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  • Dialogues on delight: Customer Experience Trends in India 2016

    First edition

  • Dialogues on delight: Customer Experience Trends in India 20162

  • Dialogues on delight: Customer Experience Trends in India 2016 3

    Foreword ......................................................... 04

    About this report .............................................. 05

    Key insights .................................................... 06

    Customer experience in India, an overview ..... 10

    Need for dialogues on delight .......................... 14

    State of customer experience, 2016 ............... 16

    Conclusion ....................................................... 32

    Contents

    2

    1

    3

    4

  • Dialogues on delight: Customer Experience Trends in India 20164

    The concept of Customer Experience (CX) has evolved significantly over the years, from being based largely on transactions and personal equations between the customer and seller, to include the entire customer journey. Many companies are now looking at making every customer touch point count for a positive and differentiated experience.

    Recent advances in technology and digital media as well as the increase in customer empowerment through social media on the one hand and the risk of commoditization of products and services on the other, have spurred a deeper focus on CX. Internet usage and penetration via smartphones and broadband have made customers more comfortable with social media and other digital platforms. Companies are increasingly focusing on creating differentiation through CX, and are pushing significant investments into CX design and solutions. If this trend continues, can India produce any brands that can be considered best-in-class globally?

    Our report tries to make sense of the trends and focus areas for three key verticals: retail, e-commerce and financial services. We have also included two points of view from the suppliers perspective (based on a survey among 31 CXOs across industry sectors) and the customers perspective (using anonymized data from the CloudCherry platform over the last one year) to help us define the state of customer experience in 2016.

    We would like to thank all our participants who responded to the survey their inputs, along with the layer of insights gained from the CloudCherry platform, helped provide a unique perspective to this study.

    Irrespective of the stage of maturity of your brand in its CX journey, we hope this report will give you an insight into how brands in India are developing their CX strategies and what is the current state of CX in India. We hope this study will help initiate conversations around designing a more meaningful and differentiated Customer Experience putting your customer at the center of everything you do.

    Dinesh Mishra Partner Advisory Services and Customer Practice Leader (India) EY

    Vinod Muthukrishnan CoFounder & CEO CloudCherry

    Foreword

  • Dialogues on delight: Customer Experience Trends in India 2016 5

    EY & CloudCherry are delighted to release Dialogues on delight Customer Experience Trends in India 2016. We believe that the data, information and insights in this report will serve as a starting point for many dialogues on customer delight among key stakeholders. Such conversations will ultimately result in better customer experiences in India. We hope you enjoy reading this report as much as we enjoyed creating it.

    To give you an understanding of how this report is structured, the report is divided into the following sections:

    1. Section I: Customer Experience in India, an overview In this section, we provide a brief historical perspective on the evolving customer experience in India. This will provide a context to the findings of 2016.

    2. Section II: Need for Dialogues on Delight Given this context, we establish the need for regular Dialogues on Delight with your customers.

    3. Section III: State of Customer Experience, 2016 This is the core of the report; the state of CX in India in 2016.

    About this report

  • Dialogues on delight: Customer Experience Trends in India 20166

    Key insights 1

  • Dialogues on delight: Customer Experience Trends in India 2016 7

    1. Over 80% of the CXOs interviewed believed that CX in India was worse (68%) or far worse (13%) than the best in the world. Only 16% believed that CX in India was on a par with the best in the world.

    2. CXOs believe there is room for improvement in CX across the entire customer journey, in prepurchase, during purchase and post purchase phases.

    3. 74% of the respondents indicated that the importance of customer experience management (CEM) is growing within their company.

    4. 53% of those surveyed said that a single person owns the ultimate responsibility for CEM. Of these, 47% stated that the responsibility lay with the head of the customer service department, followed by the marketing head (20%) and the CEO (13%).

    5. More than 80% of the respondents felt that once they receive any adverse feedback from customers, they act within a predetermined time limit. The percentage increases when a single person is responsible for CEM at a company.

    6. The top five challenges indicated by CXOs in delivering the best possible CX are:

    a. Maintaining consistent experience across multiple channels (57%)

    b. Measuring and tracking CX across the entire journey (57%)

    c. Limited technological solutions in this field (45%)

    d. Acting on data being collected to improve CX (41%)

    e. Customer interface related issues, such as attrition and lack of training (38%)

    7. More than 80% of the respondents stated that the budgets for CEM-related activities are expected to be higher than the previous year.

    8. The top 3 CX areas where brands are focusing on are::

    a. Listening to customers across all channels and building this back into CX redesign

    b. Providing a consistent experience across all channels

    c. Utilizing the power of word of mouth by leveraging CX as a focus area

    9. The majority of the respondents agreed that managing CX on digital channels is a critical priority for companies and subsequently brands feel the need to provide a seamless online and offline experience.

    10. 70% of the respondents strongly agreed that there will be an increase in discussions on CX at the highest level within companies in the next two to three years.

    11. 96% of the respondents indicated that they will use feedback data as an input for R&D, product design, service design and services delivery basically Customer Experience led enterprise design.

  • Dialogues on delight: Customer Experience Trends in India 20168

    1. NPS for brands using the CloudCherry platform:

    a. Average NPS for companies in the retail sector for 2QCY16 is in the range of 61 to 87. Currently, retail brands on the CloudCherry platform measure NPS for in-store experience only.

    b. Average NPS for companies in the financial services sector for 2QCY16 varies a lot, from 5 to 79. The variation is due to the relative poor NPS of some of the touchpoints, especially call center.

    c. Average NPS for companies in the e-commerce sector for 2QCY16 varies from 24 to 51. In this sector, the variation is due to the relatively poor NPS for experiences delivered by third parties (especially travel portal services).

    2. Retail:

    a. Unless in-store experience is completely overhauled (which is rare), improvements in NPS at a company level are typically relatively slow and steady in this sector..

    b. Companies in India typically measure instore experience, with little focus on shopping experiences on their websites.

    c. Parameters that are measured include:

    i. Product range which can drive comparisons to ecommerce sites where more variety is possible

    ii. Store team which can drive customer delight by understanding customer requirements and suggest products or services as per their need.

    iii. Store ambience which can reduce NPS as a result of a one off-event such as unclean restrooms.

    iv. Billing

    d. Garnering feedback on other aspects of the journey (prepurchase and postpurchase) has still not gained traction.

    Insights: customer view

  • Dialogues on delight: Customer Experience Trends in India 2016 9

    3. Financial services

    a. Some improvements being made in call center experience by companies using the CloudCherry platform are improving the minimum average NPS.

    b. Financial services companies are collecting feedback for touchpoints such as branch/office, internet accounts and contact centers.

    i. Expectations of banking customers from the contact center experience (IVR options and interactions with phone banking officer) are not being met.

    ii. Experience with visits to branches/offices is also not as good as in the retail sector because of the time taken at branches (waiting time), and concerns around understanding customer problems or needs and offering an immediate solution.

    iii. The highest ratings are typically for services delivered over the Internet.

    c. Overall, the ratings are lower than leading retail chains

    4. Ecommerce

    a. In e-commerce, there is a conscious effort to bring about improvements in services delivered by third parties (especially in the travel segment), leading to an increase in minimum average NPS.

    b. Parameters that are measured include selection and purchase, usage (for services), postpurchase (for products) and contact center.

    5. The key likes (which increase NPS) are related to user experience (selection and purchase) and contact center (low waiting time, and satisfactory and quick resolution)

    6. The main challenge for ecommerce companies is to provide a level of service commensurate with expectations where thirdparty service providers are involved.

