2021 apac cx maturity report - verizon.com

2021 APAC CX MATURITY REPORT

2

F O R E W O R D

Dr. Steve NuttallDirector

A year ago, when we published our 2020 CX Maturity report, we were in the early stages of the COVID-19 pandemic. Organisations were scrambling to protect their staff, facilitate home-

working and respond to unpreceded customer needs.

The way ahead was fraught with risks around revenue, profit, brand reputation and a genuine existential threat. This great societal and economic disruption has forced companies to rethink their business models, accelerate their digital transformation programs and respond to rising

customer expectations.

Working as a high-octane accelerant, the pandemic has triggered a rapid shift towards agility, digital and customer-centricity. Those that were already positioned on the right side of these

trends have used the pandemic as a catalyst to transform and grow their business.

By embracing innovation and enabling a remote, distributed workforce, CX Leaders in the APAC region are emerging from the pandemic with potent new tools in their management toolkit

that lead to increased employee productivity and C-suite support.

While there is no universal playbook to achieving CX success, this report sets out the necessary foundations and steps to take which can help you transform your CX performance and deliver

better customer outcomes.

I would like to extend our gratitude to Verizon who, once again, sponsored and supported us through the project. It is with great pleasure that we release this report.

Rob Le BusqueRegional Vice President, Asia Pacific

Verizon Business Group

To put it mildly, the past 15 months have been a period of great change and opportunity. Personally, managing a business dispersed across the Asia-Pacific region, particularly in a market that strongly values face-to-face interactions, has presented a really unique set of

challenges.

Many of us have been caused to blend our work, and our home lives, more so than before. To further complicate matters, the education sector has had to adjust as students learn remotely, putting more pressure on the family household. All of our experiences vary. For some of us, the

transition has been easier than others.

What is clear in all of these changes is that the desire to interact with a business or an institution in a seamless, digitised experience is more valued than ever before. Especially

today.

Together with Fifth Quadrant, we polled over 400 decision-makers in Singapore, New Zealand and Australia to get their views on how they deliver meaningful experiences to their customers. While some of the results may be unsurprising, they certainly give insight into how businesses

have had to adapt to change in the last 15 months.

While it would be almost cliched to say that leaders who invest in Customer Experience enjoy higher growth and success (even if it holds true), what is often not discussed is the role

empathy plays. Those who place a high degree of trust in their employees such as supporting flexible working arrangements will see higher levels of productivity.

CONTENTS

1. Objectives & Methodology

2. Sample

3. Maturity Model

4. CX Trends and Impact of COVID-19

5. CX Strategy

6. Measuring the ROI From CX

7. Multichannel Status/ Integration

8. Technology and Telephony Infrastructure

9. The Future of Contact Centre Operations

10. Artificial Intelligence

4

C O N T E X T

Expanding the scope to APAC, and understanding the impact

of the COVID-19 Pandemic

The 2020 CX Maturity Report was a strategic study about the state of CX Maturity in Australia. The report

presented a CX Maturity Model, and identified a CX Flywheel Effect. Fieldwork was conducted just prior to

the outbreak of COVID-19

The 2020 CX Maturity Reportn=201 Australian CX Decision Makers

The 2021 CX Maturity Report has evolved to incorporate decision makers across the APAC region

(Australia, New Zealand, and Singapore), and address the role of COVID-19 in the current Customer

Experience. The 2021 research also looks into the role that contact centres play in delivering CX.

The 2021 APAC CX Maturity Report

n=404 APAC CX Decision Makers

5

O B J E C T I V E S

OVERARCHING RESEARCH AIM:To provide a comprehensive analysis of the current status of Customer Experience maturity in the APAC region.

Impact of COVID-19 and the post-pandemic customer

experience

CX strategy, and multi-channel maturity

Future of CXTechnology and Telephony

infrastructure

Understanding the impact COVID-19

had on the ability to deliver CX

strategy across the region, and how

the strategy has evolved to be

successful in a post-pandemic

environment.

Understanding the current level of CX

maturity, and Multi-channel maturity

amongst APAC businesses.

Understand what priorities businesses

are setting to future proof their CX

strategies.

Understand how CX is being delivered

through the different channels, the

level of integration, and the role of

contact centres in the CX Strategy.

6

M E T H O D O L O G Y

404 CX Decision Makers completed a 20 minute online survey

The sample for the survey covered organisations based in Australia, New Zealand, and Singapore. All respondents were CX Decision Makers working in organisations with 100 or more employees

The sample covered a range of businesses by size, industry and location

CX Decision makers in Singapore were also servicing, on average, three other ASEAN markets, such as Malaysia, Thailand, Indonesia, and Vietnam.

Fieldwork was conducted between 8th January – 19th January 2021

CONTENTS


2. Sample

3. Maturity Model


5. CX Strategy






8Base: Total respondents (n=404)S6. In which country are you located?

For the APAC region, our sample consisted of CX decision makers across Australia, New Zealand, and Singapore

S A M P L E

Regions

Australian=198

New Zealandn=105

Singaporen=101

n =

404

CX Dec is ion Makers

9Base: Total respondents (n=404)S1. What is your job title? S3. Approximately how many staff does your organisation employ in Australia?S4. Are your organisation’s customers primarily consumers, other businesses or a combination?

Our sample covered a robust range of businesses in terms of size, primary customers, and the role of the respondent

S A M P L E

39%

22%

30%

10%

100-499 employees

500-999 employees

1,000-4,999 employees

5,000+ employees

40%

60%

< 1 0 0 0

1 0 0 0 +

28%

15%

56%

Business toConsumer

Business toBusiness

Combination ofConsumer &

Business

33%

22%

17%

14%

8%

6%

GM / DepartmentManager

Organisational Heads

Chief Executive Officer(CEO)

Customer Heads

Divisional GM /Director

Other

(Chief Customer Officer, Head of Customer Insight, Head of

Contact Centre, Head of CX, Chief Marketing Officer, Head of Sales)

(CFO, CIO, COO, Strategy director)

Business SizePrimary CustomersJob Title

10

9 % F I N A N C I A L S E R V I C E S

2 5 %S E R V I C E S

1 1 % D I S T R I B U T I O N

1 6 % E D U / H E A L T H / G O V

1 7 % W H O L E S A L E & R E T A I L

2 2 % P R O D U C T I O N

Base: Total respondents (n=404)S5. What industry classification best represents your organisation’s principal business activity?

Our sample also covered a range of industries across the APAC region

S A M P L E

Industry

17%6%

3%

17%5%

8%5%

3%1%

7%5%

4%

6%5%

9%

Information Technology (IT)Professional Services

Telecommunications & Media

ManufacturingConstruction

RetailWholesaleHospitality

Tourism and Entertainment

EducationHealth

Government & NFP

Transport and FreightEnergy and Utilities

Banking and Finance & Insurance

CONTENTS


2. Sample

3. Maturity Model


5. CX Strategy






12

M AT U R I T YM O D E L/ 1 0 0

Q16. Using a scale of 0 to 10 where 0 is an Extremely poor performance and 10 is an Excellent performance, how would you rate your organisation's performance in the following areas regarding customer experience initiatives?

