Customer Service in 2020: Winning in a Digital World - Capgemini
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Customer Service in 2020: Winning in a Digital World
Table of Contents
Introduction 4
Customer Service 2020: Co-creation in Crowds 6
Chapter 1
Engaging with the “New” Customer: An Individual in a Community 10
Chapter 2
Managing the Shift of Control: Finding an Equilibrium 16
Chapter 3
Moving to Vendor Relationship Management: Customers as
Empowered Partners 20
Chapter 4
Standing Out from the Crowd: Being the Customer’s
Trusted Partner 24
Chapter 5
Managing a Mix of Channels: More Contacts, More Often 28
Chapter 6
Working in an Uncertain Environment: Responding to
Change Fast 30
Customer Service in 2020: Conclusion 34Introduction
Five years ago, who could have This ebook is the result. It
predicted the dizzying rise describes our collective vision
of the digital world, and its of customer service in 2020,
impact on customer service? underpinned by six key trends.
Take the growth of Facebook, The implications for individual
now with over 750m active companies will be different
users, 50% of whom log on depending on the products
every day. This rate of change and services they provide.
will only accelerate. There is Whatever business you’re
no doubt that by 2020 the in, our ideas will provoke
world of customer service conversation and enable you
will have been transformed to prepare and win in an
by changing needs and new increasingly digital world.
styles of interaction between
customers and companies. We’d love to hear what you
And at the center of this digital think. Please join the debate by
revolution will be the way contacting:
in which customer service is
delivered. Where will we be 10
years from now? No one knows
precisely, but the winning
companies will be those that
anticipate and prepare for this
digital future.
In Spring 2011, Capgemini Patrick James
Consulting brought together Global Head of Marketing,
customer service directors from Sales & Service
leading global organizations, +44 870 366 0262
plus industry experts, to patrick.james@capgemini.com
take forward this debate. We
challenged the norm, stepped
out of our comfort zones and
looked to the future.
4Welcome from Patrick James, Capgemini Consulting Patrick James is the Global Head of Marketing, Sales & Service Consulting at Capgemini. He specializes in delivering and realizing the benefits of large complex customer-focused programs, having worked with an extensive range of high profile clients such as the UK Department for Education, Lloyds TSB, Vodafone, General Motors, Deutsche Bank, Capital Group, Orange and Virgin Atlantic.
Customer Service 2020: Co-creation in Crowds
How will your Already companies are be to maintain competitive
organization respond working more closely than ever advantage and maximize
before with their customers sales while recognizing that
to the digital to “co-create” new products it will take a crowd to fulfill
revolution? and services – a trend that customers’ needs. Increasingly,
will gather force as we move customers will demand that
towards 2020. By forming companies fit around what
“crowds” which include other they want, the way they want
companies and customers, they it. We will also see more
will collaboratively deliver true customers helping one another
end-to-end customer service. with queries, taking on the role
Customers and companies of advisers.
will provide service to and
with each other, delivering How does customer service
integrated solutions that will work in a digital world where
transcend boundaries between services/products are delivered
companies and products. by a crowd of companies, with
customers helping to determine
A driving force behind this what companies do? Customer
transformation is the global service centers will become
rise of digital channels well oiled machines that will
(including online, social act as interaction hubs allowing
media, mobile websites and customers to shift seamlessly
applications), alongside the between channels. Intelligent
emergence of an increasingly routing will allow information
knowledgeable, emotional from customers to flow into
and empowered customer. organizations so it can be
Winning companies will adopt used to improve the way they
a proactive approach that deliver products and services.
embraces the digital revolution, Sophisticated virtual agents
and that anticipates customers’ will replace human interaction.
shifting habits and preferences Agents can then focus on
rather than just reacting to dealing with complex customer
them. This journey must start queries and deliver true value-
now. add services to customers.
Figure 1 shows our vision
What services should a of Customer Service 2020,
company provide? Who and the six key trends that
should it partner with? The companies must address.
challenge for companies will
6Figure 1: Our vision of customer service in 2020
Will yours be the Key Customer Service brand management, and in
organization that Trends for 2020 working with the rest of the
organization to use customer
customers choose in 1. Engaging with the “new”
insight effectively. How will
the future? customer
your customer service adapt?
