service 2020: mega trends for the decade ahead

8/6/2019 Service 2020: Mega Trends for the Decade Ahead

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EXCELLENT

SERVICE

TECHNOLOGY

SERVICE 2020: mEGaTRENdS fOR THE dECadE aHEadA BDO report, written by the Economist Intelligence Unit

Written by

SUm

mER2011

SPECIaL

dRIVERS

KEY

SEGmENTaTION

INfORmaTION

QUaLITY

COmPETITIVE

GEOGRaPHYb

ESP

OKE

fOCUS

PERSONaL

mE

dIa

OU

TSOURCE

OffSHORE

dIffERENTIaTOR

CUSTOmISaTION

PRICE

faSTER

bETTERINVEST


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Megatrends or the decade ahead: SERVICE 2020 i

ForewordSimon Michaels, Managing Partner, BDO

IntroductIon

1. Global competItIon wIll drIve up servIcestandards

Were all (sort o) good at customer service

2. companIes must maIntaIn servIce

standards In the Face oF the need For

speed

3. FIrms must learn to use the Increased

transparency brouGht by socIal medIa to

theIr advantaGeCase study: Accor embraces transparency

4. companIes must use new sources and types

oF data to rethInk the way they track andpersonalIse theIr servIce

5. Good employees wIll remaIn Fundamental

to Good servIce but wIth technoloGy as an

enablerCase study: Lebaras customer-centric service oering

6. more FIrms wIll outsource aspects

oF customer servIce to new kInds oF

specIalIsts

7. the rIse oF the mass aFFluent and other

customer seGments wIll Force companIes

to FInd new product or servIce nIches

8. customer expectatIons, IncludInG the

purpose oF the store, are evolvInG wIth

new technoloGy

conclusIons:

Lessons rom service leaders

appendIx

abOUT THERESEaRCHService 2020:Megatrends or the decade aheadis an Economist Intelligence Unit report, sponsored by BDO. It drawsupon two primary inputs: : A wide-ranging survey o 479 business leaders in Europe, the

Middle East, Arica and Asia Pacic, spanning all industries and allrevenue brackets. All respondents were in management unctions,while over hal hailed rom the C-suite or board level.

Interviews with eight experts and executives representing variousindustries. Our thanks are due to the ollowing or their time andinsight (listed alphabetically by company):

JEaNLUC CHRTIEN Executive Vice President: Sales,Distribution and Loyalty, Accor

dR NICOLa mILLaRdCustomer ExperienceFuturologist, BT

JIm mCCOLLChairman, David Brown

JO CaUSONCEO, Institute o CustomerService

RaTHEESaN YOGaNaTHaNCEO, Lebara

maRK SEbbaCEO, Net-a-Porter

JONaTHaN aCKERmaN

Customer Services Director,Pick n Pay

bRIaN mILLaRDirector o Strategy,Sense Worldwide

The report was written by James Watson and edited by Monica Woodley.

1

2

3

5

7

9

11

15

17

21

25

26 34


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SERVICE 2020: Megatrends or the decade ahead1

fOREWORdInternational and domestic business is more connected and competitivethan ever beore. As a result the demands o beating customersexpectations in the 21st century are only getting greater. Organisationswill need to adapt or risk dying.

At BDO, service is something we are passionate about. Our clients tell

us we already know quite a bit about this: 96% would recommend ourservice to their colleagues and a similar percentage see themselves stillwith us in three years. But you can never get too good at service. Theminute you believe you are good enough; the chances are someone elseis trying harder. So it is essential to keep looking and learning.

We want to improve the service our clients receive and help our clientsimprove the service they deliver. Continuously identiying, developingand implementing exceptional service delivery is the key thrust o ourbusiness strategy.

That is why we have commissioned this report. Covering both business-to-business and business-to-consumer models, it explores how successulorganisations have built and subsequently sustained excellent client

service and, most excitingly, looks at uture developments and provides ablueprint or the prioritisation o service development opportunities.

We are delighted the report ndings conrm that service is vital and willbecome even more so in the uture. And also that some things do notchange: or example, no matter what technological innovations come and

go, customers will always value a personal touch.

Technology will, nevertheless, have an impact on how we can and shoulddeliver service, i nothing else because web-wise customers have thesocial tools to make or break our reputation.

That is why we need to study our customers careully and make sure ourservice matches their expectations, whether in helping them achieve theiraims more quickly or providing dierentiated product oerings.

There is plenty more here to interest anyone keen to improve customerservice and understand what new service opportunities our changingsociety can provide.

We will be using the ndings to review and redene our own serviceproposition. And we would relish the opportunity to speak to you aboutthe opportunities it oers or your business too.

bdo

SImON mICHaELSManaging Partner, BDO


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Megatrends or the decade ahead: SERVICE 2020 2

INTROdUCTIONWhat is your idea o perect customer service? Responses rom peoplewill vary considerably, depending on the type o the transaction beingconducted, whether it is shopping or clothes, trying to get an errorcorrected in a phone bill or seeking help rom a supplier at work.

In some contexts, most people are more than happy with simply nding

an item in stock at a reasonable price. In other contexts, a highlypersonalised experience might switch people o, perhaps because it eelslike the provider somehow knows too much about a person. Sometimesmany choices are required; in other environments, no choice at all can beperectly blissul, such as when trying a ches tasting menu.

Despite these considerable variations, everyone knows good (or bad)service when they get it. But the actors driving change in customerservice have shited radically rom just a decade ago. Most strikingly,technology is playing a huge role through the emergence o social mediaand the now ubiquitous mobile phone, or example. Equally, globalisationhas taken deeper hold, providing both signicant new consumer marketsand aggressive new global rivals.

Given these orces and others, how will customer service change in thecoming decade? Gathering a deeper understanding o that question isthe aim o this report, which draws on a survey o 479 business leadersto identiy trends, as well as in-depth interviews with numerous expertsand senior executives - see about the research (previous page) or moredetail.

Although the kinds o customer service options and norms that might beencountered in 2020 can not be so precisely predicted, it is possible tooutline some o the actors driving change in the decade ahead. To thisend, this report outlines eight megatrends that are likely be occur.

economIst IntellIGence unIt


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GLObaL

WILL

U

P

dRIVE

COmPETITIONcustomer servIce meGatrend 01

SERVICE STaNdaRdS

HISTORICaLLY, SERVICE STaNdaRdS HaVE RISEN aNd faLLENIN LINE WITH PEaKS aNd TROUGHS IN SUPPLY aNd dEmaNd.

When demand or a product ar outstrips supply, the rm in questionwill oten, understandably, simply ocus on delivering the goods. Butin an increasingly commoditised and competitive global marketplace,with aggressive new emerging market rivals expanding rapidly, customerservice will be used by a rising number o rms as a competitivedierentiator. Increased global competition is seen as the number onedriver o customer service or the decade ahead overall.

