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Customer
Relations
Trends
to Watch
in 2014.
Research and Insights
Customer Relations Trends to Watch in 2014.
Experience shared.
By: Gesner Filoso
Sitel Global Product Marketing Director
Through multiple waves of
changing consumer behavior,
what did 2013 teach us about how
contact centers are changing? More
importantly, where will 2014 take
the contact center and customer
service industries?	
Who should read this document?
p.2
Experience shared. sitel.com
Customer Care and CRM Professionals, Contact Center
and CRM Leaders, Marketing Strategy VP & Directors.
Research and Insights
Customer Relations Trends to Watch in 2014.
Experience shared. sitel.com
p.3
Index of Contents
Introduction						4
Study foundational drivers				5
Experience - The new economy value			 6
The Customer Experience Effect			 7
Trends to Watch in 2014				 9
Premium, the new Commodity			 11
Evolving Social CRM					14
Mobile: Everywhere and Anytime			 17
A Cloudy Future					20
Intelligent Business					23
Contact centers rule!					26
This time next year					29
Research and Insights
Customer Relations Trends to Watch in 2014.
Experience shared. sitel.com
p.4
Introduction
Welcome
Through a worldwide effort, the “Trends to Watch”
study shares the experiences of many worldwide
clients, partners, analysts and experts, discussing
customer-relationship challenges and aspirations.
They told us of their continuing efforts to enhance
customer experience, meet escalating customer
demands and control costs — and about how
emerging technologies are shaping the contact
center of the future.
“Cheaper and better” has always been the
mantra among customer relations executives;
many innovative approaches have been taken to
meet these challenges. This year, however, we’re
beginning to hear a much more focused message
around the overwhelming need to capitalize on
customer experience. Consequently, Contact
Center professionals are no longer driven solely
by cutting costs, but also generating value to
enterprises. To deal effectively with this “new”
challenge and meet your business objectives, we
believe that customer relations professionals and
their companies must evolve, and hope that this
study will contribute to this new way of thinking.
Research and Insights
Customer Relations Trends to Watch in 2014.
Study foundational drivers
When studying the trends, it is instrumental to level
set on the foundational drivers behind some of the
most important changes we have been witnessing
in the last decade.
Sitel’s foundation of expertise comes from the
constant review and assessment of industry reports,
the knowledge gained through the support we pro-
vide to many of the largest and best-known brands
in the world, and ongoing communication with
industry analysts/champions.
It is all of these inputs combined that help our
customer care executives imagine and prepare the
solutions that will maintain Sitel as a leader in the
support world of tomorrow.
p.5
Experience shared. sitel.com
Research and Insights
Customer Relations Trends to Watch in 2014.
While compiling this research, it remains clear that
one tenet will always hold true: Consumers are in
control and at the center of the service ecosystem.
How deep that control is and how companies capi-
talize on that control is fodder for plenty of industry
conversations.
We can simplify this complex ecosystem through
the image below:
CLIENTS &
STAKEHOLDERS
SITEL
SMES
INDUSTRY
REPORTS
Figure 1: Research sources.
Figure 2: Service Ecosystem
CUSTOMERS
ECONOMY
VALUE
TECHNOLOGY
INNOV.
FRIENDS
FRIENDS
FRIENDS
COMPETITORS
COMPETITORS
COMPETITORS
Experience shared. sitel.com
In addition to consumers, we can see other
important components in this ecosystem, such as
the “technological innovations” that are shaping
the future, the “economy value transformation”,
our own companies, and consumer networks.
Each of these components could easily result in
an extensive report, but let’s focus on one key
element of this ecosystem that is influencing all
others: The economy value transformation.
Experience - The new economy val
Economy Value has been identified by many as
the fundamental change in today’s business
environment. To discuss the new Economy Value,
we must go back to the beginning, with
commodities.
Commodities are things that you grow in the
ground, raise on the ground or pull out of the
ground: animal, mineral, vegetable. Companies or
individuals extract commodities out of the ground,
and sell them in the open marketplace.
Commodities were the basis of the agrarian
economy that has lasted for millennia.
p.6
Experience -
The new economy value
Research and Insights
Customer Relations Trends to Watch in 2014.
“... Experiences
are becoming the
predominant offering in
our hyper-connected,
fast-paced economy.“
Experience shared. sitel.com
With industrial revolution, goods became the
predominant economic offering. Commodities
became raw materials to make or manufacture
goods.
This represented the first, and one of the most
important, economy value transformations of our
history. We moved from an agrarian economy to
an industrial economy.
In the past 50 or 60 years, goods have become
commoditized. Goods are treated like a
commodity, with little regard for the manufacturer,
processes or people involved in determining the
quality of a good. In this scenario, price became
the only differentiator.
But companies found an antidote to
commoditization, and that was customization.
Consequently, we moved from an industrial
economy to a service-based economy.
Over the past 10 or 20 years, services have
followed a similar commoditization trend as had
been seen with goods years before. Long-distance
telephone service sold on price; fast-food and “all
you can eat” restaurants with all their value pricing;
low cost flights; and even the Internet are examples
of commoditization in the service space. History
tells us that it’s time to move to a new level of
economic value – the true customization of
services.
But the question is: what happens when you
customize a service? The shift from a sevice-based
to an experience-based economy is already
underway.
The Customer Experience Effect
Historically, business success has been built on
relationships, but large-scale industrialization
and introduction of IT changed the game.
Handcraftsmanship and the human contact were
replaced by mass production.
Think about the business impact of a company
designing a service that is so appropriate for
a particular person. That’s exactly what a
consumer needed at that particular moment in
time. By doing so, companies not only address the
basic needs of their customers but make them say,
“Wow!” Companies not only help clients in the
moment of truth, but turn a customer contact into
a memorable event - into an experience. The result
of a “Wow!” experience is a dramatic increase in the
propensity of that customer to tell their friends and
family – the Net Promoter effect.
p.7Research and Insights
Customer Relations Trends to Watch in 2014.
Experience shared. sitel.com
According to companies like Watermark Consulting, a
stock portfolio of customer experience leaders had a
cumulative 43.0% gain in performance over the past
five years, compared with a 14.5% increase for the
S&P 500 Index and a 33.9% decrease for customer
experience laggards (Figure 1). In other words, there
is a real ROI story that supports experience as the real
differentiator to success.
Customer experience leaders, such as Amazon, Virgin
Atlantic, Disney, First Direct, Tesco, Starbucks, USAA,
or Zappos, are showing that it’s not good enough to
be no worse than our competition; that premium price
is not tied to quality. These enterprises are creating
“raving fans,” focused on customer experience.
It is clear that the shift to an experience-based econo-
my is occurring all around us. Experiences are becom-
ing the predominant offering in our hyper-connected,
fast-paced economy.
p.8Research and Insights
Customer Relations Trends to Watch in 2014.
Figure 3: Service Ecosystem
CUSTOMER
EXPERIENCE LEADERS
S&P 500 INDEX
CUSTOMER EXPERIENCE
LAGGARDS
CUMULATIVETOTALRETURN
For the 6-year period from 2007 to 2012, the Customer Experience
Leaders in our study outperformed the broader market, generating a
total return that was three times higher on average than the S&P 500
Index.
