the future of customer service 2012 cca kcom final for email
TRANSCRIPT
The Future of Customer Service
Sponsored by
November 2012
2
CONTENTS
EXECUTIVE SUMMARY ............................................................................................................ 3
CHAPTER 1: A Challenging Operating Environment – Continuity With 2011 .......................... 9
CHAPTER 2: Man Versus Machine: Self Service, Automation And The Role Of Voice ........... 13
CHAPTER 3: The Arrival Of Social Media? ............................................................................ 21
CHAPTER 4: The Loyal Customer: A Dying Breed?................................................................ 24
CHAPTER 5: Joining Up Services ........................................................................................... 28
CHAPTER 6: Summary And Recommendations .................................................................... 33
3
EXECUTIVE SUMMARY
This research develops and extends the 2011 study ‘The Future of Service to 2016 – When Transparency Meets
Customer Contact ’. The key themes raised in the 2011 research have been developed further, identifying deeper
trends, along with analysing the results of the previous survey to assess whether they are still as relevant in
challenging and changing environment of 2012. Utilising considerable consumer research, a membership survey of
senior contact centre professionals from a wide range of industrial sectors, expert interviews and desk research the
study raises a number of important themes which are likely to shape the contact centre environment over the coming
four years.
The 2011 study took as its starting point the gap between what is possible technologically (and indeed what a
proportion of early adopting consumers may be doing) and the more mixed picture of the majority of consumer and
organisational behaviour on the ground.
It asked the question, “What are the key changes taking place in customer service over the next five years?” More
specifically, it aimed to review consumer and technology trends to identify which are most likely to impact contact
centres.
The purpose of this report is threefold:
1. To update the research conducted in 2011 – capturing any recent shifts in contact centre trends over the last
12 months.
2. To develop more closely the findings of the 2011 report – probing in more detail the key findings identified in
the study.
3. To continue to build a comprehensive view of contact centre trends 2011-2016.
This research will be of benefit to contact centre professionals as well as practitioners from the world of customer
experience more broadly. Beyond capturing and identifying key trends gaining momentum in the five years 2011-
2016, it provides recommendations which can provide immediate guidance for key decision makers.
Findings from the 2011 report
Some of the key findings of the 2011 report included:
Customer service professionals were being asked to deliver more for less with cost-based strategies.
Social media and Voice of the Customer (VOC) were forcing scrutiny of customer service. Organisations were
seen to be under the spotlight as never before, and forced to deal with a new age of transparency.
4
Consumers were seen to be increasingly demanding channel profusion.
Email and telephone-based services to the public continued to be popular, but organisations were looking to
drive self-service and automation.
A growing potential for technological tools to help rationalise and personalise customer service.
In undertaking the research, a mixed methods approach was undertaken:
Desk research – online and published sources including the CCA Industry Council, Customer Experience
Council, membership surveys, the 2011 Kcom report ‘The Future of Service to 2016 – When Transparency
Meets Customer Contact’.
Consumer research – an Ipsos MORI omnibus survey online was conducted 18-24 July 2012. 1,024 adults
aged 16–64, nationally representative of the population of the UK, were interviewed during this process. The
sample was drawn and data weighted to be representative of the GB population.
Membership survey – a bespoke online survey of 107 CCA members from both the public and private sectors:
49% of the respondents have contact centres of fewer than 250 seats, with the remainder larger and 22%
more than 5,000 seats. A broad range of sectors were represented in the survey sample with the most
common sectors including outsourcing/ BPO (23.8%), Government (17.1%), financial services (13.3%) and
IT/Telecommunications (10.5%). Please see Figure 1 for the full breakdown.
Figure 1 - What is your organisation's primary business sector? CCA member survey, 107 organisations, July 2012
0.0% 5.0% 10.0% 15.0% 20.0% 25.0%
Leisure
Travel/Tourism
Business Services
Manufacturing/Logistics
Retail
Education
Utilities
IT/Telecommunications
Financial Services
Other
Government
Outsourcing/BPO
5
Expert interviews – interviewees were drawn from a pool of senior contact centre professionals and sector
suppliers and questions asked within the interviews replicated the range of topics covered in the member and
consumer surveys.
The 2012 research found the following synergies, divergences and developments:
A difficult economic climate
The continuing economic challenges, according to the findings of the research, have influenced the ability of
operators to leverage investment into customer experience. There is continuity with the findings of the 2011
research, where the four most prevalent technologies were the same as those reported in this year’s survey. This
demonstrates a continuing struggle by organisations to definitively draw the links between increases in customer
satisfaction and business performance. In probing the issue further in 2012, it was found that there are also
challenges for organisations in harnessing the intelligence being generated by existing technology.
Voice and self-service
Voice continued to be extremely important in 2012; with 48% of consumers identifying “Talking to a live person”
rather than receiving an automated response as a key improvement to be made over the next four years (see Figure
2).
Figure 2 - Thinking about contacting an organisation, which five improvements would you most like to see four years from now to improve
your overall experience for purchasing a product or service? Base: all GB adults (1,024) aged 16-66, 18-24 July 2012.
0 10 20 30 40 50 60
Talking to a live person not automated
A faster response
First person can resolve my query
Speaking to an expert
A cheaper method e.g. freephone
Better trained customer service agents
An answer I can trust
More self-service options - I don't have to queue
Slicker website
More opportunity to talk face-to-face
More personalised service tailored to me
Agent has access to more info to answer query
Improved self-service
Faster recognition of who I am
More mobile apps
Fewer security questions
More opportunity to talk through live video …
More options to engage through social media
First
Second
Third
Fourth
Fifth
6
In order to develop the 2011 research, which looked at channel preferences, the study disaggregated customer
contact into several types:
Purchasing products or services;
Making a customer service enquiry; and
Making complaints.
The research shows that the majority of consumers would actually select self-service via a website as their primary
preference for purchasing products and services (41%). Internet self-service was far and away the most popular
response with the next most popular being telephone and email constituting just 14% and 12% of responses
respectively. Interestingly, in contrast to other activities, such as complaining or making enquiries, there was no
disparity in behaviour based on age. 40.1% of 16-24 year olds and 41% of 55-64 year olds provided website self-
service as their prime choice for purchasing products or services. Positive news for the contact centre environment as
self-service is an important tool for reducing costs. This is also positive news for providers, but may necessitate
investment to ensure websites can provide a seamless customer experience.