This is particularly true or business-to-business (B2B) rms. Consumer-oriented, or business-to-consumer (B2C) rms also see competitionas a key driver, but it jostles along with other major issues such as thegrowth o the middle class in emerging markets and the creation o newtechnologies.

This competition is driving an important change: a tighter ocus oncustomer service. While quality is seen today as the key means ostanding out rom the crowd, especially or B2B rms, service will be theclear ocus or rms o all shapes and sizes by 2020. More than hal (55%)expect to compete on this basis in 2020, well ahead o quality (33%),while price is seen as relatively insignicant (9%).

The shit is even more striking in the B2B market, where it nearly doublesrom 32% competing on that basis today to 57% by 2020. Regardlesso the sector, then, customer service specialists will be in demand. Manyalready are: about seven in 10 rms agree that excellent customer serviceis a competitive dierentiator or them in their industry. Ultimately,service is the only dierentiator, argues Jo Causon, CEO o the Instituteo Customer Service (ICS), an independent, proessional membershipbody or customer service.

It would be rash to consider price immaterial, however: or manyinterviewees, price is simply one o the barriers to entry in their markets.Price is a very important actor, says Ratheesan Yoganathan, CEO oLebara, a European low-cost mobile operator. But once [our customers]like the price, we want them to be happy with our service, so that theydont move or hal a pence cheaper.

Some industries are clearly more price-centric than others, but to avoidbeing caught in a race to the bottom in terms o price, service will beused to stand out. Many will even use this as a means o potentiallycharging more: two-thirds o rms think premium products will be linkedto premium service in 2020. This will lead to a rise in new product niches,as outlined in the seventh megatrend.


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CHaRT 1*Q: On what basis does your company primarily compete now,and what do you expect in 2020?

WERE aLL (SORT Of) GOOd aT CUSTOmER SERVICEMuch like male car drivers, many o whom believe they are excellentdrivers, most (nearly seven in 10) rms consider themselves tobe above average when it comes to customer service, althoughrelatively ew (16%) regard themselves as excellent. Some o these,however, appear to be getting slightly ahead o themselves. Just sixin 10 have a dened strategy or tracking customer eedback andcomplaints, while even ewer (55%) have a system or identiyingservice gaps, and less than our in 10 think they do a good job oaddressing customer eedback. In many areas, B2C rms appear to bedoing more than their B2B peers.

JOCaUSON

CEO, Institute o Customer Service

* source: Economist Intelligence Unit

the only dierentiatorUltimately service is

For example, while a similar amount o rms in both categories havea dened strategy or tracking customer eedback and complaints,nearly twice as many B2C rms are working on installing one (27%compared with 15%).

However, less than hal o rms overall (47%) even have clearlydened service goals and processes. I service is indeed going to be acompetitive dierentiator in 2020, many rms have a lot more workto do.

QUaLITY

2011

2011

2011

2011

2020

2020

COSTSERVICE OTHER

0%

40%

20%

10%

30%

50%

60%

55%

42

%

33%

32%

24%

9%

3% 3

%

2020

2020


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the need for speedthe need for speedthe need for speed

mUST maINTaINSERVICE STaNdaRdSIN THE faCE Of

COmPaNIEScustomer servIce meGatrend 02

TOdaYS INSTaNT-GRaTIfICaTION ONLINE SOCIETY HaS

SHaRPLY CHaNGEd PERCEPTIONS Of CUSTOmER SERVICE.

While a majority o rms (61%) think expectations rom their clients haverisen, and a similar proportion (63%) agree that customers expect morepersonalisation, the stand-out metric is speed: 82% o rms believe thatclients expect a aster service than ve years ago.

For an online-only retailer like Net-a-Porter, this is a crucial part o itsoering: order a dress online by 1pm in London or Manhattan, and haveit delivered to your door beore the end o the day. We think that speedis very important, and our customers think its important too, says MarkSebba, the rms CEO. Similarly, or customers who do not like the item,Net-a-Porter will collect it again ree o charge. Our customers are busypeople and time is the new luxury, acknowledges Mr Sebba. Somethingthat helps them avoid having to wait in a post oce is important. Therm is planning to open a third distribution centre in Hong Kong so thatit can deliver more rapidly on new demand rom Asian clients. Withthat, well be no more than 24 hours rom any metropolitan centre in theworld, conrms Mr Sebba.

In short, speed has become a competitive dierentiator. Firms that will

be able to help their customers save time will leverage this to stand outrom their rivals.

Another example is Accor, the global hotel chain that includes a largerange o brands, rom Sotel to All Seasons to Formule 1. It hopes thisdecade to link its loyalty scheme to its door keys, so that customerscan check in online, as they do with their fights, and simply use theirloyalty card to access their room, bypassing any wasted time at check-inaltogether. In our economy hotels, we will move more to sel check-in and web check-in, so that you can move into your room quickly,conrms Jean-Luc Chrtien, Accors executive vice president or sales,distribution and loyalty.

The same will apply at more upscale hotels, so that guests can check inonline or via their mobile devices and go direct to their rooms, but willalso include a greater range o options.


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is the new luxurytimebusy people, and

customers areOur

maRK SEbbaCEO,

Net-a

-Porter


The need or speed is seen most obviously in the retail and service

industries, but consumers used to getting what they want quickly in theirpersonal lives are also coming to expect the same in their working lives.This has implications or B2B service providers and is refected in thesurvey results - while 83% o B2C respondents agree their customersnow expect a aster service than they did ve years ago, the B2Brespondents were not ar behind, with 77% agreeing.

The key challenge or B2B is the inherent tension between providing aaster service and maintaining quality levels. Companies will have togure out where in their business processes they are able to speed upservice delivery and where they will need to push back on the need orspeed and manage client expectations.

O course, there are limits. Speed may not mean everything to everyone.Retired consumers among Europes rapidly ageing population, orexample, may not be as concerned about speed as their children, whomay be in ull-time employment, with children o their own and, ingeneral, have many obligations on their time.

Similarly, in some contexts, speed may not be an important actor, andcould even be a deterrent. The sel-titled Slow Food movement, orexample, literally seeks to oer products that are opposite to ast-oodalternatives. But or the most part, rms will ace pressure to pick uppace.

CHaRT 2*:

Q: Do you agree or disagree with the ollowing statements?