Organisations demonstrating a high level of CX maturity have created a capability encompassing strategy, data, metrics, people and technology

The maturity model assesses how well APAC organisations are performing on the core capabilities of CX management and identifies which components need to be strengthened. In addition, the model can be used as a diagnostic tool, to assess an individual organisation’s performance and benchmark to their competitor set

T H E C X M A T U R I T Y M O D E L

C X M A T U R I T Y A S S E S S M E N T F R A M E W O R K

• Having defined metrics across the business to measure the impact of customer experience• Having an established feedback loop to ensure all employees have visibility to ongoing performance measures• Measuring the return on investment for customer experience initiatives

Measurement /20

• Having customer experience platforms and tools that are tightly integrated with enterprise wide IT systems• Integrating all channels (phone, email, chat, social, mobile, commerce) to deliver a low effort experience for the customer• Implementing self-service channels to allow customers to manage and monitor their accounts and reduce cost to serve

Technology /20

• Having people with the right skills to implement customer experience initiatives• Empowering employees at all levels to innovate and deliver against customer experience initiatives• Routinely collecting and using staff feedback to drive better employee and customer outcomes

Teams And People /20

• Working collaboratively with customers to co-create new experiences, products and services• Routinely collecting and using customer feedback to improve the customer experience• Using data and analytics to improve the customer experience

Insights & Analytics /20

• Having a leadership team who are committed to, and active in the customer experience strategy• Aligning the organisational strategy to customer experience outcomes• Having a customer promise/charter that is embedded throughout the organisation

Strategy & Leadership /20

13

16% 30% 31% 24%

0 TO 64Laggards

65-74Followers

75-84Progressives

85 TO 100Leaders

Base: Total respondents (n=404)

The region is divided into four levels of maturity based on how organisations perform across each dimension of the model, with over half of organisations classified as Progressives or Leaders

C X M A T U R I T Y M O D E L - A P A C

The scope for improvement for the majority of organisations is significant, even in the Leader group there is significant opportunity to optimise their CX

Maturity Score

Nu

mb

er o

f O

rgan

isat

ion

s

14Base: Australia respondents (2021 n=198, 2020 n=201)

Australian organisations are becoming more mature, with the proportion of leaders increasing by 5% to nearly a quarter of all organisations

C X M A T U R I T Y M O D E L – A U S T R A L I A O N LY

Australia

In the context of the highly challenging conditions of the coronavirus pandemic, it is encouraging to see that Progressives and Leaders have fared well which indicates they were better prepared to meet the challenges

2020 Curve

2021 Curve

20% 25% 32% 23%

0 TO 64Laggards

65-74Followers

75-84Progressives

85 TO 100Leaders

Maturity Score

Nu

mb

er o

f O

rgan

isat

ion

s

15Base: New Zealand respondents (2021 n=105, 2020 n=201)

New Zealand’s CX maturity is similar to Australia, with a slightly lower proportion of Laggards

C X M A T U R I T Y M O D E L – N E W Z E A L A N D

New Zealand

20% 25% 32% 23%

0 TO 64Laggards

65-74Followers

75-84Progressives

85 TO 100Leaders

Maturity Score

Nu

mb

er o

f O

rgan

isat

ion

s

16Base: Singapore respondents (2021 n=101, 2020 n=201)

Singapore’s level of CX maturity is markedly different with fewer Laggards and a much higher proportion of Followers

C X M A T U R I T Y M O D E L – S I N G A P O R E

Singapore

9% 43% 24% 25%Nu

mb

er o

f O

rgan

isat

ion

s

Maturity Score

0 TO 64Laggards

65-74Followers

75-84Progressives

85 TO 100Leaders

17

16% 30% 31% 24%

0 TO 64Laggards

65-74Followers

75-84Progressives

85 TO 100Leaders





Maturity Score

Nu

mb

er o

f O

rgan

isat

ion

s

Financial Services

Services

Health/Gov/Edu

Production

Distribution75.4

75.6

75.7

76.0

79.6

Average Maturity Scores:

Wholesale & Retail73.6

75.475.6

75.776.0

79.6

75.8 NET

73.6

18

16% 30% 31% 24%

0 TO 64Laggards

65-74Followers

75-84Progressives

85 TO 100Leaders





Maturity Score

Nu

mb

er o

f O

rgan

isat

ion

s

S

XL

L

5 0 0 - 9 9 9 E M P L O Y E E S – 7 5 . 8 5 0 0 0 + E M P L O Y E E S – 7 7 . 9

1 , 0 0 0 - 4 , 9 9 9 E M P L O Y E E S – 7 6 . 5

1 0 0 - 4 9 9 E M P L O Y E E S – 7 4 . 7

M

19

77.4 76.5 75.4 74.8 74.8

60.557.3

54.5 53.8 53.1

71.7 71.1 70.3 69.8 69.9

81.3 80.5 79.9 78.8 79.1

91.2 91.1 90.5 90.2 90.2

Base: Total respondents (n=404). Leaders n=95, Progressives n=124, Followers n=120, Laggards n=65.

The greatest gaps between Leaders and Laggards arises in their People, Technology and Measurement capabilities

Laggards should start by baselining their CX capabilities and building out a roadmap to fill out their key gaps, ultimately demonstrating the commercial value of their CX investments in order to engage the Leadership

C X M A T U R I T Y S TA T U S

Technology MeasurementStrategy & Leadership

Insights & Analytics

Teams &People

LaggardsFollowersProgressivesLeaders

NET

CX Maturity Aspects by Maturity Groups

20

Technology MeasurementStrategy & Leadership

Insights & Analytics

Teams &People

77.3

76.0 76.3

74.8

75.6

76.6

75.675.1

74.8

75.7

74.0

75.3

73.3 73.072.5

79.7

77.4

74.974.4

72.3

77.8

75.7

74.4 74.5 74.7

80.680.2

79.6

78.978.5

Services Production Wholesale & Retail Edu/Health/Gov Distribution Financial Services

Retail and wholesale lags behind other sectors on all dimensions which reflects the challenges this vertical has faced during COVID-19

Base: Total respondents (n=404). Services n=99, Production n=88, Wholesale & Retail n=68, Edu/Health/Gov n=64, Distribution n=43, Financial Services n=37.

Performance across each dimension varies by industry, with Financial Services being ahead of all other sectors on technology and Government performing well on strategy and leadership but weaker on measurement

C X M A T U R I T Y S TA T U S

CX Maturity Aspects by Industry

21

The concept of the Flywheel Effect was termed by Jim Collins in his book Good to Great. The components within it help it to build momentum almost by itself

CX Flywheel Effect turns through a process of continuous improvement, constant optimisation, measuring impact and aligning the leadership team.

Great customer experience has a flywheel effect which turns through a process of continuous improvement, constant optimisation, measuring impact and aligning the leadership team, and helps organisations to build momentum

T H E F LY W H E E L E F F E C T

I N C R E A S I N G L E A D E R S H I P S U P P O R T

I N C R E A S I N G A L I G N M E N T A N D E M P O W E R M E N T

C O N T I N U O U S I M P R O V E M E N TC O N S T A N T

O P T I M I S A T I O N

https://www.jimcollins.com/tools/How-does-your-flywheel-turn.pdf

22

CX leaders have a high level of support from their CEOs and have a clear commercial focus for their CX programs which drives their CX flywheel forward

T H E C X F LY W H E E L I N A C T I O N : L E S S O N S F R O M T H E L E A D E R S

I N C R E A S I N G L E A D E R S H I P S U P P O R TI N C R E A S I N G A L I G N M E N T A N D

E M P O W E R M E N T

C O N T I N U O U S I M P R O V E M E N TC O N S T A N T O P T I M I S A T I O N

Having a leadership team who are committed to and active in the customer experience strategy

Having people with the right skills to implement customer experience initiatives

Working collaboratively with customers to co-create new experiences, products and services

Empowering employees at all levels to innovate and deliver against customer experience initiatives

Having a customer promise/charter that is embedded throughout the organisation

Aligning the organisational strategy to customer experience outcomes

Having customer experience platforms and tools that are tightly integrated with enterprise wide IT system

Routinely collecting and using staff feedback to drive better employee and customer outcomes

Routinely collecting and using customer feedback to improve the customer experience

Using data and analytics to improve the customer experience

Implementing self-service channels to allow customers to manage and monitor their accounts and reduce cost to serve

Measuring the return on investment for customer experience initiatives

Having defined metrics across the business to measure the impact of customer experience

Having an established feedback loop to ensure all employees have visibility to ongoing performance measures

Integrating all channels (phone, email, chat, social, mobile, commerce) to deliver a low effort experience for the customer

9.3

8.9

9.0

9.1

9.0

8.9

8.0

9.1

9.1

9.0

9.1

9.2

9.2

9.0

9.1

Average CX Leader Scores (out of 10) for core CX capabilities

CONTENTS


2. Sample

3. Maturity Model


5. CX Strategy






24

Followers appear to be more aligned to Laggards in their attitudes and response to the impact of COVID-19 which indicates they may struggle to keep pace with Progressives and Leaders

Base: Total respondents (n=404). Leaders n=95, Progressives n=124, Followers n=120, Laggards n=65. Q46. To what extent do you agree or disagree with each of the following statements?

