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10 Leading Customer Experience Trends for 2017

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Page 1: 10 Leading Customer Experience Trends for 2017 · 2017-01-12 · 10 Leading Customer Experience Trends for 201 Page 6 3. The Chatbot Will Demand Customer Respect Today, customer service

10 Leading Customer Experience Trends for 2017

Page 2: 10 Leading Customer Experience Trends for 2017 · 2017-01-12 · 10 Leading Customer Experience Trends for 201 Page 6 3. The Chatbot Will Demand Customer Respect Today, customer service

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IntroductionAs consumers become more empowered, organizations need to think about what it truly means to be “customer centric”. The best brands are the ones that have complete control over the entire customer experience. These are the companies that understand the nuances of the marketplace and know how to tailor service accordingly.

Since customer expectations are changing just as rapidly as the advances in technology, enhancing the customer experience is an ongoing goal for most companies. Dimension Data found that over 82% of companies recognize the customer experience as a competitive differentiator, and 77.5% recognize it as the most important strategic performance measure. To stay competitive in the year ahead, it’s essential that you understand the most important trends.

Here are 10 leading customer experience trends for 2017.

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1. First You Get the Knowledge, Then You Get the PowerDimension Data’s “Global Contact Center Benchmarking Report” found that personalization of services supported by data analytics is the top trend that will change the call center industry in the next 5 years.

In this comprehensive report by Forbes Insights called, ”Data Elevates the Customer Experience,” business leaders were asked a number of questions about the effect of data analytics on their organizations.

When asked if data analytics has changed how managers deliver superior experiences, Figure 1 shows that 42% believed there will be a visible change in the next 2 years.

Figure 1: Data Analytics Still Two Years Away from Transforming the Customer Experience

When asked where their organization is reaping the most benefits from data analytics, 62% agreed that decision making is faster, while 47% saw an increase in sales revenue (Figure 2).

However, the report reveals that visibility into customer activity is low, with only a handful of enterprises (6%) currently capable of seeing the entire breadth of their customers’ experiences. Moreover, Dimension Data’s study of contact center analytics found that, while 71.5% say analytics enables better agent performance, 49.3% don’t share customer intelligence outside of the contact center. This is arguably why only 34.2% use analytics to personalize solutions and services, and only 23% can provide a customized customer experience based upon user profile and analytics.

So what can call center leaders learn from this? First of all, they must be ready to lean on metrics to drive growth in 2017, and secondly, they must learn how to dissect and share data better across each channel to improve the customer experience.

Figure 2: Data Analytics Speeds Decision Making

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2. Virtual Assistants Are the New BlackGartner reports that by 2020, 30% of web browsing sessions will be done without using a screen, but rather through voice. Yet, to date, mass adoption of virtual assistants has been slow to transpire. Curiously, there are two main reasons for this delay:

#1 Marketing

Virtual assistants have been marketed as a consumer application, where a human can engage in two-way communication within a personal device. However, in 2017, a new wave of enterprise applications that harness intelligent virtual assistants are poised for proliferation (Siri, Alexa, and Google Now). For example, Amazon Echo will allow guests of the Wynn Hotel to query Alexa for room and hotel information. Additionally, Domino’s Pizza has introduced customers to ‘Dom‘ their virtual ordering assistant.

This new generation of virtual assistants is dependent on the development of improving speech recognition technology.

#2 Speech Recognition Technology

In the call center, speech recognition software has been used to handle incoming customer calls; however, the technology has often left customers feeling frustrated and searching for human support.

Ongoing research in the field of speech analytics supports the prediction that the technology will propel virtual assistants forward in 2017. In a report by Opus Research, 247 out of 500 decision-makers (49%) have deployed speech analytics at their enterprises and organizations. Of those respondents, 83% achieved their expected return on investment within 12 months, with one-third receiving a return on investment in just 6 months.