0%

60%

20%

40%

80%

100%

Customerexpectationshave changeddramatically

in the past veyears

Customersexpect a morepersonalisedservice thanthey did veyears ago

Customersexpect aster

servicethan they didve years ago

61% 6

3%

82%2

9%

10%

11%

6%

26% 13

%

agree agree

agree

Neither NeitherNeither

disgree disgree disgree


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TRaNSPaRENCYbROUGHT bY

THE INCREaSEd

SOCIaL mEdIaTO THEIR adVaNTaGE

fIRmS mUST LEaRN TO USEcustomer servIce meGatrend 03

THE NEaR UbIQUITOUS adOPTION Of SOCIaL mEdIaPLaTfORmS IN JUST a fEW YEaRS - faCEbOOK WaS ONLYLaUNCHEd IN 2004, WHILE TWITTER fOLLOWEd TWO YEaRSLaTER - HaS aLREadY Had a mULTI-TIEREd EffECT ONbUSINESS.

Their infuence will develop and expand in the coming decade, as socialmedia replaces the press as the primary consumer watchdog. In turn,this is making rms more transparent than ever beore, although just aquarter (26%) o survey respondents believe social media has improvedcustomer relations. I things go spectacularly wrong, it comes outand goes on Google and Twitter, says Dr Nicola Millard, a customer

experience uturologist at BT, one o the worlds leading communicationsservices companies. That transparency hasnt happened beore. It is nowsearchable and enduring, and it may even end up on YouTube.

One high-prole example o this is a 2009 YouTube video entitledUnited breaks guitars, posted by a disenchanted airline passenger whobattled with the airlines customer service department. So ar, it hasreceived nearly 10.5 million views, spawned several additional versionsand been widely proled in the mainstream media. Quite simply,every customer now has an instant, global and searchable means obroadcasting their eedback, good or bad. In addition, customers arealso more willing to complain about bad service than beore, notes MsCauson. The ICS runs an annual customer satisaction index, which hascharted this rise. In 2000, 50% o people were willing to complain.

By 2010, 75% were willing to do so, while people are also more likely totell others about bad service too, she says.

All this is accelerating the move away rom the mainstream media actingas a consumer watchdog towards a more crowd-sourced approach. ForJim McColl, chairman o David Brown, an engineering rm, social mediameans that rms in his sector will have to up their game i they want toremain competitive. It makes it kind o dicult to hide i you dont doa good job, says Mr McColl. The way its developing, its orcing peoplelike us to provide better service. I you really annoy a customer, hellgo and put a message out saying dont deal with this rm. Its orcingpeople to be more attentive to the quality o their products and their

service.

Accordingly, our in 10 rms polled already actively monitor socialmedia or eedback on their service. BT has even built a sotware toolthat automates the process o monitoring social media, ltering andprioritising eedback or the rms customer services team, based onactors such as emotional or viral level o the content.

Service sta already respond to some Twitter complaints directly. Insome instances, this goes all the way to the CEOs oce, prompting adirect client call. You cant control the dance foor, but you can go anddance, explains Dr Millard o her rms eorts to embrace such tools.Many others are dancing too: one-third (30%) o rms polled are usingsocial media as a tool or enhancing client relationships.


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CaSE STUdY: aCCOR EmbRaCES TRaNSPaRENCYSocial media is also changing the way consumers select products andservices, based on the real-time views o others. In industries such atravel and tourism, this is already starting to make annually publishedguidebooks seem redundant, as tourists skip to third-party sites to seeup-to-date guest ratings or a hotel or destination.

Accor, a hotel operator with a broad portolio o brands globally, hastaken a leap o aith in the quality o its customer service by directlyintegrating live, unltered TripAdvisor comments into its main hotelportal. Jean-Luc Chrtien, Accors executive vice president or sales,distribution and loyalty, believes this will push the hotel brand to

enhance its service overall anywayso why not make the processeasier or its clients? To an extent, social media is a very healthything. It has orced us to revisit some o the ways we do some things,and not to be so complacent, he says.

O course, directly publicising unltered eedback and ratings, bothgood and bad, was a tough decision to take. In the end, the hotelbelieved that public comments were unlikely to deviate widely romthe detailed internal data it already tracks (see the ourth megatrend).So ar, this has worked: This has been a bold move. But customerssend us emails, saying that they appreciate this, says Mr Chrtien. Inthe coming decade, the hotel will take this urther, looking or ways todeepen its client interactions on social networks and create more o adialogue with its guests. Others will surely be looking to do the same.

CHaRT 3*:Q: Do you agree or disagree with the ollowing statements?

0%

60%

20%

40%

80%

100%

We monitor social media orcomments on the companys

products/services

We proactively use socialmedia to enhance

relationships with customers

We integrate multi- channelcustomer eedback - including

social networks, blogs andonline communication - with

conventional inputs

Social media has improvedcustomer relations

41%

30%

24%

26%

27%

32%

42%

44%

24%

28%

32%

50%

agree

agreeagree agree

Neither

NeitherNeither

Neither

disgree disgree disgree disgree

Google andTwitterit comes out and goes oni things go spectacularlywrong

Customer Experience Futurologist, BT

NICOLa mILLaRddR.



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COmPaNIES mUST USENEW SOURCES aNd TYPES

TO RETHINK THE WaY THEY

TRaCK aNd PERSONaLISETHEIR SERVICE

customer servIce meGatrend 04

a RaNGE Of NEW daTa, SOURCEd fROm CUSTOmERS SOCIaLmEdIa fEEdS, SmaRT PHONES, aNd OTHER SOURCES, WILLCHaNGE THE WaY THaT fIRmS TRaCK THEIR CUSTOmERfEEdbaCK aNd COmPLaINTS.

Such systems, at least ormal ones, are ar rom ubiquitous: just six in 10rms have a ormal enterprise-wide system in place or this today. Therest are evenly split between either working on it or simply not havingit. Fewer still (55%) have a system in place to identiy trouble spots incustomer service provision, although or many (25%) this is still a work inprogress.

Overall, less than our in 10 (37%) rms agree that they do an excellentjob o collecting and addressing customer eedback. But as social mediamakes rms more externally transparent, this will have an impact onthe way that businesses currently track their perormance, or else makethem start to do so. The risk o ailing to do so, and thus being unable torespond systematically to issues, will simply become too high: imaginethe impact i the rst Google search result or a rm was a now-viralcustomer rant, rather than the home page.

Accor already runs a web-based platorm or monitoring guestsatisaction, used by all o its brands, and based on guest surveys.This allows it to monitor perormance in a range o ways: by country,hotel brand, city or specic hotel. We can measure by seeing i brandsatisaction is being aected by a problem in a specic country or hotelor network, conrms Mr Chrtien.

Increasingly, however, social media is being ed directly into the sametracking system, acting as an additional supplement to existing data.Such systems do not have to be hugely complexand crowd-sourcedinormation could easily be gathered ofine too. For example, Pick nPay, a nationwide grocery retailer in South Arica, has a pilot programme

to install a button on its till points with a smiley or sad ace; pressing itsends an SMS to the store manager, giving clients an instant eedbackmechanism about the service they are receiving.