With CX expectations rising, Leaders see CX as a key differentiator in a post COVID-19 world and have responded by supporting their teams with flexible working arrangements and increasing their commercial focus on CX by only supporting programs that demonstrate a clear ROI

C U S T O M E R E X P E R I E N C E T R E N D S

=5% Above/Below NET

Physical and digital channels are becoming more integrated

Customer expectations of experience have increased significantly because of COVID-19

Employee experience is as important as customer experience (if not more so)

Organisations that offer more flexible working arrangements will attract the best consumer

experience talent

Customer experience will be a key differentiator in a post COVID-19 world

Demand for personalised & customised experiences will continue to grow

The leadership in our organisation will only support customer experience programs that

can demonstrate a clear ROI

30%

30%

28%

28%

27%

26%

24%

18%

15%

19%

21%

18%

23%

11%

12%

22%

11%

17%

20%

14%

15%

55%

45%

51%

45%

47%

40%

45%

32%

36%

30%

28%

24%

25%

23%

Laggards Followers Progressives LeadersNET

Customer Experience Trends - % Strongly Agree

25

By prioritising flexible working arrangements, Leaders are demonstrating trust in their employees, which has enhanced and motivated their commitment to an organisation-wide CX Strategy

Base: Total respondents excluding ‘Not Sure/Don’t Know’ and ‘Not Applicable’ (n=382). Leaders n=86, Progressives n=120, Followers n=114, Laggards n=62. Q48. Overall, how would you rate the productivity of your team members when working from home?

Progressives and Leaders have invested more in the employee experience, and are seeing the return on this through higher levels of productivity when staff have been working from home during the COVID-19 crisis

R E M O T E W O R K I N G P R O D U C T I V I T Y

Slightly better than when working at the office/workplace

Much worse than when working at the office/workplace

About the same

Much better than when working at the office/workplace

Slightly worse than when working at the office/workplace

15%

28%

35%

19%

4%

6%

37%

32%

19%

5%

10%

18%

40%

29%

3%

17%

30%

36%

13%

4%

27%

22%

31%

17%

2%


Productivity When Working From Home

26

Contact Centre agents are a key touchpoint between a business and its customers; and hence investing in their WFH set ups should flow through to a better customer experience, in addition to increased productivity

Base: Respondents that have at least one contact centre, excluding don’t know/ NA (n=257). Leaders n=57, Progressives n=79, Followers n=83, Laggards n=38. Q50. Overall, how would you rate the productivity of your contact centre agents when working from home?

When it comes to Contact Centre agents, ensuring they have the right technology and working environment available will have a significant impact on their productivity. Again, Leaders are seeing a higher level of productivity, though this is offset by a quarter of leaders seeing agent productivity somewhat diminished

R E M O T E W O R K I N G P R O D U C T I V I T Y

Slightly better than when working at the office/workplace

Much worse than when working at the office/workplace

About the same

Much better than when working at the office/workplace

Slightly worse than when working at the office/workplace

10%

33%

39%

16%

2%

1%

34%

49%

14%

1%

0%

32%

45%

24%

0%

15%

37%

34%

9%

5%

23%

26%

25%

25%

2%


Productivity of Contact Centre Agents When Working From Home

27

To prepare for employees to return to the office, it’s essential to integrate physical and digital channels (including internal communications), to allow for flexible working arrangements in the post-pandemic workplace

Base: Total respondents (n=404). Leaders n=95, Progressives n=124, Followers n=120, Laggards n=65. Q47. When will the majority of your staff be back in the office/workplace?

Leaders recognise the contribution of having staff in the office to the CX culture, with three quarters expecting to have the majority returning Mid-2021

R E T U R N I N G T O T H E O F F I C E


When Will Staff Return to the Workplace?

1% 2% 1%8% 11% 12% 7% 4%

21%

29%21% 22%

13%

34%

28%

33% 35%

39%

30%25% 30% 29%

36%

Already back in theoffice/workplace

First half of 2021 (January – June)

Second half of 2021 (July – December)

2022 or later

Never

53% 63% 64% 75%64%% Expecting to have

majority back in 6 months

28

30%

34%

21%

8%

1%

5%

32%34%

21%

6%

0%

8%

34%33%

17%

8%

2%3%

23%

36%

23%

15%

1%3%

NET Australia New Zealand Singapore

With staff returning to offices, the usage of virtual collaboration technology will remain essential in the long term

Base: Total respondents (n=404). Australia n=198, New Zealand n=105, Singapore n=101. Q47. When will the majority of your staff be back in the office/workplace?

While two thirds of Australian and New Zealand businesses expect to return to the office in the next 6 months, Singaporeans are more conservative with their estimated return

R E T U R N I N G T O T H E O F F I C E

Already back in the workplace

1st half of 2021 (Jan-Jun)

2nd half of 2021 (Jul-Dec)

2022 or later Never Don’t know/ too hard to predict

66% of Australians

68% of New Zealanders

59% of Singaporeans

64%expect to have the majority of staff back in the

workplace in the next 6 months

When Will Staff Return to the Workplace?

CONTENTS


2. Sample

3. Maturity Model


5. CX Strategy






30

13% 10%21%

56%55%

59%

31% 35%20%

9-10

7-8

0-6

This demonstrates the importance of an enterprise wide CX strategy to drive improvements in CX outcomes

Base: Total respondents (n=404) Q2. Thinking about your organisation’s strategies, do you have an overarching ‘enterprise wide’ customer experience strategy that covers all organisational divisions and customer contact points, across the entire organisation? Q14. Overall on a scale of 0-10, how do you rate your organisation’s current ability to deliver a high level of customer experience?

The majority of organisations have embedded an enterprise wide CX strategy, and those that have not, report a worse level of overall CX performance

C X S T R A T E G Y

Do You Have An Overarching ‘Enterprise Wide’ CX Strategy?

Planning to develop an enterprise wide CX strategy

2 6 %

Already has an enterprise wide CX strategy

2020: 25%

7 4 %

2020:75%

Average

Self Rating of Overall CX Performance

Already hasAn enterprise

wide CX strategy

Planning to develop an enterprise

wide CX strategy

NET

7.8 7.9 7.4

31

Organisations that have a C-Suite who are committed to, and responsible for CX strategy, are more likely to achieve CX success

Base: Total respondents (n=404). Leaders n=95, Progressives n=124, Followers n=120, Laggards n=65. Q1. Who in your organisation is responsible for driving customer experience strategy?

While Customer Heads are most likely responsible for driving CX strategy, Progressives and Leaders have a higher level of CEO involvement

C X S T R A T E G Y

C H I E F E X E C U T I V E O F F I C E R3 0 %

O R G A N I S A T I O N A L H E A D S2 7 %

C U S T O M E R H E A D S5 7 %

CX Maturity Status

Laggards

1 3 %

1 6 %

1 9 %

Followers

3 5 %

2 8 %

1 7 %

Progressives

2 9 %

3 0 %

3 1 %

Leaders

2 6 %

3 3 %

2 3 %

Responsible For Driving CX Strategy

32

Leaders are more likely to value having the right culture and compliance behaviours within the organisation

Base: Total respondents (n=404). Leaders n=95, Progressives n=124, Followers n=120, Laggards n=65. Q17. For each of the following statements please indicate the extent to which you agree/disagree

A robust CX Strategy starts with the right culture, which drives the employee experience, breaks down organisational silos, and reinforces a compliant and responsible approach to the use and management of customer data

C X S T R A T E G Y

34%

31%

32%

32%

31%

29%

59%

61%

60%

60%

60%

59%

93%

92%

92%

91%

91%

88%

20%

6%

15%

9%

14%

6%

60%

74%

66%

65%

62%

58%

80%

80%

82%

74%

75%

65%

23%

19%

13%

23%

15%

19%

71%

72%

75%

68%

73%

66%

93%

91%

88%

90%

88%

85%

35%

37%

42%

35%

35%

34%

61%

58%

53%

60%

63%

62%

96%

95%

95%

96%

98%

96%

57%

56%

54%

54%

59%

51%

40%

42%

45%

45%

37%

47%

97%

98%

99%

99%

96%

98%

We make it easy for customers to find and access our customer data compliance policies and processes and to report any issues

or complaints


We have documented policies and processes in place to quickly respond to and resolve any customer data breach

CX Culture and Compliance

The strong focus on company culture and employee experience within our company has a positive impact on our CX

We have robust systems and processes in place to minimise the likelihood of a high-profile customer data breach.