43.0% 14.5%
-33.9%
performance gain of
customer experience
43%
Experience shared. sitel.com
p.9
In this new and challenging business
environment, here are the most significant
trends Customer Care and Customer
Experience professionals will encounter
in 2014.
Research and Insights
Customer Relations Trends to Watch in 2014.
Customer
Relations
Trends
to Watch
in 2014.
p.10
Experience shared. sitel.com
“... In today’s marketplace,
the frustration caused by long
hold times and unresolved
problems can quickly result
in reputational damage,
customer erosion and,
consequently, lost revenue.”
Research and Insights
Customer Relations Trends to Watch in 2014.
Experience shared. sitel.com
	 Premium, the new Commodity
In the typical networked house, people have more than six connected devices. Research shows that
customers don’t want to spend time talking to six different companies or worry about the fine print
in warranties.
01.
In today’s marketplace, the frustration caused
by long hold times and unresolved problems
can quickly result in reputational damage,
customer erosion and, consequently, lost revenue.
Yet positive experiences produce repeat buyers
with multiple networked devices and services.
Research shows that more than 86 percent of
consumers would pay more for a product that
provides better service.
As such, top-tier companies are now packaging
premium services to better attend to their
customer’s needs. Sitel’s Premium Technical
Support solutions, for instance, creates revenue
that can be shared with clients, converting cost
centers into solid revenue streams (profit centers)
while improving end user satisfaction by as much
as 45 percent*.
p.11Research and Insights
Customer Relations Trends to Watch in 2014.
Figure 4: The new home experience.
For more information,
or to download this
infographic, please
visit www.sitel.com/
solutions
Experience shared. sitel.com
Premium Impact
on Contact Center
Opportunity to gain competitive advantage.
This is an exciting opportunity for contact center
companies to inject competitive advantages into
business teams to create new revenue streams
that make Customer Services highly valued by the
business. It’s time to move from the “cost center”
mindset – Contact Centers are now part of the
solution.
Opportunity to create incremental income.
We have long searched for the right opportunity to
create a profit center inside what has traditionally
been a large cost center. Now, out-of-scope calls
and out-of-warranty contacts are opportunities to
provide an enhanced level of service and capture a
fee for the value added.provides better service.
p.12Research and Insights
Customer Relations Trends to Watch in 2014.
“...improving end
user satisfaction
by as much
as 45 percent.”
p.13
Experience shared. sitel.com
“...Customers are creating
their own communities to
express their discontent.
And, with mobility, they
can do it where they want,
when they want.”
Research and Insights
Customer Relations Trends to Watch in 2014.
Through social media, consumers have more
opportunities than ever before to express likes,
dislikes and recommendations. They aren’t
simply following companies, purchasing a product
or service---they are engaging and interacting to
drive the buying behaviors of others.
For instance,
• On Yelp, they’re detractors or cheerleaders.
• On delivery.com they’re reviewers and
advertisers.
• On Spotify, they’re DJs offering music
recommendations.
• In Zagat, they are food experts and critics.
• On TripAdvisor they’re travel guides.
• On Amazon, they’re product/service reviewers
offering strong opinions about the good and
the bad
--- and in product forums, communities and blogs,
millions of people are building their own contact
center channels.
Consumers who aren’t able to get their problems
resolved are not stopping if the companies’ website
or phone agents let them down. They are creating
their own communities to express their discontent.
And, with mobility, they can do it where they want,
when they want.
Evolving Social CRM02.
The essence of the customer experience
movement is the concept of brands moving from
mass communication to mass customization.
There are tools and technology to capture and
organize customer data and apply intelligence
to utilize it in intuitive ways, anticipating
customers’ needs and offering value
at appropriate times.
But the catch, and the difference from traditional
CRM, is that “appropriate times” are not
determined by enterprises with advanced customer
segmentations schemes. Rather, businesses
focused on customer experience must be prepared
to support the customer in any channel (e.g. phone
call, SMS, email, chat, tweet or post) – often times
while they are on the go.
In 2014, and for the foreseeable future, the core
objective of customer experience professionals
is to understand how to infuse the customer
relationship with greater engagement and
intimacy to leverage every interaction and drive
revenue growth.
Key to addressing this challenge is understanding
that consumers aren’t just buyers anymore---
they’ve evolved. They’re informed, connected
brand advocates (or detractors) interacting with
each other to learn before they buy. They trust
peer recommendations and reviews over company
advertisements and product descriptions.
Experience shared. sitel.com
p.14Research and Insights
Customer Relations Trends to Watch in 2014.
Experience shared. sitel.com
So, what should you do?
Following are a few examples of companies
that are successfully enhancing the customer
experience.
A leading healthcare products company is tapping
into the power of mommy bloggers, allowing them
to create a forum to communicate and connect.
Fuelled by customer demand, one of the biggest
software brands is escalating its web self-service
deployments. They’re enticing customers to
engage, as the company see the cost savings,
productivity benefits and NPS improvements.
A popular consumer electronics company is doing
the same, handling 2-3 percent of global interac-
tion over social media, they have created personal-
ized channels that go to where the customers are -
not waiting for them on a Facebook or Twitter page.
Again, this is not about me or my “company,” this
is about the consumer – real customer-centric
approach.
Social Insight. Despite commoditization,
technology is finally at a point where buyers can
be treated like individuals again. It’s time to create
truly personal relationships with consumers and
their communities and to leverage these new digital
relationships to drive revenue growth.
New tools and processes are required. Solutions
enable us to conduct Sentiment Analysis, Expert
Analysis, Real-time data mining, 360 degree
customer view, Dashboards and more to monitor,
engage and extract insights from the voice of the
customer over new and rapidly evolving channels.
New agent profiles and training is required for
the “voice as last resort” customer.
Traditional rules of engagement are out the win-
dow, and so are the old expectations of customers.
Web and social etiquette are different and the
formality of the interaction is shifting. New agent
profiles and training are required to meet this new
expectation.
“Consumers aren’t just
buyers anymore - they’ve
evolved. They’re informed,
connected brand advocates
(or detractors) interacting
with each other to learn
before they buy.”
p.15
Social Media
Implications for
Contact Centers
Research and Insights
Customer Relations Trends to Watch in 2014.
Experience shared. sitel.com
“ ... The number of people
who access the internet via a
mobile device will continue
to escalate. Mobile is
introducing new and more
proactive ways to engage the
customer.”
Research and Insights
Customer Relations Trends to Watch in 2014.
p.16
Experience shared. sitel.com
• Tablets will exceed 10 percent of global mobile 	
data traffic in 2015.
• The average Smartphone will generate 2.7 GB 	
of traffic per month in 2017---an 8-fold increase 	
over the 2012 average of 342 MB per month.
The use of mobile internet will continue to
escalate, with many more consumers accessing
with high speed connections. Mobile is
introducing new and more proactive ways to
engage the customer before, during and after their
shopping experience. People are using mobile
devices to talk to their friends, to interact with
brands, to learn about products, to purchase and
just about any other time they need general assis-
tance. It’s a whole new world of opportunities to
create positive customer experiences.
