1 st NATIONAL CUSTOMER EXPERIENCE RESEARCH Novel approaches breaking old paradigms
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1 1 st NATIONAL CUSTOMER EXPERIENCE RESEARCH 213 Novel approaches breaking old paradigms
2 2 ABOUT THE RESEARCH THE 1 st NATIONAL CUSTOMER EXPERIENCE RESEARCH 213 The year, when the Develor National Customer Experience research was first carried out. Three factors give this research a unique viewpoint: content Customer Experience is currently one of the most important topics with strong impact on revenue Significantly different definitions and interpretations NPS is the King. The success of an index with limited usability The assessment of certain sectors offer more surprises. The comparison is instructive not only within certain segments but between them as well Only one third of complaints actually reach service providers, though handling them effectively leads to the strongest and most long-lasting positive customer experience Sector-independent, with the opportunity of sector comparison Residential and corporate target groups, with comparability of responses Online and personal interviews for deeper analysis The research was carried out between June and November of 213 on behalf of DEVELOR Consulting Ltd. with the professional guidance of Momentor Research Ltd. The residential survey was fulfilled on a national representative sample of 12 people, while more than 1 middle- and senior leaders participated in filling out online questionnaires and in-depth interviews for the company survey. The research will be extended to the Region in the first quarter of 21. The national research will be completed again by the end of 21. We would like to thank you for your participation in this survey, and we are confident that next year we can expect your participation again. Friendly but slow and hard-to-reach customer services 8 Standardised service increases the level of recommendation and customer loyalty Differences are huge existing between certain sectors and companies with regard to the ability to provide customer experience 9 1 Csaba Szabó CEO Develor Consulting Ltd. Gábor Duránszkai Managing Director Momentor Research Ltd. What are companies planning? Training is at the forefront, but it matters what kind! 11 Almost all companies are willing to invest in technological development, whether it is online customer service or web sales 12 Identified outbreak points 13 Customer experience trends in
3 3 Customer Experience is currently one of the most important topics with strong impact on revenue 95% 79% 95% of the executives surveyed attach strategic importance to the issue. According to them, excellent customer experience is essential for business results. An interesting conclusion is that although almost all (95%) respondents considered the issue to be strategically important, only 79% of them identified it as one of the three most important company goals. 91% The local 79% compared to the Oracle Global Survey s 213 report, this figure is 91% globally, so national companies are lagging behind the international standard regarding goals in this area. 71% This is in line with the fact that only 71% of the respondent companies desire to become the industry leader in this field. 19.8% 1 Mrd The companies concerned would lose a total of 19.8% of their revenue if they did not provide consistent and positive customer experience to their customers and consumers. 17 Loss of Revenue % -1% 11-15% 1-2% 21-25% 2-3% 31- In the most affected sectors - banking, telecom, hotel, insurance, retail, hospitality and public services this amounts to far more than 1, billion HUF per year % 1-% N=72 Quick Win As the first step of the primary strategic goals for 21, one should be a commitment to the provision of an outstanding to give great service customer experience. This is the first step in order to be in a position to give outstanding service to customers. Divide the plan into sections, but do not leave the backoffice out!
4 eption and nce for every of the whole om order to the Exceeding n of the box. the customer s expectation. Must be done to a greater degree than the customer expects. Adjusting offer and selection to customer needs. It is easier to say than realise: not a quotidian event The emotions associated with us, which is based on the customers experience What comes and to the ultimately customer s makes mind when them thinking loyal. about you next time? The defi nitions of the respondent decisionmakers: Develors s defi nition: IMPRESSION DEVELOPED ON THE CONTACT POINTS - ON THE BASIS OF PREVIOUS EXPERIENCES -WHICH IS EFFECTED BY EMOTIONAL AND RATIONAL, CONSCIOUS AND UNCONSCIOUS IMPULSES....perception and experience for every moment of the whole process from order to the installation of the box. Adjusting offer and selection to customer needs. The emotions associated with us, which is based on the customers experience and ultimately makes them loyal. Quick Win Let s create our own definition, then divide it with the help of internal workshops to the level of departments and individuals. Do the same task regarding backoffice because their responsibility is also important. The defi nitions of the respondent decisionmakers: Develors s defi nition: Significantly different definitions and interpretations This topic is a relatively new one even though many companies have already created a customer experience department or appointed a leader within the organisation, but the definition of the concept still shows a wide variety of interpretations and approaches. According to our definition we can distinguish negative, neutral and positive customer experience as well. We must consider our own experiences and also those acquired at other companies in the same sector. Moreover, the positive or negative impressions that our clients have gained in other sectors effect their opinion about us, so that we compete with everyone for a positive picture. The emotional effects are more important than the rational ones, and most of the impressions are not realised consciously but they are recorded and stored in our subconscious mind. It is not only the personal contact that is important but also the experience customers get online and via call centers. There is no excellent customer experience without synchronizing all channels.