  • Dialogues on delight: Customer Experience Trends in India 201610

    Customer experience in India, an overview2

  • Dialogues on delight: Customer Experience Trends in India 2016 11

    Before understanding the present, it is prudent to understand the context of where we came from. We take a decade by decade look at the evolution of CX from the 1980s to the 2010s.

    1980s: Customers start to learn about choice!The Indian economy in the 1980s was relatively closed, and competition was restricted. Shortage of supply of products and services relative to demand was quite common. It was often referred to as a sellers market. Further, branding was restricted to some categories such as FMCG and consumer durables, and exposure to the latest products and services from across the world was limited.

    In this decade, the focus of companies was on product and their benefits; emphasis on CX was negligible. Even the Burma Bazaars, which thrived on offering contemporary imported products in many Indian cities, did not offer a great CX! Customers were not left with many options, despite some notsogood experiences. Customer care centers were uncommon, but personal relationships between the customer and the seller played an instrumental role in drastically improving the overall experience. Therefore, experiences varied significantly depending on the specific people involved in the transaction.

    At the same time, some products and services offered a glimpse of a step change in CX. For example, the automobile sector saw the introduction of a car far easier to drive than the other options in the market at that time. Despite its small size, the car also offered a better travel experience with less noise and vibration, better designed interiors and air conditioning. The buying and aftersales experience offered by the car manufacturer at the time was also a step improvement over the competition.

    Glimpses of the future services economy also started emerging toward the end of the decade; PCO/STD/ISD booths start mushrooming across the country, revolutionizing the experience of communicating with others. A second television channel was started-off in metros, indicative of the first hint of choice to the customer on many fronts.

    1990s: The wonder years!TThis was the decade of fast growth and transformation The Wonder Years! Liberalization of the economy led to foreign companies entering India freely across industry sectors. Increased competition drove improvement in CX across industry sectors, closing the gap with developed economies to some extent.

    The Indian IT sector started to emerge as a major force with the listing of Infosys on the stock markets in the mid1990s. Toward

    the end of the decade, the Y2K problem increased the demand for Indian IT services globally. The IT sector created a new middle class, which was exposed to the latest products and services outside India. This growing, welltravelled middle and upper class started demanding better experiences.

    The latter half of this decade also saw the start of better physical infrastructure projects such as the Golden Quadrilateral (highways). Further, the communication infrastructure went through a revolution. International connectivity improved through new undersea cables. Mobile communication entered the scene with the emergence of pagers and mobile phones. These developments enabled companies to offer a far better CX than before. For instance, customer care contact centers could be set up at a relatively low cost, and 1800 numbers started becoming common!

    Finally, the decade saw the start of the media boom, with increasing media outreach through the many options available on satellite television and radio. More importantly, specific customer segments could be targeted with communication, improving CX in the prepurchase phase.

    By the end of the decade, personal computers at homes with an internet connection became more common, but due to the high prices of PCs and poor connectivity, the impact was limited. However, this changed in the next decade.

    2000s: The transformation era!2003 to 2008 was a golden era for the Indian economy. Almost all sectors grew rapidly. Supply capacity increased to the extent that there was no concept of a demandsupply gap in most industry sectors. Customers could get what they wanted and more! The India of the late 2000s became a buyers market. There were already more than enough suppliers to cater to the existing demand in many industry sectors; therefore, the only way to succeed was to differentiate. Improving CX was one of the ways to differentiate and become successful.

    The emergence of the service sector rapidly drove increased focus on CX in this decade. Entire new service sectors emerged or grew exponentially. The rapid fall in price of telecom devices and services led to an exponential increase in mobile penetration. The emergence of lowcost airlines drove rapid increase in air passenger traffic and the development of new airports. Hospitality chains emerged right across the price spectrum from economy to luxury. Standalone hotels also improved their infrastructure and services in order to compete.

    2008 onwards, a global economic slowdown ensued after the collapse of Lehmann Brothers. Though there was a decline in Indias growth rate, the economy continued to do well relative to the rest of the world.

  • Dialogues on delight: Customer Experience Trends in India 201612

    In this decade, companies in India devoted a lot more attention to nonproduct related parameters. Feedback on customer satisfaction gained a foothold in many industry sectors, especially servicedriven sectors such as airlines, telecom and financial services. Large organizations such as the Indian Railways started collecting feedback from passengers. Technology allowed the Indian Railways to move ticketing online, eliminating the problem of long queues at reservation centers. The fall in prices of telecom services allowed higher usage of tools such as IVR, SMS, and email for feedback.

    Additionally, many leading companies in India deployed CRM solutions, which impacted the way they interacted with their current and potential customers. Advanced CRM solutions allowed for a single view of all customer information, including their personal details, past interactions with the company and social media history. Wellimplemented CRM systems streamlined the CX offered by companies to a large extent.

    The start had been made! Would the next decade bring about a revolution in CX?

    2010s: The rise of CX This decade so far has seen an exponential increase in smartphone penetration. The resulting increase in mobile internet penetration coupled with an increase in broadband penetration has driven the meteoric rise of ecommerce. It has also moved a lot of the prepurchase research online, and the term omnichannel has become a buzzword! Technology has also helped improve CX exponentially across many industry sectors, making it almost unrecognizable from a decade earlier. For example, banking apps have made transactions much easier, the experience of reading books has changed with the increase in adoption of digital readers and cabs could be hailed via a smartphone app from anywhere in most Indian metros through aggregator services.

    The fragmentation of media and the emergence of social media has impacted CX in interesting ways. Brands need to carefully choose what channels to focus their presence on in order to provide a good experience in the prepurchase and postpurchase stages. But they have also needed to adapt to the expectations of customers, who expect a faster responses from brands to complaints on Twitter than from a call to their call center!

    Feedback collection has become a standard practice in many sectors. Some of the methods used include pen and paper, IVR, SMS and email. By 2015, parameters such as NPS1 started to gain traction. However, in most cases, feedback is still collected and analyzed in a fragmented manner while customers have started moving across channels. They could start on the Internet from a desktop, come to a retail store and go back to the mobile app to make the purchase. This phenomenon needs a different approach; the customer needs to have a good experience across all channels. Further, feedback needs to be collected across multiple channels, as well as analyzed and viewed in a consolidated manner.

    What does the future hold? We are only a little more than half way through this decade. Will Indian companies become world class or even better at CX? What or who will be the CX benchmarks in India by 2020? Will we see incremental improvements or tectonic shifts? How will unique IDs (UID) for Indian citizens affect CX? Which sectors will improve the most? Which sectors will remain the same? Will we see CX bellwethers emerge from India? With the context in mind, we can take an informed look at the present situation of customer experience in India. Before that, we briefly discuss the need for dialogues on delight.

    1 Net Promoter and NPS are registered trademarks. Net Promoter Score and Net Promoter System are trademarks of Bain & Company, Satmetrix Systems and Fred Reichheld.