As customers become more
knowledgeable and their 3. Moving to Vendor
requirements more complex, Relationship Management
they will require a more (VRM)
tailored service – a truly Customers will use data about
differentiated experience. To companies (vendors) to decide
meet this demand efficiently, when, how and by whom they
companies must understand want to be serviced; digital
customer needs, emotions, VRM tools will emerge to help.
and expectations. How do you Companies will need to utilize
do this from inside a crowd rich customer data available
of services and organizations? via digital channels and open
How do you understand up their systems to allow more
customer emotion through access to customers and other
digital channels? organizations. Are you ready to
work with customers as your
2. Managing the shift of
empowered partners?
control
Customers will gain influence 4. Standing out from the
over companies’ brand and crowd
market position as they The focus will move first from
increasingly support and products to services, and
advise one another via digital then to composite solutions,
channels, and “co-create” provided and supported by a
products with organizations. crowd of organizations and
This shift will necessitate customers. There is a risk
greater empowerment of of becoming just one of the
customer service agents: crowd; to retain competitive
they will spend less time on advantage, companies must be
everyday problems and more seen as the customer’s trusted
on complex issues, and value- partner. How will you work
add activities such as cross- with other companies? What
selling and up-selling. What are your responsibilities in the
is the right equilibrium for crowd?
your company? Agents will
also play a growing part in
85. Managing a mix of The next pages invite you to
channels step into the world of 2020.
The rise of digital means the Together, we explore these
number and frequency of trends and their implications
contacts will rise: Facebook, further, and identify the
tweets, texts... actions required to make sure
customer service adapts to this
Organizations must use change.
the right channel with the
right customer for the right
interaction. This means
developing an appropriate
channel mix, delivering an
integrated response across
channels, and shielding
customers from complexity.
Are you ready for more
contacts? How can you use
digital channels to make your
company work better?
6. Working in an uncertain
environment
Customer and company focus
on ethical and green issues will
strengthen, as will regulatory
requirements and concern
over globalization. How can
you be global and local at the
same time? Do you need to
be? Increasing use of digital
channels like social media
will mean that information
will travel fast around the
world and affect reputation.
Companies must monitor
customers’ shifting priorities
and evolve customer service
accordingly. Is your company
flexible enough to handle the
impact of unforeseen global
events? How fast can your
company react?
Customer Service in 2020: Winning in a Digital World 9Chapter 1
Engaging with the “New” Customer: An Individual in
a Community
Social media has created an How is it possible to provide
online society with more personal service while
knowledgeable, complex and maintaining low costs? The
emotionally aware customers. answer is to offer a service
As 2020 approaches, what that feels personalized yet
these customers expect is delivered at a group level.
from companies is changing Companies can take advantage
dramatically. Crucially, of a concept called “many
although belonging to groups” (figure 2), which
communities, a customer will can be harnessed with new
want a highly tailored service. digital strategies and new
Companies will really need ways of analyzing customer
to have a deeper relationship relationships through
with customers, understand sophisticated analytical tools.
their needs, emotions and
expectations, to give them
what they want.
Figure 2: “Many groups” – how individuality and group membership are developing
over time
1950 2020
“Scattered”
individualized Many
Big
but polarized groups
identity
customers
10The Emergence of traits, and to handle them
“Many Groups” according to these segments.
The development of identity By 2020, people will belong
over time is illustrated in to more and stronger groups,
figure 2. In the past, customers formed predominately
typically saw themselves through digital channels as
as part of a single group: a shown in figure 3. It will be
UK Labour Party activist membership of these multiple
would buy a Labour-leaning groups that builds a person’s
newspaper and be part of a (increasingly complex) sense
union. Over time, this kind of individuality. Products,
of grouping has broken down services and brands will mean
and customers have become different things to different
individualized and polarized. groups, and organizations must
Even so, organizations have be flexible enough to respond
continued to group individuals to each in the right way.
into segments sharing similar
Figure 3: Membership of online communities will help to shape identity
Customer Service in 2020: Winning in a Digital World 11Your current Personalization at Automation Plus
performance Group Level Personalization
management systems Customers will want Digital technology makes
experience that is both it possible to personalize
and metrics will be
individual and social. And, some aspects of service
irrelevant although reasonably receptive automatically, further reducing
to self-service, they won’t want costs. Virtualizing a shop,
to feel they are being treated customer and staff in an
as a number, or as part of a environment like Second
segment. Life can make shopping
It can be prohibitively into a social experience that
expensive to give customers delights customers who are
a completely personalized already used to avatars and
service, but fortunately there virtual worlds. For example,
are a couple of factors that will when purchasing a product,
help: customers can buy a virtual
copy for their avatar and a
Communities/groups – the physical copy for themselves.
fact that customers naturally In this way, the customer
group themselves together can get an experience that is
means that service can often individual, local and social,
be tailored to the group at reasonable cost to the
rather than the individual. company.
Designing the process to
take account of different Virtual agents, as shown in our
customer groupings means InteliWISE video, are another
that a single process can way to deliver personalized
provide “personal” customer service.
experiences for many
customers.
Digital transformation – as a
result of VRM activity by
customers, organizations will
have access to rich real-time
personal information such as
name, age and behavior,
with which they can easily
personalize the service
further.
12InteliWISE – next generation chat virtual agent for insurance InteliWISE is a leader in delivering cloud-based, intelligent chat virtual agents, enhancing customer experience and boosting online sales.
