 71% of customers expect 55% companies to use new 57% of customers 53% of customers say it 43% of customers say technologies to create better experiences I view voice assistants as revolutionary 44% expect connected generally feels like they're companies need to 47% experiences communicating with transform how they 36% separate departments, engage with them I trust companies to use AI in a not one company way that benefits me I can think of an example of AI 35% I use every day I'm open to the use of AI to 39% improve my experiences 27% 43% 14% I would rather use self-service for I expect companies to communicate 90% questions/issues simple with me in real time 60% 70% Trust Becomes More Important, Yet More Elusive I believe trust in companies matters I don’t believe companies care more than it did a year ago about the security of my data Customers Who List the Following as Preferred Channels 66% 32% 33% I have stopped buying from a company I believe most companies aren’t Online chat/live support 19% 34% that did something distrustful transparent about how they use my data (e.g., popup windows on website) 45% 58% 64% Mobile app 25% 10% 26% 38% Corporate Values Sway Buying Decisions Text/SMS 20% 10% 19% 29% I believe a company’s ethics matter more than they did a year ago I won’t buy from companies that don’t value equality Online communities (i.e., forums) 14% 3% 14% 25% 64% I actively seek to buy from 50% I actively seek to buy from 9% 3% Voice assistants 7% philanthropic companies environmentally sustainable companies (e.g., Siri, Alexa) 16% 46% 52% Salesforce Research
Country Profile State of the Connected Customer 29 France (540 customers) Extraordinary Experiences Raise the Bar for Customer Engagement New Expectations Shift the Digital Transformation Playbook All Customers Millennials/Gen Zers Gen Xers Silents/Baby Boomers 69% I use a connected device 80% 69% of customers expect 45% companies to use new 57% of customers 59% of customers say it 50% of customers say technologies to create better experiences I view voice assistants as revolutionary 51% expect connected generally feels like they're companies need to 44% experiences communicating with transform how they 49% separate departments, engage with them I trust companies to use AI in a not one company way that benefits me I can think of an example of AI 40% I use every day I'm open to the use of AI to 39% improve my experiences 20% 55% 14% I would rather use self-service for I expect companies to communicate 90% questions/issues simple with me in real time 59% 66% Trust Becomes More Important, Yet More Elusive I believe trust in companies matters I don’t believe companies care more than it did a year ago about the security of my data Customers Who List the Following as Preferred Channels 66% 46% 36% I have stopped buying from a company I believe most companies aren’t Online chat/live support 34% that did something distrustful transparent about how they use my data (e.g., popup windows on website) 31% 40% 64% 66% Mobile app 28% 19% 23% 35% Corporate Values Sway Buying Decisions Text/SMS 24% 23% 24% 25% I believe a company’s ethics matter more than they did a year ago I won’t buy from companies that don’t value equality Online communities (i.e., forums) 16% 11% 12% 21% 66% I actively seek to buy from 46% I actively seek to buy from Voice assistants (e.g., Siri, Alexa) 8% 6% 9% philanthropic companies 48% environmentally sustainable companies 63% Salesforce Research
Country Profile State of the Connected Customer 30 Germany (536 customers) Extraordinary Experiences Raise the Bar for Customer Engagement New Expectations Shift the Digital Transformation Playbook All Customers Millennials/Gen Zers Gen Xers Silents/Baby Boomers 58% I use a connected device 78% 72% of customers expect 48% companies to use new 57% of customers 51% of customers say it 39% of customers say technologies to create better experiences I view voice assistants as revolutionary 46% expect connected generally feels like they're companies need to 39% experiences communicating with transform how they 34% separate departments, engage with them I trust companies to use AI in a not one company way that benefits me I can think of an example of AI 52% I use every day I'm open to the use of AI to 49% improve my experiences 33% 46% 21% I would rather use self-service for I expect companies to communicate 90% questions/issues simple with me in real time 46% 59% Trust Becomes More Important, Yet More Elusive I believe trust in companies matters I don’t believe companies care more than it did a year ago about the security of my data Customers Who List the Following as Preferred Channels 72% 47% 29% I have stopped buying from a company I believe most companies aren’t 15% 33% that did something distrustful transparent about how they use my data Mobile app 38% 48% 58% Online chat/live support (e.g., popup windows on website) 28% 15% 28% 38% Corporate Values Sway Buying Decisions Online communities (i.e., forums) 20% 10% 20% 27% I believe a company’s ethics matter more than they did a year ago I won’t buy from companies that don’t value equality Text/SMS 18% 12% 18% 24% 69% I actively seek to buy from 42% I actively seek to buy from Voice assistants (e.g., Siri, Alexa) 12% 8% 10% 17% philanthropic companies 34% environmentally sustainable companies 58% Salesforce Research