Today social and mobile are interconnected, and
this will only increase as technology continues to
evolve. In 1983, the state of the art cell phone
from Motorola cost $3,500. It weighed a pound
and could only make calls! Can you even imagine?
Even 10 years ago, few would believe that most
consumers in 2013 would have a mobile device,
with high resolution cameras, GPS and Internet
access for less than $200.
But the fact is that, by the end of 2013, the
number of mobile-connected devices exceeded
the number of people on earth, and by 2017
there will be nearly 1.4 mobile devices per capita.
According to Cisco, mobile data traffic will reach
the following milestones in the coming years:
• Global mobile data traffic will increase 13-fold 	
between 2012 and 2017
• Mobile network connection speeds will in 	 	
crease 7-fold by 2017
• Due to increased usage on Smartphones, 	 	
handsets will exceed 50 percent of mobile 	 	
data traffic in 2014.
	 Mobile: Everywhere and Anytime03.
mobile devices
per capita
1.4
p.17Research and Insights
Customer Relations Trends to Watch in 2014.
i
Experience shared. sitel.com
Engage based on context. The mobile possibilities
to shape the next generation customer experience are
still emerging.
Contact Center capabilities will continue to evolve to
match new customer expectations, leveraging the abil-
ity to offer or engage based on proximity or even an-
ticipating consumer’s needs (e.g. Support the in-store
and out-of-store experience, recommend services and
products based on location, offer premium support
services, etc.).
p.18
Mobile
Implications for
Contact Centers
of consumers
said they would
follow proactive
notifications
instruction , rather
than call the
contact center.
83%
Research and Insights
Customer Relations Trends to Watch in 2014.
Figure 4: Mobile traffic forecast in EB (exabytes)
Source: HP (1 EB = 1,000,000 terabytes)
MOBILETRAFFIC
2012
3.8
2015
62
2020
127
p.19
Experience shared. sitel.com
“... The cloud is reshaping
availability and adaptability
of important capabilities
like recruiting, training,
workforce management, call
recording, analytics, ACD’s
and CRM’s.”
Research and Insights
Customer Relations Trends to Watch in 2014.
Experience shared. sitel.com
p.20
	 A Cloudy Future04.
When it comes to technology infrastructure, the
days of upfront capital investments in hardware
and software are quickly becoming a thing of the
past.
Today, applications are being served up on
demand in the cloud. Any application in the
contact center can be acquired on demand and
paid for “by the drink.” There is no longer a need
to install equipment or make long term
investments in licenses that you may or may
not use. The cloud is reshaping availability
and adaptability of important capabilities like
recruiting, training, workforce management, call
recording, analytics, ACD’s and CRM’s.
There’s no lack of data to support the clear growth
trend in the cloud. According to Gartner and IDC,
Software as a Service (SaaS) and cloud-based
business application services will grow substantially
19% to 24%. IDC also predicts that by 2016, $1
of every $5 will be spent on cloud-based software
and infrastructure .
It shouldn’t be surprising that by adding flexibility,
scalability and managing cost effectiveness, the
cloud growth is expected to continue until it
surpasses fixed infrastructure and becomes the
standard for organizations.
But what is even more interesting about the cloud
services growth phenomenon is who is making the
buying decision. IT departments are being taken
out of the middle and business functions
(Operations, Marketing, HR, Finance) are working
directly with SaaS solutions providers. The web
access, ease of use, speed, removal of maintenance
issue and circumventing the capital approvals pro-
cess are surfacing new buyers formerly buried under
layers of procurement, IT and legal processes.
ii
iii
Research and Insights
Customer Relations Trends to Watch in 2014.
Experience shared. sitel.com
p.21
Any-Contact, Any-Where. The cloud is the
enabler of flexibility in handling any-contact,
any-where operations without cost prohibitive
capital investments. Cloud provides:
a. Increased flexibility with on-demand cloud
applications
b. Scalability and access to unique agent skills
and languages
c. Cost effectiveness and BCP with a globally
diversified portfolio of locations
d. Better positioned to address the seasonal
demands (E.g.: Utilities, Retail, etc.)
e. Pay-as-you-go model for applications
Strategic investments in cloud-based services
are mandatory to stay competitive for broad-
based offshore and work-at-home programs and
providers that operate in multiple geographies,
industries and service lines.
Cloud
Implication for
Contact Centers
Research and Insights
Customer Relations Trends to Watch in 2014.
Figure 5: Worldwide spending on public cloud
Source: Cisco, in Billion Dollars
2012 2015
$111 B
$160 B
Experience shared. sitel.com
p.22
“... 85 percent of
organizations report
that they have Big Data
initiatives planned
or in progress.”
Research and Insights
Customer Relations Trends to Watch in 2014.
In today’s digital world, it’s fair to say that without
information and technology, a business is blind.
The amount of data in the world is set to increase
by 44 times in 10 years.
An increasing number of companies are using
information to understand their customers better
and capitalize on that information. In fact, 85 per-
cent of organizations report that they have Big
Data initiatives planned or in progress .
Integrated information matters because it is the
source of greater business insight; but that’s not
the only opportunity.
Recent research conducted by IBM with Top Tier
CIOs and CFOs showed that the focus is not only
on integrating the information, but ultimately
understanding which indicators signal specific
outcomes and, to a further degree, what
information needs to be available weekly, daily,
hourly and in real-time.
Essentially, this is about proactive data governance
– formally managing important information and
establishing accountability for its accuracy.
Intelligent Business05.
Experience shared. sitel.com
p.23
Big data initiatives can also establish deeper
consumer insights, allowing companies to create
more compelling user experiences.
By examining big data, companies can create
successful customer loyalty and retention programs,
and personalize consumer interactions in meaning-
ful ways – both of which are crucial to strong
bottom-line performance.
According to a recent study from Harvard Business
Review, a 5 percent reduction in customer defection
could lead to as much as a 50 percent increase in
profit.
44 times
in 10 years
The amount of
data in the world
is to increase by
Research and Insights
Customer Relations Trends to Watch in 2014.
iv
v
Experience shared. sitel.com
p.24
Sharp rise in the significance of Big Data is
further evidence of customer focus.
Consequently, contact center professionals are
no longer focused solely on operational and
cost-control indicators but, as one of the key
sources of information and data, are becoming
more involved in the complex Customer Experi-
ence engineering.
These professionals are helping mitigate corpo-
rate risk in its many forms - whether strategic, op-
erational, marketing, sales or legal - and feeding
business in real time with critical insights about
customers.
While real-time metrics such as conversion, call
handling time and completion rate can provide
a general overview of how your call center is
performing, they can’t tell you how satisfied your
customers were with their experiences.
By asking for their feedback in real-time, you can
gain valuable insight and make immediate
improvements.
More targeted interactions offering value at
the right moments based on knowledge.
By identifying high-margin customers to target
for cross selling, upselling and providing higher
levels of service, and matching offers that add
specific value for each customer, an organization
can improve its gross margin mix and customer
retention.
Such information helps target customer communi-
cations, marketing campaigns and special offers. To
stay competitive, companies need to understand
not only their customers’ current wants and needs,
but also predict future tendencies.
