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Avaya Customer Experience Management Index 2013 Executive Summary

Date post: 12-May-2015
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Will Asia-Pacific consumers pay more for better customer service? The answer may surprise you. Download this executive summary, which shows the findings from Avaya's 6th annual CEM Index and survey results, to learn more. And get the full whitepaper here: http://www3.avaya.com/APAC/cem/guide-webinar/cem-index.asp
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Avaya Asia Pacific Customer Experience Index 2013|APAC Summary Page | 1 Table of Contents Introduction 1 SECTION 1: The Importance of Good Service 2 SECTION 2: The Multi-Channel Landscape 3 SECTION 3: Future Channel Usage 4 SECTION 4: Key Research Findings 5 SECTION 5: How do Organizations Respond? 5 About Fifth Quadrant 6 Introduction The Avaya Asia Pacific Customer Experience Index has become an established key measure of the contact center customer experience, valued by Avaya customers and service organizations across Asia Pacific. Based on its success, the Customer Experience Index has been expanded to provide a deeper and richer understanding of consumer attitudes, experiences and expectations with regards to the use of different customer service channels with an emphasis on new technology solutions. Now in its sixth year, the Avaya Asia Pacific Customer Experience Index reflects the full range of customer service channels now being demanded by APAC consumers. The Avaya Customer Experience Index is based on an extensive quantitative study of APAC consumers conducted via web-based and telephone surveys conducted in partnership with Fifth Quadrant. The study covers consumer use, experience and attitudes towards existing and future customer service channels. A total of n=2,445 consumers representing a wide distribution of demographic life stage and industry verticals were involved in the study. The purpose of this document is to provide a summary and overview of the key themes and take outs from the research results this year. For more detailed findings of the results including across country comparisons, please refer to the PowerPoint report “The Avaya Asia Pacific Customer Experience Index 2013”.
Transcript
Page 1: Avaya Customer Experience Management Index 2013 Executive Summary

Avaya Asia Pacific Customer Experience Index 2013|APAC Summary

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Table of Contents

Introduction 1

SECTION 1: The Importance of Good Service 2

SECTION 2: The Multi-Channel Landscape 3

SECTION 3: Future Channel Usage 4

SECTION 4: Key Research Findings 5

SECTION 5: How do Organizations Respond? 5

About Fifth Quadrant 6

Introduction

The Avaya Asia Pacific Customer Experience Index has become an established key measure of the

contact center customer experience, valued by Avaya customers and service organizations across Asia

Pacific. Based on its success, the Customer Experience Index has been expanded to provide a deeper

and richer understanding of consumer attitudes, experiences and expectations with regards to the use

of different customer service channels with an emphasis on new technology solutions.

Now in its sixth year, the Avaya Asia Pacific Customer Experience Index reflects the full range of

customer service channels now being demanded by APAC consumers. The Avaya Customer Experience

Index is based on an extensive quantitative study of APAC consumers conducted via web-based and

telephone surveys conducted in partnership with Fifth Quadrant. The study covers consumer use,

experience and attitudes towards existing and future customer service channels. A total of n=2,445

consumers representing a wide distribution of demographic life stage and industry verticals were

involved in the study.

The purpose of this document is to provide a summary and overview of the key themes and take outs

from the research results this year. For more detailed findings of the results including across country

comparisons, please refer to the PowerPoint report “The Avaya Asia Pacific Customer Experience

Index 2013”.

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Top Three Reasons For Customer Defection

Customer Experience Management and delivering excellent service to customers has never before been so

important for organizations to deliver. As product led business models become outdated, leading organizations

now recognize the importance of customer experience as a driver of business performance. Results from this

research study highlight the significant impact that good or bad customer experience can have on the future

intentions of customers:

The majority of APAC consumers (70%) will spend at least 10% more money with a company that

consistently provides excellent customer service

Further to the positive impact customer experience can have on driving customer value, the size of the risk in

terms of potential negative impacts of delivering poor service are significant:

More than 8 out of 10 APAC customers will actively advise friends/family to avoid a company that has

provided poor customer service (83%)

More than 8 out of 10 APAC customers will actively avoid buying more products or services from a

company the provides bad customer service (83%)

The research reveals that poor customer service is the second most important reason that causes customers to

defect from one provider to another. As reported by customers across the APAC region, the top three reasons

why customer defect from one provider to the next are: Poor quality products or services (69%), Poor customer

service (61%) and Increases in price (43%).

Customers have made it very clear to organizations the consequences and risks of not delivering a great

customer experience every time.

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One of the biggest challenges organizations face as they set out along the Customer Experience path is the

growing complexity regarding the use of multiple channels by customers as they interact with their providers.

The customer experience landscape has now expanded to include over 20 unique customer experience channels

from traditional face-to-face and live agents to virtual agents and gamification.