The evidence suggests, however, that where consumer enquiries are complex, difficult or perhaps related to sensitive
or important transactions, voice continues to be the preferred position.
Figure 3 - Generally speaking, which of these methods do you most prefer to use when contacting an organisation for purchasing a product
or service? Base: all GB adults (1,024) aged 16-66, 18-24 July 2012.
0 10 20 30 40 50 60 70 80
Telephone
Self-service (website)
Letters/ Post
Self-service (telephone)
Pop up chat (website)
SMS Text Message
Mobile Apps
Live video chat/ Facetime
Other social media websites
First
Second
Third
Fourth
Fifth
7
Generation Y leading the way
In the 2011 findings, social media was still dwarfed as a service channel compared to more traditional choices. In the
2012 study, one aim was to investigate the demographic data more closely in order to determine if age, gender or
socio-economic factors affected this behaviour.
Close examination of the consumer trend data uncovers considerable differences in consumer trends and behaviours
according to age. This is particularly around willingness to engage with social media and future preferences around
mobile app usage. Generation Y, also known as the ‘millennials’, appear much more likely to want to engage via social
media and use new technologies. This group makes up a growing demographic so it is crucial to take note of their
preferences. This may have significance for providers in terms of a greater targeting of channel usage opportunities.
In order to provide the most preferable and appropriate channels, organisations must clearly identify the
demographics of their customers.
More promiscuous customers
One theme from 2011 worthy of developing was the evermore demanding customer, now armed with the ability to
highlight customer experience failures using very public social media channels. In order to examine this in more depth
we tailored questions to consider whether customers are becoming more or less loyal.
The evidence from this report strongly demonstrates that consumers are becoming increasingly less loyal and in
many ways organisations are being forced to compete on a cost basis. Consumers also reported a willingness to be
incentivised for using self-service options by financial inducement. Nevertheless, organisations must find more
sophisticated methods for retaining customers and ensuring desirable behaviour to avoid a “Race to the bottom”.
Organisational silos
A seemingly intractable problem remains around strengthening linkages between different parts of the organisation
and ensuring a seamless customer experience. This is constantly being tested with the emergence and evolution of
new contact channels. 77% of organisations surveyed during the 2012 member survey reported remaining siloed. This
is despite organisations stating in the 2011 report that they thought personalisation was an important trend. Joining
up silos continues to be a major challenge for organisations. Despite this, technology can offer innovative tools which
facilitate organisations in overcoming organisational silos.
8
Table 1 summarises the key findings from 2012 and contrasts them with the highlights of the 2011 study:
2011 2012
Operating environment Challenging
‘More for less’ agenda
Problems leveraging investment in innovative technology
Reliance on efficiency measures
Remains challenging
Continuing problems justifying investment in new technology
Continuing reliance on efficiency measures
Consumer channel
preferences
Telephone regarded as crucial by consumers
Lack of appetite from consumers for self-service channels
Consumers demanding channel profusion
Huge growth in willingness to self-serve by consumers for purchasing
Speaking to a ‘real person’ still important for more complex interactions especially amongst older generations
Social Media Consumers using social media in personal lives, but fairly limited use for interactions with businesses
Organisations predicting an increase in social media usage, but limited action in this area – some beginning to monitor.
Substantial increases in social media use for interactions with organisations by consumers
Largest increases amongst Generation Y
Large increase in organisational activity regarding social media inc monitoring, training specialist staff, developing new tech
Joining up services Organisations positive regarding prospects for providing a segmented and personalised service in future
Large proportion of organisations regard themselves as siloed
Customer demands Customers using social media to highlight organisational failings – potentially driving transparency
Consumers motivated primarily by cost and incentivised by financial inducement
Organisations regard consumers as becoming less loyal
Table 1 – Key findings 2011-2012
The remainder of the report is laid out as follows:
Chapter 1 reviews one area of continuity from 2011, the continuing issues for contact centre professionals in
the drive to provide more-for-less.
Chapter 2 unpacks the results around self-service and automation.
Chapter 3 revisits social media to identify what developments have taken place in the last 12 months.
Chapter 4 explores the notion of the loyal customer as a dying breed.
Chapter 5 looks at how organisations are performing at providing more joined-up service.
Chapter 6 reflects on similarities and discontinuities with 2011 before providing a number of key
recommendations.
9
CHAPTER 1: A challenging operating environment – continuity with 2011
The 2012 report suggests a good deal of continuity from 2011 relating to difficulties posed by a challenging economic
environment. The climate of fiscal insecurity has continued throughout 2012 and recent figures do not show any signs
of the crisis being abated. In fact, the Business Secretary Vince Cable described the UK economy as being "In a very
deep crisis."1 According to the latest Markit/Cips purchasing managers' index (PMI) for the service sector, growth
rates have remained below trend and companies face challenging operating conditions2.
The struggle for investment
Unsurprisingly, the economic environment has influenced the ability of organisations to invest greater resources in
innovative technology to improve their dynamic capability. Within the member survey, a continuing reliance on
longstanding technology such as call recording, IVR and ACD was reported. There was far less widespread use of
innovative technology such as speech analytics; multimedia blending and social media management (see Figure 4).
Figure 4 - What technologies do you currently use in your contact centre? CCA member survey, 107 organisations, July 2012
1http://www.bbc.co.uk/news/business-19812990accessed 6 October 2012
2http://www.markiteconomics.com/MarkitFiles/Pages/ViewPressRelease.aspx?ID=10162accessed 6 October 2012
0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0%100.0%
Call recording
IVR
Customer feedback surveys
ACD
Workforce management
Management information suites
Quality management
Email management
Online knowledge bank/FAQs
Database (CRM) integration
Outbound SMS
Social media monitoring
Queue call back
Speech Recognition
Social media management
Speech analytics
Multimedia blending and routing
Other
10
Organisations are under unrelenting pressure to improve operational performance in a constant drive towards
providing more-for-less. When faced with a quest towards reducing costs at the same time as increasing productivity
within a stagnant and even down turning economic environment, it is predictable that contact sector directors face
an uphill battle in making the business case for investment.
