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ACHIEVING LONG-TERM CUSTOMER LOYALTY WITH A HOLISTIC APPROACH TO COMMUNICATIONS TRANSFORMATIONIntegrated Cloud Solutions Deliver Improved Customer Relationships and Competitive Advantages to Mid-market Businesses
FROS T & SULLIVAN EBOOK
2Achieving Long-term Customer Loyalty with a Holistic Approach to Communications Transformation
CONTENTS
3 Increasing Customer Value is at the Heart of Business Transformation Strategies
4 CompellingBenefitsDriveCloudCommunicationsAdoption
5 CloudContactCentersBoostCustomerEngagement
6 IntegratedCloudPlatformsUnlockSuperiorValueforCustomer-centric Organizations
7 CloudMigrationisNecessaryforBusinessTransformation;Yet,itCanPresentChallenges
8 TheRightFitforDistributedMid-marketBusinessesPursuingImprovedCustomerRelationships
9 AStructuredApproachtoCloudMigrationisRequiredfor Long-term Success
10 CalltoAction:TransformtoThrive
3Achieving Long-term Customer Loyalty with a Holistic Approach to Communications Transformation
THE NEED FOR CUSTOMER VALUE ENHANCEMENTCompetitivepressures,globalizationandtechnology-enablednewproducts,servicesandbusinessmodelsarecompellingbusinessestocontinuallyenhancethevaluetheydelivertocustomers.Withgreateraccesstoinformationandabroadeningarrayofoptionsinallindustries,customersincreasinglydemanddeeperexpertise,fasterandbetterservice,andunwaveringcommitmenttotheirneedsfromproductandservicesproviders.
END-TO-END CUSTOMER JOURNEYElevatedcustomerexpectationsrequiretechnicalsupportstaff,customerserviceagentsandsubject-matterexpertstohavethefullcontextofthecustomer’shistoryattheirfingertips.Therefore,customerexperiencemanagementmustbeatopinvestmentpriorityforbusinesseslookingtocompetemoreeffectivelyinaprogressivelydynamicmarketplace.
TRANSFORMATION IMPERATIVETrulycustomer-centricorganizationsacknowledgethatpervasivebusinesstransformation—encompassingtechnology,processes,peopleandculture—isnecessarytoenableadifferentiatedvaluepropositionandsuperiorcustomerexperiences.Effectivecustomercareandrelationshipmanagementrequirecollaborationandalignmentamongvariousstakeholderswithintheorganization,includingsales,contactcenterpersonnel,subject-matterexperts,ITstaffandC-levelexecutives.
TECHNOLOGIES FOR A COMPETITIVE EDGEToefficientlyaddressshiftingcustomerrequirementsbusinessesaredeployingcontemporarycommunications,collaboration,contactcenterandcustomerrelationshipmanagement(CRM)solutionspoweredbycloudtechnologies,advancedanalytics,ArtificialIntelligence(AI)andmachinelearning.
INCREASING CUSTOMER VALUE IS AT THE HEART OF BUSINESS TR ANSFORMATION STR ATEGIES
Source: Frost & Sullivan
CUSTOMER EXPERIENCE MANAGEMENT
31%
27%
North American decision makers say
is important and a top investment priority
74%
54%
Improving the customer experience is one of the top 3 IT/telecom investment drivers
Customer experience management is one of top 3 technologies that have the most impact on revenue growth
Have already deployed customer experience management solutions
plan to increase investments in customer experience management in 2019
4Achieving Long-term Customer Loyalty with a Holistic Approach to Communications Transformation
Source: Frost & Sullivan
UCaaS market—TOP REASONS FOR UCaaS USAGE,
United States, 2018
It’s easier for IT to manage
UCaaS is more secure
It’s a benefit for remote andmobile employees
It enables more effective customization
It allows us to better focus on ourcore business
It allows us to scale up and down moreeasily and cost effectively
It offers a better selection of endpoints(from a variety of vendors rather than just one)
It enables us to reduce costs
It allows more flexible integrationswith third-party software
It allows us to gain access to newerfeatures faster
39%
38%
31%
31%
31%
28%
28%
27%
24%
21%
N = 127
COMPELLING BENEFITS DRIVE CLOUD COMMUNICATIONS ADOPTIONCommunicationsarethelifebloodofanorganizationand,whendeployedstrategically,candeliverpowerfulcompetitiveadvantages.Manybusinessesaremovingtheircommunicationsandcollaborationsolutionstothecloudtoattaingreaterbusinessagilityandresponsiveness.