Country Profile State of the Connected Customer 31 Hong Kong (535 customers) Extraordinary Experiences Raise the Bar for Customer Engagement New Expectations Shift the Digital Transformation Playbook All Customers Millennials/Gen Zers Gen Xers Silents/Baby Boomers 80% I use a connected device 97% 96% of customers expect 95% companies to use new 77% of customers 66% of customers say it 70% of customers say technologies to create better experiences I view voice assistants as revolutionary 57% expect connected generally feels like they're companies need to 60% experiences communicating with transform how they 59% separate departments, engage with them I trust companies to use AI in a not one company way that benefits me I can think of an example of AI 56% I use every day I'm open to the use of AI to 60% improve my experiences 48% 70% 39% I would rather use self-service for I expect companies to communicate 90% questions/issues simple with me in real time 78% 75% Trust Becomes More Important, Yet More Elusive I believe trust in companies matters I don’t believe companies care more than it did a year ago about the security of my data Customers Who List the Following as Preferred Channels 72% 45% 57% I have stopped buying from a company I believe most companies aren’t 51% 67% that did something distrustful transparent about how they use my data Mobile app 49% 59% 68% Online chat/live support (e.g., popup windows on website) 46% 37% 40% 57% Corporate Values Sway Buying Decisions 37% 40% Text/SMS 32% I believe a company’s ethics matter I won’t buy from companies more than they did a year ago that don’t value equality 35% Online communities 35% 34% 73% 57% (i.e., forums) I actively seek to buy from I actively seek to buy from Voice assistants (e.g., Siri, Alexa) 29% 27% 30% philanthropic companies 71% environmentally sustainable companies 71% Salesforce Research
Country Profile State of the Connected Customer 32 India (535 customers) Extraordinary Experiences Raise the Bar for Customer Engagement New Expectations Shift the Digital Transformation Playbook All Customers Millennials/Gen Zers Gen Xers Silents/Baby Boomers 92% I use a connected device 90% 93% of customers expect 89% companies to use new 92% of customers 75% of customers say it 85% of customers say technologies to create better experiences I view voice assistants as revolutionary 90% expect connected generally feels like they're companies need to 92% experiences communicating with transform how they 91% separate departments, engage with them I trust companies to use AI in a not one company way that benefits me I can think of an example of AI 90% I use every day I'm open to the use of AI to 72% improve my experiences 76% 90% 74% I would rather use self-service for I expect companies to communicate 90% questions/issues simple with me in real time 86% 89% Trust Becomes More Important, Yet More Elusive I believe trust in companies matters I don’t believe companies care more than it did a year ago about the security of my data Customers Who List the Following as Preferred Channels 88% 51% 86% I have stopped buying from a company I believe most companies aren’t 85% 89% that did something distrustful transparent about how they use my data Mobile app 80% 70% 71% Online chat/live support (e.g., popup windows on website) 82% 77% 81% 86% Corporate Values Sway Buying Decisions Online communities (i.e., forums) 72% 54% 73% 75% I believe a company’s ethics matter I won’t buy from companies 70% 71% more than they did a year ago that don’t value equality Voice assistants 87% 69% (e.g., Siri, Alexa) 67% I actively seek to buy from I actively seek to buy from Text/SMS 65% 58% 68% 71% philanthropic companies 82% environmentally sustainable companies 87% Salesforce Research
Country Profile State of the Connected Customer 33 Italy (535 customers) Extraordinary Experiences Raise the Bar for Customer Engagement New Expectations Shift the Digital Transformation Playbook All Customers Millennials/Gen Zers Gen Xers Silents/Baby Boomers 81% I use a connected device 87% 88% of customers expect 76% companies to use new 70% of customers 54% of customers say it 52% of customers say technologies to create better experiences I view voice assistants as revolutionary 61% expect connected generally feels like they're companies need to 63% experiences communicating with transform how they 56% separate departments, engage with them I trust companies to use AI in a not one company way that benefits me I can think of an example of AI 54% I use every day I'm open to the use of AI to 44% improve my experiences 37% 63% 24% I would rather use self-service for I expect companies to communicate 90% questions/issues simple with me in real time 59% 74% Trust Becomes More Important, Yet More Elusive I believe trust in companies matters I don’t believe companies care more than it did a year ago about the security of my data Customers Who List the Following as Preferred Channels 71% 36% 52% I have stopped buying from a company I believe most companies aren’t Online chat/live support 51% that did something distrustful transparent about how they use my data (e.g., popup windows on website) 37% 64% 62% 51% Mobile app 40% 30% 32% 55% Corporate Values Sway Buying Decisions Online communities (i.e., forums) 27% 22% 26% 32% I believe a company’s ethics matter I won’t buy from companies 23% more than they did a year ago that don’t value equality 20% 17% 34% 71% 63% Text/SMS I actively seek to buy from I actively seek to buy from Voice assistants (e.g., Siri, Alexa) 19% 16% 20% 21% philanthropic companies 54% environmentally sustainable companies 75% Salesforce Research