Big Data
Implications for
Contact Centers
Research and Insights
Customer Relations Trends to Watch in 2014.
p.25
Experience shared. sitel.com
Research and Insights
Customer Relations Trends to Watch in 2014.
“... The quality of a
customer interaction is
rapidly becoming one
of the top reasons for
recommending a company”
Experience shared. sitel.com
p.26
Contact centers rule!06.
In an era where products and services are rapidly
commoditized, the customer experience has
become the point of brand differentiation.
It matters more than ever before – an increasing
number of businesses are adding a Chief Customer
Officers and Chief Experience Executives to their
leadership team .
A good customer experience has the power to
unlock a lifetime of loyalty and advocacy. A bad
one can be relayed across the world with just the
click of a mouse. More than 80 percent of custom-
ers say they will simply stop using a brand after one
bad experience, and 82 percent of customers will
communicate their bad service experience with
others . The quality of a customer interaction is
rapidly becoming one of the top reasons for
recommending a company .
By assessing the current state of operations,
mapping the customer journey and exploring
use of Omnichannel strategies, Outsourcing
companies like Sitel focus efforts on optimizing
operating efficiency, customer effort planning &
satisfaction and revenue generation, improving
Total Cost of Ownership (TCO) and Net Promoter
Scores (NPS).
vii
viii
vi
The contact center is often one of the largest costs
related to managing engagement with customers
and balancing the total investment in the customer
experience with the expected outcomes is what
Sitel calls Total Cost of Ownership.
This growing practice is becoming the pragmatic
approach to engineering a brand experience that
delivers maximum return on customer investments.
Research and Insights
Customer Relations Trends to Watch in 2014.
ix
In today’s omnichannel environment, compet-
ing means being at the right place, at the right
time, with the right offer. This pushes marketing
to play its biggest role ever in customer care opera-
tions: to optimize touchpoints with granular under-
standing of customers’ preferences.
While technologies and Sitel’s best practices
enable our customers to make strides in improving
customer retention, increasing revenues and
optimizing total operating costs, it is our people
that are make the biggest impact.
Every day, our people tactically execute as close to
flawlessly as possible, while strategically thinking
about ways to drive continuous improvement.
Additionally we are working with our clients to
transform core support processes to identify
opportunities for creating revenue.
The objective is to link each positive contact res-
olution with a value-add offering for additional
services, warranties, refills, peripherals and enhance-
ments. 69 percent of business-to-consumer (B2C)
organizations surveyed consider contact centers
as a critical tool for revenue generation.
Experience shared. sitel.com
p.27
Implications for
the Industry
Consumers have amazing options at their
fingertips: information, services and the ability to
shop from anywhere via any number of personal
technology devices. According to Forrester, more
than 40 percent of Western Europeans purchase
goods online, with Germany, Switzerland and
France all reporting more than 50 percent of con-
sumers doing so. In the U.S., 67percent of con-
sumers currently shop online, using four or five web
outlets.
Executives around the globe are recognizing that
every customer touchpoint must create positive
experiences that lead directly to improvements
in the bottom line. In recent research , it was
noted that companies need to become far more
innovative, and consider “rebooting” their
strategy to emphasize quality and customer
experience, not pricing. In a fast-moving and
ultra-competitive marketplace, companies that
place focus on customer engagement and
experience will win.
xi
Research and Insights
Customer Relations Trends to Watch in 2014.
of B2C organizations
consider contact centers
as a critical tool for
revenue generation.
69%
x
“... Above all - Listen! Listen
to your customers, listen
to your business service
partners, listen to your
competitors, and listen to
your experience.”
p.28
Experience shared. sitel.com
Research and Insights
Customer Relations Trends to Watch in 2014.
Experience shared. sitel.com
p.29
3. Establish an environment to test and then
deploy technologies that will support your
consumer relationship strategy. Omnichannel 	
capabilities with a unified queue, cloud based
on demand contact management, and active 	
data analytic capabilities should be considered.	
Once a multi-year strategy is agreed, update
the IT road map and architecture to reflect
additional technologies and data sources
aligned to the plan.
4. Overlay a data strategy to support the right 	
level of intelligence about channels, VOC and 	
operational efficiency to improve the ROI of 	
your customer experience investment. Identify 	
gaps in your data plan---What are you trying to	
accomplish as a business and what data do 	
you need to be successful?
5. Truly understand your Total Cost of Ownership 	
at the enterprise level. Identify opportunities 	
to improve Customer Experience, increase 	
revenue opportunities, and optimize costs
and investments.
6. Create customer experience champions across 	
the organization, for example, a Customer 	
Experience Officer. Align these champions 	
to your strategic business plan. Provide them 	
a voice and the tools necessary to drive
constructive change toward your overall
strategy.
This time next year
In 365 days, reimagine your consumer strategy
across the enterprise as a consumer-experience
strategy and create the cross-organizational ties
to drive it.
The list of possible starting points is long and,
sometimes, complex; but we top the list with these
ten important initiatives, from vision to execution,
that we hope can help you in your challenge
to better align your organization with your
customers. Good luck and don’t hesitate to
contact us if we can help.
1. Create a cross-functional team that will be 	
responsible for, and empowered to review,
update and improve your consumer-experience 	
strategy to create premium services and shore- 	
up perception of your base service offerings.
2. Standardize your methodology around how 	
consumer interactions are shared throughout
the organization, along with a plan for proactive
governance of this valuable information.
Redesign your organization’s communication 	
channel and key business metric strategy to
align with the holistic consumer-experience, 	
taking customer channel of choice into account. 	
(As one example, First Contact Resolution may 	
be a more effective measure than Average
Handle Time.)
Research and Insights
Customer Relations Trends to Watch in 2014.
Experience shared. sitel.com
7. Work across the organization to determine
and prioritize your future strategic questions.
Don’t be afraid to ask the hard questions and
challenge the status-quo.
8. Use lessons learned from current
implementations and industry best practices, 	
including ‘early adopter’ industries, to build 	
your collaboration services architecture.
9. Leverage the expertise of a services partner 	
with a proven track record to design and
optimize customer experiences across a broad 	
range of industries.
10. Above all---Listen! Listen to your customers, 	
listen to your business service partners, listen 	
to your competitors, and listen to your
experience. Get beyond the day to day fray 	
of business and determine what you need to 	
do to win---then use the tools and
experiences above to get there.
Research and Insights
Customer Relations Trends to Watch in 2014.
Source: Harris Interactive, Customer Experience Impact Report 2009-2011
Source: Market Trends: Platform as a Service, Worldwide, 2012-2016, 2H12
Update Published: 5 October 2012 ID:G00239236.
Report, Worldwide SaaS and Cloud Software 2012–2016 Forecast and 2011
Vendor Shares, Link: http://www.idc.com/getdoc.jsp?containerId=236184
Who’s Really Using Big Data. Harvard Business Review, September 2012.
