customer support in the age of iot

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Shaping the Digital Future Customer Support in the Age of IoT Are vendors and service providers ready for the IoT challenge? Insights from the Call Center World 2016 February 2016 FLASH INSIGHT

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Shaping the Digital Future

Customer Support in the

Age of IoT Are vendors and service providers ready for the

IoT challenge?

Insights from the Call Center World 2016

February 2016

FLASH INSIGHT

2

Copyright

This document is intended for personal use only.

Distribution is only permitted without any changes or omissions – publication, in

whole or in parts, requires prior written consent by MÜCKE, STURM & COMPANY

and correct citation of sources.

All mentioned company names, logos, brands, brand symbols and other copyrighted

material are the sole properties of the respective company; they are only used for

illustrative purposes.

3

The Call Center World showed innovative tools for interaction with the end customer but a comprehensive concept for the age of IoT is not available yet. Key Take-Aways

1 The IoT brings new challenges for customer support With the IoT devices become fully connected and interoperating. Fault isolation and root cause analysis in

an IoT enabled Smart Home environment is many times more complicated for customer support units

than for standard home appliances.

Smart Home users on the contrary expect quick, uncomplicated, and competent support accessible

through any channel.

As a result, customer support units dealing with Smart Home users must workout ways to handle

increasing complexity and shorter innovation cycles at reasonable cost levels.

2 CCW showed innovations to improve interaction with customers Vendors and service providers understand the need to offer first-class customer experience at every point

of interaction.

New tools help speed up reaction time and promote omnichannel support.

Innovative technologies help intensify customer engagement through interaction enrichment throughout

the support process.

3 Overall concept for the age of IoT is not available yet In view of the growing complexity in their Smart Home end customers look for just one competent partner

who is capable of detecting the root cause as well as designing an appropriate solution to the problem.

To date there is no concept available handling the complexity arising from Smart Home installations

composed of a variety of products from multiple manufacturers by one customer support unit alone.

The customer support business in general has not tackled this challenge so far.

Source: Mücke, Sturm & Company

4

With connected and interoperating devices in IoT, complexity in customer support operations increases fundamentally. Transformation from traditional customer support to support in an IoT environment

One vendor and contact point

B2C Customer Customer Support

(1st level)

Increasing complexity

Customer Support

(2nd/3rd level)

?

Traditional

customer

support

Customer support

in an IoT

environment

Many possible vendors and

contact points

Vendor 1 Vendor n

Vendor 3

Vendor 2

Situation

Customer support takes place in a

linear process between B2C

customers and vendors.

The B2C customer gets in contact

with the vendor of the respective

product.

Support is provided company-

internally or through dedicated

subcontractors.

Situation

Various vendors are involved via

their products within a complex eco

system.

The B2C customer or third parties

regularly work as system integrator.

As a consequence, responsibilities

are often unclear in a support case.

Collaboration between companies

within the ecosystem is necessary to

locate the problem and provide

support.

Source: Mücke, Sturm & Company

B2C Customer

Example: Smart Home as part of IoT

5

Quick Support 1

Omnichannel-

Support 4

One Stop Only 2

Competence 3

While end customers set high expectations for customer support in the IoT age vendors are confronted with an increasing level of complexity. Antithesis: Simplicity for end customers generates complexity for vendors

Source: Mücke, Sturm & Company

End customers expect low complexity

in Smart Home-related support issues.

Vendors are confronted with increasing

complexity due to the connectivity of devices.

Customer

Support

vs.

End customer perspective: low complexity expected Vendor perspective: increasing complexity

Manufacturers

Devices

Software

Platforms

Configuration

Environment

Context

Mutu

ally

influ

encin

g

Execute

fault root

cause

analysis

B2C Customer

6

The increasing digitalization and connectivity of devices results in significantly enhanced requirements for customer support. Expectations of end customers in a Smart Home context and consequences for vendors

Quick Support for Sensitive Issues

For problems such as “defect heating“ the

customer expects immediate assistance.

High availability, assisted support as well

as efficient self-support-options are critical

for success.

