forrester: what is happening in customer service - oracle · what is happening in customer service...

What Is Happening In Customer

Service Kate Leggett

VP, Principal Analyst, Forrester Research

April 1, 2015

© 2015 Forrester Research, Inc. Reproduction Prohibited 3

We Still Don’t Do A Good Job At Delivering Positive Customer Experiences


We have entered the “age of the customer”

Source: October 10, 2013, “Competitive Strategy In The Age Of The Customer” Forrester report


Customers control the conversation that they have with businesses

The CIO's Blueprint For Strategy In The Age Of The Customer, September 12, 2014


Use customer

experiences as a

key competitive

differentiator

Companies view

customer

experience as one

of their top

priorities

Source: The State Of Customer Experience, Management, 2014


Few businesses deliver an outstanding experience

Source: January 21, 2014, “The Customer Experience Index, 2014”

53%

Very Poor (0 to 54)

42%

Poor ( 55 to 64)

OK (65 to 74)

Good ( 75 to 84)

Excellent ( 85+)

37%

11% 10%

1%


Good customer experiences are good for business

Source: June 27, 2014 “What drives a profitable customer experience”

Retention

loyalty

Enrichment

loyalty

Advocacy

loyalty The likelihood that a

customer will keep

existing business

with the company

The likelihood that a

customer will buy

additional products

and services from

the company

The likelihood that

a customer will

recommend the

company to

others


Customers expect consistent engagement during their journey

Source: May 2014 “Brief: Systems Of Engagement Take Center Stage”


Realize that customer experience drivers are industry specific

Wireless service providers live or die by their websites.

Frontline employees carry the airline experience to new heights.

Credit card companies can't leave any questions unanswered.

TV service providers need to make both prices and bills crystal clear.

Insurance providers must prove their reliability with every interaction.


Pinpoint your unique customer experience attributes

Source: Brandon Schauer, Vice President of Creative Services, Adaptive Path


Define customer-centric measures of success

Outside-In Perspective

Productivity/efficiency

Customer satisfaction/NPS

Customer retention

Increased revenue and company profitability


Source: December 2014, “The State Of Customer Experience Maturity”

Put in place Customer Experience Revenue models


Focus On Four Dimensions To Improve Customer Service Experiences


PAIN FREE PROACTIVE

PERSONALIZED PRODUCTIVE

Customer service should be……


PAIN FREE PROACTIVE




Understand that your customers expect effortless service

55% will abandon

online purchases if

they can’t find a

quick answer For 77%, valuing their

time is the most

important thing a

company can do to

provide good service

Source: Channel Management Core To Your Customer Service Strategy: Jan 20, 2015


Customers increasingly rely on self-service

Help or FAQs

on a company

website

Phone

Email

Chat

Twitter



BT achieves very high self-service rates


27%

33%

45%

2009 (N=4,569)

2012 (N=7,411)

2014 (N=7,522)

“I like having an instant messaging/online chat box appear and ask if I need help with my online research or purchase”

Base: US online adults (18+); Source: North American Technographics Customer Experience Online Survey, Q4 2009, North American

Technographics Customer Experience Online Survey, Q4 2012 (US), North American Technographics Customer Experience Survey, 2014

Channel uptake changes year over year



Realize that your customers are deeply mobile enabled

Source: North American Consumer Technographics Online Benchmark Survey (Part 1), 2014

Laptop Desktop Smartphone Tablet

Millennials 80% 51% 84% 46%

Total US* 71% 63% 67% 40%

Base: 18,511 US online adults (Online Weekly or More) (ages 18 to 33)

*Base: 58,583 US online adults ( Online Weekly or More) (ages 18+)


Make mobile customer service easy


May 2014 “How Companies Improved Their Customer Experience Index Scores, 2014”


Support customers in their end-to-end journeys


PAIN FREE PROACTIVE




Text Email

Web Chat

Phone

IVR Chat

Customers expect proactive service


It’s a flight alert that lets you close the loop

Source: November 2013 “Anticipate Your Customer’s Next Move With Proactive Experiences”


Or a real-time fraud notification


Or proactive chat


Or a relevant offer


Or data from connected devices


PAIN FREE PROACTIVE


Customer service should be…


Situation

Profile

Prediction

• Device / Channel

• Location

• Time of day

• Historical past

• Immediate past

• Current session

• Likely next steps

Customers want personalized engagement


Breakfast

Snack Dinner After Dinner

Put personalization and proactive engagement together


Google Now uses machine learning to proactively deliver relevant information

November 2013 “Anticipate Your Customer’s Next Move With Proactive Experiences”


Personalize engagement using decisioning

Predictive Customer

Engagement

Understand Customers and their behavior

Choose the right upsell

or cross-sell

Get the work to the right person or

system

Guide the Sales/Service

Experience

Connect the customer to

the right agent


Virgin Media uses decisioning to get work to the right service technician

Source: www.oracle.com/us/corporate/customers/customersearch/virgin-media-1-toa-cs-2348204.html


PAIN FREE PROACTIVE




Organizations struggle with a complex infrastructure


As a result, most businesses can’t provide consistent experiences

5%

3%

Source: December 2013 Global eBusiness and Channel Strategy Professional Online Survey


Guide agents through resolution paths

April 2012 “The Process-Driven Business Of 2020”


Xoom guides customers through questions


Web

Self-service

Deliver consistent knowledge across all touchpoints

@

eMail Phone

Forums

Social

Web

Co-browse

Feedback Chat

Search


Allow your agents to collaborate


ACQUISITION

EFFICIENCY

RETENTION

Measure for success


Empower employees to better serve your customers

Source: June 2014 “Serving Your Customer-Obsessed Employees”

Fifty-Eight Percent Of All Employees Engage With Customers


PAIN FREE PROACTIVE




How? Evolve Your Operations

Channel

Strategy

Business

Value

Strategy

Modern

Customer

Service

Technology

Adoption

Strategy

forrester.com

Thank you

Kate Leggett

[email protected]

@kateleggett

mailto:[email protected]

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