All departments in our organisation are very engaged when implementing and adopting new customer experience solutions

across our business

We have policies and processes in place to reassure customers that we are using their data to improve the customer experience,

rather than for our own good

= Strongly Agree

= Agree

33

Leaders seek to improve CX to gain measurable ROI through better operational efficiency and reducing operating costs – generating momentum in their CX flywheel

Base: Total respondents (n=404). Leaders n=95, Progressives n=124, Followers n=120, Laggards n=65. Q13. What are the key drivers for improving the customer experience in your organisation?

Leaders have a clear commercial focus for CX and are seeing the business outcomes such as reduced operating costs, increased customer retention, and less churn. On the other hand, Laggards are primarily focused on increasing customer retention

C X S T R A T E G Y

=5% Above/ Below NET

51%

46%

54%

34%

45%

34%

26%

22%

20%

57%

46%

45%

38%

41%

36%

28%

25%

27%

44%

51%

46%

47%

39%

35%

32%

32%

28%

61%

63%

51%

52%

44%

44%

43%

43%

31%

Improving employee engagement and satisfaction

Increasing customer retention

Improving the customer experience to meet customer expectations

Improving operational efficiency

Reduce/prevent customer churn

Reducing operating costs

Desire for business growth

Competitive pressures

To become/remain a CX leader within our industry

53%

51%

48%

43%

42%

37%

33%

31%

27%


Key Drivers for Improving Customer Experience

34

Improving the employee experience

Digital transformation

Personalisation of experiences

Reducing effort for customers

Cheaper products/services for customers

Creating a seamless omni-channel experience

Measuring customer feedback

Capturing data and insights

Implementing artificial intelligence

14%

11%

6%

11%

17%

8%

8%

11%

11%

16%

13%

15%

15%

8%

8%

10%

10%

5%

14%

13%

10%

13%

8%

15%

13%

10%

6%

19%

13%

16%

8%

14%

12%

7%

7%

4%

Laggards lack a clear set of priorities, and should shift from a cost-based differentiator in their CX Strategy, and instead focus on capturing actionable customer feedback, and embedding this into a program of continuous improvement

Base: 2020: Total respondents (n=404). Leaders n=95, Progressives n=124, Followers n=120, Laggards n=65. Q45.What does your organisation see as the top priority in improving your customer experience over the next 12 months?

Digital transformation is the top priority for improving CX, with Leaders also focusing on customer feedback which is acted upon to optimise a more personalised experience.

C X S T R A T E G Y

= Top Priorities

Top Priorities to Improve CX


16%

13%

12%

12%

11%

11%

10%

9%

6%

35

4%

14%

48%

34%

5%

13%

47%

35%

2%12%

46%

40%

Channel strategy success looks like a real time, right place, personalised experience that is predictive and optimised to the device

Base: Total respondents (n=404) Q23. How important to your channel strategy success is it to achieve the following?

Businesses are focussing on four key areas for a successful channel strategy which will help deliver an improved overall experience

C H A N N E L S T R A T E G Y

4%

13%

41%

42%

85%Providing Customer Experiences That Are Responsive To A Customer Based On Real

Time, In The Moment Behaviour

83%Providing PersonalisedCustomer Experiences

82%Providing Customer Experiences

That Are Responsive To A Customer Based On Previous Behaviour

82%Providing Customer Experiences

That Are Optimised To The Device

Neither Important Nor Unimportant

Somewhat Important

Extremely Important

Not Important

Importance of the following to the CX Strategy

36Base: Total respondents (n=404) Q18. What are the main obstacles to your organisation’s customer experience improvement efforts? Q19. What is the most significant obstacle to your organisation’s customer experience improvement efforts?

The main obstacles to improving CX are other competing priorities, a lack of budget and departments acting in silos

C X C H A L L E N G E S

This clearly shows that the real barriers to delivering a great CX are often internal organisational weaknesses rather than a failure of technology or poor-quality data

Insights & Analytics29%Technology37%Teams & People63%Strategy & Leadership65% Measurement23%

Departments acting in silos

Lack of alignment with other

department

Too many other competing priorities

Lack of budget/funding

Lack of proof points about

financial benefits

Unclear understanding of

customers & needs

Lack of channel integration

Lack of customer insight

Inadequate technology &

systems

Lack of data/ poor quality

data

10% 10%7%

4% 6% 4% 5% 5% 4% 3%

23%21%

23%22%

19%

14%

20%

13%14%

12%

Obstacles to Improving CX

Most Significant Obstacle

Other Main Obstacles

37

Lack of employee engagement

Lack of cross-function teams

Departments acting in silos

Lack of people with the right skills

Lack of defined implementation plan/roadmap

Lack of organisational commitment

Lack of alignment with other departments

Initiatives are not properly coordinated

Too many other competing priorities

CX goals and strategy not defined

Lack of budget/funding

Lack of proof points about financial benefits

Inadequate technology systems

Lack of channel integration

Lack of customer insight

Lack of data/poor quality data

Unclear understanding of customers & needs

Inadequate telephony systems

This demonstrates the inherent structural weaknesses in organisations that are CX Laggards

Base: Total respondents (n=404). Leaders n=95, Progressives n=124, Followers n=120, Laggards n=65. Q18. What are the main obstacles to your organisation’s customer experience improvement efforts?

Laggards are struggling to overcome barriers such as siloed behaviour, a lack of alignment with other departments and a lack of skills

C X C H A L L E N G E S

Obstacles to Improving CX

23%

21%

17%

16%

14%

14%

23%

22%

21%

20%

16%

19%

14%

11%

20%

13%

14%

12%

Laggards Followers Progressives LeadersNET=5% Above/ Below NET

25%

18%

23%

26%

15%

22%

35%

31%

25%

34%

17%

18%

9%

6%

22%

8%

15%

3%

23%

21%

16%

16%

15%

12%

21%

24%

18%

18%

18%

21%

18%

11%

14%

17%

18%

10%

23%

20%

16%

9%

11%

14%

16%

16%

21%

17%

15%

19%

12%

11%

25%

10%

9%

15%

22%

23%

16%

18%

14%

14%

25%

22%

22%

17%

15%

19%

14%

13%

18%

17%

15%

17%Mea

sure

men

t

An

alyt

ics

&

Ingi

ht

Team

s &

Peo

ple

Stra

tegy

& L

ead

ersh

ipTe

ch

CONTENTS


2. Sample

3. Maturity Model


5. CX Strategy






39

40% 42%

32%28%

34%

22%15%

44% 43%38%

34% 35%

23% 23%

52%47%

39%43%

35% 34%28%

56%51% 49% 48%

38%42% 41%

LAGGARDS FOLLOWERS PROGRESSIVES LEADERS

The volume and flow of unstructured data is increasing exponentially presenting organisations with a significant analytics challenge. This represents a significant opportunity for AI systems to collate, analyse and interpret unstructured data to provide actionable, real time feedback

Base: Total respondents (n=404). Leaders n=95, Progressives n=124, Followers n=120, Laggards n=65. Q43. What data is your organisation collating to improve the customer experience?