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Two years ago, The Wall Street Journal published an analysis of the top four virtual assistants: Alexa, Siri, Cortana, and Google Now. Reporter, Geoffrey A. Fowler, observed how well the technologies responded to speech recognition, and found that Apple’s Siri had the greatest speech capabilities, while Amazon’s Alexa scored the lowest.

Over the past couple years, with rapid technological advancements, Amazon Echo, powered by Alexa, has displayed growth in speech recognition, launching as a customer service and hospitality tool.

With constant improvement, speech recognition can be used to successfully handle up to 85% of incoming customer calls, lower costs, and improve the experience in 2017. By year-end 2018, 25% of customer service and support operations will integrate virtual customer assistant technology across all engagement channels.

“She becomes our butler, at the service of each of our guests. I have never, ever seen anything that was more intuitively dead on to making a guest experience seamlessly delicious, effortlessly convenient than the ability to talk to your room.”

− Steve Wynn, CEO, Wynn Hotels

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3. The Chatbot Will Demand Customer RespectToday, customer service needs to be around-the-clock; more than half of customers say a business needs to be available 24/7. In order for a company to provide consistent, timely support, chatbots are a useful alternative to satisfy customer expectations (while preventing agent burnout).

Chatbots work alongside human agents to provide a top-notch, optimized, cost-effective customer engagement strategy that can skyrocket an organization to the forefront of today’s customer experience world. As companies begin to harness this technology, learn from past mistakes, and improve capabilities through AI and speech recognition, chatbots will begin to earn the respect of users.

With chatbots, consumers can access flight data, redeem rewards, find answers to questions, receive offers, and much more. This, all at a reduced cost per contact for businesses.

Today, businesses should expect chatbots to respond to short, straightforward, automated queries as explained below. Despite its simplicity, bot innovation should not be brushed aside as juvenile. Not only does it serve as a 24/7 customer service hotline for frequently asked questions, it allows for human agents to dedicate more time to assisting more complex issues, thus freeing up other customer service channels, and redistributing time and cost more effectively.

So, how will chatbots bring greater experiences in 2017? Well, it’s simply in the way they are built. The more often bots are used by humans, the more they will learn and adapt to the language, and the more intuitive they will get.

“It is so much easier to do everything in one place that has the context of your last interactions, as well as your identity -- no need to ever login -- rather than downloading apps that you’ll never use again and jumping around from one app to another.”

− David Marcus, Vice President of Messaging Products, Facebook

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4. Self-Service is Even More ImportantOver 90% of US contact centers deal with a significant proportion of non-voice interactions, such as email or web chat, as well as telephony. Most customers today don’t want to waste time and energy navigating complex IVRs and connecting to an agent over a simple query. Part of a balanced experience is empowering customers to solve problems or issues themselves. In fact, almost 74% of decision makers vote customer experience as the top reason for offering self-assisted service channels.

Aberdeen reports that companies with self-service programs enjoy an 85% year-over-year increase in customer retention rates, compared to those without self-service. Therefore, by including easily accessible online FAQs, mobile and web based self-service options, businesses can yield significant returns.

That said, it’s important to note that the quantity of self-service tools are not what makes the difference, but rather the quality. Self-check-in and check-outs are notorious for delivering poor customer experiences. So, when deploying self-service options in 2017, ensure that extra effort is made with design and UX. Furthermore, if technology does fail – be it by user error or by design – ensure there is an easy way to escalate from any channel to a live agent.

5. Mobile Will Take the LeadIn 2017, mobile search will generate 27.8 billion more queries than desktop search. Consumers use mobile devices more frequently to access information about the brand, products, and to make purchases.

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However, according to Gartner, through 2018, the lack of in-line contextual knowledge or support in mobile applications will lower customer satisfaction by 5%. As shown below, bad mobile experiences can hurt a brand’s reputation dramatically, and even lower engagement.

For many businesses, building new support technology within an existing mobile interface is time consuming and costly. If companies want to capture customers, and remain competitive, a cloud-based solution like Fonolo’s “Mobile Rescue“ is a fast and functional alternative. Mobile Rescue lets customers easily connect to a live agent, directly from within a brands mobile app. With one tap, customers can request support and avoid hold time.