Overall, the rapidly increasing volumes o data will provide newopportunities or rms to better understand their clients and personalisetheir services accordingly. Nearly hal (46%) o rms plan to use analyticsto do so in the decade ahead, while 43% plan to use analytics to assesscustomer behaviour. This is not new: developed-market rms have longused loyalty cards as one means o gathering more inormation abouttheir clients, and emerging markets are rapidly catching up.


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Pick n Pay launched a loyalty card this year, adding some 3 millionmembers in the rst six weeks alone. Using the data rom those smartcards, along with our [customer relationship management] technology,will be a key way o tracking and personalising our service, conrmsJonathan Ackerman, the rms customer services director. One goal is tolink its loyalty card to the till eedback system, enabling store managersto identiy the customer or a ollow-up.

Beyond this, however, the rise o always-on, location-aware smartphones, combined with social media tools, is adding reams o new dataor rms to tap into and potentially use or customer services. Location isone obvious aspect, but new tools and applications are being constantly

added, ranging rom augmented reality using a phones camera, to appsthat link e-commerce with customers social networks.

New applications are only starting to emerge to make use o thisinormation, ranging rom Foursquare, which explicitly links customerlocation and behaviour with commercial oers, to Blippy, which publishesa customers purchases via Twitter. There are organisations using [suchdata] and treating this as the new kind o loyalty, says BTs Dr Millard.

CHaRT 4*Q: How will companies in your industry adapt to meetcustomer expectations in 2020? Select all that apply.

Increaseresearch

into clientexpectations

Increase use/upgrading oCRM systems

Increase ocustomer

analytics topersonalise

service

Increase use osocial media

Increase useo customer

analyticsto assesscustomer

behaviour

Increase useo customer

segmentation

Other, pleasespeciy

0%

60%

20%

40%

56%

53%

46%

46%

4

3%

4

2%

3%

But these shits will also challenge rms to think more deeply abouttheir relationship with consumers and the ne line between useuland creepy in terms o exploiting customer behaviour. Facebook andGoogle already battle regular complaints over the degree to which theyuphold customers privacy. And these are the data leaders. By contrast,relatively ew companies see themselves as good at using technology tounderstand their customers: just 4% describe themselves as excellent,and nearly one in ve regard themselves as below average, at best.

aspecifccountr

yaspecifchotel

aspecifcnetwork

is being aected by a problem inibrand satisfactionWe can measure by seeing C

HRTIEN

LUCJEaN

Executive Vice President: Sales, Distribution and Loyalty, Accor



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CHaRT 5*Q: What are the top barriers to delivery o good service in yourindustry? Which do you expect to be the top barriers in 2020?

Select up to two each.


Other, please speciy

Lack o clearly dened servicestandards

Poor sta morale

Increased complexity oproducts / services

Lack o investment intechnology

Diculty in matchingcustomers in-store experiencewith virtual experience

Lack o clear service goals andprocesses

Insucient capacity to handlecustomer demand

Lack o investment in sta /training

Lack o qualied sta

2%

17%

8%

7%

50%

15%

17%

39%

6%

15%

2%

15%

13%

17%

29%

23%

26%

47%

9%

4%

0% 10% 20% 30% 40% 50%

2020

2011

2020

2011

2020

2011

2020

2011

2020

2011

2020

2011

2020

2011

2020

2011

2020

2011

2020

2011


16/40


GOOd EmPLOYEES

GOOd SERVICEWILL REmaIN fUNdamENTaL TO

aS aN ENabLER

bUT

WITH

customer servIce meGatrend 05 continued

For some rms, however, complexity can also be turned into anopportunity. For example, David Brown, a global engineering rmheadquartered in the UK, has set up its own academy to train peopleon gear technology, whether its own sta and engineers, or those o itsclients. Its the only place you can get a masters degree in gears, saysMr McColl. The course not only enables clients to better cope with thecomplex machinery the rm sells, but also acts as an excellent marketingtool or the rm.

Beyond the obvious divide o automation handling simple enquiries,allowing employees to ocus on more complex problems, the use otechnology is likely to become more context-relevant. Customers may

like checking in online, but still want a personal touch while waiting in thelounge, or example.

The challenge or rms will lie in identiying where their customers willbe happy to interact with technology and where they still expect thehuman touch. You need to cater to the dierent moods and modes oconsumers, says Brian Millar, director o strategy at Sense Worldwide, aglobal marketing and advertising consultancy headquartered in the UK.Giving people the option is crucial, with dierent payos in terms oinvestment o time or eort. He also warns o the need to ensure thatmachine-interactions eel distinct rom human ones, rather than trying topretend to be human. You need to keep the right tone. Be clear that thisis a machine, doing a machine thing.

the complex stu, or the emotional stu,

which are very value sensitive

...the onlyqueries youre let with are

monster...aWeve created

Customer Experience Futurologist, BT

dR. NICOLa mILLaRd


17/40


CHaRT 6*Q: Which o the ollowing matter most to delivering good

service in your industry, now and in 2020?

PEOPLE

2011

2011

2011

2011

2020

2020

TECHNOLOGYPROCESS OTHER

0%

40%

20%

10%

30%

50%

70%

60%

22%

68%

55%

18%

14%

23%

0% 1%

2020

2020

CaSE STUdY: LEbaRaS CUSTOmER-CENTRIC SERVICEOffERINGLebara is one o the astest growing private companies in Europe,originally set up in the Netherlands. Targeted at immigrants, it oerslow-cost mobile phone calls to international destinations. But whileothers might balance this with low-cost service and support, Lebarainstead ocuses its eorts on never losing its customers by providingexcellent service and support, despite the additional costs required.The rm has won several customer service awards, most recently orbest customer service at the 2011 UK Mobile News Awards.

The CEO, Ratheesan Yoganathan, says his rm sees its employees asits most crucial asset, especially within its call centres where all clientinteraction takes place. Instead o measuring how many calls statake, or example, or how quickly they nish them, sta are measuredon how successully they delivered a positive service outcome or acustomer without having to transer the call or keep clients on hold.Overall, Mr Yoganathan is resolute on the crucial role that employeesplay in his rms service delivery. Our sta are part o Lebarasidentity, as theyre our customer touch-point, he says.

This realisation has led to some unusual decisions. For one, Lebarasmain call centre is located right in the heart o London, at signicantcost. In Mr Yoganathans view, this allows his rm to hire the bestpossible talent, including sta with a wide range o languageskills, by being able to tap into a huge skills base. You get reallytalented people, so sta in our call centres oten move on to otherdepartments, such as IT or marketing.

Theyre really high quality. This is not just idle talk: Lebara even hostsan annual contest or all employees, entitled Dream big, whereby

anyone can pitch new business ideas to the management committee.The winning pitch is given an investment o 100,000. Last yearthe options were so good, we had to select two people, says MrYoganathan.