IBM Institute for Business Value. “Capitalizing on Complexity: Insights from
the Global Chief Executive Officer Study.” May 2010.
www.ibm.com/capitalizingoncomplexity
Source: Harvard Business Review Blog Network http://blogs.hbr.org/cs/2012/
08/the_future_for_customer-intell.html
Source: Harris Interactive, Customer Experience Impact Report 2009-2011
Source: Harris Interactive, Customer Experience Impact Report 2009-2011
Source: Loudhouse Research Survey: Call Centers Are Expected to Create
Revenue,- December 22, 2010
US Online Retail Forecast, 2010 To 2015, Forrester Research, Inc.,
February 2011
“Customers take control”, December 2011, PWC
i
ii
iii
iv
v
vi
vii
viii
ix
x
xi
References
Experience shared.
© Copyright Sitel Corporation 2014
Produced in the United States of America
January 2014, version 1.0
All Rights Reserved
Sitel Global Headquarters
Two American Center
3102 West End Avenue
Suite 1000
Nashville, TN 37203 USA
Phone: +1 615.301.7100
Toll-Free (in U.S.): +1 866.95.Sitel
sales-na@sitel.com
www.sitel.com
Research and Insights
Customer Relations Trends to Watch in 2014.

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2014 Customer Relations Trends to Watch. By: Gesner Filoso, Sitel WW

  • 1. Customer Relations Trends to Watch in 2014. Research and Insights Customer Relations Trends to Watch in 2014. Experience shared. By: Gesner Filoso Sitel Global Product Marketing Director
  • 2. Through multiple waves of changing consumer behavior, what did 2013 teach us about how contact centers are changing? More importantly, where will 2014 take the contact center and customer service industries? Who should read this document? p.2 Experience shared. sitel.com Customer Care and CRM Professionals, Contact Center and CRM Leaders, Marketing Strategy VP & Directors. Research and Insights Customer Relations Trends to Watch in 2014.
  • 3. Experience shared. sitel.com p.3 Index of Contents Introduction 4 Study foundational drivers 5 Experience - The new economy value 6 The Customer Experience Effect 7 Trends to Watch in 2014 9 Premium, the new Commodity 11 Evolving Social CRM 14 Mobile: Everywhere and Anytime 17 A Cloudy Future 20 Intelligent Business 23 Contact centers rule! 26 This time next year 29 Research and Insights Customer Relations Trends to Watch in 2014.
  • 4. Experience shared. sitel.com p.4 Introduction Welcome Through a worldwide effort, the “Trends to Watch” study shares the experiences of many worldwide clients, partners, analysts and experts, discussing customer-relationship challenges and aspirations. They told us of their continuing efforts to enhance customer experience, meet escalating customer demands and control costs — and about how emerging technologies are shaping the contact center of the future. “Cheaper and better” has always been the mantra among customer relations executives; many innovative approaches have been taken to meet these challenges. This year, however, we’re beginning to hear a much more focused message around the overwhelming need to capitalize on customer experience. Consequently, Contact Center professionals are no longer driven solely by cutting costs, but also generating value to enterprises. To deal effectively with this “new” challenge and meet your business objectives, we believe that customer relations professionals and their companies must evolve, and hope that this study will contribute to this new way of thinking. Research and Insights Customer Relations Trends to Watch in 2014.
  • 5. Study foundational drivers When studying the trends, it is instrumental to level set on the foundational drivers behind some of the most important changes we have been witnessing in the last decade. Sitel’s foundation of expertise comes from the constant review and assessment of industry reports, the knowledge gained through the support we pro- vide to many of the largest and best-known brands in the world, and ongoing communication with industry analysts/champions. It is all of these inputs combined that help our customer care executives imagine and prepare the solutions that will maintain Sitel as a leader in the support world of tomorrow. p.5 Experience shared. sitel.com Research and Insights Customer Relations Trends to Watch in 2014. While compiling this research, it remains clear that one tenet will always hold true: Consumers are in control and at the center of the service ecosystem. How deep that control is and how companies capi- talize on that control is fodder for plenty of industry conversations. We can simplify this complex ecosystem through the image below: CLIENTS & STAKEHOLDERS SITEL SMES INDUSTRY REPORTS Figure 1: Research sources. Figure 2: Service Ecosystem CUSTOMERS ECONOMY VALUE TECHNOLOGY INNOV. FRIENDS FRIENDS FRIENDS COMPETITORS COMPETITORS COMPETITORS
  • 6. Experience shared. sitel.com In addition to consumers, we can see other important components in this ecosystem, such as the “technological innovations” that are shaping the future, the “economy value transformation”, our own companies, and consumer networks. Each of these components could easily result in an extensive report, but let’s focus on one key element of this ecosystem that is influencing all others: The economy value transformation. Experience - The new economy val Economy Value has been identified by many as the fundamental change in today’s business environment. To discuss the new Economy Value, we must go back to the beginning, with commodities. Commodities are things that you grow in the ground, raise on the ground or pull out of the ground: animal, mineral, vegetable. Companies or individuals extract commodities out of the ground, and sell them in the open marketplace. Commodities were the basis of the agrarian economy that has lasted for millennia. p.6 Experience - The new economy value Research and Insights Customer Relations Trends to Watch in 2014. “... Experiences are becoming the predominant offering in our hyper-connected, fast-paced economy.“
  • 7. Experience shared. sitel.com With industrial revolution, goods became the predominant economic offering. Commodities became raw materials to make or manufacture goods. This represented the first, and one of the most important, economy value transformations of our history. We moved from an agrarian economy to an industrial economy. In the past 50 or 60 years, goods have become commoditized. Goods are treated like a commodity, with little regard for the manufacturer, processes or people involved in determining the quality of a good. In this scenario, price became the only differentiator. But companies found an antidote to commoditization, and that was customization. Consequently, we moved from an industrial economy to a service-based economy. Over the past 10 or 20 years, services have followed a similar commoditization trend as had been seen with goods years before. Long-distance telephone service sold on price; fast-food and “all you can eat” restaurants with all their value pricing; low cost flights; and even the Internet are examples of commoditization in the service space. History tells us that it’s time to move to a new level of economic value – the true customization of services. But the question is: what happens when you customize a service? The shift from a sevice-based to an experience-based economy is already underway. The Customer Experience Effect Historically, business success has been built on relationships, but large-scale industrialization and introduction of IT changed the game. Handcraftsmanship and the human contact were replaced by mass production. Think about the business impact of a company designing a service that is so appropriate for a particular person. That’s exactly what a consumer needed at that particular moment in time. By doing so, companies not only address the basic needs of their customers but make them say, “Wow!” Companies not only help clients in the moment of truth, but turn a customer contact into a memorable event - into an experience. The result of a “Wow!” experience is a dramatic increase in the propensity of that customer to tell their friends and family – the Net Promoter effect. p.7Research and Insights Customer Relations Trends to Watch in 2014.