Emotions can be Different Relationships, or more emotional (figure
detected online, not Different Treatment 4). Customers may have a
functional relationship with a
only through voice Some, but not all, customers
power utility company, but a
will continue to need more
communication more emotional one wnecessith
traditional (and expensive)
types of personalization. a company like Starbucks.
By understanding different Technology providers could
customer groups’ unique needs have either a more emotional
at different times, you can relationship (like Apple) or a
target your investment for the more functional one (like Dell).
best returns. One company could have
different relationships around
It’s important to identify different products.
whether your relationship with
a customer is more functional
Figure 4: Plotting relationship type against value
Emotional
Relationship to the customer
n
io
at
iz
al
on
rs
pe
n
ti
en
m
st
ve
in
se
ea
cr
In
Functional
Low High
Customer value
14Even for a single product, there Understanding the Personalization
could be different relationships: Customer of 2020 remains at the heart of
an iPhone is a smartphone for
some customers but a way of
The customer of 2020 will your digital strategy
expect more from customer
life for others.
service, but will also have more
Developing and maintaining control. Customers can play
an emotional relationship an active part in the success or
is more expensive than failure of a company by acting
maintaining a functional one, as its agents through social
so it’s also necessary to know media channels.
the value of the customer, as
Companies will need to
shown in figure 4. Analyzing
strike a balance between
customer relationships in
personalization of service
this way requires questions
and cost. Several factors
to be answered: for example,
will determine where the
what constitutes a high-
right balance lies. While
value customer? How do you
standardized processes may be
understand and use emotional
appropriate for certain products
information about customers
and services, a personalized
specifically through digital
customer experience can be
channels? However, this
achieved by tailoring it to the
analysis repays effort because
groups to which customers
it makes it possible to realize
have the greatest attachment.
the objective of personalization
The level of tailoring will vary
at group level. Once you
according to brand, product or
understand how customers
service, and the nature of the
can be grouped together, you
relationship with the company.
can create experiences that
customers feel are “just for me” This type of tailoring can
without the cost of tailoring delight the customer, creating
processes for each individual loyal agents for the company.
customer. And that’s a cost- Delivering the right offer to the
effective way to win their right group can also reduce
loyalty and trust. costs.
Customer Service in 2020: Winning in a Digital World 15Chapter 2
Managing the Shift of Control: Finding an Equilibrium
“ By 2014, Gartner predicts
that 10% of the problems
Control is shifting away from
organizations and towards
customers. As a result, we’ll
service center only as a last
resort. In one YouTube video,
a customer shows how to set
currently solved by customer
see the development of a new up a car seat for a baby – a
service agents will be
“ generation of customer service demonstration which other
resolved or influenced by
agents, empowered to “co- customers found more helpful
customer communities
create” products with their than the manufacturer’s
Source: Predicts 2011: Customer customers and make the most instruction manual.
Service Innovations in a of their knowledge via digital
Collaborative World, channels. It isn’t just that customers
Gartner, 2010 know more. They can be even
However, this is by no means more passionate about your
a “one size fits all” solution. brand than your customer
How can your company find its service agents and, with
optimal balance of control? encouragement, do a great job
at building the right brand
Customers are Taking image. Customers increasingly
Control trust reviews from their
Customers are keener and peers over information from
keener to interact with one customer service agents, who
another in social networks are perceived as trying to sell
such as Facebook groups. They the brand.
review products, rate content
How Do You Integrate
and suggest ideas for product
Customer Activity into the
and service improvement,
Customer Service Center?
among other activities.
Some companies are actively
These new social customers are extending customer service
happy to answer each others’ processes to include customers
queries. Already, an expert in digital communities:
customer may know more either existing channels like
about your products than an Facebook or their own sites.
average customer service agent. They encourage customers
Other customers are looking to “co-create” products and
to these super users for advice collaborate by participating in
and answers to problems, the construction of knowledge
publishing their questions bases, contributing ideas and
online first and contacting a posting solutions to problems.
16giffgaff – the mobile network run by members
giffgaff is one example of doing things differently – by encouraging its community
members (customers) to get involved in the business; from answering customer
queries online, getting new members or helping make them famous. giffgaff does not
employ a single customer service agent – just a handful of staff who manage its online
community. Customers are rewarded for their involvement with credits towards their
phone bill.
Customer Service in 2020: Winning in a Digital World 17The rise of social The World in 2020: Customers can generate ideas
media has put brand Climbing the Control for future products; the
Staircase customer service center will
ownership in the hands be the interaction point,
of consumers What constitutes the right
balance of control between collating this input and
companies and customers? disseminating it across the
The “shift of control” model company.