18/40


mORE fIRmS WILL

aSPECTS Of CUSTOmER SERVICE

SPECIaLISTSOfTO NEW KINdS

OUTSOURCE( )


TOdaY, NEaRLY aLL fIRmS (87%) TaKE CaRE Of THEIR SERVICEOffERING IN-HOUSE. IN THE dECadE aHEad, HOWEVER,SPECIaLIST OUTSOURCEd CUSTOmER SERVICE PROVIdERS aRELIKELY TO bE IN dEmaNd.

Nearly our in 10 rms plan to outsource their service needs to anexternal partner, ideally in their home market, up rom just one in tentoday. On the surace o it, this seems counterintuitive, given the risingimportance o customer service to rmsand the act that this couldeasily exacerbate service complexity concerns. But or many, externalpartners can help them cope by allowing them to tap into a pool ospecialist resources. What you need now are experts who can bring

skills that rms dont have, says BTs Dr Millard, citing as a hypotheticalexample a pharmaceutical rm that might not necessarily have aspecialist pool o medical experts on tap to sta a customer servicesdivision, but wants to provide a resource to help with specialist queries.

Advances in communication technology are helping rms tap into suchresources more easily, irrespective o their location. Dr Millard cites oneUS rm that employs a huge number o reelance experts, mostly workingrom home, to provide specialist expertise over the phone, paying themon a per call basis. Employees are ree to work when it suits them, bysimply logging into the system whenever they wish to work. This is notthe norm, but theres clearly potential to add a very value-added service,says Dr Millard, who likens the experience to a orm o speed dating, onlyor customer service.

Clearly, such outsourcing will not appeal to all rms, but in trying to copewith complexity, new opportunities or specialist outsourcing providerswill emerge. In some areas, dedicated support and services rms haveeven built custom applications to help a companys in-house sta todeliver a better support unction.

For example, B2X Care Solutions has created an application thatallows a mobile phone providers ront-end sta to run automatedscans to determine what is wrong with a phone, rather than send it ounnecessarily to specialists or repair. It is now building a smart phoneapp that aims to help consumers scan and repair simple aults on theirown devices, to avoid having to use a support centre at all.

A related trend, which is arguably a orm o outsourcing in the ormo crowd-sourcing, will be or rms to involve their customers in newproduct development. This co-creation can do wonders to boostcustomer loyalty, argues the ICSs Ms Causon. She gives an example oStarbucks, which has asked customers to help come up with new recipes.People want to be involved in the development o products and services.Not just giving eedback, but actually helping to create, she says.


19/40


20/40


maSS affLUENT

NEWTOfINdNICHES

THE

THERISEOf


PROdUCT OR SERVICE

WILL fORCE COmPaNIESaNd OTHER CUSTOmER SEGmENTS

bOOmING EmERGING maRKET ECONOmIES HaVE dONE a LOTTO RaISE THE INCOmES Of THE POOR aCROSS mUCH Of THEWORLd, maKING THE mIddLE CLaSS a SYNONYm fOR NEWOPPORTUNITIES, ESPECIaLLY IN EmERGING maRKETS.

By 2030, the World Bank estimates there will be some 1.2 billion middle-class consumers globally and overall emerging markets will play a largerrole.

This widening band, a broad classication that hundreds o millionso people in Asia especially will join during this decade, is largely anaspirational one, as per capita incomes will remain relatively low in many

places. Nevertheless, the growing middle class o consumers was cited bysurvey respondents as a top ve driver o changing customer expectationsby 2020.

The newly afuent will put new demands on rms: consumers wealthyenough to want a premium product or experience, but not rich enough totake the ull-at version, whether a rst-class airline seat or a truly high-end shopping experience.

This has already led to a rise o new product categories, such aspremium economy in many airlines, as a means o targeting this middleground.

Other airlines may keep the same seats, but oer smaller upgrades orsmall additional charges to bolster their margins, such as better meals, orthe chance to select a seat ahead o others. In the coming decade, manyother industries will seek to nd their variation o this middle ground.It will not be easy, however. This presents a huge service opportunity,but it is also a challenge or companies to treat people individually andmake them eel special, while making this massively scalable, says SenseWorldwides Mr Millar.

For many, this will become a challenge o providing smart ways to deliverwhat looks and eels like personalised service, even i it is available to amass audience. This challenge also extends into virtual channels, as wellas physical stores, as highlighted by our next megatrend.

O course, the band o truly wealthy consumers is widening too,challenging rms to nd new ways to cater to their needs and provideservices that stand out rom being merely good.

... continued overlea


21/40


22/40


maSS affLUENT

NEWTOfINdNICHES

THE

THERISEOf


PROdUCT OR SERVICE

WILL fORCE COmPaNIESaNd OTHER CUSTOmER SEGmENTS

One area is credit cards, which are largely ubiquitous in developedmarkets. To stand out, rms need to nd unique customer serviceoerings to bundle in with their cards, such as concierge services. MrMillar cites a related example o Vertu phones, a luxury mobile phone.These are obviously well-designed and built, but the really premiumeature is a concierge button, allowing users to easily arrange things in anunamiliar city, or example.

Although the concept o mass afuence obviously does not apply tocompanies targeting business purchasers, there is still a lesson here orB2B providers. New client segments that will pay or enhanced servicesmight lead to the emergence o new services or new delivery models. B2B

survey respondents seem better prepared on this ront than their B2Ccounterparts. Almost a third (31%) already use customer segmentationbased on actual customer behaviour and/or other qualitative actors.Another th (19%) use segmentation based on both demographicinormation and customer behaviour and/or other qualitative actors, andanother 13% use segmentation based on basic demographic inormationin order to give a more specialised service. Just over a quarter (27%) oB2B respondents say their service provision is standard or all customers,compared to 40% o B2C respondents.

Similarly, B2B respondents are more likely than their B2C counterparts tomodiy their service model or the dierent geographic markets in whichthey operate, with 42% adapting their standard model compared to 29%o B2C respondents, and 17% having bespoke service provision based on

local customer expectations compared to 12% o B2C respondents.

CHaRT 9*Q: What do you believe will be the main driver o changingcustomer expectations by 2020?

Increasing global competition

Some technology whichcannot be predicted right now

Personalisation technology

Increasing customerempowerment

Growing middle class oconsumers in emerging markets/

increased per capita incomes

Increasing use o smartphones,tablets and other portableweb-enabled devices

Social media

Changing demographics (ie.ageing population in manydeveloped markets)

Increasing outsourcing oservice jobs to emergingmarkets


Dont know

0% 20% 40%30%10%

23%

15%

14%

11%

11%

10%

8%

1%

1%

2%

5%


23/40



CHaRT 10*Q: Do you utilise customer segmentation in order to give more

specialised service?