Country Profile State of the Connected Customer 34 Japan (535 customers) Extraordinary Experiences Raise the Bar for Customer Engagement New Expectations Shift the Digital Transformation Playbook All Customers Millennials/Gen Zers Gen Xers Silents/Baby Boomers 71% I use a connected device 21% 26% of customers expect 21% companies to use new 58% of customers 54% of customers say it 35% of customers say technologies to create better experiences I view voice assistants as revolutionary 55% expect connected generally feels like they're companies need to 53% experiences communicating with transform how they 49% separate departments, engage with them I trust companies to use AI in a not one company way that benefits me I can think of an example of AI 59% I use every day I'm open to the use of AI to 28% improve my experiences 29% 55% 22% I would rather use self-service for I expect companies to communicate 90% questions/issues simple with me in real time 73% 55% Trust Becomes More Important, Yet More Elusive I believe trust in companies matters I don’t believe companies care more than it did a year ago about the security of my data Customers Who List the Following as Preferred Channels 74% 42% 27% I have stopped buying from a company I believe most companies aren’t 16% 27% that did something distrustful transparent about how they use my data Mobile app 39% 69% 64% Text/SMS 24% 16% 27% 28% Corporate Values Sway Buying Decisions Online communities (e.g., forums) 19% 11% 21% 25% I believe a company’s ethics matter I won’t buy from companies 18% more than they did a year ago that don’t value equality Online chat/live support 11% 20% 74% 57% (e.g., popup windows on website) 24% I actively seek to buy from I actively seek to buy from Voice assistants (e.g., Siri, Alexa) 13% 11% 14% 15% philanthropic companies 56% environmentally sustainable companies 56% Salesforce Research
Country Profile State of the Connected Customer 35 Singapore (535 customers) Extraordinary Experiences Raise the Bar for Customer Engagement New Expectations Shift the Digital Transformation Playbook All Customers Millennials/Gen Zers Gen Xers Silents/Baby Boomers 82% I use a connected device 85% 86% of customers expect 84% companies to use new 78% of customers 66% of customers say it 70% of customers say technologies to create better experiences I view voice assistants as revolutionary 48% expect connected generally feels like they're companies need to 57% experiences communicating with transform how they 58% separate departments, engage with them I trust companies to use AI in a not one company way that benefits me I can think of an example of AI 63% I use every day I'm open to the use of AI to 56% improve my experiences 53% 75% 41% I would rather use self-service for I expect companies to communicate 90% questions/issues simple with me in real time 76% 71% Trust Becomes More Important, Yet More Elusive I believe trust in companies matters I don’t believe companies care more than it did a year ago about the security of my data Customers Who List the Following as Preferred Channels 81% 44% 56% I have stopped buying from a company I believe most companies aren’t 59% that did something distrustful transparent about how they use my data Mobile app 47% 60% 73% 74% Online chat/live support (e.g., popup windows on website) 56% 42% 60% 62% Corporate Values Sway Buying Decisions Text/SMS 41% 39% 42% 44% I believe a company’s ethics matter more than they did a year ago I won’t buy from companies that don’t value equality Online communities (i.e., forums) 40% 30% 42% 45% 77% I actively seek to buy from 50% I actively seek to buy from Voice assistants (e.g., Siri, Alexa) 30% 25% 29% 35% philanthropic companies 56% environmentally sustainable companies 64% Salesforce Research
Country Profile State of the Connected Customer 36 Spain (536 customers) Extraordinary Experiences Raise the Bar for Customer Engagement New Expectations Shift the Digital Transformation Playbook All Customers Millennials/Gen Zers Gen Xers Silents/Baby Boomers 84% I use a connected device 83% 79% of customers expect 76% companies to use new 70% of customers 61% of customers say it 49% of customers say technologies to create better experiences I view voice assistants as revolutionary 67% expect connected generally feels like they're companies need to 66% experiences communicating with transform how they 60% separate departments, engage with them I trust companies to use AI in a not one company way that benefits me I can think of an example of AI 60% I use every day I'm open to the use of AI to 31% improve my experiences 15% 65% 10% I would rather use self-service for I expect companies to communicate 90% questions/issues simple with me in real time 57% 77% Trust Becomes More Important, Yet More Elusive I believe trust in companies matters I don’t believe companies care more than it did a year ago about the security of my data Customers Who List the Following as Preferred Channels 68% 39% 36% I have stopped buying from a company I believe most companies aren’t Online chat/live support 30% 48% that did something distrustful transparent about how they use my data (e.g., popup windows on website) 26% 73% 59% Mobile app 30% 19% 24% 44% Corporate Values Sway Buying Decisions Online communities (i.e., forums) 18% 11% 14% 25% I believe a company’s ethics matter I won’t buy from companies 11% more than they did a year ago that don’t value equality 9% 11% 72% 63% Text/SMS 12% I actively seek to buy from I actively seek to buy from 7% 4% Voice assistants 5% philanthropic companies environmentally sustainable companies (e.g., Siri, Alexa) 11% 52% 65% Salesforce Research
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