In 2017, service leaders should be able to provide every customer with a seamless mobile support experience.

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6. Clear Guidance to Fewer ChannelsIn 2017, contact centers will reportedly offer customers an average of 9 channel options for support. That’s a lot of choice with very little direction, and can lead to exhausted customer effort. In the book “The Effortless Experience”, the authors found that 96% of customers who had high-effort experiences reported being disloyal.

Customers want businesses to take the guesswork out of support. When they use a channel to communicate, they anticipate it will deliver the fastest response, and if not, they will move to a different channel, or abandon contact altogether. But with the breadth of available channels, it’s nearly impossible to tell which one is the best to use, and for what. Additionally, too many options can cause “decision fatigue” (Figure 3) much like ‘app fatigue’, where customers are overwhelmed by channels, and prefer to have one holistic method of contact.

“Channel choice is an idea companies invented. Customers don’t want choice, they want channel guidance.”

− Matt Dixon, Group Leader at CEB and co-author of “The Effortless Experience”

Figure 3: Channel Choice is Important but Payoff Drops After a Certain Point

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The ability to escalate conversations within channels is a great way of reducing customer effort, while maintaining context. Fonolo’s “Chat-to-Voice” feature improves the omni-channel customer experience. When customers hit a roadblock on chat, agents can now send them to a live voice representative without having to start over. Using Fonolo’s call-back solutions, contact centers can escalate conversations from chat to voice, all while preserving context. The same solution can be used for web and mobile applications as well.

Rather than offering customers more channel options in 2017, instead provide clearer guidance to fewer channels and funnel conversations through agent-enabled escalation. Connected customer journeys need to be a top focus for the industry.

7. Customer Experiences Are Shared InstantlyCustomers enjoy sharing both good and bad experiences online. Zendesk found that while 45% of customers will share negative reviews on social media, only 30% will share positive reviews. As the global social network audience grows to 2.55 billion in 2017, why not boost the amount of positive experiences your customers are sharing? “The Future of Customer Service: Fives Consumer Trends and Best Practices” by Micah Solomon, outlines customer experience sharing in action, and many companies are taking full advantage of this idea!

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Warby Parker encourages customers to try on eyeglass frames, take pictures and share them socially to get reactions and “votes”. Drybar incentivizes customers to share their post-blowout selfie on Facebook, with an opportunity to go on their “celebrity wall”. And Nordstrom lets customers choose clothes in the “dressing room” section of its app, to share and get opinions.

The bottom line: In 2017, create great experiences and make it easy for customers to share them socially.

8. Even Loyal Customers Will Refuse to WaitGone are the days when quality products were worth the wait. Consumers want what they want, and they want it now. They know that if one business can’t deliver a product or service fast enough, another one will. According to Forrester, 55% of US adults are likely to abandon their online purchase if they can’t find a quick answer to their question, and 77% say that valuing their time is the most important thing a company can do to provide them with good online customer service. 81% of all consumers agree that it is frustrating to be tied to a phone or computer to wait for customer service help.

No matter what channel a customer is using, time is of the essence, and loyalty is at risk around every corner. In fact, up to 25% of loyal customers will switch brands simply because they are tired of being kept on hold.

But why should businesses care about retaining existing customers when they can just attract new ones? Well, according to a recent study by StitchLabs, over the course of a year, the average return customer spends over 120% more than new customers. In Figure 4, it’s clear that no matter the industry, loyal customers are always worth more.

So, ask yourself:

1. Do we offer call-backs?

2. Do we offer call-backs on different channels, including chat, web, and mobile?

3. If yes, is our call-back solution effectively reducing abandon rates, and by how much?

Why call-backs? Well, 75% of customers prefer a call-back to waiting on hold. Therefore, this simple solution can curb customer churn and reduce costs yearly.

For more information read the eBook: The ROI of Call-Backs for Your Call Center.