(figure 5) shows the range of Customer service agents can
possibilities. At the bottom of focus on value-add tasks
the staircase, companies have such as cross-selling and
complete control over their up-selling.
customer service (a typical
situation a few years ago). Managing the Shift
Further up, the company’s A company should determine
influence decreases while that how far up the shift of control
of the customer increases. staircase it wants to climb
At the top, the customer has for each of its products and
total control, with support services. Experiment with
taking place in digital spaces low-risk products first, then
like internet forums and chat apply the lessons learned to
rooms that are not managed higher-risk categories. Control
by the company. As 2020 over the riskiest products and
approaches, more companies most important services should
will move up the stairs, though remain with the company, as
few will relinquish total must certain services (such as
control. those related to invoices).
Why Give Customers Careful change management
Control? will be needed. Customer
Encouraging “co-creation” service agents’ responsibilities
can increase a company’s will alter beyond recognition,
productivity and efficiency. For as will the skills they need. The
example: agent’s role may be mainly that
of a facilitator, moderating user
Customers will become communities, and ensuring
advocates for the brand inquiries receive a satisfactory
image; taking on more of the response from a supplier or
work of advising and super user.
supporting one another.
18Team leaders will work with The shift of control merits Lego encourages its
teams of customers over whom careful planning. Deliberately devoted customers
they have no real authority, giving a voice to customers will
and who possibly know more build trust in the company and
to design everything
than they do themselves. its products. Standing by while from robot operating
Lower-level agents may no customers wrest control away systems to
longer be needed. could have the opposite effect. construction sets
Figure 5: The shift of control staircase
Customer Top of
staircase
High Low
er
om
st
cu
o
lt
ro
nt
co
of
ift
Sh
Low High
Bottom of
staircase Company
Level of control
Customer Service in 2020: Winning in a Digital World 19Chapter 3
Moving to Vendor Relationship Management: Customers as
Empowered Partners
Customers can be CRM is dead…or is it? We have Until that trust is gained,
active partners in their seen how power is moving online communities have
away from companies and a particularly important
relationship with you
towards customers. Here we part to play in mediating
discuss a related theme: the vendor-customer interaction.
likely move from Customer Customers that do not yet
Relationship Management have a relationship with the
(CRM) to its inverse, Vendor brand will tend to rely on the
Relationship Management community for service. As
(VRM)1. the relationship deepens, the
customers’ knowledge and
CRM is a widely-adopted trust increases, so that they are
strategy that helps companies more likely to deal with the
capture customer data and vendor, particularly when they
manage customer interactions. need a tailored response.
By contrast, VRM allows
customers to manage their Why Customers Want
relationships with companies Change
proactively. Choice and power Today’s customers are
then lie with customers, who becoming less tolerant of
decide when, how and whether generic, product-centric sales
they want to be serviced by an pitches and standardized
organization. customer service. Instead they
A New Style of Vendor- expect customization, and
Customer Interaction want organizations to come
prepared with knowledge
The rise of digital channels of their circumstances and
has made the customer’s voice preferences. This demand for
more powerful than ever personalization means that
before, pushing companies unique end-to-end business
to rethink their methods services will often be needed
of customer interaction. for a single customer and a
New models such as Social single transaction.
Customer Relationship
Management (SCRM) allow
companies to listen and
respond to the real-time needs
and expectations of customers,
and to gain their trust and
loyalty.
1
According to Wikipedia the term VRM was first used by Mike Vizard in conversation
with Doc Searls on a 2006 Gillmor Gang podcast
20Fortunately, the information information that individuals
needed to drive this level of share about themselves on their
personalization is becoming profiles, including home town,
available, as customers school or university attended,
increasingly create and job and hobbies.
maintain their own profiles
through social media. This A further change to interaction
customer-generated data styles is that, as customers
can augment the customer realize the true value of their
records maintained by the personal information, they
company itself. Privacy want to be more selective about
controls and the opt-in nature sharing it. Instead of getting
of Facebook fan pages and multiple vendor offers that
Twitter allows companies to may or may not meet their
generate high-quality – and needs, customers often prefer
highly qualified – leads while to receive just a few offers that
respecting individuals’ privacy match their exact specification,
preferences. “Hypertargeted” and come at the time they
communications can be require, from parties that they
achieved by using the trust.