  • 8. Experience shared. sitel.com According to companies like Watermark Consulting, a stock portfolio of customer experience leaders had a cumulative 43.0% gain in performance over the past five years, compared with a 14.5% increase for the S&P 500 Index and a 33.9% decrease for customer experience laggards (Figure 1). In other words, there is a real ROI story that supports experience as the real differentiator to success. Customer experience leaders, such as Amazon, Virgin Atlantic, Disney, First Direct, Tesco, Starbucks, USAA, or Zappos, are showing that it’s not good enough to be no worse than our competition; that premium price is not tied to quality. These enterprises are creating “raving fans,” focused on customer experience. It is clear that the shift to an experience-based econo- my is occurring all around us. Experiences are becom- ing the predominant offering in our hyper-connected, fast-paced economy. p.8Research and Insights Customer Relations Trends to Watch in 2014. Figure 3: Service Ecosystem CUSTOMER EXPERIENCE LEADERS S&P 500 INDEX CUSTOMER EXPERIENCE LAGGARDS CUMULATIVETOTALRETURN For the 6-year period from 2007 to 2012, the Customer Experience Leaders in our study outperformed the broader market, generating a total return that was three times higher on average than the S&P 500 Index. 43.0% 14.5% -33.9% performance gain of customer experience 43%
  • 9. Experience shared. sitel.com p.9 In this new and challenging business environment, here are the most significant trends Customer Care and Customer Experience professionals will encounter in 2014. Research and Insights Customer Relations Trends to Watch in 2014. Customer Relations Trends to Watch in 2014.
  • 10. p.10 Experience shared. sitel.com “... In today’s marketplace, the frustration caused by long hold times and unresolved problems can quickly result in reputational damage, customer erosion and, consequently, lost revenue.” Research and Insights Customer Relations Trends to Watch in 2014.
  • 11. Experience shared. sitel.com Premium, the new Commodity In the typical networked house, people have more than six connected devices. Research shows that customers don’t want to spend time talking to six different companies or worry about the fine print in warranties. 01. In today’s marketplace, the frustration caused by long hold times and unresolved problems can quickly result in reputational damage, customer erosion and, consequently, lost revenue. Yet positive experiences produce repeat buyers with multiple networked devices and services. Research shows that more than 86 percent of consumers would pay more for a product that provides better service. As such, top-tier companies are now packaging premium services to better attend to their customer’s needs. Sitel’s Premium Technical Support solutions, for instance, creates revenue that can be shared with clients, converting cost centers into solid revenue streams (profit centers) while improving end user satisfaction by as much as 45 percent*. p.11Research and Insights Customer Relations Trends to Watch in 2014. Figure 4: The new home experience. For more information, or to download this infographic, please visit www.sitel.com/ solutions
  • 12. Experience shared. sitel.com Premium Impact on Contact Center Opportunity to gain competitive advantage. This is an exciting opportunity for contact center companies to inject competitive advantages into business teams to create new revenue streams that make Customer Services highly valued by the business. It’s time to move from the “cost center” mindset – Contact Centers are now part of the solution. Opportunity to create incremental income. We have long searched for the right opportunity to create a profit center inside what has traditionally been a large cost center. Now, out-of-scope calls and out-of-warranty contacts are opportunities to provide an enhanced level of service and capture a fee for the value added.provides better service. p.12Research and Insights Customer Relations Trends to Watch in 2014. “...improving end user satisfaction by as much as 45 percent.”
  • 13. p.13 Experience shared. sitel.com “...Customers are creating their own communities to express their discontent. And, with mobility, they can do it where they want, when they want.” Research and Insights Customer Relations Trends to Watch in 2014.
  • 14. Through social media, consumers have more opportunities than ever before to express likes, dislikes and recommendations. They aren’t simply following companies, purchasing a product or service---they are engaging and interacting to drive the buying behaviors of others. For instance, • On Yelp, they’re detractors or cheerleaders. • On delivery.com they’re reviewers and advertisers. • On Spotify, they’re DJs offering music recommendations. • In Zagat, they are food experts and critics. • On TripAdvisor they’re travel guides. • On Amazon, they’re product/service reviewers offering strong opinions about the good and the bad --- and in product forums, communities and blogs, millions of people are building their own contact center channels. Consumers who aren’t able to get their problems resolved are not stopping if the companies’ website or phone agents let them down. They are creating their own communities to express their discontent. And, with mobility, they can do it where they want, when they want. Evolving Social CRM02. The essence of the customer experience movement is the concept of brands moving from mass communication to mass customization. There are tools and technology to capture and organize customer data and apply intelligence to utilize it in intuitive ways, anticipating customers’ needs and offering value at appropriate times. But the catch, and the difference from traditional CRM, is that “appropriate times” are not determined by enterprises with advanced customer segmentations schemes. Rather, businesses focused on customer experience must be prepared to support the customer in any channel (e.g. phone call, SMS, email, chat, tweet or post) – often times while they are on the go. In 2014, and for the foreseeable future, the core objective of customer experience professionals is to understand how to infuse the customer relationship with greater engagement and intimacy to leverage every interaction and drive revenue growth. Key to addressing this challenge is understanding that consumers aren’t just buyers anymore--- they’ve evolved. They’re informed, connected brand advocates (or detractors) interacting with each other to learn before they buy. They trust peer recommendations and reviews over company advertisements and product descriptions. Experience shared. sitel.com p.14Research and Insights Customer Relations Trends to Watch in 2014.
  • 15. Experience shared. sitel.com So, what should you do? Following are a few examples of companies that are successfully enhancing the customer experience. A leading healthcare products company is tapping into the power of mommy bloggers, allowing them to create a forum to communicate and connect. Fuelled by customer demand, one of the biggest software brands is escalating its web self-service deployments. They’re enticing customers to engage, as the company see the cost savings, productivity benefits and NPS improvements. A popular consumer electronics company is doing the same, handling 2-3 percent of global interac- tion over social media, they have created personal- ized channels that go to where the customers are - not waiting for them on a Facebook or Twitter page. Again, this is not about me or my “company,” this is about the consumer – real customer-centric approach. Social Insight. Despite commoditization, technology is finally at a point where buyers can be treated like individuals again. It’s time to create truly personal relationships with consumers and their communities and to leverage these new digital relationships to drive revenue growth. New tools and processes are required. Solutions enable us to conduct Sentiment Analysis, Expert Analysis, Real-time data mining, 360 degree customer view, Dashboards and more to monitor, engage and extract insights from the voice of the customer over new and rapidly evolving channels. New agent profiles and training is required for the “voice as last resort” customer. Traditional rules of engagement are out the win- dow, and so are the old expectations of customers. Web and social etiquette are different and the formality of the interaction is shifting. New agent profiles and training are required to meet this new expectation. “Consumers aren’t just buyers anymore - they’ve evolved. They’re informed, connected brand advocates (or detractors) interacting with each other to learn before they buy.” p.15 Social Media Implications for Contact Centers Research and Insights Customer Relations Trends to Watch in 2014.