Structured data remains the most common type of data collected; however, Leaders are utilising a wider range of data sources to gain a wholistic understanding of their CX performance

M E A S U R E M E N T

Data being collected as a part of the CX Strategy

Unstructured Data (Data Stored In Its Native Format And Not Easily Processed And Analysed)

Structured Data (Clearly Defined Data Types That Are Easily Searched And Analysed)

Customer Feedback Streams

49%Customer

Transaction Data

46%Social Media Data

40%Web Browsing

Data

39%CRM Data

36%Data Generated By Connected Devices

31%Mobile Device

User Generated Data

27%

40

KPIs such as efficiency, profit, and customer retention along with measuring the employee experience provide a more commercial understanding of CX outcomes

Base: Total respondents (n=404) Q40. What is the main KPI (Key Performance Indicator) your organisation uses to measure the success of customer experience initiatives across multiple channels? Q41. What other KPIs does your organisation use to measure the success of customer experience initiatives across multiple channels?

A broad suite of KPIs are being used to measure CX performance including a mix of lead and lag measures


KPIs used to Measure CX

22%

9%14%

8% 7%10%

5% 6% 8%3% 3% 3%

50%

39%

34%

32% 31% 30%29%

27%25%

18% 17% 16%

Main KPI

Other KPIs Used

Customer satisfaction

Employee engagement

and satisfaction

Customer retention

Revenue Profit Customer advocacy

(NPS)

Productivity and

operational efficiency

Cost savings Customer lifetime value

Customer effort

Share of wallet (%)

Negative churn

41

CX Leaders are focusing on the key drivers of financial performance in order to prove the ROI of CX and increase leadership support

Base: Respondents with KPIs (n=400). Leaders n=93, Progressives n=123, Followers n=119, Laggards n=65. Q40. What is the main KPI (Key Performance Indicator) your organisation uses to measure the success of customer experience initiatives across multiple channels? Q41. What other KPIs does your organisation use to measure the success of customer experience initiatives across multiple channels?

Leaders are measuring a wide variety of KPIs, with a focus on CSAT, Operational Efficiency, and Customer Lifetime Value


=5% Above/Below NET

Customer satisfaction

Employee engagement and satisfaction

Customer retention

Revenue

Profit

Customer advocacy (NPS)

Productivity and operational efficiency

Cost savings

Customer lifetime value

Customer effort

Share of wallet (%)

Negative churn

50%

40%

36%

36%

35%

33%

32%

21%

27%

23%

23%

15%

50%

39%

34%

32%

31%

30%

29%

27%

25%

18%

17%

16%

46%

37%

25%

28%

25%

29%

28%

23%

22%

11%

9%

23%

47%

40%

31%

27%

24%

29%

25%

28%

23%

15%

16%

9%

55%

39%

43%

35%

38%

28%

33%

38%

31%

21%

18%

22%

KPIs used to measure CX


1111

1

22

2

3

3

3

3

3

3

1

2

3

#1 in Main KPI

#2 in Main KPI

#3 in Main KPI

42

Leaders are likely to be seeing improvements in customer satisfaction, operational efficiency and customer-lifetime value

Base: Respondents with KPIs (n=400). Leaders n=93, Progressives n=123, Followers n=119, Laggards n=65. Q44. How the coronavirus pandemic impacted your customer experience KPIs?

Over 50% of Leaders have seen improvement in KPIs throughout the pandemic, as compared to under a quarter of Laggards


20% 20% 22% 22%16%

35%

57%

39%30%

22%

34%

23%

36%

38%

33%

11%3%

10%

29%Significantlyimproved

Slightlyimproved

Stayed the same

Declined

Impact of COVID-19 on CX KPIs


43

Services and manufacturing businesses appear to have fared better during COVID-19 with many seeing their CX KPIs improve

Base: Respondents with KPIs (n=400). Gov/Health n=62, Services n=104, Distribution n=110, Manufacturing n=87, Financial Services n=37. Q44. How has the coronavirus pandemic impacted your customer experience KPIs?

Sectors which have been under significant pressure during COVID-19 such as Government, Health, Education and Distribution have seen more of a decline in their CX KPIs


20%29%

15%26%

15% 14%

35%

44%

29%

40%

34%

24%

34%

26%

38%

31%

32%49%

11%2%

17%

3%

18% 14%

Significantlyimproved

Slightlyimproved

Stayed thesame

Declined

Impact of COVID-19 on CX KPIs

Gov/ Health/Education

Financial Services

ManufacturingDistributionServicesNET

CONTENTS


2. Sample

3. Maturity Model


5. CX Strategy






45

New channels such as Webchat and Chatbots will help to manage the cost to serve and should make it easier for customers to interact with organisations at a time and place that is convenient to them

Base: Total respondents (n=404) Q20. Which of the following channels are available for your customers to use to interact with your organisation?

Organisations are planning to introduce more digital channels to the mix, which will present new integration challenges in delivering a seamless multi-channel experience

M U LT I C H A N N E L S TA T U S

2%

12%

11%

12%

13%

16%

22%

20%

20%

18%

22%

28%

15%

16%

18%

18%

22%

22%

16%

20%

25%

26%

31%

28%

83%

72%

71%

70%

65%

62%

62%

60%

55%

55%

48%

44%

Email

Phone (mainly handled by agent after call routing)

In person at a branch or office

Social media

Self-Service/online

Phone (mainly handled by IVR)

Phone (mainly handled by speech recognition)

SMS

Instant Messaging

Smartphone app

Webchat

Chatbot

No plans to introduce Introduce in 12 months Currently offer

Current Channels Offered

Channels are offered on

average

7.5

7.4channels

7.2channels

8channels

46

The challenge for Laggards will be introducing new channels that are integrated into the existing channel mix rather than offering customers stand alone options

Base: Total respondents (n=404). Leaders n=95, Progressives n=124, Followers n=120, Laggards n=65. Q20. Which of the following channels are available for your customers to use to interact with your organisation? - % Currently Offer

Leaders are currently offering the widest range of channels for their customers to interact with


=5% ABOVE/BELOW NET

83%

72%

71%

70%

65%

62%

62%

60%

55%

55%

48%

44%

75%

65%

60%

48%

46%

42%

37%

48%

32%

37%

34%

31%

83%

71%

68%

72%

64%

66%

63%

59%

53%

50%

44%

42%

85%

71%

75%

75%

64%

65%

66%

56%

57%

56%

51%

44%

83%

80%

79%

76%

81%

69%

75%

75%

71%

73%

57%

54%

Email



Social Media

Smartphone app

Self-service/online

SMS



Instant messaging

Webchat

Chatbot

Current Channels Offered


Average number of channels offered 7.5 5.5 7.4 7.7 8.7

47

Although self-service options provide a higher level of convenience, there remains a cohort of customers whose preference is for a point of human contact, so organisations need to understand the correct balance in their channel mix to meet the needs of all customer personas

Base: Total respondents (n=404) Q21. Will your organisation be increasing or decreasing investment in the following channels over the next 12 months?