BUSINESSES INCREASINGLY ADOPT UCAAS FOR THE STRONG BENEFITS.
The North American hosted IP telephony and unified communications
as a service (UCaaS) user base
of North American decision makers report having moved or planning to move part or all of their enterprise telephony solutions to the cloud by 2019.
82%
23%Will grow at
CAGRfrom 2017 to 2024
5Achieving Long-term Customer Loyalty with a Holistic Approach to Communications Transformation
Source: Frost & Sullivan
REASONS FOR MOVING CONTACT CENTER SOLUTIONS TO THE CLOUD,
United States, 2017
93%
90%
90%
89%
88%
87%
86%
84%
83%
77%N = 132
Note: Respondents chose “very important” and “crucial.”
Access to advancedfeatures/capabilities
Ease of use
Hosted/cloud providercapabilities and expertise
Improved business continuity/disaster recovery capabilities
Reduced total cost of ownership
Fast deployment
Flexible scalability
Better support for ourdispersed workforce
Storage of large amounts of data
CAPEX avoidance
CLOUD CONTACT CENTERS BOOST CUSTOMER ENGAGEMENT
Contact centers are critical in ensuring strong customer relationships,satisfactionandloyalty.Asmorecustomerinteractionstakeplacevirtually,ratherthaninperson,thequalityofcustomercontactandthetechnologiesthatenablebettercustomercarearebecomingmoreimportant.
However,manybusinesses,particularlysmallandmid-marketcompanies,oftenlacktheITfundingandstaffingresourcestoacquireandmanagesophisticatedcontactcentersolutionsdeployedontheirpremises.Toenablefasteraccesstonewfunctionality,easeofuseandmanagement,andenhancecustomercarebusinessesareadoptingmoreflexibleandcost-effectivecloud-basedcontactcentersolutions.
MYRIAD REASONS COMPEL BUSINESSES TO MOVE CONTACT CENTERS TO THE CLOUD.
The North American cloud contact center market
of North American decision makers report having moved or planning to move part or all of their customer experience management solutions to the cloud by 2019.
80%
11.4%Will grow at
CAGRfrom 2017 to 2022
6Achieving Long-term Customer Loyalty with a Holistic Approach to Communications Transformation
Source: Frost & Sullivan
DEPLOYMENT PREFERENCESIT/telecom
decision makersContact center
decision makers
71%Will deploy single-vendor or tightly integrated multi-vendor Unified Communications and Collaboration solutions in 2019
74%Consider AI crucial or very important for effective customer engagement
CUSTOMER EXPERIENCE MANAGEMENT CHALLENGESreported by contact center decision makers
26%Systems/applications integration difficulties is a top challenge
55%Can’t effectively use customer analytics to improve contact center operations because they lack tools to capture the customer experience across all channels
INTEGR ATED CLOUD PLATFORMS UNLOCK SUPERIOR VALUE FOR CUSTOMER-CENTRIC ORGANIZATIONSForward-lookingorganizationsacknowledgethatcloudplatformscandeliveradditionalbusinessbenefitsbeyondcostreduction,deploymentspeedandoperationalefficiencies.
INTEGRATED EXPERIENCESeamlesslyintegratedcloud-basedcommunications,contactcenterandCRMsolutionsenhancecollaborationacrossjobfunctionsandfosteracultureofjointcustomervaluecreation,thusenablinganintegratedcustomerexperience,whichisthemainobjectiveofbusinesstransformation.
CONTEXTUAL INSIGHTSMulti-purposecloudplatformsfacilitatemoreeffectiveuseofadvancedanalyticsandAItodelivercontextualinsights,automaterepetitivejobtasksandpredictbusinessoutcomes.
Valuablecustomerinformation,suchascustomers’fullhistoryandrelevantsentimentanalysis,poweredbyintegratedanalyticsandAIanddeliveredtofront-lineservicesworkersinrealtime,greatlyenhancescustomerinteractions.
PROGRAMMING FLEXIBILIT YCloudplatformswithopenandflexibleapplicationprogramminginterfaces(APIs)empowerintegrationofcommunicationsandcustomer-caresolutionswithmission-criticalbusinesssoftware,aswellasdevelopmentofnewfeaturesandcapabilitiestoaddressevolvingusecases.