This tension has been a longstanding focus of CCA research3, but is certainly exacerbated by the current operating
environment. The inference that organisations are continuing to face challenges in justifying investment in customer
experience is consistent with the findings of the 2011 study (see Figure 5).
Figure 5 - What technologies do you currently use in your contact centre? CCA Member Survey, 80 organisations, May 2011
It is important that UK firms engage with the possibilities offered by new and more advanced technology. Tools such
as speech analytics and multi-media blending can be important differentiators in customer experience. When applied
in the appropriate ways, they can offer the opportunity for identifying cost savings, provide prospects for cross and
up-selling, reduce customer attrition and create a more seamless and integrated interface. Nonetheless,
organisations continue to struggle to definitively draw the links between increases in customer satisfaction and
business performance.
3 CCA White Paper - How to put the DNA of Customer Service into UK Boardrooms
93%
79%
75%
72%
67%
62%
58%
57%
57%
20%
20%
20%
17%
12%
5%
0% 20% 40% 60% 80% 100%
Call recording
ACD
IVR
Customer feedback surveys
Quality management
Workforce management
Online knowledge bank/FAQs
Management information suites
Email management
Social media monitoring
Queue call back
Speech Recognition
Multimedia blending and routing
Speech analytics
Other
“I think we are in a cycle of backwards motion. I have noticed less conversation about First
Contact Resolution (FCR) and more and more about lowering service levels.”
Contact Centre Director
11
The evidence from members and previous research suggests that those who have successfully invested in technology
have been able to communicate the return on investment (ROI) to the board. From the experience of members, an
important component in helping build the business case was around identifying pain points within a customer
journey and then demonstrating how these could be ameliorated by particular technological tools. In particular,
success was associated with deriving formula to present the performance and financial payback, in terms of revenue
generation or cost savings. As well as a struggle to leverage strategic investment, the findings hint at a larger more
perennial issue around the value of service within organisations. Instead of excellent customer service being an
aspiration during buoyant economic times, it instead should form the frontline of an organisation’s resistance of
economic pressures.
Measurement overload?
The pessimistic view above was further confirmed when respondents were asked to provide their top technology
priorities. Looking forward, there was not a considerable difference in the priorities for technology refresh from the
current focus (see Figure 6). This risk averse approach to technology investment as well as continuing economic
problems and demand to provide more-for-less can lead organisations to default to traditional, efficiency focused
measurement techniques. As a result, organisations look for short-term gains rather than longer-term sustainability.
The contact centre environment has always been dominated by measurement and often huge volumes of data and
information are gathered. As responses to the member survey suggest, there is a continuing focus on the importance
of Automatic Call Distribution (ACD). Whilst this performs a core function within the contact centre business, the
opportunities derived from it for data generation are virtually limitless. The result of this is a difficulty in extrapolating
the most pertinent information for measuring performance and by extension improving service quality.
“I can’t think of the last time I saw a business case purely based on delivering better customer
experience. Lots of organisations have said ‘we want to deliver best in class customer service by doing
this...’, but actually when it comes down to the justification of that investment it is all about ROI,
replacing legacy systems, automation or efficiency. I can’t see that changing unless somebody comes up
with a formula that says ‘this is going to guarantee me to improve my net promoter score by x and that
is worthy’.”
Contact Centre supplier
12
Figure 6- Top technology priority, CCA Member Survey, 107 organisations, July 2012
The evidence from the research suggests that that the intelligence within customer interactions is not yet being fully
harnessed; the opportunities to create insight and bring about change which can drive profitability are being missed.
In a period of economic uncertainty, it is also important for organisations to focus their attention on the wealth of
data at their fingertips as well as developing ways to demonstrate the business case for investment in new
technology. By harnessing existing sources of customer data in more strategic and innovative ways, some of the same
goals can be achieved.
0 5 10 15 20 25
Other
Queue call back
Speech analytics
Speech Recognition
Outbound SMS
Refreshing existing equipment
Multimedia blending and routing
Social media monitoring
Social media management
Email management
Online knowledge bank/FAQs
Management information suites
IVR
Customer feedback surveys
Database (CRM) integration
Quality management
Call recording
Workforce management
ACD
13
CHAPTER 2: Man versus machine: self service, automation and the role of voice
“I want to talk to a real person”
This remains the most common refrain used to rebuke the contact centre industry. An entire web-based industry
exists around offering consumers advice on how to bypass Interactive Voice Responses (IVRs) to reach a human
instead of a machine. IVRs can be an extremely useful tool in improving the strategic choreography of inbound calls.
It can more efficiently direct customers to the correct contacts within a business, promoting consistency and accuracy
in dealing with enquiries as well as providing cost savings to the organisation. Nonetheless there is a continuing
perception that consumers are unwilling to use automated and self-service channels. This chapter aims to review
these issues with a more fine-grained approach.
Paradox
There is a long running paradox within the contact centre industry regarding the role of voice. Within the consumer
survey, 48% of consumers say the improvement they would most like to see over the coming four years is the ability
to talk to a live person (see Figure 7). The 2011 report showed the same result (see Figure 8). In contrast, 80% of the
respondents polled in the CCA member survey report that their business model will adapt to increase self-service and
automation (see Figure 9). At an immediate glance, this appears to be an intractable and worrying disparity.
However, if you scratch beneath the surface, these two points of view do not necessarily stand in complete
opposition.
14
Figure 7 - Thinking about contacting an organisation, which five improvements would you most like to see four years from now to improve
your overall experience for purchasing a product or service? Base: all GB adults (1,024) aged 16-66, 18-24 July 2012.
Figure 8–What changes in customer service would you like to see in the next five years? 1,019 online consumers May 2011
0 10 20 30 40 50 60
Talking to a live person not automated
A faster response
First person can resolve my query
Speaking to an expert
A cheaper method e.g. freephone
Better trained customer service agents
An answer I can trust
More self-service options - I don't have to queue
Slicker website
More opportunity to talk face-to-face
More personalised service tailored to me
Agent has access to more info to answer query
Improved self-service
Faster recognition of who I am
More mobile apps
Fewer security questions
More opportunity to talk through live video chat/ …
More options to engage through social media
First
Second
Third
Fourth
Fifth
0 10 20 30 40 50 60 70
Talking to a live person not automated
First person can resolve my query
Better trained customer service agents
A faster response
Speaking to an expert
An answer I can trust
A cheaper method e.g. freephone
Agent has access to more info to answer query
Talking to someone like me
More self-service options - I don't have to queue
Faster recognition of who I am
More personalised service tailored to me
Slicker website
Fewer security questions
More mobile apps
Other
15
Figure 9 - How do you think your business model will adapt to meet changing customer demands in the future? Please give your Top 5
options (1 being most important – 5 being least important) CCA member survey, 107 organisations, July 2012
Self-service for transactions In order to further develop the research strand for 2011 which looked at channel preferences, the 2012 study
disaggregated customer contact into several types:
Purchasing products or services;
Making a customer service enquiry; and
Making complaints.