  • Dialogues on delight: Customer Experience Trends in India 2016 13

    CX over the years in three select sectorsRetail Decade CX milestones

    1980s Cooperative stores such as Super Bazaar and Kendriya Bazaar the only organized option for daily needs; no major change in this decade; strong local retailers and cooperatives present in the fashion category, especially in traditional textiles

    High Street the main option for fashion for example, Linking Road in Mumbai Emergence of large retail chains providing superior experience, typically in the fashion and fashion accessories categories for

    example, Titan

    1990s Entry of leading brands across all major categories such as groceries, fashion, consumer durables and automobiles for example, there were more than 10 brands of automobiles competing in the market by the end of the decade

    Exponential improvement in CX ensued

    2000s Development of malls across the country Expansion of national retail chains and entry of new ones Neighborhood mom and pop stores continued to exist by offering door deliveries, credit etc. Introduction of new formats such as B2B wholesale, hypermarts and luxury retail Development of niche areas such as airport retail and duty-free retail Introduction of new technology to streamline operations for example, POS solutions, ERP and loyalty solutions

    2010s Leveraging of technology to further understand customers, targeted marketing offers etc. Competition from e-commerce firms Competition with e-commerce firms

    Financial services Decade CX milestones

    1980s Nationalized banks held the majority of banking business in India Entry of mutual funds managed by public sector institutions

    1990s Emergence of Indian private banks such as ICICI Bank Expansion of foreign banks in India Introduction of ATMs Opening of the life and general insurance sectors to private players Entry of mutual funds managed by private sector institutions

    2000s Deployment of core banking across most banks Increasing penetration of internet banking and online accounts for various financial services such as mutual funds, insurance products

    and demat accounts Entry of microfinance institutions

    2010s Introduction of mobile banking Entry of mobile wallets Entry of payments bank Strong push for financial inclusion Approval for India Post Payments Bank

    Ecommerce Decade CX milestones

    2000s Emergence of the sector, providing an alternative to traditional channels Initial lead given by travelrelated ecommerce firms, closely followed by books and many other categories subsequently

    2010s Emergence of large e-commerce firms Establishment of large warehouses across the country, reducing delivery lead time Entry of niche, product specific e-commerce firms Entry of large corporate houses offering an integrated online and physical experience

  • Dialogues on delight: Customer Experience Trends in India 201614

    Need for dialogues on delight3

  • Dialogues on delight: Customer Experience Trends in India 2016 15

    It is clear to us that leading companies operating in India are already putting things in place to deliver worldclass CX within the next decade. Some of them are already worldclass in their respective fields. It is creditable that they have embarked on this journey under trying circumstances.

    However, there is still a long way to go. We have not reached a stage in India where CX can be clearly defined as the best in the world. Some sectors are further behind others. For example, the retail experience in the steel and cement industries is far from ideal, despite these products being highvalue purchases and utilized for the most expensive investment made by a family their home. CX improvements also need to spread much further at touch points that are not fully controlled by the brand for example, independent multibrand channel partners in industry sectors such as consumer durables, small appliances and FMCG.

    Finally, improving CX is a journey with no finish line! It is a continuous process intended to better previous benchmarks at every single interaction. It should be noted, though, that many aspects of the customers experience are beyond the control of a brand for instance, a malfunctioning generator or sewage treatment plant in a mall can negate all the good work

    done by the store manager and his or her team! However, the management of external events such as these and the extent to which customers pain can either be reduced or mitigated should be planned for in CX design.

    Given this context, we believe that it is important to take a step back at regular intervals to reflect on how far we have come and where we are heading. What is the current state of CX in India? Where is it headed in the coming year? What will it take to create the gold standard for CX in India, to be followed by the world? EY and CloudCherry have teamed up to answer these questions through this report. We believe that together, we can significantly improve the quality of the dialogues on delight.

    This report is meant to initiate conversations at the event and beyond. We believe these conversations will help us on this neverending journey toward better CX.

    The following data is being generated on a daily basis by customers experiencing products and services of leading brands across industry sectors. The CloudCherry platform is used to collect close to 3 million customer responses per year in India.

    With this background, we will now discuss the findings on the state of CX in India in 2016?

  • Dialogues on delight: Customer Experience Trends in India 201616

    The state of CX, 20164

  • Dialogues on delight: Customer Experience Trends in India 2016 17

    Methodology The report looks at two perspectives: the supplier and the customer.

    The suppliers perspective was gathered through a survey among 31 CXOs across industry sectors. The survey had questions on issues such as benchmarks for CX in India and the world, current methods of measuring CX, who is responsible for CX, the challenges faced while delivering the best possible CX, and the future outlook of the company on CX. The survey was hosted on the CloudCherry platform and respondents had the option of either replying to it online or answering the questions over the phone or facetoface, guided by EY or CloudCherry staff. The CXO survey results in this report are on the sample of 31, unless otherwise mentioned. Refer Annexure I for the questionnaire.

    The customers perspective was gathered using anonymized data from the CloudCherry platform over the last one year (July 2015 to July 2016). This data is perhaps the most comprehensive repository of responses on the subject of CX across industry sectors in India. The data from the platform could be broadly classified as:

    Net Promoter Score (NPS): Feedback given by customers basis the NPS framework

    Fivepoint rating on specific parameters of the customers journey with the brand

    Key likes and dislikes (derived from the fivepoint rating)

    NPS, being a standard question, has been discussed across various industry sectors.

    What is NPS?We ask the following question to customers at different stages of their experience with the product/service.

    What is the likelihood that you would recommend Company X to a friend or colleague?

    The customer answers on a 10point rating scale, where 0 is Not at all Likely and 10 is Extremely Likely. NPS is the percentage of promoters minus the percentage of detractors.

    Promoters (loyal enthusiasts): Those who rated 9 or 10

    Passives (satisfied but unenthusiastic): Those who rated 7 or 8

    Detractors (unhappy): Those who rated 0 to 6

    After the NPS discussion, issues specific to three focus sectors have been discussed: retail, financial services and ecommerce. These three sectors were chosen based on the availability of sufficient historical data available to analyze trends. Measurement of CX is a relatively new field in India, and the chosen sectors are the firstmovers. Finally, choosing three sectors gives a sharper focus to this report.

    The customers view is limited to companies using the CloudCherry platform. This approach has certain limitations:

    The customers view represents a limited set those who have used the CloudCherry platform. However, since over 190,000 responses are collected every month, this is a fair representation of the overall market in the sectors under study.

    Companies using CloudCherry may be deploying it for all or some parts of their offerings. Therefore, we have made comparisons only for liketolike scenarios, where the offerings whose feedback is being measured are the same.

    We will now start with the CXO view on CX in India.

    The CXO viewRespondent profile

    Respondents of the study were heads of either the company or one of the departments involved in delivering CX to customers (such as customer service, marketing, operational excellence and customer experience). For large companies, where individual divisions are fully independent SBUs, each SBU was considered as a separate company for the purpose of this study.

    Around 40% of the respondents were heads of the marketing department, 20% were heads of the customer service department, and the balance were a mix of heads of operations and CX departments, as well as CEOs and CFOs.

    The majority of the respondents were based in DelhiNCR, Mumbai and Bengaluru.

    The respondents were from a wide variety of industry sectors, including retail, real estate, consumer electronics, financial services, telecommunications, travel, ecommerce, FMCG, commodities and aviation.

  • Dialogues on delight: Customer Experience Trends in India 201618

    CX benchmarks in India This section discusses the CXO view on CX benchmarks in India and a comparison with benchmarks from the rest of the world.

    Overall, CX in India is at par with the best in the world. Do you agree?

    Figure 1: CXO survey; CX in India w.r.t. world

    3%

    16%

    68%

    13%

    BetterAt parWorseFar worse

    Over 80% of the CXOs interviewed believed that CX in India is worse (68%) or far worse (13%) than the best in the world. Clearly, there is a long way to go. However the bright spot is that the issue has been acknowledged and that is a clear imperative toward improvement. To bolster this, we noted that an overwhelming majority of CXOs (96% of the 80%) who see that Indian companies are lagging in CX, have also indicated an increase in importance being given to CX over the last 1 year

    Only 16% believed that CX in India is at par with the best in the world. Interestingly, there was no sectoral pattern among those who believed that CX in India is at par with the best in the world. They were from varied sectors such as financial services, telecom, aviation and retail.