Figure 4: Loyal Customers Spend More Annually Industry-Wide

In 2017, customer experience leaders should be aware of the value time has on business. As mentioned earlier, if customers can’t find answers to uncomplicated questions quick enough, self-service and FAQs are critical options to provide. But loyal customers rarely need answers to basic questions.

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9. Empowered Agents Will Improve the Human-to-Human ExperienceThough there is a transition towards automated and self-service support, humans will still play a key role in quality customer service in 2017. Dimension Data predicts that in the next year, agents will now be focused on resolving user issues “in-channel” and providing assisted support for integrated digital channels.

FAQ pages, virtual assistants, and online bookings are driving the self-service generation, however, where self-service and technology fails, human contact must step in. Klaus Schwab, founder of the World Economic Forum, suggests that, “…a resurgence of desire for personal contact may be the key to humanity’s endurance in the face of growing technological supremacy. People are capable of layering everyday customer transactions with meaning and imbuing faceless companies with that quality technology still lacks: humanity.” For companies that want to establish a reputation of customer excellence, human mediators will serve to be critical. Fonolo customer, Edge Imaging, explains how they utilize agents alongside technology:

It may sound simple, but many contact centers fail to empower agents to do this. For more information on the voice channel and the importance of human interactions, watch “Is the Voice Channel Still Relevant?“ with speakers from Zendesk, Forrester, Plantronics and more:

“We practice active listening; acknowledge the customer has been heard and ask questions to help solve the issue quickly.”

– Natalie Garcia, Customer Care Agent, Edge Imaging

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10. Machines Will Learn How to Deliver Better ExperiencesIt’s a bird, it’s a plane…no it’s a drone. Gartner predicts that by 2018, the total cost of business operations will be reduced by 30% through smart machines and industrialized services. In 2017, businesses who want to reduce costs and add value to the customer experience will use research and development to explore the advantages of these devices.

Two key examples stand out: drones and driverless vehicles. Amazon patent filings reveal how drone technology can be used to deliver packages right to a customer’s door. Additionally, ride-hailing services like Uber now offer trips in self-driving cars (currently still manned by humans).

Ann-Marie Stagg, founder of the Call Centre Managers Association (CCMA) explains:

The fact is that consumers demand speedy delivery, and by ignoring smart machines, companies are putting loyalty at risk:

The influence smart machines can have on the customer experience is endless. In 2017, these devices will make headway and will begin to transform the way customer experiences are received and delivered. Only time will tell how far these innovations will go.

ConclusionWe’re in the middle of what many people are calling the ‘Age of the Customer’, where customers expect consistent experiences across different channels (including in-person and digital). They don’t care if providing these experiences is difficult, or if it requires a complex approach using multiple departments. Customers simply want to be catered to, and will go elsewhere if you can’t do that. Keep your organization focused on the customer experience and you’re sure to stay one step ahead.

“The old loyalties that previous generations have shown to brands will disappear as shopping (like almost everything else) becomes multi-national and multi-optional.”

“Consumer patience with perceived slow service is very short; where customers have a choice of supplier they will increasingly drop a poor provider and move to someone slicker, faster and cooler.”

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Fonolo: Call-Back Solutions for the Call CenterWith Fonolo, your customers will never wait on hold again, regardless of where the conversation begins – web, mobile or inbound call. Our cloud-based technology easily hooks into your existing call center infrastructure, with minimal impact to your business processes.

Join Us for a LIVE Demo Learn how Fonolo can help you lower abandon rates, reduce costs and improve the customer experience.

Why Call-Backs? • Happier Customers

• Lower Telco Costs

• Less Abandonment

• Shorter Handle Times

• Smoother Call Volume

75% say the option for a call-back is “highly

appealing”.

32% average reduction in abandon rate with call-backs.

Jeannie Sugaoka, Senior VP Support Services, Technology Credit Union

“Fonolo was the easiest implementation of any service that I’ve ever encountered!”