7Achieving Long-term Customer Loyalty with a Holistic Approach to Communications Transformation
CLOUD MIGR ATION IS NECESSARY FOR BUSINESS TR ANSFORMATION; Y ET, IT CAN PRESENT CHALLENGESThesheervolumeofcloudcommunicationsandcontactcenterchoicesavailabletodaycreatesconfusionforbusinessesseekingtheirbestfit.Businessstakeholdersmustconductthoroughduediligencetoavoidimmatureorpoorly-designedsolutionsthatcannotdeliverthedesiredbusinessoutcomes.Additionally,theymustavertcertaincommonerrorsthatcannegativelyaffecttheirtransformationsuccess:
Siloedcloudimplementations,whereinthefocusispointsolutions rather than a completeecosystemview,aswellaslackofcoordinationbetweencontactcenterandenterprisebuyersoftenresultinpooreremployeeandcustomerexperiencesandmorelimitedreturnoninvestment(ROI).
“ShadowIT”anddisconnectedtechnologypurchasesbyline-of-businessbuyersandITstaffalsocreatetechnologysiloswhichinhibitdevelopmentofarobust,cohesivecommunicationsandcontactcenterevolutionroadmapthatistightlyalignedwithbroaderbusinessgoals.
Businessesdeployingmultiple customer experiencecapabilities(e.g.,communications, contact center,CRM,marketingautomation)oftenfailtobridgetheinternalgapswithintheirorganizations,in terms of architecture or businessprocesses,toenabledifferentsolutionstoworkwelltogether—e.g.,shareuserpresence, customer interaction logsanddata—whichreducestheeffectivenessoftheirinvestments.
Lackoforganizationalpreparednessforpervasivetransformationadditionallypreventsbusinessesfromrealizingthemaximumpotentialoftheirtechnologyinvestments.
Siloed Implementation Shadow IT Disparate Capabilities Lack of Transformation Vision
8Achieving Long-term Customer Loyalty with a Holistic Approach to Communications Transformation
THE RIGHT FIT FOR DISTRIBUTED MID-MARKET BUSINESSES PURSUING IMPROVED CUSTOMER RELATIONSHIPSMID-MARKET BUSINESS NEEDS AND TECHNOLOGY REQUIREMENTSIntensifyingcompetitionandraisedcustomerexpectationspressuremid-marketbusinessestoseekprofoundbusinesstransformationthatenhancescustomervalueandkeepscustomersloyal.Similartotheirlargercounterparts,mid-marketbusinessesmustdeployadvanceddigitaltechnologiestogainagility,operationalefficienciesandcompetitiveadvantages.
UNIQUE MID-MARKET CHALLENGESHowever,smallerITbudgetsandstaffinhibitmid-marketbusinesses’abilitytoinvestinandeffectivelymanagemultiplebest-of-breedsolutionsontheirpremises.Duetotheirinadequatecapacitytohandlelarge,compleximplementationsandintegrations,mid-marketbusinessesarebestsuitedforsolutionsrequiringminimalcustomizationanddeliveringmultiplecustomerexperiencemanagementcapabilitiesinasingleplatform.
THE VALUE OF INTEGRATED CLOUD SERVICES PLATFORMSIntegratedcloudservicescomprisedofcommunications,collaboration,contactcenter,CRMandanalyticspresentthebestfitforcompaniesinthissegmentbecauseofthecost,productivityandotherbenefits.Openandflexiblecloud-basedsolutionscanbetailoredtoeachuniquebusinessandusecase,andintegratedintoworkflowsforgreaterefficienciesandvaluetothebusiness,employeesandcustomersalike—withoutstrainingmid-marketbusinesses’ budgets.
THE RIGHT PARTNERAproviderofferingreliableandsecureintegratedcloudservicesandwithastrongfocusoncustomerexcellenceisbestpositionedtoaddresstheneedsofmid-marketbusinessespursuingdigitaltransformation.
Despite challenges MID-MARKET BUSINESSES CAN BE MORE AGILE compared to their
enterprise counterparts
SuccessfulTransformationImplementation
Relativelysmall size
Fewerculturalbarriers
Less complex infrastructures to
account for, integrate and
manage
Less rigid functional structures
9Achieving Long-term Customer Loyalty with a Holistic Approach to Communications Transformation
A STRUCTURED APPROACH TO CLOUD MIGR ATION IS REQUIRED FOR LONG-TERM SUCCESSCustomervalueenhancementmustserveastheprimaryguidingprinciplewhenmakingcloudcommunicationsandcontactcenteradoptiondecisions.Tooptimizethereturnoncloudsolutioninvestments,mid-marketbusinessesmustdevelopholisticcloudmigrationvisionsandstrategiesthatspantheentireITandtelecomdomains.