CHaRT 11*Q: Have you adapted your service provision or the dierent

geographic markets your company operates in?

Dont know

Not applicable

Yes, we use customersegmentation based on bothdemographic inormation andcustomer behaviour and/orqualitative actors

Yes, we use customersegmentation based on actualcustomer behaviour and/or otherqualitative actors

Yes, we use customer

segmentation based on basicdemographic inormation

No, our service provision isstandard or all customers

0% 20% 40% 50%30%10%

1%

8%

19%

31%

13%

27%

3%

7%

16%

19%

16%

40%

b2b

b2C

b2b

b2C

b2b

b2C

b2b

b2C

b2b

b2C

b2b

b2C

0% 20% 40% 50%30%10%

Not applicable as we operate injust one geographic market

12%

29%

b2b

b2C

Yes, each market has its ownbespoke service provision basedon local customer expectations

17%

12%

b2b

b

2C

Yes, we have a standard serviceoering but adapt / localise it ordierent markets

42%

29%

b2b

b2C

No,we have a standard serviceoering that is used in allmarkets

29%

29%

b2b

b2C


24/40


CUSTOmER EXPECTaTIONS

WITH NEW TECHNOLOGY

Of THE STOREaREEVOLVING

INCLUdING THE PURPOSE


Mobile devices are leading the way in changing customer expectations.By always being able to access any inormation, at anytime, peoplewill increasingly expect this throughout their lives. Almost a third orespondents say their customers expect to be able to get in touch withthem 24/7. And when asked about the drivers changing customer servicetoday, communications technology topped the list (selected by 53%),ollowed by more available inormation (46%) and increased competition(44%).

The other trend were certainly seeing, and something were very aliveto, is that the business is moving away rom the desk or home and ontotablets and mobile devices, conrms Net-a-Porters Mr Sebba, noting

that this is particularly evident on its sub-brand, Mr Porter, which sellshigh-end ashion or men. Were spending a lot o eort ensuring ourmobile apps are as good as anything in the market, i not better, he says.

But as with social media, most mobile technology is still essentially new.The most hyped devices, Apples iPhone and iPad, were only introducedin 2007 and last year, respectively. In the coming decade, a newgeneration o innovation will emerge on the back o these devices anda rapidly growing list o rivals. Some o this innovation may also comerom unexpected sources. Many emerging markets have leaproggedtraditional methods o internet access and adopted mobile connectivitymore rapidly than anywhere else. In countries like Kenya, whereconsumers have had miserable access to retail banking services, theintroduction in recent years o a mobile phone-based cash deposit and

transer system, called M-Pesa, has spread like wildre.

Elsewhere, a trial project by SAP, a sotware rm based in South Arica,has seen SMS-based applications developed or rural communities,allowing them to aggregate their purchases rom a distant store,which then delivers the entire communitys order in a single go toachieve economies o scale. On the e-commerce side, we have a hugepopulation enabled with cell phones, says Pick n Pays Mr Ackerman.Interaction on mobile media is huge here and growing at a huge pace.

Already, the retailer is adding a range o electronic services to make lieeasier or its customers, such as providing payment services and access togovernment grants. You can scan your nger at the till-point to collectyour pension, notes Mr Ackerman. By 2020, developed market rms

may be learning new mobile tricks rom their emerging market rivals. Andby then, mobile devices will also help change the in-store experience.

Today, most shops are largely transactional places, but over the comingdecade their role will evolve. In part, they will become showcases: placesor consumers to kick the tyres o a new purchase. The role o the highstreet might shit to becoming a contact sport: looking, eeling, asking,says BTs Dr Millard. Over a third (37%) o survey respondents see thedistinction between the online and ofine experiences completelyblurring by 2020. In the technology sector, Apple has led the way,opening hundreds o stores globally that provide a hands-on browsingexperience by letting anyone come in and use their devices or as long asthey want. Most recently, the rm has removed payment points, insteadsimply enabling all sales attendants to act as till points wherever they

are, using mobile devices.

... continued overlea


25/40


Now in 2020

I / 398 (83%) 320 (67%)

s/ 108 (23%) 110 (23%)

mi i 147 (31%) 257 (54%)

t 297 (62%) 206 (43%)

c 115 (24%) 122 (25%)

ei 335 (70%) 303 (63%)

wi 308 (64%) 321 (67%)

si i 134 (28%) 291 (61%)

mi 198 (41%) 120 (25%)

I gig i 72 (15%) 188 (39%)

o, i 16 (3%) 24 (5%)

CHaRT 12*Q: Which o the ollowing channels do you use to interact withcustomers now and which do you expect to use in 2020? Selectall that apply

CHaRT 13*Q: Do you agree or disagree with the ollowing statements?


0%

60%

20%

40%

80%

100%

Firms in our industry which areselling into emerging marketswill be less likely to succeedby taking a long-term ocus

on brand/service, rather thancompeting on cost

24%

31%

By 2020, the distinctionbetween the online and ofinecustomer experiences will be

completely blurred

37%

18%

45%

By 2020, traditional barriersto communication and doing

business will have been brokendown by new technologies,completely changing how

companies work or and with

their customers

59%

7%

33%

45%

agree

agree

agree

Neither

Neither

Neither

disgree disgree disgree

and growing at ahuge paceJONaTHaN aCKERmaNis hugePicknPayServicesDirectorCustomerinteraction onmobile media


26/40



New technologies, such as Square, rom a 2010 start-up ounded by JackDorsey, co-ounder o Twitter, enables anyone to add a tiny (ree) dongleto a smart phone to allow it to take credit card transactions. You cannow take cards as a small business, or burger van, or coee shop, so youcan completely bypass the traditional route, says Sense Worldwides MrMillar.

It is breakthroughs like this that rms, especially in the B2C space, believewill change service in the uture: 15% selected some new technologythat cant be predicted right now, second only to increased globalcompetition (23%), in terms o key drivers o change in customer serviceby 2020. Similarly, over hal (59%) o survey respondents believe that

by 2020, traditional barriers to communication and doing business willhave been broken down by new technology, completely changing howcompanies work or and with their customers.

More importantly, physical stores will ocus more on advising andguiding customers. At the start o this century, or example, many bankssaw opportunity to cut costs by curtailing their retail stores in avour oautomation, rolling out cash machines and online banking instead.

But this trend has reversed, with many bank branches reopening andbecoming advice centres where customers discuss more complex queries,even while normal transactions are carried out on sel-service kiosks. Wewill need to adapt [to online retailing], but never lose site o our valuablemortar network. It will prove maybe even more valuable to us in 2020than today, notes one executive polled or this report.