The research shows that the majority of consumers would actually select self-service via a website as their primary
preference for purchasing products and services (see Figure 11). This was far and away the most popular response
with the next most popular being telephone and email constituting just 14% and 12% of responses respectively.
These results represent a departure from the 2011 research where consumers preferred telephone and email as their
favoured channels for now and in the future (see Figure 10).
0 10 20 30 40 50 60 70
Other
Increase in offshoring
Increase in outsourcing
More virtual contact centres
A less centralised approach
Increase in homeworking
Increase in customer helping customer
Greater use of cloud computing
More service delivered via social networking sites
Greater use of database analytics
Clear, single view of the customer/greater channel …
More skilled, knowledgeable workers
Increase in self-service and automation
16
Figure 10 – Which of these is your preferred method for contacting an organisation? 1,019 consumers May 2011
Interestingly, in contrast to other activities, such as complaining or making enquiries, there was no disparity in
behaviour based on age, 40.1% of 16-24 year olds and 41% of 55-64 year olds provided website self-service as their
prime choice for purchasing products or services. Positive news for the contact centre environment as self-service is
an important tool for reducing costs. Previous research has found that organisations had success at reducing
unnecessary contact, occurring as a consequence of customer or organisational failure, when they implemented
demand management strategies. This was achieved via improvements to their online and IVR provision4.
When the same respondents were asked to look forward and think about what methods of interaction they would
prefer to use in future, broadly similar patterns were identified, website self-service (33%), email (12%) and
telephone (10%) but with some burgeoning interest in mobile apps (6%), live video chat/face time (3%), Facebook
(2%), other social media websites (2%). Despite the numbers being quite small, this does demonstrate a growing
appetite to purchase via social media and mobile applications. There was some disparity in some instances along age
lines with twice as many 16-24 year olds (9%) as 55-64 year olds (4.5%) reporting a first choice preference for
purchasing products and services via mobile apps in the future. This would suggest this area is worthy of attention
4 CCA Demand Management Report
0 10 20 30 40 50 60 70 80
Telephone
Letters/ Post
Self-service (website)
Pop up chat (website)
Self-service (telephone)
FAQs on website
SMS Text Message
Social networking sites
Instant messaging
Mobile apps
Video conferencing
Other
Current
Preferred
17
despite the relatively small figures associated with it as it is likely to be a growth area in catering to generation Y and
youth preferences.
Figure 11 - Generally speaking, which of these methods do you most prefer to use when contacting an organisation for purchasing a product
or service? Base: all GB adults (1,024) aged 16-66, 18-24 July 2012.
Activity complexity and consumer fragmentation
The evidence is somewhat different when we look at what could be considered more complex interactions around
customer service enquiries and complaints. Unlike transactional exchanges such as purchasing products and services,
consumers are far more likely to select voice (37%) for customer service enquiries (see Figure 12). Email also
constituted a much higher proportion (21%) than website self-service (13%). For complaints, telephone is again the
most important channel (31%) followed by email (26%) and again a much smaller proportion for website self-service
(13%) (see Figure 13). The evidence suggests that where consumer enquiries are complex, difficult or perhaps related
to sensitive or important transactions, voice continues to be the preferred position.
0 10 20 30 40 50 60 70 80
Telephone
Self-service (website)
Letters/ Post
Self-service (telephone)
Pop up chat (website)
SMS Text Message
Mobile Apps
Live video chat/ Facetime
Other social media websites
First
Second
Third
Fourth
Fifth
“I think it is the quick and easy thing. But, if you have an issue or a query then you need to speak to
somebody. If the content is more complex then you need to get through to somebody more specialised
and have your issue dealt with efficiently. If it is something very quick and simple I think people will like
to use IM, emails, apps.”
Contact Centre supplier
18
Figure 12 - Generally speaking, which of these methods do you most prefer to use when contacting an organisation for
customer service enquiries? Base: all GB adults (1,024) aged 16-66, 18-24 July 2012.
Figure 13 - Generally speaking, which of these methods do you most prefer to use when contacting an organisation for each of
the following for complaints? Base: all GB adults (1,024) aged 16-66, 18-24 July 2012.
0 10 20 30 40 50 60 70 80 90
Telephone
Self-service (website)
Letters/ Post
Pop up chat (website)
Self-service (telephone)
SMS Text Message
Live video chat/ Facetime
Mobile Apps
Other social media websites
First
Second
Third
Fourth
Fifth
0 10 20 30 40 50 60 70 80 90
Telephone
Letters/ Post
Self-service (website)
Pop up chat (website)
Self-service (telephone)
SMS Text Message
Live video chat/ Facetime
Mobile Apps
Other social media websites
First
Second
Third
Fourth
Fifth
19
With regard to these findings there was more disparity along age lines with more than half of those aged 55-64
(50.2%) preferring to use the telephone for making a customer service enquiry as compared to those aged 16-24
29.3%. This divide was also seen in the arena of making complaints, with twice as many 55-64 year olds (42.4%)
preferring to use voice to make a complaint as opposed to those aged 16-24 (21.2%). The evidence would suggest
that among younger generations there is a more diminishing role for voice and an increasing role for alternative
methods of contact even for more complex contact.
Amongst all ages there was an appetite for a range of methods of contacting organisations for customer service
enquiries, with a much greater role for website self-service in future (18%) and a reduced role for telephone and
email (19% and 17% respectively) (Figure 14). The same did not hold for complaints where email (20%) and voice
(20%) continued to be the most dominant preferences.
Figure 14 - Thinking ahead to four years from now, please look again at this list of possible methods for contacting an
organisation and say what you would like to be using more of in the future for customer service enquiries. Base: all GB adults
(1,024) aged 16-66, 18-24 July 2012.