2021 is likely to see a continuation of the shift away from human interactions towards lower cost, digital, self-service channels

M U LT I C H A N N E L I N V E S T M E N T

-2% -2% -2% -3% -2% -3% -3% -5%-7% -9% -8% -13%

59% 57% 55%51% 49%

43% 42% 41% 38%35% 33% 30%

Predicted Change in Channel Investment

EmailSmartphone App

Social Media Phone (agent)

Phone(IVR)

SMSSelf-Service/ Online

Phone (Speech

Recognition)

In Person (branch/

office)

Instant Messaging

WebchatChatbot

48

There is a clear gap between Leaders who are delivering an excellent performance across most of their channels and the other maturity groups who provide an average or sub-par experience

*Low base size (<30)Base: Respondents that currently offer the channels (n=404) Q24. How would you describe the customer experience your organisation currently delivers across channel touchpoints

Most organisations are delivering an average channel experience

C H A N N E L P E R F O R M A N C E

12%

13%

14%

16%

12%

13%

14%

15%

20%

16%

16%

19%

52%

49%

52%

49%

57%

58%

55%

54%

48%

56%

55%

49%

36%

38%

34%

35%

30%

30%

31%

31%

33%

29%

29%

32%


Instant Messaging

Self-Service/online

Smartphone app

Social media

Phone (mainly handled by speechrecognition)

Email

Phone (mainly handled by agent after callrouting)

SMS


Webchat

Chatbot

Below Average 0-6 Average 7 - 8 Excellent 9 - 10

Rating of the Channels Offered

8.0

8.0

7.9

7.8

7.8

7.8

7.8

7.8

7.8

7.7

7.7

7.7

NET

7.0

6.3*

5.9

6.4*

6.5

6.1*

6.7

6.4

6.1

6.3*

6.2*

6.2*

Laggards

7.3

7.3

7.3

7.1

7.3

7.2

7.3

7.2

7.0

7.1

7.1

6.8

Followers

8.2

8.1

7.9

8.0

8.0

7.9

8.1

8.0

7.9

7.8

7.8

7.9

Progressives

9.1

9.1

9.0

8.9

8.9

9.0

8.9

8.8

9.0

8.9

8.8

9.0

Leaders

49

There is a clear gap between Leaders and Laggards when it comes to channel performance during COVID-19 with Leaders seeing significant improvements is their chatbots, apps and self services tools

*Low base size (<30)Base: Respondents that currently offer the channels (n=404) Q25. What has been the impact of the coronavirus pandemic on the customer experience you deliver across the following channels?

Organisations believe channel performance has improved during COVID-19, with the biggest improvement seen in self-service, chat and social media channels


4%

6%

5%

7%

7%

10%

4%

8%

5%

7%

24%

10%

23%

25%

28%

29%

23%

33%

28%

32%

34%

35%

33%

32%

40%

39%

39%

36%

43%

33%

44%

38%

38%

35%

24%

40%

33%

30%

29%

28%

27%

25%

24%

23%

22%

22%

19%

18%

Smartphone app

Chatbot

Self-Service/online

Instant Messaging

Social media

SMS

Webchat


Email




Decline Stay the same Slightly improve Significantly improve

Impact of COVID-19 on CX Experience through Channels

8%*

15%*

10%*

14%*

13%

6%

0%*

13%*

8%

4%*

5%

5%

20%

16%

22%

16%

17%

13%

21%

12%

16%

18%

11%

5%

37%

27%

25%

27%

29%

26%

21%

21%

23%

19%

14%

23%

48%

53%

45%

46%

43%

44%

41%

39%

39%

39%

40%

36%

LeadersLaggards Followers ProgressivesHighlighted cells are 5% above/below the NET

% - Significantly Improve

50

While most have a defined multi-channel strategy, the majority have not fully implemented their strategy which indicates that multi-channel strategies are a work in progress

Base: Organisations with enterprise wide CX strategy (n=300). Organisations with a defined multi-channel strategy (n=231). Q4. Does your customer experience strategy include a defined multi-channel strategy (a plan to introduce new channels and migrate contact to alternate channels)? Q5. What is the current status of implementation of your multi-channel strategy?

Over three quarters of organisations have a defined multi-channel strategy, by which new channels are being introduced, migrated to or integrated


Yes, we have a defined multi-

channel strategy77%

No, but we are planning to develop one

19%

No, and no plans to develop one

4%

Implementation Status(of organisations with a multi-channel strategy)

Do You Have A Defined Multi-channel Strategy?

18%

21%

25%

16%

19%

Currently seeking/ awaiting approval

Approved and about to commence

Recently commencedimplementation (1-12 months)

Implementation in progress (13-24months)

Fully implemented and now focusedon continuous improvement

51

The integration of new and existing interaction channels results in a complex channel environment, by which full and effective integration is required to deliver the seamless CX that customers expect

Base: Organisations with an enterprise wide CX strategy (n=300). Leaders n=85, Progressives n=98, Followers n=80, Laggards n=38. Q5. What is the current status of implementation of your multi-channel strategy?

Leaders are more likely to have a fully implemented CX strategy, whilst Laggards have made less progress in their multi-channel strategy


23%

14%

16%

19%

13%

15%

Approved and about to commence

Implementation in progress (13-24 months)

Fully implemented and now focused on continuous improvement

Recently commenced implementation (1-12 months)

Currently seeking/ awaiting approval

No multi-channel strategy 28%

10%

26%

18%

6%

13%

18%

13%

16%

22%

16%

13%

47%

5%

13%

13%

13%

8%

13%

23%

8%

20%

14%

21%

Current Multichannel Status


52

43%38% 37%

26%23%

48%

40%

33%29%

26%

43% 43%40% 39%

33%

55%

43% 41%

52%

43%


Channel integration is key to delivering an omni-channel experience and requires investment in an appropriate telephony and technology infrastructure

Base: Total respondents (n=404). Leaders n=95, Progressives n=124, Followers n=120, Laggards n=65. Q22. What are the key priorities in your channels over the next 12 months?

Leaders are continuously implementing their channel strategy, as new/migrated, integrated channels allow them to simultaneously deliver a seamless experience to their customers at a lower cost serve

M U LT I C H A N N E L P R I O R I T I E S

Key Channel Priorities for the next 12 Months

Channel Integration to Provide a Seamless

Customer Experience

47%Cost to Serve Reduction

41%Migration of Lower Value

Transactions to Self Service

38%Implementing New

Channel/S

37%Migration of Interactions

to Alternate Channels

32%

53

Leaders and progressives have more realistic ambitions for channel integration which they are more likely to realise

Base: Total respondents (n=404). Leaders n=95, Progressives n=124, Followers n=120, Laggards n=65. Q26. Which of the following best describes the level of integration across your service channels now and in 12 months’ time

Laggards and Followers are optimistic about their channel integration plans, but without a well-defined multi-channel strategy it is unlikely their aspirations will materialise


Most Channels Integrated and Cross Functional

Some Channels integrated and Cross functional

Little/no Integration Across Channels

All Channels Integrated and Cross Functional

Channel Integration


9% 8%17%

11% 8% 8% 8% 7% 5% 7%

27%20%

43%

28% 33%

19% 23%18%

15%18%

39%

37%

31%

29%

46%

37%35% 47%

40% 32%

25%35%

9%

32%

13%

36% 34%28%

40% 43%

2021:Now

Predicted for 2022

2021:Now

Predicted for 2022

2021:Now

Predicted for 2022

2021:Now

Predicted for 2022

2021:Now

Predicted for 2022

54

Successful channel integration is often driven by technology leaders who understand how to design scalable and affordable solutions using platforms that are built within a secure and robust infrastructure

Base: Total respondents (n=404) Q27. What factors impede channel integration across your customer touchpoints?