    We also asked respondents what comes to their mind when they think of outstanding customer experience in India. This was an unstructured question, which allowed respondents to express their views without any restrictions. Our analysis shows that responses could be broadly categorized into a few categories.

    Around 45% of the sample gave examples of companies that according to them offered outstanding CX in India, along with their reasoning. Amazon featured prominently in responses for providing great experiences during checkout, delivery and replacement. The respondents highlighted leading hospitality brands such as Oberoi Hotels, Taj Hotels and Orange County Resort.

    Around 16% cited a need for improvement in CX in India in all areas for most companies, both public and private.

    12% of the respondents gave examples of industry sectors delivering outstanding CX. The general opinion was that Indian hospitality chains are among the best in the world in this regard. The following table summarizes the response.

    When you think of outstanding CX in India, what comes to your mind?

    Table 1: CXO Survey; Analysis of opinion expressed w.r.t. Outstanding CX in IndiaSentiment expressed

    Percentage of respondents

    Particulars

    Improvement needed in CX

    16% All areas Aftersales service

    Cited companies with outstanding CX

    45% Such as Amazon (multiple times), Google, Oberoi Hotels, Taj Hotels, Orange County (resort)

    Cited sectors with outstanding CX

    12% Hospitality

    Others 28%

    We also asked about specific companies or institutions that served as the benchmark for CX in India.

    According to you, which company or institution (apart from yours!) is the benchmark or gold standard for customer experience in India? It can be from any sector, public or private.

    Amazon India is considered to be a CX benchmark by 40% out of 30 CXOs interviewed, followed by a leading global travel and card services company (17%), Taj Hotels (13%), a leading automobile manufacturer (10%), a leading taxi aggregator (10%), Dell India (10%), Vodafone (7%) and Google (7%). A number of companies, such as Airtel, Orange County, Titan, , Tanishq, Bookmyshow.com, Bigbasket.com, Google, Axis Bank and ICICI Bank, were mentioned once:

    Interestingly, CXOs have indicated many more points for experience differentiation by benchmark companies in the postpurchase phase. Comparatively, the number of CX benchmarks for the prepurchase and purchase phases is fewer. This is perhaps because companies are better at meeting customer expectations in these two phases in India and any differentiation from a CX point of view is primarily in the postpurchase interactions.

  • Dialogues on delight: Customer Experience Trends in India 2016 19

    The table summarizes the differentiation factors.

    What do they do better or different than the rest?

    Table 2: CXO survey; Differentiation done by CX benchmark companies Company Differentiators

    Amazon India Understanding of customer needs Experience at all customer touchpoints,

    especially postpurchase Empowered call center staff to take decisions Simplicity in UI, buying, returns and issue

    resolution Product packaging Ontime delivery Recommendations based on browsing or

    purchase behavior

    Leading global travel and card services company*

    Personalized service; customer service does not act like a robot

    Empowered customer service executives, who listen and act accordingly

    Speed of complaintresolution Use of technology to assist customers

    Taj Hotels Organizational and employee focus on CX Understanding of each customers individual

    needs Making the customer feel special

    Leading automobile manufacturer*

    Understanding the lifetime value of a customer Doing everything to make sure that customer

    stays with brand 360 degree approach from acquisition onward

    Leading taxi aggregator*

    Crisp and clear commitment Reliability; deliver what is committed Minimal need to contact customer service Speedy response to and resolution of issues Use of technology to communicate and resolve

    concerns

    Dell India Knowledgeable and empowered call center staff After sales service backup

    *company name not revealed on account of client confidentiality

    The next section discusses how CX is measured by companies that participated in the survey.

    CX measurementThere are various practices of CX measurement. Based on survey responses, they can be grouped into the following buckets.

    How do you measure CX at your company?

    Surveys Customer meets or events or forumsMonitoring of

    complaint channels

    Social media monitoring

    Thirdparty ratings

    Internally generated data

    Internal audits Mystery shoppingMandatory

    Customer Connect days

    1) Surveys: Conducting thirdparty or internal surveys among customers continuously or at various intervals for example, annual satisfaction surveys and NPS surveys

    2) Customer meets, events or forums: Directly interacting with customers at customer meets or events; popular in B2B scenarios where customers are sometimes limited or a few customers account for a large share of business

    3) Monitoring of complaint channels: Tracking the quantity and quality of feedback on channels such as toll free number, website and complaint forms at store

    4) Social media monitoring: Tracking the quantity and quality of feedback and conversations on social media

    5) Thirdparty ratings: Monitoring the scores of strong thirdparty rating systems in some industry sectors for example, Trip Advisor in hospitality and J. D. Power in automobiles

    6) Internally generated data: Using automatically generated internal data for measuring CX for example, percentage of repeat purchase (typically tracked using mobile numbers or a unique customer identifier)

    7) Internal audits: Conducting internal audits in sectors such as hospitality (for fine dining restaurant chains and caf chains) to monitor the presence of minimum internal standards

    8) Mystery shopping: Hiring thirdparty agencies to do mystery shopping at regular intervals; popular in retail, hospitality and restaurant chains

    9) Mandatory customer connect days: Employees compulsorily spending X number of days in a month or a year with customers, and their experience being recorded and evaluated for example, customer weeks in public sector banks

  • Dialogues on delight: Customer Experience Trends in India 201620

    Generally, a mix of these methods is used to measure CX. Twothirds of the companies surveyed indicated that they collected feedback on all CX. Among those who indicated otherwise, there was no particular sectoral pattern.

    Figure 2: CXO survey; Feedback collected on all experiences?

    3%

    13%

    10%

    47%

    27% Strongly disagreeDisagreeNeutralAgreeStrongly agree

    We collect feedback on all the experiences the customer has with us.

    The majority of respondents (74%) indicated that CEM is gaining importance within their company.

    Would you say that the importance of CEM has grown in your company in the last one year?

    Figure 3: CXO survey; Importance of CEM compared to last year

    50%47%

    3%

    Yes, increased significantlyYes, increasedStayed the same

    We probed the respondents further on the reasons for this phenomenon. The key factors indicated included the following:

    Increasing importance of digital channels and the consequent need to provide a seamless online and offline experience

    Establishment of separate teams responsible for CX a method that has provided much more focused work on CX at the respondent companies

    Increasingly aware and highly empowered customers who, for example, can use social media to complain directly to the top management in case of a small deficiency in service

    Strong push from the top management (which, in turn, could be driven from the corporate head office abroad in the case of MNCs) for example, CXOdriven programs on customer centricity and the development of a customer service charter

    Recent diversification into multiple products or markets, increasing the potential value of each customer to the company.

    The next section discusses who is responsible for this function in the surveyed companies.

    CX responsibilities In more than half the companies surveyed, a single person had the responsibility for CX.

    Does a single person own the ultimate responsibility for CEM in your company?

    Figure 4: CXO survey; Responsibility of CEM in company

    53%47% Yes No

    In companies where there was a single responsibility, the head of the customer service department (47%) was usually in charge, followed by the marketing head (20%) and the CEO (13%).

    Who has the ultimate responsibility?

    Figure 5: CXO survey; Ultimate responsibility for CX

    13%

    20%

    7%47%

    13%Chief executive officer or equivalentChief marketing officer or equivalent

    Chief experience officer or equivalent

    Chief customer service officer or equivalent

    Others

  • Dialogues on delight: Customer Experience Trends in India 2016 21

    We believe that as the importance of CEM grows, the practice of assigning singular responsibility within the company may increase. A few of the surveyed firms have established a separate CX or customer centricity function, reporting directly to the top management.

    We now move on to discussing the actions taken by companies based on feedback data.