Self-service and automation are likely be most appropriate for specific activities and by extension selected sectors.
This does not negate the value of web-based and social media channels for supporting voice channels and to prevent
the escalation of contact. Information provided by these channels can help educate and inform customers and
ultimately manage demand. Reassuring customers and providing information via these channels can play a vital role,
along with improved outbound communications. For example, email alerts or tweets can help customers to
0 10 20 30 40 50 60 70 80
Telephone
Self-service (website)
Pop up chat (website)
Letters/ Post
Mobile Apps
SMS Text Message
Self-service (telephone)
Live video chat/ Facetime
Other social media websites
First Second Third Fourth Fifth
20
understand processes more clearly and prevent unnecessary contact. This is a complementary approach to help
employees deal with the more complex and difficult queries in the most adept manner whilst ensuring the simple,
straightforward transactions are taken care of via automation.
Further to this, as Figure 9 demonstrates, the member survey also found that developing more skilled and
knowledgeable workers was regarded by organisations as an equally important adaption to their business as
increases in self-service and automation. Thus perhaps they are taking on board the message.
The evidence around self-service suggests that organisations need to reflect on the nature of their customer service
interactions and engage with a hybrid model, providing opportunities for different methods of contact dependent on
the type of query or transaction. The findings further show that in the realm of simple transactions convenience is
king to the consumer. The ability to purchase a product or service easily and quickly without speaking to a person is
highly prized. This is very much in line with the expectation of 24/7/365 consumption opportunities and also the
desire to conduct transactions on the move in an increasingly mobile and connected world.
It may be possible to promote certain types of behavior and the use of self-service by providing financial incentives;
this concept will be further developed in Chapter 4.
“Now the internet allows customers to interact at anytime of the day creating 24/7/365 culture. This
has created a level of expectation and managing this is occasionally challenging, particularly if the
customer doesn’t get the speed of response expected; this can lead customers to use another channel
e.g. phone thus creating a double contact - unnecessarily. Customers now expect fast service with as
little effort on their part as possible; but their preferences vary from speaking to a person, self-service
or face-to-face. The company needs to create a balance of customer desire, commercials and the need
to meet minimum standards around rules and regulations.”
Contact Centre Director, Financial Services
21
CHAPTER 3: The arrival of social media?
“We tend to overestimate the effect of a technology in the short run and underestimate the effect in the long run.”
Roy Amara
Recent Ofcom reporting shows that there has been an exponential rise in the proportion of the UK population who
use the internet from 59% in 2005 to 79% in 2011. It also shows that people are spending more time online – on
average 15.1 hours per week. Mobile internet usage is also on the increase with 31% of those with a mobile phone
using it to go online. Smartphone penetration also continues to increase and stands at around 40% in the UK and
Western Europe. Related to this, social networking has dramatically increased from 22% of internet users in 2007 to
59% in 2011 and accessing social networking via a mobile phone has doubled in the past year – from 15% of mobile
phone users in 2010 to 29%5.It is important to acknowledge the role of these advances in shaping the landscape in
which organisations operate as they are beginning to alter fundamentally how people would like to purchase and
consume products and services. The member and consumer survey confirmed that there have been developments
from the 2011 research in the realm of social media.
Surge in usage
There was significant growth from last year with regard to social media usage reported by respondents of the
consumer survey, particularly around engaging with or finding out information about businesses. 6% in 2011
reported using social media compared to 18% of consumers using Facebook in 2012 (see Figure 15).
Figure 15 – Websites and social media used for contacting or finding out information about businesses. Base: all GB adults
(1,024) aged 16-66, 18-24 July 2012.
5 Ofcom, 2012, Adults media use and attitudes report 2012
0
2
4
6
8
10
12
14
16
18
20
Facebook Google+ Linkedin Twitter YouTube
22
As with the findings around self-service, social media usage was clearly segmented by age. Those within the 16-24 age
group were far more likely to provide feedback about a business, make complaints and buy products and services on
Facebook than those above 55 (See Table 2).
16-24 25-34 35-44 45-54 55-64
For providing positive feedback about a business 24.6% 22.5% 15.4% 14.2% 7.2%
For making complaints about businesses 17.6% 18.4% 9.6% 7.3% 1.4%
For buying a product or service 9.1% 12.1% 6.3% 4% 2.9%
Table 2 - Facebook usage Base: all GB adults (1,024) aged 16-66, 18-24 July 2012.
Trends around internet and mobile uptake have far outstripped predictions. The adoption of smartphones is five
times greater than forecast by Forrester in 20066. As we have seen from the division by age of behavioral patterns, it
appears that particular technologies are starting to define generations. The fast pace of change and adoption of new
technologies is leading to the emergence of segments in generations where even a few years make a difference in
usage patterns. As with self-service and automation discussed in Chapter 2, it is clear that particular segments of
consumers are interested in engaging with social media for particular transactions thus again underlining the
importance of providing the most appropriate option for the most suitable instance.
Organisational engagement with social media
The rise in social media usage was also matched by growing interest from the organisations surveyed. 72% of
respondents of the member survey reported that they at least monitor social media. Within the 2011 research, only
39% of organisations were actively monitoring social media showing an exponent improvement in this area. Beyond
this, 66% of respondents had trained staff to work in social media, 64% had developed a company protocol and 50%
6http://www.cca-global.com/gsx/blog/?selKW=Technology%20Mobile%20Customer%20Multichannel
“The advent of the smartphone and other mobile devices has taken communication to another
level. Perhaps most noticeably this means that customers can and do contact organisations at
any time of day depending on when they have ‘dead time’. Expectations relating to the speed of
response have increased as a direct result and are exacerbated through the use of social media
as a channel where consumers see and hear about other peoples’ experiences.”
Contact Centre Director Financial Services
23
had developed new technology. The overwhelming majority (92%) of respondents to the member survey felt that
more attention would be given to social media over the next four years and 68% regarded it as providing a positive
opportunity for engagement. Information gathered via social media channels was chiefly used for managing business
reputation and brand and refining customer service (see Figure 16).
Figure 16 – In what ways do you use information gathered by social media channels? CCA member survey, 107 organisations,
July 2012
Nevertheless challenges remain in providing the segmented services which appear to be demanded by consumers.