• Suchbusinessesmustalsointegrate cloud communications and contact center solutions with important workflowstoensuregreateremployeeproductivity,organizationalresponsiveness,animprovedcustomerjourney,andmoretangiblebusiness outcomes.
• Integrated CRMcapabilitiescanhelpsignificantlyreduceoverallsolutioncostsandoptimizeinvestmentvalue.
• Analytics toolsmustbekeyelementsofcloudtechnologyinvestmentandadoptionstrategiesasmeanstomoreeffectivelymanagedeploymentsandmonitorbusinessimpact.
• Outbound marketing and survey features offer much-neededcompetitiveadvantagestobusinesseslookingtorevamptheircustomeroutreachandsupportcapabilities.
• Effective change management and a profound cultural shift arecriticaltomaximizecloudservicesadoptionbenefitsandtransformfromafunction-orientedtoacustomer-orientedorganization. Source: Frost & Sullivan
Deployment success requires businesses toFOLLOW SEVERAL KEY STEPS when moving their
communications and customer contact solutions to the cloud
User and organizational
needs assessment IT and communications roadmap vision
Broad stakeholder
buy-in
Solution and provider due
diligence
Usage policy creation
User adoption
incentives
Usage monitoring
and analysis
Ongoing support
Investment/technology roadmap
adjustment
10Achieving Long-term Customer Loyalty with a Holistic Approach to Communications Transformation
CALL TO ACTION: TR ANSFORM TO THRIVEIntegrated Cloud Platforms Enable Distributed Mid-market Businesses to Overcome Unique Challenges
Asustainableapproachtotechnologydeploymentandevolutioniscriticaltoensurethattechnologyinvestmentsdelivertangibleoutcomes,suchasgreatercustomersatisfactionandimprovedrevenuesandprofitmargins.Keymandatesformid-marketbusinessesonadigitaltransformationpathinclude:
• Acknowledgetheneedtoadoptrich communications, contact center, CRM, sophisticated analytics and solution management toolstobuildastrongbrandandimprovecustomersatisfactionandloyalty.
• Plantospendwiselyonsolutions that fit multiple purposes.
• Centertechnologyevolutionstrategiesonenablingaholistic view of the customerandcustomer-relatedprocessesacrossallfunctionswithintheorganization.
• Align communications and customer-care solution upgrades withkeybusinessobjectivesandthefundamentalgoalofenhancingcustomervalue.
• Foster a cultural evolutiontobecomecustomer-centricorganizations,wherebyemployeesinallrolesandfunctionsparticipateincustomervaluecreation.
• Deployintegratedcloudplatformsthatdelivertherequiredcapabilitiesmore flexibly and economicallytodaywhilecreatingthefoundationforadditionalfeaturesandservices,asneeded,inthefuture.
• Choose the right cloud services partner—intermsofservicesportfolio,customerfocusandoverallviability—toensureasuccessfuldigitaltransformationjourney.
Source: Frost & Sullivan
Top UCaaS PROVIDER SELECTION CRITERIAUnited States, 2018
Reliable service
Security
Good user interface
Cost per seat
Collaboration tools
Contact center functionalities
Open standards and interoperabilitywith third-party solutions
Technology evolution roadmap
Broad technology portfolio thatallows for one-stop shopping
Other
Expertise in systemintegration and deployment
Scalability
53%
52%
47%
41%
28%
17%
15%
13%
11%
10%
7%
5%
N = 127
11
Frost&Sullivan,theGrowthPartnershipCompany,worksincollaborationwithclientstoleveragevisionaryinnovationthataddressestheglobalchallengesandrelatedgrowthopportunities thatwillmakeorbreaktoday’smarketparticipants.Formore than50years,wehavebeendevelopinggrowthstrategies for theGlobal1000,emergingbusinesses, thepublicsectorandthe investmentcommunity. Isyourorganizationpreparedforthenextprofoundwaveofindustryconvergence,disruptivetechnologies,increasingcompetitiveintensity,MegaTrends,breakthroughbestpractices,changingcustomerdynamicsandemergingeconomies?
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