  • 16. Experience shared. sitel.com “ ... The number of people who access the internet via a mobile device will continue to escalate. Mobile is introducing new and more proactive ways to engage the customer.” Research and Insights Customer Relations Trends to Watch in 2014. p.16
  • 17. Experience shared. sitel.com • Tablets will exceed 10 percent of global mobile data traffic in 2015. • The average Smartphone will generate 2.7 GB of traffic per month in 2017---an 8-fold increase over the 2012 average of 342 MB per month. The use of mobile internet will continue to escalate, with many more consumers accessing with high speed connections. Mobile is introducing new and more proactive ways to engage the customer before, during and after their shopping experience. People are using mobile devices to talk to their friends, to interact with brands, to learn about products, to purchase and just about any other time they need general assis- tance. It’s a whole new world of opportunities to create positive customer experiences. Today social and mobile are interconnected, and this will only increase as technology continues to evolve. In 1983, the state of the art cell phone from Motorola cost $3,500. It weighed a pound and could only make calls! Can you even imagine? Even 10 years ago, few would believe that most consumers in 2013 would have a mobile device, with high resolution cameras, GPS and Internet access for less than $200. But the fact is that, by the end of 2013, the number of mobile-connected devices exceeded the number of people on earth, and by 2017 there will be nearly 1.4 mobile devices per capita. According to Cisco, mobile data traffic will reach the following milestones in the coming years: • Global mobile data traffic will increase 13-fold between 2012 and 2017 • Mobile network connection speeds will in crease 7-fold by 2017 • Due to increased usage on Smartphones, handsets will exceed 50 percent of mobile data traffic in 2014. Mobile: Everywhere and Anytime03. mobile devices per capita 1.4 p.17Research and Insights Customer Relations Trends to Watch in 2014.
  • 18. i Experience shared. sitel.com Engage based on context. The mobile possibilities to shape the next generation customer experience are still emerging. Contact Center capabilities will continue to evolve to match new customer expectations, leveraging the abil- ity to offer or engage based on proximity or even an- ticipating consumer’s needs (e.g. Support the in-store and out-of-store experience, recommend services and products based on location, offer premium support services, etc.). p.18 Mobile Implications for Contact Centers of consumers said they would follow proactive notifications instruction , rather than call the contact center. 83% Research and Insights Customer Relations Trends to Watch in 2014. Figure 4: Mobile traffic forecast in EB (exabytes) Source: HP (1 EB = 1,000,000 terabytes) MOBILETRAFFIC 2012 3.8 2015 62 2020 127
  • 19. p.19 Experience shared. sitel.com “... The cloud is reshaping availability and adaptability of important capabilities like recruiting, training, workforce management, call recording, analytics, ACD’s and CRM’s.” Research and Insights Customer Relations Trends to Watch in 2014.
  • 20. Experience shared. sitel.com p.20 A Cloudy Future04. When it comes to technology infrastructure, the days of upfront capital investments in hardware and software are quickly becoming a thing of the past. Today, applications are being served up on demand in the cloud. Any application in the contact center can be acquired on demand and paid for “by the drink.” There is no longer a need to install equipment or make long term investments in licenses that you may or may not use. The cloud is reshaping availability and adaptability of important capabilities like recruiting, training, workforce management, call recording, analytics, ACD’s and CRM’s. There’s no lack of data to support the clear growth trend in the cloud. According to Gartner and IDC, Software as a Service (SaaS) and cloud-based business application services will grow substantially 19% to 24%. IDC also predicts that by 2016, $1 of every $5 will be spent on cloud-based software and infrastructure . It shouldn’t be surprising that by adding flexibility, scalability and managing cost effectiveness, the cloud growth is expected to continue until it surpasses fixed infrastructure and becomes the standard for organizations. But what is even more interesting about the cloud services growth phenomenon is who is making the buying decision. IT departments are being taken out of the middle and business functions (Operations, Marketing, HR, Finance) are working directly with SaaS solutions providers. The web access, ease of use, speed, removal of maintenance issue and circumventing the capital approvals pro- cess are surfacing new buyers formerly buried under layers of procurement, IT and legal processes. ii iii Research and Insights Customer Relations Trends to Watch in 2014.
  • 21. Experience shared. sitel.com p.21 Any-Contact, Any-Where. The cloud is the enabler of flexibility in handling any-contact, any-where operations without cost prohibitive capital investments. Cloud provides: a. Increased flexibility with on-demand cloud applications b. Scalability and access to unique agent skills and languages c. Cost effectiveness and BCP with a globally diversified portfolio of locations d. Better positioned to address the seasonal demands (E.g.: Utilities, Retail, etc.) e. Pay-as-you-go model for applications Strategic investments in cloud-based services are mandatory to stay competitive for broad- based offshore and work-at-home programs and providers that operate in multiple geographies, industries and service lines. Cloud Implication for Contact Centers Research and Insights Customer Relations Trends to Watch in 2014. Figure 5: Worldwide spending on public cloud Source: Cisco, in Billion Dollars 2012 2015 $111 B $160 B
  • 22. Experience shared. sitel.com p.22 “... 85 percent of organizations report that they have Big Data initiatives planned or in progress.” Research and Insights Customer Relations Trends to Watch in 2014.
  • 23. In today’s digital world, it’s fair to say that without information and technology, a business is blind. The amount of data in the world is set to increase by 44 times in 10 years. An increasing number of companies are using information to understand their customers better and capitalize on that information. In fact, 85 per- cent of organizations report that they have Big Data initiatives planned or in progress . Integrated information matters because it is the source of greater business insight; but that’s not the only opportunity. Recent research conducted by IBM with Top Tier CIOs and CFOs showed that the focus is not only on integrating the information, but ultimately understanding which indicators signal specific outcomes and, to a further degree, what information needs to be available weekly, daily, hourly and in real-time. Essentially, this is about proactive data governance – formally managing important information and establishing accountability for its accuracy. Intelligent Business05. Experience shared. sitel.com p.23 Big data initiatives can also establish deeper consumer insights, allowing companies to create more compelling user experiences. By examining big data, companies can create successful customer loyalty and retention programs, and personalize consumer interactions in meaning- ful ways – both of which are crucial to strong bottom-line performance. According to a recent study from Harvard Business Review, a 5 percent reduction in customer defection could lead to as much as a 50 percent increase in profit. 44 times in 10 years The amount of data in the world is to increase by Research and Insights Customer Relations Trends to Watch in 2014. iv v
  • 24. Experience shared. sitel.com p.24 Sharp rise in the significance of Big Data is further evidence of customer focus. Consequently, contact center professionals are no longer focused solely on operational and cost-control indicators but, as one of the key sources of information and data, are becoming more involved in the complex Customer Experi- ence engineering. These professionals are helping mitigate corpo- rate risk in its many forms - whether strategic, op- erational, marketing, sales or legal - and feeding business in real time with critical insights about customers. While real-time metrics such as conversion, call handling time and completion rate can provide a general overview of how your call center is performing, they can’t tell you how satisfied your customers were with their experiences. By asking for their feedback in real-time, you can gain valuable insight and make immediate improvements. More targeted interactions offering value at the right moments based on knowledge. By identifying high-margin customers to target for cross selling, upselling and providing higher levels of service, and matching offers that add specific value for each customer, an organization can improve its gross margin mix and customer retention. Such information helps target customer communi- cations, marketing campaigns and special offers. To stay competitive, companies need to understand not only their customers’ current wants and needs, but also predict future tendencies. Big Data Implications for Contact Centers Research and Insights Customer Relations Trends to Watch in 2014.