Tailoring provision by age and other factors can result in higher costs and also has ramifications in terms of the
universality of service and the danger of not providing a fully joined-up customer experience. The continuing problem
of organisational silos will be reviewed in Chapter 5.
0 5 10 15 20 25 30 35 40 45 50
Other
We don't do anything with the information
It helps us manage our VIPs
We try to respond to each customer personally
It is the best customer focus group you can …
It helps us refine/develop our products
It helps us refine/develop our customer service
It helps us manage our brand and reputation
24
CHAPTER 4: The loyal customer?
One theme drawn out in the 2011 report related to the segmentation of customers into groupings to which services
can be targeted. The consumer research in that report explored the relationship between personality type and
channel preferences. Whilst this was helpful in exploring how particular traits might influence choices, for example
introverts might be more likely to prefer non-human interfaces, the 2012 study aimed to develop these ideas.
Patterns of consumer loyalty were regarded as an important and related theme, and so this was developed in both
the consumer and member survey.
Less loyal consumers
Alarmingly, but perhaps not unexpectedly, 44% of members surveyed said that customers were becoming less loyal.
There are a multiplicity of explanations which account for reduction in customer loyalty. As mentioned in Chapter
one, the economic crisis is continuing to impact the UK and this has resulted in a wider mood of anxiety in society
with ever-increasing worries regarding jobs, family finances and the wider economy. Some of the most well known UK
brands have been at the centre of shocking revelations regarding miss-selling, customer faith in organisations and
public institutions is low with trust eroded by the banking crisis. Within the context of pinched finances, consumers
are increasingly demanding more-for-less as expectations remain high around product and service quality.
Disillusioned by poor service provision, customers are also proactively taking action and seeking solutions to their
issues via multiple approaches and channels. Increasingly there are new opportunities opening up for consumers to
access competitive offers and price comparisons. The perception of the low loyalty of consumers highlighted by the
member survey was corroborated by the consumer research which asserts that customers care more about the price
of the product and the quality than the level of customer service (see Figure 17). Consumers selected price (26%) and
quality (24%) as the main reasons for buying from a company again.
This would perhaps imply a reduced rationale for investment in service as the key differentiators would not be
affected. Nonetheless, a positive sign is that 16% of those surveyed would return to a company based on the
customer service and experience.
“Consumers are becoming more fickle. Brand is important. There is an element of brand for
reassurance rather than loyalty. It is about price primarily and brand, where it fits in.”
Contact Centre supplier
25
Figure 17 – Which of the following would make you use a company again? Base: all GB adults (1,024) aged 16-66, 18-24 July
2012.
The headline findings are useful as a guide, but there is also a great deal of complexity around customer satisfaction
and loyalty which can be dependent on issues like prior expectations and the nature of the product or service being
provided. A customer can be reasonably satisfied with a mediocre customer experience if their expectations are low
or if the low performance provides value, for example if it makes the service or product cheaper. A disappointing
customer experience in certain sectors may not be tied to low loyalty if switching costs are high or there are few
alternatives. Nevertheless, competing solely on price can lead to a race to the bottom, leaving no opportunity to
innovate or improve. Further to this, models have been developed which directly tie improvements in customer
experience to loyalty and by extension profitability7. Thus it is crucial for organisations to identify the most
appropriate ways of improving customer retention for their sector and activities.
Incentivising consumers?
Another finding which suggests that consumers are increasingly footloose and even promiscuous is their willingness
to be incentivised for undertaking preferred behaviours. Within the consumer survey 34% said that they would
definitely use a self-service system if given a discount code or cheaper rate (see Figure 18).
7http://hbr.org/2008/07/putting-the-service-profit-chain-to-work/ar/1
0 10 20 30 40 50 60 70 80
Price
Quality of product
Good customer service/ experience
Ease of purchase
Availability of product or service
Brand/ reputation
Discount/ voucher schemes
Loyalty schemes
Multiple channels of contact available
I can engage with them on facebook
I can engage with them on twitter
First
Second
Third
Fourth
Fifth
26
Figure 18 – Willingness to be incentivised by discounts. Base: all GB adults (1,024) aged 16-66, 18-24 July 2012.
Only 4.2% of those aged 16-24 stated that they would not use a self-service system if given a cheaper rate. This is line
with wider knowledge about this age group. For example, one recent report found that 71% of this age group
reported that they had liked a brand on Facebook just to receive an offer.8 Many questions have been raised
regarding handing over personal information to companies 9, but this does infer that consumers, particularly from this
age group, are willing to provide intimate details which can be used to better up-sell, target and streamline products
and services as well as advertise widely within social media channels, for example in exchange for small discounts10.
Fewer older people were willing to be incentivised by discounts with 20.2% reporting that they would never be
tempted to self-serve by a discount. This may be related to less familiarity with technology or alternatively concerns
around privacy and safety of online transactions. Nonetheless, nearly 70% of respondents in older age groups
reported that they would consider using self-service which clearly indicates a considerable potential appetite. Older
groups are increasingly engaging with the internet and according to the Office for National Statistics; people over 65
are more likely to have downloaded software, from anti-virus to video games, than any other age group. Research
8http://www.meet2015.com/Content/Pdf/MrYouth_ClassOf2015.pdf
9http://blogs.hbr.org/cs/2012/10/a_penny_for_your_privacy.html
10http://www.pwc.com/us/en/industry/entertainment-media/assets/pwc-consumer-privacy-and-information-sharing.pdf
11%
10%
21%
33%
25%
Don't know
I wouldn't be tempted to use a self-service system by a discount code or cheaper rate
I would use a self-service system depending on the nature of the discount code or cheaper rate
I would definitely use a self-service system if given a discount code or cheaper rate
I would probably use a self-service system if given a discount code or cheaper rate
27
found that nearly two-thirds had downloaded computer programmes and more than a third also used the web for
music and films11.
One factor considered by organisations might be whether there is a particular demographic making up their
customers. For example, it is important to think about the balance of functionality and usability in the type of
technology being utilised by organisations. Providers tend to preference increased functionality, but this may
disadvantage older, more novice technology users who are less confident or able to exploit this functionality. These
groups are likely to have more time to conduct an interaction so speed of contact might not be a top priority.