    CX action A large majority (> 80%) of the respondents felt that they act within a predetermined time limit once they receive any adverse feedback from customers. Further, if a single person is responsible for CEM at a company, the likelihood of acting within a predetermined time limit increases even further.

    Whenever we receive adverse feedback data from customers, we act within a predetermined time limit to correct the situation.

    Figure 6: CXO Survey; Action taken on feedback

    4%

    7%

    48%

    41%Strongly disagree

    Neutral

    AgreeStrongly agree

    A majority of the respondents (57%) also indicated that delivering on CX impacts performance evaluation and incentives for employees in their company. A substantial percentage of firms do not link CX delivery with performance evaluation and incentives.

    Delivering on CX directly impacts performance evaluations and incentives.

    Figure 7: CXO survey; Impact of CX on performance evaluation

    4%7%

    24%

    41%

    24%Strongly disagreeDisagreeNeutralAgreeStrongly agree

    Challenges faced In delivering great CXThe top five challenges indicated by CXOs in delivering the best possible CX are as follows:

    Maintaining consistent experience across multiple channels

    Measuring and tracking CX across the entire journey

    Limited technological solutions in this field

    Acting on data being collected to improve CX

    Customer interfacerelated issues such as attrition and lack of training

    What are the challenges faced by companies like you in offering the best CX possible?

    Table 3: CXO survey; Challenges faced In offering best CX Challenge %

    Maintaining consistent experience across multiple channels 57

    Measuring and tracking CX across the entire journey 57

    Limited technological solutions in this field 45

    Acting on data being collected to improve CX 41

    Customer interfacerelated issues such as attrition and lack of training

    38

    Customer needs evolving much faster than we can change 30

    Difficulty in managing digital experience 27

    Vendors of associated/outsourced services not delivering at our level

    20

    Difficulty in showing a concrete financial return on CEM investments

    20

    Organization culturerelated issues for example, departments operating in silos

    20

    Others 20

  • Dialogues on delight: Customer Experience Trends in India 201622

    Future of CX in companyCompared to the previous year, the budgets for CEMrelated activities are expected to be higher in more than 80% of the surveyed firms. This is clearly a consequence of its growing importance.

    Compared to the previous year, your budget for CEM related activities this year is?

    Figure 8: CXO survey; CEM budgets

    83%

    17%

    HigherThe same

    Broadly, higher budgets are expected to flow into the following areas.

    In which areas of CX are you planning to invest significantly this year?

    Technology Employee training Data

    analytics

    Feedback channels

    Process standardization Digital CX

    Improving CX in valueadded services

    Customer education

    1) Technology: Investment in, for example, handheld devices that can capture transaction as well as feedback data and have CEM software installed

    2) Employee training: Investment in aftersales service teams, installation teams, call center staff etc. for example, in consumerdurable firms

    3) Data analytics: Investment in resources for analyzing data generated during the course of business, and utilizing it for CX improvements

    4) Feedback channels: Investments to make it simpler and easier for customers to contact suppliers, especially using digital channels

    5) Process standardization: Development of processes and protocols to deliver a better CX, especially in aftersales or valueadded services

    6) Digital CX: Investment in improving the ease of navigation on the website, seamless integration with offline channels and developing direct connect with customers

    7) Improved CX in valueadded services: Investment in valueadded services, which require suppliers to deliver great experiences through welltrained teams; quite different from the traditional product sale model

    8) Customer education: Investment in handholding customers through automated experiences in the initial stages of introduction, making it easier and simpler for them to use selfservice options for example, changing telecom tariff plans online instead of contacting the call center

    What is the reason for investing in these areas? Analyzing CXO responses, we understood that it is partly to overcome some of the challenges cited earlier and also to be futureready.

    Why are you investing in these areas?

    Listen to customers across all channels

    Deliver consistent experience across all channels

    Utilize the power of word of mouth

    Take decisions with feedback as a key input

    Increase customer retention

    Differentiate brand from competition

    Increase revenue from profitable valueadded services

    Become a more efficient company

    Past investment in CRM is not seen as a constraint to future investment in CEM solutions. The distinction in their ultimate objectives is clear. Further, we also observed that companies that have invested heavily in CRM and plan to invest further see technology playing a critical role. They have aggressive plans to leverage the latest technologies in the future.

    Having already invested a lot in CRM, we have constraints in investing further in CEM solutions.

    Figure 9: CXO Survey; Impact of CRM investment on CEM investment

    Most important

    areas

    14%

    54%

    21%

    7%4%

    Strongly disagreeDisagreeNeutralAgreeStrongly agree

  • Dialogues on delight: Customer Experience Trends in India 2016 23

    From our analysis, one possible explanation for this trend is that the respondents believe that competition is also focusing heavily on CX. This is illustrated in the response to another question in the survey.

    Our competition is focusing heavily on CX.

    Figure 10: CXO survey; Perceived competition focus on CX

    7%

    28%

    31%

    34%

    DisagreeNeutralAgreeStrongly agree

    CXOs who saw their competition focusing heavily on CX also indicated a corresponding increase in focus in their own organizations including increasing seniorlevel involvement (94%), and budgets for CX (88%)

    Lastly, one issue on which there is little doubt among the majority of the respondents is that managing CX on digital channels is a critical priority for companies.

    Managing CX on digital channels will be a critical factor to our success.

    Figure 11: CXO Survey; Managing CX on digital channels

    3%

    20%

    77%

    NeutralAgreeStrongly agree

    Future of CX in India We asked CXOs their opinion on the future of CXOs in India. This section discusses their responses.

    CEM is expected to be discussed exponentially more often at the topmost level in organizations; ~80% of the respondents strongly agreed with this statement.

    There will be an increase in discussions on CX at the topmost level in the coming two to three years.

    Figure 12: CXO Survey; Perceived increase in discussions on CX among top management

    3%

    20%

    77%

    DisagreeAgreeStrongly agree

    Frontend employees could be expected to be relatively more empowered in the future to take decisions on improving CX.

    Employees will increasingly be empowered to take actions on the ground proactively for improving CX, without seeking approvals all the time.

    Figure 13: CXO survey; Empowerment of employees on improving CX

    7%

    59%

    34%NeutralAgreeStrongly agree

  • Dialogues on delight: Customer Experience Trends in India 201624

    There is some skepticism to this approach, since most respondents agree and not strongly agree to the statement. Further only 66% of the companies who foresee stronger employee empowerment, see that delivering on CX has a direct bearing on their employees performance management.

    Further, the marketing function will bring renewed focus on CX in marketing communication even in sectors that have traditionally focused on products and its benefits.

    CX will be one of the key factors communicated by us in our marketing communications in the future.

    Figure 14: CXO survey; CX in marketing communications in future

    NeutralAgreeStrongly agree

    21%

    45%

    34%

    However, the level of agreement with this statement is not as high as with the other statements in the survey. This perhaps indicates that other factors will continue to play a much bigger role in marketing.

    The use of technology to enhance CX would be higher in the future. This assessment is corroborated by the increased investment in technology related to CEM.

    We will be leveraging on the latest technologies to enhance CX in the future.

    Figure 15: CXO survey; Leveraging latest technologies to enhance CX in future

    NeutralAgreeStrongly agree

    13%

    43%

    43%

    Arguably, the holy grail of any CEM program is the outer loop. The outer loop involves basing major improvements cutting across divisions and teams on feedback for example, change in product, pricing and company policies. The majority of the respondents have indicated that they will use feedback data as an input for R&D, product design, service design and services delivery.

    We will use CEM data as an input for R&D, product design, service design, rethinking our delivery of services etc.