A lack of talent and skills combined with budget constraints are inhibiting organisations from achieving their channel integration goals

F A C T O R S I M P E D I N G C H A N N E L I N T E G R A T I O N

Measurement45% Technology35%Strategy & Leadership51%Teams & People55%Insights & Analytics

22%

Too manyother

competing priorities

Lack of budget/ funding

Lack of organisational commitment & management

support

Organisationalstructure

Lack of data/poor

quality data

Difficulty integrating technology

and platforms

Company culture

Lack of proof points about

financial benefits

Lack of people with

the right skills

Difficulty sharing data

across organisation

Inadequate technology

and systems

Lack of customer

insight

27%25%

22%

26%

23%

17%

22%20%

16%

21% 21%22%

Integration Challenges

CONTENTS


2. Sample

3. Maturity Model

4. CX Trends and Impact Of COVID-19

5. CX Strategy






56

30%23% 25% 25% 28%

21%30%

23%

37%

24%

39%

32%

46%

28%

38%

32%

35%

32%

41%

37%

23%

21%

23%

25%

25%

24%

25%

23%

16%

14%

8%

23%

6%

23%

8%

23%

10%

22%

6%

25%

Separate, but connected technologies for different channels

Single platform that manages some channels but not others

Single platform that manages all channels

Separate non-connected technologies for different channels

A single platform can bring sales, marketing and service interactions closer together by integrating processes across all front-line teams to deliver a consistent and effective customer journey

Base: Total respondents (n=404). Leaders n=95, Progressives n=124, Followers n=120, Laggards n=65. Q28c. Which of the following statements best describes your organisation’s technology infrastructure for managing multiple channels now and in 12 months’ time

Many organisations are optimistic about the direction of their multichannel infrastructure within the next 12 months with nearly a half expecting to be operating on a single platform for channel management

M U LT I C H A N N E L I N F R A S T R U C T U R E

Multichannel Infrastructure


2021:Now

Predicted for 2022

2021:Now

Predicted for 2022

2021:Now

Predicted for 2022

2021:Now

Predicted for 2022

2021:Now

Predicted for 2022

57

Laggards are more likely to operate on-premise telephony systems which are more likely to have been non-operational during periods of lockdown in 2020

Base: Total respondents (n=404). Leaders n=95, Progressives n=124, Followers n=120, Laggards n=65. Q29. Prior to the initial outbreak of COVID-19, what telephony system was your organization operating for voice-based customer interactions? Q30. What telephony system is your organisation currently operating for voice-based customer interactions?

Over a quarter of organisations continue to operate an on-premise telephony system

T E L E P H O N Y

37%

15%17%

12% 12%

6%

28%

22%

17% 16%

12%

6%

28%

23%

8%

16% 17%

8%

24%

17%19%

13% 12%

16%


Current Telephony Systems

On Premise (IP and non-IP

enabled)

29%Cloud

20%Hybrid on-

premise/Hosted

15%Hybrid On-premise/

Cloud

15%Hybrid Hosted/ Cloud

13%Hosted

9%

58

Many Australian organisations continue to be hampered by the reduced flexibility of on-premise telephony solutions

Base: Total respondents (n=404). Australia n=198, New Zealand n=105, Singapore n=101. Q29. Prior to the initial outbreak of COVID-19, what telephony system was your organization operating for voice-based customer interactions? Q30. What telephony system is your organisation currently operating for voice-based customer interactions?

Australian organisations are much more reliant on on-premise telephony systems, whereas Singaporean organisations have embraced more hybrid models

T E L E P H O N Y

37%

21%

13%10% 11%

8%

24%

20%17%

15% 16%

8%

17% 18%16%

23%

15%12%

Australia New Zealand Singapore

Current Telephony Systems

On Premise (IP and non-IP

enabled)

29%Cloud

20%Hybrid on-

premise/Hosted

15%Hybrid On-premise/

Cloud

15%Hybrid Hosted/ Cloud

13%Hosted

9%

59Base: Respondents with at least one contact centre (n=272). Leaders n=60, Progressives n=83, Followers n=86, Laggards n=43. Q31 - Has your organsiation migrated your contact centre IT infrastructure to the cloud, either fully or partially?

Leaders are much more likely than Laggards and Followers to have migrated their contact centre IT infrastructure to the cloud

C O N T A C T C E N T R E M I G R A T I O N

5%9%

2% 5% 7%

14%

21%

13%12% 12%

53%

63%

66%

46%35%

29%

7%

19%

37%47%

Yes, we have moved all of ourcontact centre IT assets tocloud

Yes, we have moved some butnot all - we have a mix of cloudand on-premise infrastructure

No, but we are currently goingthrough researching/evaluating/ implementingcontact centre cloud solutions

Not at all

Has your organisation migrated your Contact Centre IT to the cloud?

73% Australia

89% New Zealand

89% Singapore

81%of organisations have at least partially migrated their

contact centre IT infrastructure to the cloud.


Cloud based contact centre IT solutions delivered the functionality required when organisations were faced with the twin pressures of dramatic changes in operations and major changes in customer needs and expectations during COVID-19

60

In addition, a Cloud migration can assist contact centre agents shift from on-premise to at-home work seamlessly; helping organisations to transition to a distributed, remote-working operating model

Base: Respondents that have at least partially migrated contact centre infrastructure to the cloud (n=258). Australia n=123, New Zealand n=70, Singapore n=65. Q33. What are the main drivers of contact centre cloud migration for your organisation?

Irrespective of location, all organisations that have begun their contact centre IT cloud migration agree that this is driven by a desire to access new technology features that improve CX and reduce operational costs

C O N T A C T C E N T R E M I G R A T I O N

44%

41%

37%

37%

36%

33%

33%

25%

To enable agents to work remotely

To reduce operational costs

To improve customer experiences

To respond to increased customer demand for digital channels

To access new technology features

On premises infrastructure no longer fit for purpose

46%

29%

37%

40%

33%

29%

36%

29%

49%

51%

40%

35%

42%

35%

32%

23%

41%

43%

35%

36%

36%

35%

31%

24%

Australia New Zealand SingaporeNET

To drive sales/business growth

To unlock opportunities via innovation

Main drivers of contact centre cloud migration by locationTop 3 Drivers Highlighted

CONTENTS


2. Sample

3. Maturity Model


5. CX Strategy






62

The majority of these contact centres are smaller operations with fewer than 20 seats

Base: Total respondents (n=404) Q6. How many contact centres does your organisation operate? Q7. How many contact centre seats do you currently operate?

Around two-thirds of our sample are operating a contact centre

C O N T A C T C E N T R E O P E R A T I O N S

Number of Contact Centre Seats Per Organisation

<20 Seats 20-99 Seats 100+ Seats No contact centre

40% 13% 10% 37%

63

39%

19%

31%

12%

52%

15%

25%

8%

35%

21%

30%

14%15%

24%

44%

17%


Remote or hybrid operating models that incorporate home and office-based working arrangements have proven their resilience and are the way forward for most APAC organisations

Base: Total respondents with contact centres (n=272). Australia n=135, New Zealand n=71, Singapore n=66. Q9. What are your organization’s plans for the future location of your contact centre operations?

Nearly a half of Australian organisations have plans to change current contact centre arrangements, with the majority of those in Singapore and New Zealand anticipating a shift to a remote and/or lower cost operating model


Plans for Future Location of Contact Centre

Move operations to a distributed, remote working

model with agents working from home

Move some operations to a lower cost location and some

operations to a remote working model

No change in current arrangements

Move operations to a lower cost

location

64

Leaders are leveraging the benefits of specialised contact centre operators in order to reduce costs, improve efficiency and access a broader labour pool to help achieve CX success

Base: Total respondents excluding not sure (n=385). Leaders n=90, Progressives n=119, Followers n=114, Laggards n=62. Australia n=187, New Zealand n=100, Singapore n=98Q10. Does your organisation outsource any contact centre functionality to third party providers?

Most Leaders and Singapore based organisations have a preference for outsourcing contact centre functionality, whereas many Laggards and those based in Australia are more likely to prefer an internally resourced and supported model

O U T S O U R C I N G

Singapore Leaders

51%

43%

55%

61%

48%

44%

51%

61%

New ZealandNET Australia ProgressivesLaggards Followers

By location of organisation By maturity group

Percentage of Organisations that Outsource Any Contact Centre Functionality? - % Yes

65Base: Respondents that outsource any contact centre functionality (n=196). Australia n=81, New Zealand n=55, Singapore n=60.Q12. Based on your experience during the coronavirus pandemic what are your organisations plans for outsourced contact centre functionality?

Many APAC organisations are considering moving their outsourcing arrangements to an onshore location, particularly those based in Singapore

O U T S O U R C I N G

42%

52%

6%

52%

43%

5%

45%49%

5%

27%

65%

8%


Maintain outsourcing but reallocate operations onshore

Terminate outsourcing and switch to internally operated onshore arrangement

No change in current arrangements

Plans for Outsourced Contact Centre Functionality due to COVID-19 Experiences

With some high-profile organisations having shifted their operations onshore during 2020, the question remains whether this is simply a short-term shift or a longer-term move to integrating support roles back into the business

66

Supporting this hybrid model will require a cultural transformation where agents are fully supported and equipped to work remotely and trusted by leaders and managers to deliver

Base: Respondents with at least one contact centre (n=201). Australia n=95, New Zealand n=53, Singapore n=53. Q49. What portion of you contact centre agents are working from home?