Organisations whose customers are made up by this grouping should try and identify such issues, making it easier, for
their customers to employ the necessary technology for their chosen interactions.
Positive re-enforcement via monetary inducement can clearly help build loyalty in some instances, but there may be
concerns about focusing solely on cost. A customer loyalty programme benefits from a long-term strategy which
should aim to build a relationship beyond cost. There are alternative mechanisms for improving customer retention
and encouraging and motivating repeat transactions. Reducing the difficulty and effort experienced by customers in
purchasing or using products and services is one way of trying to ensure that they return. Convenience and ease of
use can be key motivating factors for return visits. If an organisation does undertake an incentive programme, it is
crucial to coordinate this with all the other prospects for building loyalty.
A few alternative ways in which loyalty can be built and retention encouraged include:
improving trust and transparency;
building brand value;
iteratively improving products and services based on customer feedback;
regular communications such as newsletters and
improving employee training.
11
http://www.telegraph.co.uk/technology/internet/7862234/Silver-surfers-increase-by-one-million-over-the-last-year.html
28
CHAPTER 5: Joining up services
Offering a seamless service to customers is a central aspiration for most organisations. As consumers interact with
organisations there are often instances of duplication, inefficiency and waste. Not only does this fragmented
experience frustrate customers, but it can make working practices disjointed and therefore cause irritation and
disengagement for employees. Joining up the customer experience can increase the quality of service, reduce costs
associated with inefficiencies and misinformation and improve customer retention. This part of the study aimed to
review how organisations felt they were performing at joining-up their customer journeys across channels.
Organisational silos
As Figure 19 demonstrates, consumers thought it crucial that organisations link up their interactions, with 57%
reporting this as vital or very important. This was further confirmed by the desired improvements for their
interactions with organisations (see Figure 7 in Chapter One) many of which could be associated with a more joined-
up experience. For example, in terms of the most highly rated improvement, those surveyed were keen for the first
person they spoke to be able to resolve their query (9%), be able to speak to an expert (9%), to access a slicker
website (9%), to receive an answer they could trust (6%), experience a more personalised service (4%) and speed up
recognition of who they are (3%). All of these aspects can be seen to be strongly influenced by the level of joining-up
present in the organisation.
Figure 19 - How important is it to you that a company can link up all your interactions with them no matter how you have
contacted them? Base: All Adults aged 16-64. Base: all GB adults (1,024) aged 16-66, 18-24 July 2012.
7%
24%
34%
23%
6%
6%Don't know
It is vital to me that a company can link up all my interactions with them
It is very important that a company can link up all my interactions with them
It is fairly important that a company can link up all my interactions with them
It is not very important that a company can link up all my interactions with them
29
Problematically, this joining-up was not seen to be in place from the provider side of the equation. Within the
member survey 77% of respondents reported that the felt their organisation was still siloed. Another 10% were
unsure whether they had a joined-up picture of their customers (see Figure 20).
Figure 20 - Are all your customer interactions joined up? That is a single view of customer or for example being able to
recognise a customer has complained on twitter and later calls contact centre. Please select all statements which apply to
your organisation. CCA member survey, 107 organisations, July 2012
This represents some divergence from the 2011 findings which suggested that organisations had a better picture of
customer preferences and behaviours (see Figure 21).
3%9%
77%
11%
Yes, we can easily identify customers who transfer from social media to other channels
Yes, we can easily identify customers who transfer from online to other channels
No, we still operate a siloed approach
I am not sure whether we have a single view of our customer interactions over multiple channels
30
Figure 21 – Do you know your customers well enough to provide a personalised service? CCA member survey, May 2011
Within the realm of social media there were clear blockages reported (see Figure 22). Ownership for social media is
generally being held in the marketing department (46% of respondents) rather than within customer service (17% of
respondents).
Figure 22 - Who owns social media in your business? CCA member survey, 107 organisations, July 2012
79%
58%
58%
23%
We know our customers' preferred methods of contacting us
We know our customers' purchasing preferences
We are very clear on customer habits and buying times
We are aware of what our customers are saying on social media sites
46%
17%0%1%
14%
9%
13%
Marketing
Customer Service
The Board
IT
It's everyone's responsibility
We don't currently use social media as a communications tool for our business
Other department
31
Whilst these findings are not positive, they do highlight the depth of the issues faced by organisations. The landscape
within which they operate has become increasingly complex with an explosion of methods for customer contact. This
has put enormous pressure on infrastructure costs and increased contact volumes so it is unsurprising that
organisations are struggling to navigate these issues. The second half of this chapter looks at the prospects of making
technological interventions to help overcome organisational silos.
The role of technology in forging linkages
There are some key exemplars, particularly from retail, which have led the way in the provision of innovation service
models, and how to utilise technology to encourage a joined-up process. These examples tend to be focused on
enhancing customer experiences and putting greater knowledge in the hands of employees. Some retailers have
experimented with technological tools with the aim of connecting online and in-store shopping experiences. For
example, a new flagship Marks & Spencer superstore at Cheshire Oaks in Ellesmere Port has ‘browse and order hubs’
equipped with touch screens and staff carry iPads so that they can immediately tell customers whether an item not
available in-store is available online. Marks and Spencer’s report that customers who purchase their products online,
as well as in store, spend four times as much money. If they also use smart phones to purchase then they are likely to
spend eight times as much12.
There are examples from other sectors where technology has been used to smooth the linkages in service provision.
For example, iPads and iPods are being used to speed up order -taking in a US-based restaurant. When waiters come
to work, they are given an iPod Touch to use during their shift and there are iPads mounted behind the bar. The
restaurant owner found using this technology cheaper and more user-friendly than installing a traditional point of
sale system.13
Customer service apps are also increasingly being adopted according to high profile analysts,14 and as the consumer
survey suggests, the appetite for them is likely to grow in the next four years (see Figure 14). As well as offering
incentives and value-added services, apps can form a key aspect of an integrated, ‘joined up’ customer service
12
http://www.guardian.co.uk/business/2012/sep/02/marks-and-spencer-multichannel-shopping?CMP=email 13
http://blog.poslavu.com/restaurant-ditches-tradition-using-ipads-in-c 14
http://blogs.forrester.com/kate_leggett
“If we are entering a multi-channel world then it has got to be connected behind the scenes
which means joining up legacy systems which will be really hard, but the winners will be the
people who get it right in a cost-effective way and in a manner that the customers really
value.”