Customers are engaging with organizations for multiple reasons through multiple channels. This research reveals

some compelling facts:

On average, customers are contacting one single organization at least 15 times in a 3 month period, and

are using almost 4 different channels to do this

This behavior is in part driven by the fact that customers are engaging with organizations to resolve a range of

different queries. However, it is clear that many customers are required to use different channels because they

are not getting their query resolved adequately through the first channel they use:

On average, it takes a customer just under 4 interactions with an organization to resolve their query

(3.93)

As customers bounce around different channels they have come to expect a seamless and integrated experience

regardless of the channel they use. However, the current performance of organizations in meeting these

expectation is rated as fairly poor across the region indicating a significant opportunity for organizations to focus

on as they evolve more effective Customer Experience strategies. Reasons given for rating a company as good or

excellent in this space include :

Not having to repeat your query each time (57% Good / Excellent)

Combining the information from different interactions (55%)

Knowing your history across different channels (50%)

Not having to repeat account identification and information each time (48%)

% Rate Organization Good/Excellent Performance

% Times Needed To Contact To Resolve Query

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As organizations expand the variety of channels they offer to customers, it is important that they listen to their

customers in order to deliver a channel strategy that meets their customer needs, and not just simply follow

their competitors. There are many examples where organizations have rushed to launch a mobile app or social

media channel but have not achieved the benefits they were expecting due to poor execution. Planning and

prioritizing future channel investment must come from listening to customers.

The research reveals that the top three channels that are predicted to experience the most significant growth in

usage across the APAC region are:

Web self-service (41% of customers will increase usage)

Live agent (36%)

Email (35%)

In terms of emerging channels, customers report that Mobile Apps (32%) and Facebook (25%) are becoming

more widely used ahead of other channels such as Web Chat (19%), SMS (21%), IVR (15%) and Video (14%). As

organizations expand and invest in these emerging channels it is clear they also need to maintain the

effectiveness of the traditional channels, such as voice and email. In addition, web self-service is considered to

be a central channel as customers look to resolve their queries themselves more and more. This puts greater

pressure on supporting technology such as Knowledge Management and Customer Relationship Management

(CRM) tools to ensure customers can effectively resolve their query themselves without having to escalate to

more expensive channels.

Analysis reveals that in nearly 2 in 5 cases (37%) customers used the phone conversation channel last to resolve

their query. This is followed by face to face (30%) and Web self-service. So although customers express a desire

to increase their use of many newer channels, these newer channels are still not necessarily meeting customer

expectations, leading to additional effort and leading customer back to resolve their queries through traditional

channels.

Most Recent Channel Used To Resolve Query

Increase In Channel Usage In Next 12 Months

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SOCIAL MEDIA

The use of social media as a service channel is forecast to continue to grow rapidly. This research reveals that

the growth in the use of social media as a customer service channel has been led by customers who have been

trying to resolve their query via other channels first. Amongst the 28% of customer who have used social media

in the past 3 months for a service query, nearly 9 in 10 (87%) had already tried to use another channel to

resolve the query. It is also clear that the reason why customers have chosen to escalate their query via social

media is many expect to be able to get a faster response (60%) or get a more positive response (48%) and

making sure their query is actually addressed (44%).

Social media is not currently seen by customers as a primary channel, but as a means of avoiding traditional

channels as they may be acutely aware of how sensitive organizations are to comments made about them in

social media forums.

SMS AND EMAIL

In terms of outbound communication, SMS and Email notifications are currently used by approximately 60% of

customers across the region; however there is a strong desire for more engagement via these channels,

particularly for the following:

Transport delays

Cancellation notifications

Appointment reminders

Fraud alerts

Service due reminders

An effective outbound strategy can often negate the need for customers to contact an organization and deliver

a simple and easy experience whilst reducing operational costs for enterprise.

Why Decided To Post Query on Social Media

SMS and Email desired engagement

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Section 5: How To Respond

This unique look at the APAC customer reveals some key trends that organizations

must heed if they are to maximize their business opportunities:

Customers have clearly expressed that good and bad customer service can

have a significant impact on their future intentions. It can make the difference

between a customer increasing their spend with an organization or walking

out of the door, and telling their friends and family to do the same as they do.

Customer Experience Management is now more complex as customers

bounce around multiple channels to resolve the numerous queries they have.

But customers have also clearly expressed their expectations regarding the

delivery of a seamless and integrated experience. They expect organizations

to be able to understand their behavior and use that information to make the

experience as simple as possible. In essence, customers hate to repeat

information and start their query all over again when they move from one

channel to the next.

Customers are seeking greater control and are therefore becoming more

aligned to using self-service channels whether it be via the company’s web

site, a mobile app and even social media searching for peer based solutions.

More and more customers are turning to social media to avoid traditional

channels and processes because they are not getting the service they expect.

There are significant opportunities for organizations to proactively engage

customers via SMS and email, thereby removing the need for the customer to

contact the organization altogether.

Given the complexities within customer experience management, leading

organizations are taking a more strategic approach in order to take advantage of the

potential opportunities that exist. Organizations need to have, or should be working

towards a Customer Experience Strategy & Multi-Channel strategy that…

Delivers the seamless integration of customer service from a customer’s

point-of-view across multiple channels

Doesn’t view channels / channel offering as silos

Understands the role each channel can play in the customer experience

offering and what areas you need to be ready for

Transcends to entire enterprise

Is designed with customers in mind

For more information please refer to the ‘The Avaya Asia Pacific Customer Experience Index 2013’

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About Fifth Quadrant

Established in 1998, Fifth Quadrant Pty Ltd is a Customer Experience Strategy, Design and Research Company. We provide management consulting, industry

analysis, customer experience design, customer research, data modelling, operational improvement programs and executive training programmers.

We work across Contact Center, Face-to-Face, Online, Correspondence, Social Media, Mobile & Video channels.

Fifth Quadrant’s services include:


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