Finally, physical stores will increasingly provide consumers with anexperience. Mr Millar dubs this the etishisation o services: the turningo a relatively mundane transaction into an experience. One example isthe coee industry. Buying coee 15 years ago was a airly transactionalprocess, says Mr Millar. Now its an extraordinary, customised,

etishised process, which comes with a whole language o its own. Inthe coming decades, rms looking or an edge will seek out relativelymundane processes and look or ways to make them visible and excitingagain. By 2020, even a visit to the dentist may seem appealing.

CUSTOmER EXPECTaTIONS

WITH NEW TECHNOLOGY

Of THE STOREaREEVOLVING

INCLUdING THE PURPOSE


27/40



CHaRT 14*Q: What do you believe will be the main driver o changingcustomer expectations by 2020?

Dont know 1%

1%Other, please speciy

Social Media 8%

Increasing use o smartphones,tablets and other portable, web

enabled devices

10%

Growing middle class oconsumers in emerging markets/ increased per capita incomes

Increasing customerempowerment

11%

Personalisation technology 14%

Some technology which cannotbe predicted right now

15%

Increasing global competition 23%

Changing demographics (ie.aging population in manydeveloped markets

5%

Increasing outsourcing o servicejobs to emerging markets

2%

0% 10% 20% 30%

10%


28/40


CONCLUSIONSLESSONS fROm SERVICE LEadERSI customer service is going to be increasingly important in the decadeahead, what are the leading practitioners already doing dierentlytoday? In our survey, about 16% o executives describe their rms asexcellent at customer service, relative to their peers. Segmenting theserms against those that rate themselves as merely average, or below

average, yields some insights into how some leading customer servicepractitioners are working:

While the average rms o today compete primarily on quality, serviceleaders unsurprisingly already prioritise customer service as theircompetitive dierentiator, ar ahead o cost. In line with this, theserms are ar more systematic about implementing proper systemsor tracking customer eedback and complaints, as well as identiying

potential service weaknesses. Nearly 50% more have these in place,ahead o weaker rivals.

Three quarters o customer service leaders have empowered their stato make decisions when resolving customer issues, compared with lessthan hal among average rms. And while weaker rms are investingmore heavily in standardised service processes, leading rms areprioritising sta training and development, and also working harder todene service standards and goals.

While both strong and weak service rms see inormation-enabledconsumers as a major driver or change in recent years, weaker rmsthink communications technology is the primary driver, while leaderssee competition as the dening orce.

Service leaders are more ocussed on social media already: theymonitor it more closely, use it more oten to connect with clientsand generally collect more external data to eed into their trackingsystems. Related to this, a ar higher proportion o leaders saytheir rms are excellent, or above average, at using technology tounderstand their customers.

Finally, while service leaders expect to use service to stand out romthe crowd, it is largely only the weaker rms that expect typically tocharge a premium or this service.


29/40



26

In May-June 2011, the Economist Intelligence Unit conducted a survey o479 business leaders in Europe, the Middle East, Arica and Asia Pacic,spanning all industries and all revenue brackets.

Please note that not all answer add up to 100% because o roundingor because respondents were able to give multiple answers to some

questions.

Megatrends or the decade ahead: SERVICE 2020

aPPENdIX


30/40


appendIx

Q1: Compared to your industry peers, do you consider yourfrms customer service to be:

Q2: On what basis does your company primarily competenow?

Q2: On what basis do you expect your company will primarilycompete in 2020?

0%

60%

20%

40%

80%

100%

EXCELLENT ABOVEAVERAGE

AVERAGE BELOWAVERAGE

POOR

16%

52%

28%

4% 0%

0%

40%

20%

10%

30%

50%

60%

QUaLITY(best product)

COST(best price)

SERVICE(best experience)

OTHER(please speciy)

0%

40%

20%

10%

30%

50%

60%

QUaLITY(best product) COST(best price)SERVICE(best experience) OTHER(please speciy)

Now in 2020

I / 398 (83%) 320 (67%)

s/ 108 (23%) 110 (23%)

mi i 147 (31%) 257 (54%)

t 297 (62%) 206 (43%)

c 115 (24%) 122 (25%)

ei 335 (70%) 303 (63%)

wi 308 (64%) 321 (67%)

si i 134 (28%) 291 (61%)

mi 198 (41%) 120 (25%)

I gig i 72 (15%) 188 (39%)

o, i 16 (3%) 24 (5%)

Q3: Which o the ollowing channels do you use to interact

with customers now and which do you expect to use in 2020?Select all that apply

55%

42%

55%

18%25%

3%

33%

32%

24%

9%

3%

3%

Q4: Does your company have a defned, enterprise-widestrategy or tracking customer eedback and complaints?

61%

19% 18%

2%0%

60%

20%

40%

80%

100%

YES NO NO, bUT WEaRE WORKING

ON IT

dONT KNOW

0%

60%

20%

40%

80%

100%

YES NO NO, bUT WEaRE WORKING

ON IT

dONT KNOW

Q4: Does your company have a defned, enterprise-widestrategy or identiying problem areas o customer service?


31/40


Q5: Do you agree or disagree with the ollowing statements?

We do excellent job o collectingand addressing customer eedback

Our employees are empowered toresolve customer issues wherever

they arise

We have clearly dened goals andprocesses

Excellent customer service is a keycompetitive dierentiator over

our rivals

We nd it hard to ensure thatour customer service/experience

matches up to our marketing

0%

60%

20%

40%

80%

100%

Agree Neither agree nor disagree Disagree

18% 12% 15% 8% 28%

45%27% 38%

23%

44%

37%

62%

47%

69%

28%

Q6: In which o the ollowing aspects is your company investingin order to improve its customer service? Select all that apply.

0%

60%

20%

40%

80%

100%

Sta training/development

Upgrading customer-acing technology

(eg, website, mobilechannels)

Upgrading back-ocetechnology (eg, CRM

systems, data analytics)

Dening servicesstandards and/or goals

Standardising serviceprocesses

Conducting marketresearch to better

understand customers

Other,please speciy

None othe above

74%

87%

10%3%

61%55% 52% 50%

36%

3% 2%

0% 0%

60% 60%

20% 20%

40% 40%

80% 80%

100% 100%

We handle all serviceprovision in-house

We handle all serviceprovision in-house

We oshore most/allo our service provisionto another rm(s) in a

low cost market

We oshore most/allo our service provisionto another rm(s) in a

low cost market

We outsource most/allo our service provision

to another rm(s) inour local market(s)

We outsource most/allo our service provision

to another rm(s) inour local market(s)

Q7: Which o the ollowing best captures your frmsapproach to service provision and customer support now?

Q7: Which o the ollowing is your frm most likely toemploy or service provision and customer support in 2020?

61%

25%14%


32/40


appendIx

Q8: Have you adapted your service provision or thedierent geographic markets your company operates in?