5 5 NPS is the King. The success of an index with limited usability NPS* (Net Promoter Score) is outstanding amongst those means used to measure customer experience and satisfaction, employed by three times as many users as the second most popular indicator. Customer Satisfaction point 1 Customer Experience Index (CXI) Customer Effort Score (CES) 1 Net Promoter Score (NPS) 32 Brand Awareness 3 Market Share Churn rate Proportion of Advocacy, Apostols customers Number of registered users 1 Revenue per customers 8 Other metrics provided by external supplier 1 Other, internal metrics 17 N=79, All respondents It is evidenced that NPS indicates well the the re-sales potential because the trend is obvious when comparing NPS and the willingness to re-purchase. So, the person who recommends us will be willing to spend more money at our place. 1 nps increase However, the residential survey shows that there is no correlation between NPS and churn rate: high churn number was measured at both low and high NPSlevel. So we relaized that other methods are additionally required in order to solve the churn rate issue of many companies. nps leaving NPS 8 15 NPS Plus NPS Plus is a complex index number used to define customer experience. It is an approach which retains the benefits of NPS, combines the degree of recommendation with satisfaction and loyalty, together with the characteristics of an experience s psychological factors. This will maintain promptness and cost-effectiveness, while at the same time not only the rational, but also the emotional feature of the customer relationship could be calculated, and the effective factors identified NPS * NPS has approximately ten years of history. Its simplicity and relatively low cost gives its popularity. A single question is asked from customers in the research: Would you recommend this particular service or company to your friends or relatives?
6 The assessment of certain sectors offer more surprises. The comparison is instructive not only within certain segments but between them as well According to sector-independent residential research, gyms and wellness services have the greatest NPS value. They are followed by the web stores, while insurance and taxi companies are at the bottom of the list. SIGNIFICANT DIFFERENCES IN SERVICE SECTOR Critics Neutrals Promoters NPS Wellness, gyms suppliers 39% 9 Online retailers Airlines Banks Inboard hotels Wireless phone suppliers Gas service Cable TV suppliers Electricity supplier Private healths service Wiredphone suppliers Retailers Taxi Companies Insurance companies % 3% 3% 3% 31% 28% 32% 25% 27% % 25% 5% 75% 1% Gyms, wellness services and web stores are at the top of the list. On the other hand we recommend insurance and taxi companies the least to our friends. The most divisive sectors include the retail trade and public utilities including landline telephone services. Comparison of the sectors NPS numbers shows that in most cases the rate of Critics exceeds the rate of Promoters, so in terms of services we formulate a negative opinion rather than a positive one. In the residential survey, 25% of the respondents reacted critically to all services, which highlights the fact that the NPS measurement - similarly to other scaled classification - is strongly influenced by subjective elements and the cultural roots of society. Quick Win Let s use the opportunity of benchmarking. Find companies - not necessarily in your own sector - who are leaders in the subject, and ask them for sharing their experiences. 2 leading companies were invited to participate in the corporate survey. The highest response rate was experienced with telecom and banking sector representatives, while the management of retail companies used this option the least. This shows that for certain sectors this topic is a priority, while for particularly the retail and utility sector it has only recently entered into their consciousness to become customer experience leader with little investment. However, these are the areas where it is possible to become an experience-leader with little investment and effort. You just need to take the right steps. 25% In the residential survey, 25% of the respondents reacted critically to all services, which highlights the fact that the NPS measurement - similarly to other scaled classification - is strongly influenced by subjective elements and the cultural roots of society.
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