Contact Centre supplier
32
experience. They work best when they share the same knowledge base as the rest of the customer service channels
so consumers received the same answer no matter which channel they choose.
Contactless payments are a further technological method, which if adopted more widely, could facilitate a more
joined-up service. These can potentially provide organisations with personal data such as spending habits which can
improve and tailor services offered to customers15. Food retailers like EAT, Marks and Spencer and Prêt a Manger are
amongst those offering these services in line with the idea of offering quick and easy payment for lunches of office
workers or those on the move. Nevertheless, at present, these services do not appear to have been fully embraced
which may be related to customer’s perceptions regarding the privacy of their financial data, but also in the poor
implementation of some of the service offerings16. There is particular interest in mobile payments from younger
generations, but many remain to be convinced of their convenience and safety.
15
http://www.nytimes.com/2012/08/08/technology/starbucks-and-square-to-team-up.html?_r=0 16
http://www.guardian.co.uk/money/2012/sep/14/contactless-payments-cash-free-shopping
33
CHAPTER 6: Summary and recommendations Continuity from 2011 As expected, there are a number of key areas within the 2012 research where there is continuity from the 2011
report.
The economic crisis – the effects of the global recession are continuing to affect and adversely shape the
context for customer service. As we saw in 2011, connected to this is a focus on efficiency-based measures
related to cost savings rather than more innovative approaches which may create value. Contact centres
continue to be squeezed at both ends being forced to reduce costs whilst at the same time improving service.
Segmented service – the 2012 research found that more tailoring and personalisation of services is essential
to cater for disparities in how customers currently, and will, use new channels. This echoes the findings of the
2011 report in which experts suggested that organisations will increasingly move towards service models
which distribute resources and effort according to the value or characteristics of customers.
Progression from 2011 There were a number of departures and developments from the 2011 research:
Social media – despite being recognised as an area of interest during 2011, it was still an area to gain real
traction in terms of actual customer behaviour, but the consumer findings suggest that this area has
developed in the interim period – indicative of the fast-paced nature of change. Younger generations are
engaging with these opportunities most vigorously so organisations targeting this demographic will need to
look to the more cutting edge of developments to keep pace.
Self-service – there have been huge advances in the willingness to self-serve via websites since the 2011
report across all demographics. This may be related to an increase in opportunities to do so effectively, but
certainly gives a positive message to organisations wishing to reduce ‘unnecessary contact’ and the
associated cost it carries to the organisation. Specifically, the research found that consumers reported a
willingness to be incentivised via financial inducements to self-serve.
Loyalty – the research found that customers are becoming less loyal. Customers reported caring more about
the price and quality of the product than the level of customer service.
34
Organisational silos – members reported low levels of joining-up across their organisation. The landscape
within which they operate has become increasingly complex putting enormous pressure on infrastructure
costs and increased contact volumes.
Recommendations The member survey asked respondents to identify what they saw as the key developments for the contact centre
sector in the coming four years from a range of prescribed statements (see Figure 23). The two statements which
were by far and away the most popular in many ways appear incompatible:
All workers will be knowledge workers
All basic interactions will be automated
However, in many ways these statements encapsulate the key messages of this report. From the evidence which has
been triangulated from across consumers, providers, experts and existing research, it is clear that trends in the sector
are necessitating decisions around the appropriateness of the provided contact opportunities based upon the nature
of activities of the organisation, sector it belongs to, key demographics of the customer-base and the type of
interaction being undertaken.
Figure 23 – Most highly ranked statements regarding trends in customer contact over the next 4 years.CCA member survey,
107 organisations, July 2012
0
5
10
15
20
25
30
35
Related to this key message and the range of findings derived from the research there are a number of
recommendations which can be made:
Organisations need help in building innovative and convincing arguments to make the case for investment in
contact centre technology particularly within the context of continuing economic problems.
It is important to use measurement techniques which are transparent and adapt to capture the intricacies
associated with more nascent channels of interaction such as social media.
There is an ongoing role for voice, but organisations can capitalise on more simple transactional areas where
consumers would rather self-serve. Decisions should be made on the basis of appropriateness.
It is important to understand more clearly how social media is being used now both consumers and
organisations are engaging it with it more as a channel.
The younger generation are less likely to have strong loyalties to organisations and more likely to seek out
discounts and offers. Organisations must explore more sophisticated ways of engaging with this group to
avoid a cost-driven race to the bottom.
Organisations should look to innovative best practice (from retail for example) to look at ways in which social
media and online channels can be linked to traditional channels and face-to-face. This can be seen not only as
potentially maximising profits, but also an important component of demand-management for not-for-profit
and public sector organisations.
36
About CCA CCA is the leading independent authority on customer contact strategies and operations. Over 900 organisations currently
subscribe to CCA services. This equates to a network of over 5,000 senior practitioners, employing between 35%-45% of the
contact centre population in the UK. Around 20%-25% of people working in a contact centre in the UK are working in a centre
accredited with CCA Global Standard©
.
For more information visit www.cca-global.com
About Kcom
Kcom’s contact centre team focuses on improving efficiency and customer service in the contact centre. Many of our
professionals are well-known names with over 20 years’ experience in the industry. We have expertise across all areas of contact
centre technology and how they can be leveraged to transform performance. We have delivered solutions in the private and
public sector, some of which operate in mission critical environments. Last year our self-service solution for the NHS BSA was
short-listed for the BCS IT Innovation of the Year award.
Kcom delivers critical communications solutions for multi-site enterprise and public sector organisations, with access to an
extensive portfolio of products and the largest, most advanced network in the UK. We offer our customers a view of what the
future might look like through our insights into the Future of Work, Future of Connected Life, Future of Partnerships, Future of
Customer Services, Future of IT Services and Future of Business Processes, helping them evolve and harness innovation to
become more flexible and productive, and ultimately to improve their performance.
For more information visit www.kcom.com
The research, data and views in this white paper are not necessarily those of the Customer Contact Association (CCA) or Kcom.
The report has been prepared in good faith but neither Kcom nor the authors of the reports can be held responsible for any
actions or otherwise taken by those reading the paper.