Customer Service in 2020: Winning in a Digital World 21“ Free customers are
“
more valuable than captive
From CRM to VRM
The power shift towards
Preparing for VRM
For companies, VRM raises
ones... 2 customers, combined with one of the key challenges for
the increasing sophistication Customer Service 2020: the
Source: Project VRM, of digital platforms, may management of the cultural
Harvard Business School eventually turn the current changes associated with
interaction model on its head, the growing power of the
moving the emphasis away customer. VRM also underlines
from CRM and towards VRM. the importance of building
relationships and managing the
CRM is about companies trust of customers and social
capturing customer communities – suggesting a
information for sales and continuing role for CRM.
marketing engagement. In
the VRM model, by contrast, The future of VRM is not
customers will maintain their yet clear, but one thing is
own data profiles and manage certain: in the product and
their relationships with service markets of 2020, the
suppliers, on their own terms. customer will not be a passive
Both individual customers and player, but an empowered
social communities will be able partner. Emerging channels
to allow or disallow vendor of interaction require constant
interactions, based on trust and evolution of vendor-customer
the supplier’s ability to meet communication capabilities,
their requirements flexibly. and organizations need near-
In this way, VRM can be seen instant reaction times.
as improving the balance
between customer demand and
vendor supply.
The idea is currently at an
early stage, but has already
received support and interest
from organizations such as the
Berkman Center for Internet &
Society at Harvard University
(Project VRM)3.
2
http://cyber.law.harvard.edu/projectvrm/Main_Page
3
http://projectvrm.net/index.php?page=about-vrm
22What is VRM by Gagandeep Gadri Gagandeep is part of the leadership team of our Marketing, Sales and Service practice in Capgemini Consulting UK and focuses on delivering customer focused multi- channel solutions for our clients. He is a leading thinker on customer service and led our Customer Service 2020 strategy session which brought together customer service directors from across the world to build the future vision for multi- channel service using new technologies such as social media and 4G technology.
Chapter 4
Standing Out from the Crowd: Being the Customer’s
Trusted Partner
We are seeing a move We are moving towards A few days, later the
away from individual a future where customer community site contacts him
needs are met not by a single and he gives his feedback.
products and services organization but by crowds One of his suggestions is
towards complete of companies and customers picked by the retailer, who
solutions provided by a working together. But how can makes a change to the product
crowd of suppliers and companies work within the and invites Terry to join
crowd to stand out from the their product development
customers crowd, and so gain competitive community.
advantage?
Soon afterwards, Janet wants a
Solutions that Come from new bathroom unit. She goes
the Crowd on to the home improvements
We will see a move away community site that Terry used
from individual products and initially. Seeing that Terry has
services towards complete done something similar, she
solutions provided by a crowd contacts him for help...
or network of suppliers and In Terry’s scenario, the solution
customers. The example in is delivered jointly by a retailer,
figure 6 illustrates how co- various internet services,
creation can work in crowds. bank, and customers. The
In our example, Terry needs crowd provides a full range
better storage for his toiletries. of end-to-end services, and
He goes online to seek advice the customers play a central
from a home improvements role in helping each other,
community site. That gives and companies, to fulfill their
him an idea of what is available needs.
and how much it costs, and In this model, the retailer’s
helps him to locate a reputable customer service unit may no
local retailer. Having measured longer exist as a recognizable
the space available with an entity. The crowd members
app from the site, he visits the coexist on a platform like
retailer to buy his unit. The Facebook, and a customer
store downloads details of his with a problem will post their
requirement from his mobile, question there and expect to
which Terry also uses to pay. receive answers from anyone
Back home, he puts together in the crowd. The retailer will
his unit, getting help from not create the crowd – different
another app. crowds will arise on an ad hoc
basis depending on the nature
of the customer query.
24Figure 6: The crowd model of customer service
2. Gets information about products
1. Searches the internet 3. Downloads design
and retailers from online community
application
9. The next week, Janet wants 4. Finds the nearest store
a new bathroom unit. and quickest route
She contacts Terry via same
online community
Co-creation in crowds:
An illustrative scenario: Terry would like a better
storage solution for his toiletries
8. Provides feedback via 5. A customer adviser
online community is ready to help
7. Back home, he puts the unit together, 6. Pays via his
getting help via the online help app handheld device
Customer Service in 2020: Winning in a Digital World 25You don’t own your In some cases (for example, In this world of shared data,
customer data: you damaged goods inquiries) the companies can no longer rely
retailers’ personnel will provide on privileged information to
share it with your the answers themselves, but create competitive advantage.
competitors often all they will do is manage For example, competitors
the process. Customers will will often be able to approach
not normally care who answers your customers with offers
as long as they receive a good- based on knowledge of their
quality service. usage patterns. That means
that companies need to find
Customer Data is other ways to gain an edge,
Becoming Shared Data such as personalization and
superior customer service,
As Forrester4 notes, the and perhaps resale of services
universal customer record from third parties – even from
is becoming a reality for competitors.
some companies. This record
contains multiple social Becoming a Trusted
identities from channels such Partner to Retain
as Facebook and Twitter, Competitive Advantage
mapped to a traditional
customer record. Both types of In the crowd model, service
data can be analyzed together will often be decoupled
to provide real-time customer from product and provided
insight and support for by another company or by
business decisions. an expert customer, so that
service activity no longer
Increasingly, part or all of takes place at the brand level.
this universal customer Making this model work will
record will be accessible by require suppliers in the crowd
multiple service providers. to ensure that their CRM
All the players involved in systems can collaborate.
the customer lifecycle have
equal access to the data that However, customers will
customers choose to share probably still retain an
in social spaces. With many emotional attachment to
multinationals and governing the company to whom they
bodies also committing to pay money, even when
open data initiatives, data that company is sharing
transparency will likely responsibility for providing
become the norm, with service. If customer
customers choosing which expectations are not met, then
service providers can access the company’s brand will
their data. suffer.