A hybrid model of remote and office-based work has become the new normal for contact centres across the APAC region


5%

18%

25%

33%

15%

3%

8%

20%

23%25%

19%

4%4%

11%

28%

43%

13%

0%0%

21%

26%

38%

11%

4%


None 2-24% 25-49% 50-74% 75-99% 100%

Proportion of Contact Centre Agents Working From Home

45% Australia

47% New Zealand

47% Singapore

46%of agents are working from home,

on average.

CONTENTS


2. Sample

3. Maturity Model


5. CX Strategy






68

There is a significant opportunity for vendors to help organisations optimise their current AI systems and guide the next wave of adopters on their AI journey

Base: Total respondents (n=404). Leaders n=95, Progressives n=124, Followers n=120, Laggards n=65. Australia n=198, New Zealand n=105, Singapore n=101. Q34. Does your organization use artificial intelligence as part of the customer experience strategy?

CX Leaders and organisations based in Singapore are leading the way in AI Adoption, with Australian organisations lagging behind their counterparts in the region

A R T I F I C I A L I N T E L L I G E N C E A D O P T I O N

Organisation Use of AI as Part of CX Strategy

18%

28%

18%13%

17%24%

19%

3%

35%

40%

44%

35%20%

35%

30%

40%

48%

32%38%

52%

63%

40%

51%57%

Yes

No, but we are investigatingopportunities to implementartificial intelligence

No, and don’t plan to

Laggards Followers Progressives LeadersNET AUS NZ SIN

69

This indicates that the financial services sector is more advanced in its overall journey of digital transformation with AI becoming a key component of both digital and CX strategy.

Base: Total respondents (n=404)Q34. Does your organization use artificial intelligence as part of the customer experience strategy?

Financial Services are high adopters of AI, with Education/Health/Government behind other verticals, but still investigating opportunities

A R T I F I C I A L I N T E L L I G E N C E A D O P T I O N

Organisation Use of AI as Part of CX Strategy

18%10%

20% 24%31%

7% 8%

35%

38%

31%

40%

41%

35%

19%

48%52% 49%

37%28%

58%

73%

Yes

No, but we are investigatingopportunities to implementartificial intelligence

No, and don’t plan to

Services ProductionWholesale & Retail

Edu/ Health/ Gov

NET Distribution Financial Services

70

Laggards have a more limited expectation of how AI can optimise the customer experience and hence are less likely to realise the benefits

* Low Base Size <30. Base: Respondents who use AI (n=192). Leaders n=60, Progressives n=65, Followers n=46, Laggards n=21. Q38. Which of the following would you like AI to do for your customers?

Leaders are looking to AI to support the customer’s online experience by providing a personalised service, with products recommended based on their previous interactions

A R T I F I C I A L I N T E L L I G E N C E : C U S T O M E R U S E C A S E S

=5% Above/Below NET

Clearly show when an interaction is with AI

Alter manner or style of communication based on previous

interactions

Recommend additional products or services based on previous

interactions

Use previously provided information to provide a personalised service or

experience

Retarget with marketing based on previously expressed interests

48%

43%

43%

43%

36%

35%

37%

39%

39%

48%

30%

30%

43%

24%

29%

29%

29%

19%

48%

46%

45%

42%

38%

42%

58%

50%

48%

45%

40%

38%Alter pricing based on previous

interactions

Desired AI Functionality

Laggards* Followers Progressives LeadersNET

71

26%

34% 34%

40%

32%

46%

38%

45%39%

31%

49% 47% 47%42%

39%

58% 59%

44%47%

52%

Laggards Followers Progressives Leaders

RPA and analytics help reduce operating costs and manage customer feedback streams, but Leaders are building on their AI capabilities to make better business decisions and provide a personalised experience at scale

Base: Respondents who use or are investigating implementing AI (n=333). Leaders n=79, Progressives n=108, Followers n=99, Laggards n=47. Q36. How does your organisation utilise/plan to utilise artificial intelligence as part of its customer experience strategy?

Leaders are more likely to be using AI on the frontline through chatbots and tools/resources to support employees, as well as to provide a predictive and personalised experience. Other maturity groups are more focused on simpler use cases such as analytics and Robotic Process Automation

A R T I F I C I A L I N T E L L I G E N C E : B U S I N E S S U S E C A S E S

Usage of AI in the CX Strategy

Customer Facing Chatbots and Virtual Assistants

47%Predictive Personalisation to Customer Experiences

46%Customer Analysis and

Insights

40%Robotic Process

Automation in Customer Service

39%Frontline Employee

Support

36%

72

38% 38%

28%32%

28%

46% 47%43%

34%30%

56%

50%44%

31%

38%

62%

47%

53%

44%41%

Laggards Followers Progressives Leaders

By deploying AI across sales, fulfillment, marketing and customer support, Leaders are more likely to deliver a better end-to-end customer experience and provide a more fulfilling experience for employees

Base: Respondents who use or are investigating implementing AI (n=333). Leaders n=79, Progressives n=108, Followers n=99, Laggards n=47. Q35. What components of your customer experience strategy does/will artificial intelligence support?

Leaders are deploying AI more strategically across all stages of the customer journey whereas other maturity groups are taking a more tactical approach

A R T I F I C I A L I N T E L L I G E N C E : D E P L O Y M E N T

Usage of AI in the CX Strategy

Improved Customer Engagements

52%Handling Customer

Service Requests

47%Enhanced Web Search

44%Fulfilment and Logistics

35%Voice Powered

Applications

35%

73

AI can also help organisations manage operational costs by reducing headcount for more mundane roles and enriching the experience for employees through more fulfilling roles

* Low Base Size <30Base: Respondents who use AI (n=192) Leaders n=60, Progressives n=65, Followers n=46, Laggards n=21. Q39. Which of the following statements do you agree with?

Leaders are much more likely to recognise the commercial benefits of AI through a more focused, engaged and productive workforce that delivers a better experience for customers

A R T I F I C I A L I N T E L L I G E N C E : B U S I N E S S O U T C O M E S

AI will enable staff to be more productive

AI systems will allow my organisation to reduce headcount

AI will enable frontline staff to deliver a better experience to

customers

AI will enable staff to focus on more fulfilling parts of their role

57%

47%

45%

45%

52%

37%

37%

39%

57%

29%

38%

48%

52%

45%

48%

43%

65%

65%

52%

50%

AI Outcomes=5% Above/Below NET

Laggards* Followers Progressives LeadersNET

74* Low Base Size <30Base: Respondents who use AI (n=192) Leaders n=60, Progressives n=65, Followers n=46, Laggards n=21. Australia n=80, New Zealand n=54, Singapore n=58. Q37. How successful has artificial intelligence been in achieving its intended outcomes for your organisation?

Over half of Leaders achieved outcomes from AI that were better than expected, which reflects their more mature deployment of this emerging technology

A R T I F I C I A L I N T E L L I G E N C E : P E R F O R M A N C E

By successfully deploying AI, CX Leaders are able to drive continuous improvement across the business, optimise their CX performance, reduce costs, increase revenue and profit, and deliver a greater level of share holder value

AI Success

3% 4%

63%

95%80%

57%

45%

61% 67% 62%

35%

5%

17%

40%

53%

35% 33% 36%Better than expected

As expected

Worse than expected

Laggards Followers Progressives LeadersNET AUS NZ SIN

For more information please contact:

Steve Nuttall

Director, Fifth Quadrant

[email protected]

Hannah Lemon

Account Manager, Fifth Quadrant

[email protected]

Ph: (+61 2) 9927 3333

mailto:[email protected]

mailto:[email protected]

2021 apac cx maturity report - verizon.com

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