    Figure 16: CXO survey; Using CEM data for inputs across organization

    NeutralAgreeStrongly agree

    4%

    35%

    61%

    From a CXO perspective, it is evident that CEM is gaining importance, which is being corroborated by investments in technology, employee training, data analytics, developing additional feedback channels, process standardization, digital, customer education etc. In this journey toward a worldclass CEM, few companies serve as benchmarks. CX in India is not considered to be at par with the best in the world by a majority of CXOs. In this context, what do customers think of the current experience with brands? Do they feel their experience is among the best in the world?

    Customer view: Overall score We will start this section with a discussion on NPS scores of brands using the CloudCherry platform.

    What is NPS?We ask the following question to customers at different stages of their experience with the product/service.

    What is the likelihood that you would recommend Company X to a friend or colleague?

    The customer answers on a 10 point rating scale where 0 is Not at all Likely and 10 is Extremely Likely. NPS is the percentage of promoters minus the percentage of detractors.

    Promoters (loyal enthusiasts): Those who rated 9 or 10

    Passives (satisfied but unenthusiastic): Those who rated 7 or 8

    Detractors (unhappy): Those who rated 0 to 6

  • Dialogues on delight: Customer Experience Trends in India 2016 25

    NPS, across key sectors The chart shows the NPS for companies using the CloudCherry platform (2QCY16).

    Figure 17: NPS (Average), 2QCY16

    61

    5

    24

    8779

    51

    0

    20

    40

    60

    80

    100

    Retail Financial services E-commerce

    NPS: 2QCY16

    NPS (Min) NPS (Max)

    Average NPS for companies in the retail sector for 2QCY16 is in the range of 61 to 87. Currently, retail brands on the CloudCherry platform measure NPS only for the store experience. Managing CX in this environment is a relatively easier task compared to in the other two sectors, where the number of touchpoints is higher and certain aspects of the experience could be delivered by third parties. As a result, the average NPS in the retail sector is generally higher and more stable over long periods.

    The average NPS for companies in the financial services sector for 2QCY16 varies a lot from 5 to 79. The variation is due to the relative poor NPS of some of the touchpoints, especially the call center. It is not uncommon to encounter negative NPS for these touchpoints, thereby bringing down the overall NPS for the company.

    The average NPS for companies in the ecommerce sector for 2QCY16 varies from 24 to 51. In this sector, the variation is due to the relatively poor NPS for experiences delivered by third parties. For example, service providers involved in delivering hospitality or taxi services within a holiday package bought by customers online.

    The table below shows the range of promoters, passives and detractors for companies using the CloudCherry platform (2QCY16).

    Table 4: % of Promoters, Passives & Detractors (Average), 2QCY16

    Sector Promoters Passives Detractors

    Retail 67 to 88 11 to 27 1 to 6

    Financial services 41 to 79 ~ 22 21 to 36

    Ecommerce 51 to 65 21 to 22 14 to 27

    There are no critical problems across leading retail chains. Outstanding retail chains have a lower percentage of passives and a commensurate higher share of promoters.

    The high percentage of detractors in financial services is primarily due to poor experience provided by call centers. The experience perceived by customers at branches or offices is also not considered as good as in retail.

    In e-commerce, detractors are primarily due to poor experience in services delivered by third parties.

    NPS, Over timeThe CloudCherry platform has started tracking the NPS for these sectors. The ranges observed in this report take into account data from April to July 2016. However, this will be an ongoing initiative that will continue to provide insights over time.

    The NPS for the retail sector seems to fall within a steady range. The relative changes in the individual companies within this range are also limited. Unless store experience is completely overhauled (which is rare), the improvement in NPS at a company level is typically relatively slow and steady in this sector.

    Figure 18: Monthwise NPS (Average) for retail, April 2016 to July 2016

    60 63 63 57

    87 87 86 88

    0

    20

    40

    60

    80

    100

    Apr-16 May-16 Jun-16 Jul-16

    NPS: retail

    Retail (NPS, Min) Retail (NPS, Max)

    In financial services, there is some improvement being brought about in call center experience by companies using the CloudCherry platform, improving their minimum average NPS.

    Figure 19: Monthwise NPS (Average) for financial services, April 2016 to July 2016

    NPS: financial services

    4 9

    82 78 75 77

    020406080

    100

    Apr-16 May-16 Jun-16 Jul-16

    Financial Services (NPS, Min) Financial Services (NPS, Max)

  • Dialogues on delight: Customer Experience Trends in India 201626

    In ecommerce, there is a conscious effort to bring about improvement in services delivered by third parties for example, hotels or taxi services delivered as part of a tourist package. This has led to an increase in the minimum average NPS for companies in this sector on the CloudCherry platform. The below chart illustrates this increase.

    Figure 20: Monthwise NPS (Average) for Ecommerce, April 2016 to July 2016

    NPS: e-commerce

    22 2932

    51 51 53

    020406080

    100

    Apr-16 May-16 Jun-16 Jul-16

    E-commerce (NPS, Min) E-commerce (NPS, Max)

    Having seen the overall performance, we now discuss the three key sectors in detail.

    Customer view: Retail The journey of a retail customer has become complex over the past decade. A fairly large share of the prepurchase information search has moved online. It is especially true for categories such as consumer durables, automobiles and electronics. Further, many retail chains also sell via ecommerce platforms either directly or through other marketplaces in addition to their physical stores. In some cases, a seamless experience is provided on the online and offline channels referred to as the Phygital model. Customers are also moving back and forth between online and offline interactions before making a final purchase. These changes in consumer behavior have meant that brands have to provide a seamless omnichannel experience.

    Background: customer journey map A typical customer journey map for a retail customer is depicted below.

    Figure 21: Customer journey map, retail

    PrePurchase

    Postpurchase

    All customers

    Marketing Activities

    Advertising Events

    Promotions Social Media

    Own website Other websites

    These include activities done to increase online visitors. For example; advertising, event sponsorships, social media engagement, community activities, CRM based activities etc. Visitors to website are also an important part of the prepurchase phase.

    After purchase, customers interact with product packaging, assemble and operate it (if applicable), return it if they are not satisfied etc. All these activities are included in this phase.

    They are visitors to physical store(s) This phase could be split into subphases; checkin, shop and checkout. Some visitors could make a purchse, while others may not. The experience that is on here is linked to companys objectives.

    They are visitors to companys online store. Some of them make a purchase and have additional experiences.

    InStore (Physical)

    Checkin

    Shop

    Checkout

    Purchase

    Browse

    Select

    Payment

    Visitor, didnt purchase

    Visitor, purchased

    Onlineshop

    Visitor, didnt purchase

    Visitor, purchased

    Store

    M A NR EK T I G

    User guide

  • Dialogues on delight: Customer Experience Trends in India 2016 27

    Feedback scoresCompanies in India typically measure instore experience the key part of the journey. The parameters that are measured include the following.

    Product range

    Number of brands

    Variety of merchandise (designs, sizes etc.)

    Latest and fashionable

    Value for money

    Store ambience

    Location of store

    Product display

    Overall look and feel

    Lighting

    AC temperature

    Cleanliness

    Music

    Trial room

    Parking

    Store team

    Grooming

    Communication skills

    Welcome on arrival

    Assistance and courteousness

    Understanding needs

    Offering products based on need

    Knowledgeable

    Explaining product Features

    Customer service (complaints, returns etc.)

    Billing

    Speed

    Accuracy

    Garnering feedback on other aspects of the journey (prepurchase and postpurchase) has still not gained traction. Further, companies do not seem to take feedback on online shopping experiences from their own websites, as they account for a very small percentage in overall sales.