4
Forrester’s Top 10 Trends for Customer Service in 2011
26The company therefore needs Trust implies, among other A company needs
to maintain control over the things, that the boundaries to aim to turn its
customer experience, ensuring between internal and
that its service commitment external become blurred,
service function into a
to the customer is met by the that customer and company trusted partner for the
crowd collectively. have a transparent view of customer
one another’s activities, and
In summary, a company should that there is full co-operation
aim to turn its service function between them. Companies that
into a trusted partner for the achieve this trusted status will
customer (see figure 7). retain competitive advantage in
a world of transparent data and
crowd-based solutions.
Figure 7: What does it mean for customer service to be a trusted partner?
as Produ
ct b
rvices oun
e are d
ll s uct gon arie
Se prod e s
a
Ma tly to cu
dir
be
nuf
“Customer service
ec
ated
ust
actu
is the trusted partner
Win-win m
clearly st
for the customer
rers selling
which facilitates the
stomers
interactions in the networks
in a transparent and
co-operative way
creating the true
win-win situation”
Ho
er B 2 C
lis
the
io n
t i c to
o p nd
at
cu
vi e
w
a
s
m of B 2 o-
B
er
c
M a n agin g th e
diversity
Customer Service in 2020: Winning in a Digital World 27Chapter 5
Managing a Mix of Channels: More Contacts, More Often
How do you ensure Customers and companies The rise of smartphones is
consistency between are interacting via a growing another factor in channel
variety of channels, including proliferation, with apps and
interactions when social media and mobile mobile commerce allowing
they are all driven commerce, resulting in an more targeted, persistent
by customers’ expanding array of customer interaction. In 2009
touch-points. It is becoming m-commerce value in the U.S.
unpredictable
increasingly challenging to tripled to $1.2bn. As smaller,
emotions? manage the channel mix cheaper smartphones appear in
in an effective, integrated the near future, “phone” may
way. How can organizations well become synonymous with
ensure that they are using the “smartphone”.
right channel with the right
customer for the right type of By 2020, today’s internet and
interaction? m-commerce channels will
have matured and been joined
Rapid Proliferation of by others. Online TV and video
Channels interaction with customer
The range of channels has service agents will increase,
expanded fast over the past thanks to 4G networks and
two decades, with self- greater bandwidth. Contactless
service channels like cash payment cards, video
machines, vending machines analytics, speech analytics and
and information kiosks emotion detection will also
appearing alongside traditional be widespread, as will online
bricks-and-mortar and communities.
telephone channels. In many Challenges and
industries, customers now Opportunities
prefer self-service, at least for
straightforward transactions. Companies ignore channel
proliferation at their peril.
The internet has enabled more Disregarding emerging
channels, like social media, channels can lead to reputation
online chat and virtual agents. risk (a brand can be destroyed
Now 75% of Marriott’s hotel in one day by customer
reservations are made online; conversations in social media
internet sales have helped forums), and to customers
retailers like M&S and Next to taking their business to
buck a downward trend on the competitors offering a better
high street. choice.
5
Forrester, “Mobile world congress 2010: smartphones are the new phones”, 2010
28At the same time, the
expanding range of channels Five Ways to Tackle the Multi-Channel Challenge
opens up new opportunities:
to provide better customer
service, and to develop 1. Offer a set of channels to suit your product mix and
more personalized customer customer preferences
relationships, additional If customers frequently carry out straightforward
revenue streams and more transactions like grocery shopping or checking bank
efficient customer service. statements, self-service may suit both them and the
business. With complex products like mortgages, video
Succeeding in a Digital instructions or virtual agents can complement or replace
Multi-Channel World human agents. If an energy provider has a customer group
How do you give a consistent that’s active on Twitter, tweeting could be a good way to
experience by phone, over publish service updates.
the internet and in store?
2. Ensure channels are integrated
The multi-channel challenge
You should be able to recognize your customer however
has been around for a while,
they contact you, offering correctly targeted products and
and by 2020 it will be far
services. Allowing the option to switch between channels
more complex. We have
during an interaction will enhance customer experience
suggested some ways to tackle
and improve outcomes.
it – by following these steps,
companies can start to embrace 3. Manage complexity and offer consistency
the opportunities of channel Again regardless of channel, customers should receive
proliferation and ensure they a consistent experience in line with your brand values.
use the right channel with the Align processes, data management and technology
right customer for the right behind your channel mix to create this seamless customer
type of interaction. journey. If you can’t avoid putting the customer through a
complicated process to complete a transaction or resolve an
issue, then offer guidance via suitable channels.