0%

60%

20%

40%

80%

100%

No, we have astandard service

oering thatis used in all

markets

Yes, we have astandard service

oering butadapt/localiseit or dierent

markets

Yes, eachmarket has itsown bespoke

service provisionbased on local

customerexpectations

Not applicableas we operate

in just onegeographics

market

Q9: Do you utilise customer segmentation in order to givemore specialised service?

No, our service provision isstandard or all customers

Yes, we use customersegmentation based on basic

demographic inormation

Yes, we use customersegmentation based on

actual customer behaviourand/or other qualitative

actors

Yes, we use customersegmentation based on both

demographic inormationand customer behaviour and/

or other qualitative actors

Not applicable Dont know

Now in 2020

l qif 223 (47%) 189 (39%)

l i i g 124 (26%) 82 (17%)

l i i /iig 111 (23%) 72 (15%)

I i

/ i

139 (29%) 241 (50%)

l i g

80 (17%) 32 (7%)

l f i 63 (13%) 37 (8%)

Ifi i

73 (45%) 82 (17%)

p 45 (9%) 29 (6%)

dif i ig

i- i i i

i

21 (4%) 74 (15%)

o, i 8 (2%) 8 (2%)

Q13: What are the top barriers to delivery o good service in

your industry? Which do you expect to be the top barriers in2020? Select the top two or each.

0%

60%

20%

40%

25%

0%

20%

40%

28%

51%48% 48%

38%30%

11% 11%4%

14%

28%

22%

7%1%

42%

16% 17%

Q10: What do your customers expect rom your companyin terms o service? Select the top three expectations.

To be able to getin contact in avariety o ways(phone, email,

etc) or support

Personalisedservice

Transparent,clear

communication

First-timeresolution ocomplaints

Real-timeinormation

(ie. on deliveryo products or

resolution oproblems)

To be able to getin contact 24/7

or support

Guarantee/warranty oproducts or

services

Ease o purchase Ease o return

35%


33/40


Q14: Which o the ollowing matters most to delivering goodservice in your industry now?

0%

60%

20%

40%

80%

100%

PEOPLE(Eg, well trained, motivated)

PROCESS(eg, ensure consistency, meet

expectations anywhere)

TECHNOLOGY(eg, acilitate ease o sale, customer

understanding)

OTHERPlease speciy

Q11: Do you agree or disagree with the ollowing statements?

Customer expectations havechanged dramatically in the past

ve years

Customers expect a morepersonalised service than they

did ve years ago

Customers expect asterservice than they did ve

years ago

Customers expectations varysignicantly between dierent

geographic markets

Customers expectations varysignicantly between customer

segments


0%

60%

20%

40%

80%

100%10% 10%

6%10% 10%

29% 26%13%

40% 36%

61%

53%46%

68%

18%14%

0%

44%

29% 27%23% 20%

14%10% 10%

6% 2%

63%

82%

49%54%

Q12: What have been the main drivers o change in customerexpectations over the past fve years? Select the top three

Communicationstechnology (smart

phone, web chat, etc)

Increasedamount oavailable

inormationto consumers

Increasedcompetition

between product/service providers

Customerempowerment

Globalisation The needto compete

on brandin crowded

marketplace

Prolierationo sel-service

(eg, onlinepurchases, sel-

service checkouts)

Rise oconsumersin emerging

markets

Increasedinormationavailable tocompanies

on customersthroughanalytics

Other, pleasespeciy

Social Media Changingdemographics

0%

60%

20%

40%


34/40


appendIx

Q14: Which o the ollowing will matter mostto delivering good service in your industry in 2020?

PEOPLE(eg. well trained, motivated)

PROCESS(eg. ensure consistency, meet

expectations anywhere)

TECHNOLOGY(eg. acilitate ease o sale,customer understanding)

OTHERPlease speciy

0%

60%

20%

40%

Q15: How will companies in your industry adapt to meetcustomer expectations in 2020? Select all that apply.

Increase research intoclient expectations

Increase use/ upgradingo CRM systems

Increase o customeranalytics to personalise

service

Increase use o socialmedia

Increase use ocustomer analyticsto assess customer

behaviour

Increase use ocustomer segmentation


0%

60%

20%

40%

Q16: Do you agree or disagree with the ollowing statementsabout social media?

We monitor social mediaor comments on thecompanys products/

services

We proactively usesocial media to enhance

relationships withcustomers

We integrate multi-channel customer

eedback - including socialnetworks, blogs and online

communication - with

conventional inputs

Social media has improvedcustomer relations

Consumers are suspiciouso and cynical about

corporate use o socialmedia (ie, company

Facebook pages)

We consider social mediato be a ad that is unlikelyto play a undamental rolein customer service in 2020

0%

60%

20%

40%

80%

100%

55%

56%

32% 42% 44% 24% 18% 41%

27%28% 32%

50% 44%

42%

41%30%

24% 26%38%

17%

53%46% 46% 43% 42%

3%

23% 22%

1%



35/40


Q17: How well do you think your company usestechnology to understand its customers and improve service?

EXCELLENT abOVE aVERaGE aVERaGE bELOW aVERaGE POOR dONT KNOW

Q18: What do you believe will be the main driver o changingcustomer expectations by 2020?

Increasing globalcompetition

Some technologywhich cannot bepredicted right

now

Personalisationtechnology

Increasingcustomer

empowerment

Growingmiddle classo consumersin emerging

markets/increased per

capita incomes

Increasing useo smartphones,

tablets andother portableweb-enabled

devices

Social media Changingdemographics (ie.ageing populationin many developed

markets)

0%

20%

40%

Increasingoutsourcing o

service jobsto emerging

markets

Other, pleasespeciy

Dont know

Q19: Do you agree or disagree with the ollowingstatements?

0%

60%

20%

40%

80%

100%

In 2020, service will bemore aligned with pricing(ie, a premium price or

premium service)

In 2020, our rm will replymore on its strengthsin customer service to

outcompete rivals

By 2020, the distinctionbetween the online

and ofine customerexperiences will becompletely blurred

By 2020, traditionalbarriers to communication

and doing business willhave been broken down

by new technologies,completely changing how

companies work or andwith their customers

Firms in our industry whichare selling into emergingmarkets will be less likely

to succeed by takinga long-term ocus on

brand/service, rather thancompeting on cost

No matter what thetechnological innovations,

customers will alwaysexpect some orm opersonal interaction

0%

60%

20%

40%

80%

100%

4%

34%43%

14%4% 1%

11%5% 7%

31%4%

18%

23%

15% 14% 11% 10% 10% 8% 5% 2% 1% 1%

24%29% 33%

45%

14%45%

65% 66%59%

24%

82%

37%



36/40


37/40


38/40


39/40


40/40

CONTaCTFor more information please contact:

mONICa WOOdLEYEconoist Intelligence Unite: [email protected]

aLLaN EVaNSbdO LLPe: [email protected]

...

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