    Table 5: Ratings on parameters in retail sector; Q2 of CY2016

    The following chart illustrates the feedback given by customers of retail brands on the CloudCherry platform. The feedback is on a fivepoint rating scale where 1 = Very Poor and 5 = Very Good. A higher score indicates higher satisfaction with the experience. The ratings were collected in 2QCY16 (April, May and June).

    Parameter Rating

    Number of brands Variety of merchandize (designs, sizes etc.) Latest and fashionable products Value for money

    4.29 to 4.37

    Location of store Product display Overall look and feel

    Lighting AC temperature Cleanliness

    Music Trial room Parking

    4.21 to 4.38

    Grooming Communication skills Welcome on arrival

    Assistance and courteousness Understanding of needs Offering products based on need

    Knowledgeable Explaining product features Customer service (complaints, returns etc.)

    4.20 to 4.45

    Speed Accuracy

    Prod

    uct

    rang

    e St

    ore

    am

    bien

    ce

    Stor

    e

    team

    Billi

    ng

  • Dialogues on delight: Customer Experience Trends in India 201628

    The key likes (which increase NPS) across companies in this sector are recommendations by store staff after understanding needs, product range and customer service (ease of returns). The key dislikes (which decrease NPS) in the store experience are oneoff events such as unclean trial rooms or restrooms.

    Conclusion The role of the store team in driving CX is very high, especially in categories such as fashion. Data from the CloudCherry platform clearly shows that they drive delight (scores of 9 or 10 in the NPS scale). The primary expectation of customers is that the store team (as and when they are called upon) would understand their requirements well and suggest products or services as per their needs.

    Small gestures such as greeting customers on arrival or having a nice store ambience also drive delight but are not as important as the core expectation of understanding needs and recommending solutions. To some extent, these have become standard practice across stores.

    Product range is also an important factor in driving CX. Customers usually compare retail stores with ecommerce sites, where more variety is possible. They also make a distinction between the product range being inadequate at the store versus not finding something right despite the store having the variety.

    The absence of basic facilities, such as a clean trial room or a wash room, reduces NPS. However, problems with these parameters are negligible in leading retail chains.

    Customer view: Financial servicesFinancial services include a gamut of offerings by banks, nonbanking financial companies (NBFCs), life insurance companies, general insurance companies, mutual funds, brokerages etc. The journey for companies offering one or more of these products and services varies. However, at a broad level, it is similar.

    Background: customer journey map

    Figure 22: Customer journey map, Financial services

    Documentation Checks (Health) Checks (Asset) Introduction Kit

    Branch Visit ATM or CDM Internet

    Account Relationship

    Manager Contact Center

    Introduction Kit Login Credentials Relationship

    Manager

    Documentation

    Prepurchase

    Select & signon

    First time usage

    Continued usage

    Exit

    Marketing activities Offline Online

    Website Sales Managers Contact Center

  • Dialogues on delight: Customer Experience Trends in India 2016 29

    Feedback scoresOn the CloudCherry platform, companies offering financial services collect feedback for the following touchpoints:

    Branch/office visitors

    Internet account users

    Contact center

    The following chart illustrates the feedback given by customers of financial services on the CloudCherry platform. The feedback is on a fivepoint rating scale where 1 = Very Poor and 5 = Very Good. A higher score indicates higher satisfaction with the experience. The ratings were collected in 2QCY16 (April, May & June).

    Table 6: Ratings on Parameters in Financial Services Sector; 2QCY16Parameter Rating

    Branch/office 3.66 to 3.92

    Internet accounts 3.67 to 4.07

    Contact center 3.08 to 3.28

    Overall, the ratings are lower than of leading retail chains. The ratings are primarily driven by the following parameters:

    Branch/office: Speed of service, courteousness, knowledgeable staff who provide the right solutions based on needs, and clarity on documentation

    Internet accounts: Ease of doing specific transactions such as adding beneficiaries, the ability to find options quickly, the time taken to complete an activity, ease of navigation and availability of information

    Contact center: IVR navigation time, understanding of problem by the contact center and providing the appropriate resolution

    Conclusion Expectations of banking customers on the contact center experience are not being met. Specifically, they would like the IVR navigation to be easier to understand and less timeconsuming. They would also like a knowledgeable and empowered phone banking officer to handle their queries and propose solutions appropriate to their needs.

    Experience with visits to branch/office are also not as good as in the retail sector. However, situations are often more complex in the financial services sector (because of regulations, documentation, legal issues etc.) as compared with the retail sector. Ratings are almost always below 4 on average, compared with theabove 4 for the retail sector. According to customers, the areas that need improvement are time taken at the branch (waiting time), understanding of customer problems or needs, and offering a solution immediately.

    The highest ratings are typically for services delivered over the Internet. Here, the problems are mainly about accomplishing specific tasks for example, adding a beneficiary for transferring funds.

  • Dialogues on delight: Customer Experience Trends in India 201630

    Customer view: EcommerceEcommerce has grown rapidly in the last decade, offering stiff competition to traditional channels. Initially, ecommerce was driven by travel websites that allowed easy comparison and booking of domestic and international flights, buses and trains. In such cases, there was no physical delivery of products involved; the entire process could be completed online. The next few years saw the emergence of ecommerce websites that sold physical products. These firms have today overtaken ticketing firms in terms of size. Our definition of ecommerce encompasses all firms selling products and services online.

    Background: Customer journey map

    Figure 23: Customer journey map, ECommerce

    Prepurchase

    Postpurchase

    All customers

    Purchase

    Marketing activities

    Advertising Events

    Promotions Social Media

    Visitor, didnt purchase

    Visitor, purchased

    Own website Other websites

    These include activities done to increase online visitors. For example; advertising, event sponsorships, social media engagement, community activities, CRM based activities etc.

    After purchase, activities like delivery, payment (if payment on delivery), installation, modifications or returns, usage, maintenance/service take place.

    Selection and purchase on site; via mobile or PC.`

    Browse

    Select

    Payment

    Onlineshop

    M A NR EK T I G

    User guide

  • Dialogues on delight: Customer Experience Trends in India 2016 31

    Feedback scoresEcommerce companies using CloudCherry typically solicit feedback for the entire journey within the website or app. To that extent, a large portion of the customers journey is covered. Parameters that are measured include the following.

    Selection and purchase

    Ease of selection

    Ease of purchase

    Usage (services)

    Service experience

    Value for money

    Contact center

    Ease of connecting

    Ease of speaking to officer

    Understanding of need

    Satisfaction with solution

    Postpurchase (products)

    Modification/cancellation

    Returns

    Delivery

    Packaging

    Product damage

    Installation or demo

    Value for money

    The following chart illustrates the feedback given by customers of ecommerce brands on the CloudCherry platform. The feedback is qualitative in nature because different brands use different measurement systems on the platform. The issues are based on feedback collected in 2QCY16 (April, May and June).

    Table 7: Ratings on Parameters in ECommerce; 2QCY16Parameter Major issues

    Selection and purchase Ease of selection Ease of purchase

    Too many options making it difficult to choose Transparency in pricing Speed of Internet connection

    Service experience Services provided by thirdparties, especially in the hospitality sector the difference between expectation and reality

    Postpurchase (products) Modification/cancellation Returns Delivery

    Packaging Product damage Installation or demo Value for money

    No critical issues, except perception of high cancellation charges

    Contact center Ease of connecting Ease of speaking to officer

    Understanding of need Satisfaction with solution

    Understanding of problem and appropriate resolution

    The key likes (which increase NPS) are related to user experience (selection and purchase) and contact center (low waiting time, and satisfactory and quick resolution. The contact center perceptions are generally better with ecommerce firms relative to others.

    The key dislikes (which decrease NPS) are factors over which ecommerce firms have little or no control, mainly in the usage phase for example, delayed flights.