4. Keep up with the changing channel landscape
Proliferation will continue, so your channel mix must keep
adapting. Monitor customer behavior to detect changes
in channel preferences early on. Ensure your technology
platform is flexible enough to accommodate new channels
and channel enhancements.
5. Go where customers are having their conversations
For example Facebook and Twitter – rather than creating
your own forums. This approach can help save costs and
help draw in new customers as well.
Customer Service in 2020: Winning in a Digital World 29Chapter 6
Working in an Uncertain Environment: Responding to
Change Fast
The world is getting smaller, Corporate Social Responsibility
more connected and more (CSR) is a form of corporate
interdependent. Companies are self-regulation that is
increasingly held accountable increasingly integrated into
for the way they conduct their business models. It requires
business, and environmental the company to embrace
factors are among those they responsibility for its actions,
need to account for. They and to strive for a positive
must demonstrate active impact on the environment,
compliance with the spirit of customers, employees,
the law, ethical standards, and communities, stakeholders
international norms. and all other members of the
public sphere.
Increasing use of digital
channels, and specifically Key CSR Themes
of social media, is Companies will have to
opening companies up provide both global and local
to unprecedented public services: customers want
scrutiny. Customer opinion global consistency but also
and experience travels fast an appreciation of local
and can easily end up as, for culture. Global companies
example, a “viral” video on that currently standardize
YouTube. The case studies their products and services
later in this chapter illustrate to provide a more efficient
how dramatically this scrutiny and effective service could in
by the crowd can affect a future be forced to take more
company’s reputation for good account of local nuances in
or ill. the interests of better
Companies can’t hope to customer service.
control the flow. Instead, There are global standards
through their customer and local differences in
service centers, they need to regulation, for example in
respond rapidly to social media relation to customer data.
activity, particularly in times Companies need to find
of crisis. Already, more and ways to satisfy both local and
more companies are actively global standards –
using social media to monitor potentially a difficult
and, where possible, manage challenge.
customer feedback, ensuring
for example that customer
service agents address Twitter
complaints promptly.
30 Companies will need to
strengthen their response to Case Studies
customers’ evolving ethical
concerns (e.g., regarding
business impact on the Nestlé and palm oil
environment, provenance,
and fair trade). In matters
like elimination of underage Greenpeace published a video on YouTube alleging that
working in suppliers’ Nestlé’s use of palm oil caused deforestation and endangered
factories, it is better to get orangutans. On Facebook, members changed their profile
your house in order yourself pictures and posted extreme comments on the Nestlé fan page.
than to be forced to do so by Instead of answering, Nestlé threatened to delete posts that
the press, public or
used an altered version of its logo. This triggered even more
regulators. Customers are
coming to expect greater virulent comments and the fan page had to be closed.
transparency: when you
make a mistake, admit it.
Employee inclusion and
wellbeing will be vital. BP oil spill
Companies must make sure
their employees are involved Following the oil spill disaster, BP’s official Twitter account @
and looked after, and respect
their varying needs. In BP_America had 15,000 followers, but a parody account, @
addition to the ethical BPGlobalPR, attracted 175,000, and was far more active. By
reasons for doing so, happy poking fun at BP, this fake account may have damaged the
employees tend to make for brand significantly. BP’s efforts to get the account banned were
happy customers. unsuccessful since Twitter policy allows parody accounts as
Considerations here include: long as they do not mislead or deceive.
−− Diversity. This makes
commercial sense as well as
fitting in with CSR. One
study showed that with more
than 35% of executive Toyota recall
positions held by women,
P&L results improve.
−− Work-life balance. Digital Unexpectedly, Toyota’s Social Influence Marketing (SIM) score
technology can help here by increased during the recent vehicle recall. One reason is that
enabling remote working,
which means you can have a
frequent conversations (including neutral and even negative
more mobile, flexible ones) built brand awareness. More consumers were talking
workforce. In future, many of about Toyota than any other brand, some probably coming
your customer service agents
could be home-based. The to its defense. In time, Toyota may be able to use this new
more options you can offer, follower base to promote offers and products.
the easier it becomes to
attract resources with the
right skills sets.