Cross-Vendor Support

Problem-localization and solution-finding

can only be managed across vendors for

connected devices.

Customers expect a competent and

overarching partner for all issues.

Navigator Through Complexity

Innovation and the variety of suppliers to

choose from complicate purchase decisions

End customers search for a system

integrator for all their Smart Home

components.

Omnichannel Support

Customers expect to use their prioritized

contact channel and want to be able to

switch channels, if necessary.

Support information has to be consistent

across all channels.

Customer Journey Alignment

Adapt contact channels and service

strategy to the position within the customer

journey.

Keep the customer support process flexible.

Handling Agent Role

Open up CS-interfaces and processes in

order to be able to cooperate with external

partners.

Enable information- and data-exchange

with other companies.

Knowledge Building and Qualification

Introduce innovative methods and tools for

an efficient qualification of customer support

staff.

Implement self-learning expert systems and

integrated data banks.

Consistent Service-Experience

Bundle information and knowledge in a

central hub.

Ensure seamless information flow and data

transfer along the entire process chain (bi-

directional).

Expectations of

end customers Consequences for vendors

in an IoT context

Source: Mücke, Sturm & Company

Quick Support 1

Omnichannel-

Support 4

One Stop Only 2

Competence 3

7

The industry meeting for customer support CCW has shown, that an overarching concept for support in a Smart Home context is missing. MS&C conclusions from the CCW

There is a variety of innovative software solutions available helping optimize process

flow across all channels.

Latest innovations for interaction at frontends accelerate finding appropriate

solutions across several departments by integrating auto diagnosis results and self

help attempts.

An integrated concept for cross-vendor support of connected devices in a Smart

Home environment is currently not available.

First promising approaches focus on process automation empowered by machine

learning.

Modern Knowledge Management (KM) systems enable the customer support to

respond adequately to the current journey the customer is on.

But: the fast pace of innovation and growing complexity of the Smart Home market

can currently not be depicted by KM systems.

Click-to-call/-video and targeting strategies optimize the management of multiple

contact channels.

Innovative technologies enrich traditional channels such as hotline menus and

enhance customer engagement.

Source: Mücke, Sturm & Company

MS&C conclusions from the Call Center World (23.-25.02.2016) Smart Home

readiness

Quick Support 1

Omnichannel-

Support 4

One Stop Only 2

Competence 3

8

Several companies have been identified on the CCW that support the idea of enhanced customer experience and engagement in a Smart Home context. Innovations from the Call Center World

Source: Mücke, Sturm & Company

MS&C favorite innovations

Cloud-based omni-channel contact

management platform with high

scalability

Central bundling of all contacts

Offers solutions for mobile digital

engagement in customer support.

Interaction takes places e.g. via

smartphone parallel to other channels.

Knowledge management software with the capacity to learning automatically from

customer interaction.

In first tests, the system achieved results comparable to human experts.

Enables interoperation of multiple

ticket-systems.

„Data-robots“ identify relevant informa-

tion from heterogeneous sources.

Bundling of knowledge from different

sources in a centralized data hub.

Simplifies agents’ search for causes

as well as definition of a valid solution.

Provides customer engagement in

real-time.

Users are identified by their usage

behavior and targeted via omnichannel.

All relevant information is delivered to

support staff automatically to speed up

customer interaction.

Aids proactive interaction

Most vendors serve

multiple dimensions

Quick Support 1

Omnichannel-

Support 4

One Stop Only 2

Competence 3

9

If you would like to discuss the impact of the Internet of things on your business or the customer support market, please get in touch with us. Contact

The competence center was established in 2016 and

focusses the digital customer holistically over all „smart“

industries.

The competence center concentrates on three core

topics:

Digital Transformation

Customer Experience Management

Customer Value Management

MS&C Competence Center “Digital Customer”

Nicolas Bell Associate Partner

[email protected]

+49 151 58243377

Headoffice Munich

Theresienhöhe 12

80339 München

T +49 89 461399 0

F +49 89 461399 777

Office Hamburg

Brooktorkai 20

20457 Hamburg

T +49 40 3571 6273

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