    Conclusion The main challenge for ecommerce companies is to provide a level of service commensurate with expectations for services where many unorganized service providers are involved for successful delivery. For example, a package tour bought online involves availing taxi services, hotels, scheduled bus tours etc.

    For factors under direct control (website experience, contact center etc.), there is relative parity between service providers.

  • Dialogues on delight: Customer Experience Trends in India 201632

    ConclusionCustomer experience is emerging as a key differentiator for companies to stand out in crowded markets where goods and services are becoming commoditized at much faster rates. Good CX design impacts the entire company and goes hand in hand with customer centricity. Companies should look to design themselves and the way they deliver their products and services with the customer at the centre. This design principle can both create an inimitable differentiator as well as create real value which does not erode easily. There are many global successful cases of this already.

    The utopia here will be to create enterprise designs purely with the customer at the centre of all operations, seamlessly intertwining the physical and digital worlds into every single touch point with the customer, creating an association of delight with your brand. We look forward to hearing about your CX journeys and your dialogues on delight.

  • Dialogues on delight: Customer Experience Trends in India 2016 33

    Contact usDinesh Mishra [email protected]

    Rajkumar Manoharan [email protected]

    Amrita Thakur [email protected]

    Ramprasad Venkataramanan [email protected]

    Nikhil Dudani [email protected]

    Uttara Shah Utta[email protected]

    Lina Gokarn [email protected]

    Vidya Venugopalan [email protected]

    V. Sridhar [email protected]

    Follow us! https://www.facebook.com/getcloudcherry https://www.linkedin.com/company/cloudcherry https://twitter.com/getcloudcherry

    CloudCherry blog https://www.getcloudcherry.com/blog/

    AuthorsMr. Dinesh Mishra [email protected] Dinesh Mishra is an Advisory Partner and Customer Practice Leader for India at EY. Dinesh has nearly two decades of industry and consulting experience in Sales, Marketing and Services. His key areas of expertise include sales growth strategies, sales force effectiveness, customer economics, customer experience and relationship management and digital. Having operated from Singapore, United Kingdom, and India, Dinesh has led multiple Customer transformation engagements across sectors for both global and Indian clients. His ability to translate strategies and innovation into operational reality is what has helped many of his clients achieve their goals.

    Mr. Vinod Muthukrishnan [email protected] Vinod is the cofounder and CEO of CloudCherry, a leading global customer experience management platform. Vinod brings over 10 years of business and technology experience, previously heading international sales and strategy for a financial tech startup, and spending his formative years as a first officer with international cargo liners. Today, Vinod manages CloudCherrys presence in the US, India and Singapore.

  • Dialogues on delight: Customer Experience Trends in India 201634

    List of tables Table 1: CXO Survey; Analysis of Opinion Expressed w.r.t.

    Outstanding CX in India -----------------------------------------------------18

    Table 2: CXO Survey; Differentiation done by CX Benchmark Companies--------------------------------------------------19

    Table 3: CXO Survey; Challenges Faced In Offering Best CX ------------------------------------21

    Table 4: % of Promoters, Passives & Detractors (Average), Q2 of CY2016 -------------------------------------------------------------------25

    Table 5: Ratings on Parameters in Retail Sector; Q2 of CY2016 -------------------------------------------------------------------27

    Table 6: Ratings on Parameters in Financial Services Sector; Q2 of CY2016 -------------------------------------------------------------------29

    Table 7: Ratings on Parameters in ECommerce; Q2 of CY2016 -------------------------------------------------------------------31

    List of figuresFigure 1: CXO Survey; CX in India w.r.t. World ------------------------------------18

    Figure 2: CXO Survey; Feedback Collected On All Experiences? -----------20

    Figure 3: CXO Survey; Importance of CEM Compared to Last Year -------20

    Figure 4: CXO Survey; Responsibility of CEM in Company -------------------20

    Figure 5: CXO Survey; Ultimate Responsibility for CX -------------------------20

    Figure 6: CXO Survey; Action Taken on Feedback -------------------------------21

    Figure 7: CXO Survey; Impact of CX on Performance Evaluation ----------21

    Figure 8: CXO Survey; CEM Budgets -------------------------------------------------22

    Figure 9: CXO Survey; Impact of CRM Investment on CEM Investment --------------------22

    Figure 10: CXO Survey; Perceived Competition Focus on CX ---------------23

    Figure 11: CXO Survey; Managing CX on Digital Channels -------------------23

    Figure 12: CXO Survey; Perceived Increase in Discussions on CX among Top Management ----------------------23

    Figure 13: CXO Survey; Empowerment of Employees on Improving CX -------------------23

    Figure 14: CXO Survey; CX in Marketing Communications in Future ------------------------24

    Figure 15: CXO Survey; Leveraging Latest Technologies to Enhance CX in Future -------------------------------24

    Figure 16: CXO Survey; Using CEM Data for Inputs Across Organization -----------------------------------------24

    Figure 17: NPS (Average), Q2 of CY2016 --------------------------------------25

    Figure 18: Monthwise NPS (Average) for Retail, April 2016 to July 2016 -------------------------------------------------25

    Figure 19: Monthwise NPS (Average) for Financial Services, April 2016 to July 2016 -----------------25

    Figure 20: Monthwise NPS (Average) for Ecommerce, April 2016 to July 2016 -------------------------26

    Figure 21: Customer Journey Map, Retail -----------------------------------------26

    Figure 22: Customer Journey Map, Financial Services ------------------------28

    Figure 23: Customer Journey Map, ECommerce -------------------------------30

    List of abbreviations CY: Calendar year

    CX: Customer experience

    CEM: Customer experience management

    CXO: Chief X officer. Collectively refers to all CLevel titles such as chief executive officer, chief operating officer, chief financial officer, chief marketing officer and chief experience offer. For this report, it also refers to any equivalent designation such as managing director and marketing head.

    DOD: Dialogues on delight

    FY: Financial year

    IVR: Interactive voice response

    SMS: Short message service

    Annexure I

  • Dialogues on delight: Customer Experience Trends in India 2016 35

    CloudCherry is the definitive realtime, omnichannel, endtoend Customer Experience Management platform that helps customerfacing brands track, measure, improve & deliver Customer Delight thereby increasing Profitability and Customer Loyalty.

    The customizable, easytouse platform helps several leading brands in Retail, ECommerce, Banking, Insurance, Hospitality, Healthcare, Aviation and more track measurable metrics like their Net Promoter Score & Customer Delight Score, capture key customer feedback from 17 channels (& counting), derive actionable Insights to understand & enhance Customer Experiences, and to manage issues in realtime, as they happen, wherever they happen.

    CloudCherry is a part of Customer Analytics Technologies Inc. based in Pleasanton, CA and has a global presence with offices in Singapore, Bengaluru & Chennai. The company is backed by Vertex Ventures, IDG Ventures India, CISCO Investments, The Chennai Angels & Capillary Technologies.To know more about Cloudcherry, visit www.getcloudcherry.com

    Bengaluru, India 257, GK Complex Amarjyothi Layout Koramangala Ring Road Domlur Bengaluru 560071 Tel: +91 80 4094 7968

    4695 Chabot Drive, Suite 200, Pleasanton CA 94588 USA

    About CloudCherry

    CloudCherry offices:

  • Dialogues on delight: Customer Experience Trends in India 201636

    Notes:

  • Dialogues on delight: Customer Experience Trends in India 2016 37

    Notes:

  • Dialogues on delight: Customer Experience Trends in India 201638

    Notes:

  • Dialogues on delight: Customer Experience Trends in India 2016 39

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