  • 25. p.25 Experience shared. sitel.com Research and Insights Customer Relations Trends to Watch in 2014. “... The quality of a customer interaction is rapidly becoming one of the top reasons for recommending a company”
  • 26. Experience shared. sitel.com p.26 Contact centers rule!06. In an era where products and services are rapidly commoditized, the customer experience has become the point of brand differentiation. It matters more than ever before – an increasing number of businesses are adding a Chief Customer Officers and Chief Experience Executives to their leadership team . A good customer experience has the power to unlock a lifetime of loyalty and advocacy. A bad one can be relayed across the world with just the click of a mouse. More than 80 percent of custom- ers say they will simply stop using a brand after one bad experience, and 82 percent of customers will communicate their bad service experience with others . The quality of a customer interaction is rapidly becoming one of the top reasons for recommending a company . By assessing the current state of operations, mapping the customer journey and exploring use of Omnichannel strategies, Outsourcing companies like Sitel focus efforts on optimizing operating efficiency, customer effort planning & satisfaction and revenue generation, improving Total Cost of Ownership (TCO) and Net Promoter Scores (NPS). vii viii vi The contact center is often one of the largest costs related to managing engagement with customers and balancing the total investment in the customer experience with the expected outcomes is what Sitel calls Total Cost of Ownership. This growing practice is becoming the pragmatic approach to engineering a brand experience that delivers maximum return on customer investments. Research and Insights Customer Relations Trends to Watch in 2014.
  • 27. ix In today’s omnichannel environment, compet- ing means being at the right place, at the right time, with the right offer. This pushes marketing to play its biggest role ever in customer care opera- tions: to optimize touchpoints with granular under- standing of customers’ preferences. While technologies and Sitel’s best practices enable our customers to make strides in improving customer retention, increasing revenues and optimizing total operating costs, it is our people that are make the biggest impact. Every day, our people tactically execute as close to flawlessly as possible, while strategically thinking about ways to drive continuous improvement. Additionally we are working with our clients to transform core support processes to identify opportunities for creating revenue. The objective is to link each positive contact res- olution with a value-add offering for additional services, warranties, refills, peripherals and enhance- ments. 69 percent of business-to-consumer (B2C) organizations surveyed consider contact centers as a critical tool for revenue generation. Experience shared. sitel.com p.27 Implications for the Industry Consumers have amazing options at their fingertips: information, services and the ability to shop from anywhere via any number of personal technology devices. According to Forrester, more than 40 percent of Western Europeans purchase goods online, with Germany, Switzerland and France all reporting more than 50 percent of con- sumers doing so. In the U.S., 67percent of con- sumers currently shop online, using four or five web outlets. Executives around the globe are recognizing that every customer touchpoint must create positive experiences that lead directly to improvements in the bottom line. In recent research , it was noted that companies need to become far more innovative, and consider “rebooting” their strategy to emphasize quality and customer experience, not pricing. In a fast-moving and ultra-competitive marketplace, companies that place focus on customer engagement and experience will win. xi Research and Insights Customer Relations Trends to Watch in 2014. of B2C organizations consider contact centers as a critical tool for revenue generation. 69% x
  • 28. “... Above all - Listen! Listen to your customers, listen to your business service partners, listen to your competitors, and listen to your experience.” p.28 Experience shared. sitel.com Research and Insights Customer Relations Trends to Watch in 2014.
  • 29. Experience shared. sitel.com p.29 3. Establish an environment to test and then deploy technologies that will support your consumer relationship strategy. Omnichannel capabilities with a unified queue, cloud based on demand contact management, and active data analytic capabilities should be considered. Once a multi-year strategy is agreed, update the IT road map and architecture to reflect additional technologies and data sources aligned to the plan. 4. Overlay a data strategy to support the right level of intelligence about channels, VOC and operational efficiency to improve the ROI of your customer experience investment. Identify gaps in your data plan---What are you trying to accomplish as a business and what data do you need to be successful? 5. Truly understand your Total Cost of Ownership at the enterprise level. Identify opportunities to improve Customer Experience, increase revenue opportunities, and optimize costs and investments. 6. Create customer experience champions across the organization, for example, a Customer Experience Officer. Align these champions to your strategic business plan. Provide them a voice and the tools necessary to drive constructive change toward your overall strategy. This time next year In 365 days, reimagine your consumer strategy across the enterprise as a consumer-experience strategy and create the cross-organizational ties to drive it. The list of possible starting points is long and, sometimes, complex; but we top the list with these ten important initiatives, from vision to execution, that we hope can help you in your challenge to better align your organization with your customers. Good luck and don’t hesitate to contact us if we can help. 1. Create a cross-functional team that will be responsible for, and empowered to review, update and improve your consumer-experience strategy to create premium services and shore- up perception of your base service offerings. 2. Standardize your methodology around how consumer interactions are shared throughout the organization, along with a plan for proactive governance of this valuable information. Redesign your organization’s communication channel and key business metric strategy to align with the holistic consumer-experience, taking customer channel of choice into account. (As one example, First Contact Resolution may be a more effective measure than Average Handle Time.) Research and Insights Customer Relations Trends to Watch in 2014.
  • 30. Experience shared. sitel.com 7. Work across the organization to determine and prioritize your future strategic questions. Don’t be afraid to ask the hard questions and challenge the status-quo. 8. Use lessons learned from current implementations and industry best practices, including ‘early adopter’ industries, to build your collaboration services architecture. 9. Leverage the expertise of a services partner with a proven track record to design and optimize customer experiences across a broad range of industries. 10. Above all---Listen! Listen to your customers, listen to your business service partners, listen to your competitors, and listen to your experience. Get beyond the day to day fray of business and determine what you need to do to win---then use the tools and experiences above to get there. Research and Insights Customer Relations Trends to Watch in 2014.
  • 31. Source: Harris Interactive, Customer Experience Impact Report 2009-2011 Source: Market Trends: Platform as a Service, Worldwide, 2012-2016, 2H12 Update Published: 5 October 2012 ID:G00239236. Report, Worldwide SaaS and Cloud Software 2012–2016 Forecast and 2011 Vendor Shares, Link: http://www.idc.com/getdoc.jsp?containerId=236184 Who’s Really Using Big Data. Harvard Business Review, September 2012. IBM Institute for Business Value. “Capitalizing on Complexity: Insights from the Global Chief Executive Officer Study.” May 2010. www.ibm.com/capitalizingoncomplexity Source: Harvard Business Review Blog Network http://blogs.hbr.org/cs/2012/ 08/the_future_for_customer-intell.html Source: Harris Interactive, Customer Experience Impact Report 2009-2011 Source: Harris Interactive, Customer Experience Impact Report 2009-2011 Source: Loudhouse Research Survey: Call Centers Are Expected to Create Revenue,- December 22, 2010 US Online Retail Forecast, 2010 To 2015, Forrester Research, Inc., February 2011 “Customers take control”, December 2011, PWC i ii iii iv v vi vii viii ix x xi References Experience shared. © Copyright Sitel Corporation 2014 Produced in the United States of America January 2014, version 1.0 All Rights Reserved Sitel Global Headquarters Two American Center 3102 West End Avenue Suite 1000 Nashville, TN 37203 USA Phone: +1 615.301.7100 Toll-Free (in U.S.): +1 866.95.Sitel sales-na@sitel.com www.sitel.com Research and Insights Customer Relations Trends to Watch in 2014.