Customer Service in 2020: Winning in a Digital World 31How can companies Get Ready to Deal with their advantage? They will
keep pace with Uncertainty need new tools to listen into
conversations on the web, and
shifting and tightening The one certainty is that
must use their knowledge,
organizations will have to
regulations, both experience and expertise to
evolve continuously to meet
globally and locally? ever more exacting demands respond intelligently. Social
from customers and regulators. media objectives should be
Some CSR activities, moreover, aligned to enable companies
are closely linked to customer to understand, manage and
service. For example, hiring influence these conversations.
a diverse employee base In a digital world, information
makes it possible to service will travel fast, and customer
a diverse customer base (one service centers must respond
bank provides service in rapidly. That means having
23 languages). Then there processes in place to change
are ethical issues around alerts on all channels and
offshore call centers: the update scripts for agents
ethical standards of both the globally.
call center location and the
company’s markets need to be Customers’ and regulators’
taken into account. priorities are hard to predict,
and in a digital world it will
The social media revolution, be impossible to control
too, has fundamentally shifted the spread of information.
the balance of power towards Therefore, organizations must
the customer. Customers are utilize digital technology to
in control, defining how, when monitor change, and adopt
and where they interact with techniques that will give them
brands, content and services. the flexibility to adjust their
How can customer service own priorities. Don’t be caught
managers use customers’ off guard.
increased involvement to
32Customer Service in 2020: Conclusion
In the challenging digital More satisfied employees
world of the future, visionary who manage customer
companies will shape the service in the crowd, and
customer service landscape. have higher-quality contacts
By anticipating trends with a smaller number of
intelligently, organizations can customers
achieve a genuine win-win Increased efficiency as the
for themselves and for their company finds ways to
customers. automate service without
sacrificing the “personal
Which trends could have the
touch”
most impact on your business?
Are you ready to capitalize on Lower costs, for example
them with the right customer through reduced headcount
service offerings? as customers and other
crowd members take over
Addressing your customers’ support responsibilities
evolving needs in an Increased revenue and
increasingly digital world today profits as your organization
will be critical to winning becomes a leader in the
tomorrow. For those that get it marketplace
right, the benefits will be great:
Increased loyalty, as your The obvious winners will
organization is seen as a be customers. However, by
trusted partner in life reading the trends correctly
and using digital capabilities
Improved brand reputation,
effectively, companies too can
as customers act as advocates
derive competitive advantage
for the brand
from the transformation of
Higher customer satisfaction, customer service. Are you
because customers can easily ready to win in the digital
reach the experts they need, world?
and interact with them in the
channels they prefer
Touch the Future, be the Future
Customer Service in 2020: Winning in a Digital World 33Corning – a day made of glass For Corning Incorporated, the future of customer service revolves around digital technologies, enabled by glass. In writing this ebook, we have been inspired by Corning’s way of thinking about its future world, as depicted in this video. What is your vision of 2020?
About Capgemini
®
With around 115,000 people Capgemini Consulting is the Global
in 40 countries, Capgemini is one of Strateg y and Transformation
the world’s foremost providers of Consulting brand of the Capgemini
consulting, technology and outsourcing Group, specializing in advising
services. The Group reported 2010 and supporting organizations in
global revenues of EUR 8.7 billion. transforming their business, from the
development of innovative strategy
Together with its clients, Capgemini through to execution, with a consistent
creates and delivers business and focus on sustainable results.
technology solutions that fit their Capgemini Consulting proposes to
needs and drive the results they want. leading companies and governments a
A deeply multicultural organization, fresh approach which uses innovative
Capgemini has developed its own way methods, technology and the talents of
of working, the Collaborative Business over 3,600 consultants worldwide.
ExperienceTM, and draws on Rightshore®,
its worldwide delivery model. More information is available at:
www.capgemini.com/consulting
Arnaud Bouchard Ben Gilchriest
France Marketing, Sales and Australia Marketing, Sales and
Service Co-lead Service Lead
Tel: +33 149 675 942 Tel: + 61 404 876 153
arnaud.bouchard@capgemini.com ben.gilchriest@capgemini.com
Paris Sydney
Sherif Choudhry Stanislas De Roys
UK Marketing, Sales and France Marketing, Sales and
Service Lead Service Co-lead
Tel: +44 879 194 6536 Tel: +33 149 675 701
sherif.choudhry@capgemini.com stanislas.deroys@capgemini.com
London Paris
Scott Clarke Vincent Rutgers
North America Marketing, Sales and Netherlands Marketing, Sales and
Service Lead Service Lead
Tel: +1 415 691 1504 Tel: + +31 306 896 814
scott.clarke@capgemini.com vincent.rutgers@capgemini.com
California Utrecht
Steffen Elsaesser Lorenzo Sterzi
Central Europe Marketing, Sales and Italy Marketing, Sales and
Service Lead Service Lead
Tel: +41 44 560 2578 Tel: +39 335 6003613
steffen.elsaesser@capgemini.com lorenzo.sterzi@capgemini.com
Zurich Milan
Håkan Erander
Sweden Marketing, Sales and
Service Lead
Tel: +46 8 5368 4708
hakan.erander@capgemini.com
Gothenburg
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