Customer Service in 2020: Winning in a Digital World - Capgemini

Customer Service in 2020: Winning in a Digital World - Capgemini
Customer Service in 2020:
Winning in a Digital World
Customer Service in 2020: Winning in a Digital World - Capgemini
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                          34

               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 
               take forward this debate. We
               challenged the norm, stepped
               out of our comfort zones and
               looked to the future.

Welcome 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

Figure 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?
                      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

5. 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
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   9
Chapter 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

                                                individualized                   Many
                                                 but polarized                  groups

The 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   11
Your 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
                      ƒƒ 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

                      ƒƒ 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

InteliWISE – 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
                       Relationship to the customer


                                                                   Low                                            High

                                                                               Customer value

Even 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   15
Chapter 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.

giffgaff – 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   17
The rise of social       The World in 2020:                 ƒƒ 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      ƒƒ 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
                         ƒƒ 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.

Team 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

  High                                                                Low

  Low                                                                High

   Bottom of
   staircase                       Company

                               Level of control

                                                                             Customer Service in 2020: Winning in a Digital World   19
Chapter 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

                               According to Wikipedia the term VRM was first used by Mike Vizard in conversation
                               with Doc Searls on a 2006 Gillmor Gang podcast

Fortunately, 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.


What 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.
                                                               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.

Figure 6: The crowd model of customer service

                                                  2. Gets information about products
            1. Searches the internet                                                                    3. Downloads design
                                                 and retailers from online community

 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   25
You 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.

                         Forrester’s Top 10 Trends for Customer Service in 2011

The 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
                                                                                      Ma tly to cu


                                                   “Customer service


                                                 is the trusted partner
       Win-win m
       clearly st

                                                    for the customer
                                                                                                 rers selling

                                                  which facilitates the

                                             interactions in the networks
                                                  in a transparent and
                                                    co-operative way
                                                    creating the true
                                                   win-win situation”

                                                                                  er B 2 C

                                                                                       io n
                 t i c to

                                                                               o p nd

                       vi e


                           m            of                                     B 2 o-

                                                    M a n agin g th e

                                                                                                                Customer Service in 2020: Winning in a Digital World   27
Chapter 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.
                      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.

                          Forrester, “Mobile world congress 2010: smartphones are the new phones”, 2010

At 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   29
Chapter 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                ƒƒ 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,         ƒƒ 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.

ƒƒ 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.
ƒƒ 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   31
How 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

Customer Service in 2020: Conclusion

                    In the challenging digital                ƒƒ 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                 ƒƒ 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
                    most impact on your business?
                    Are you ready to capitalize on            ƒƒ 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                      ƒƒ 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:
                    ƒƒ 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
                    ƒƒ Improved brand reputation,
                                                              effectively, companies too can
                       as customers act as advocates
                                                              derive competitive advantage
                       for the brand
                                                              from the transformation of
                    ƒƒ 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   33
Corning – 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:

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            
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            
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               
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          
Zurich                                             Milan

Håkan Erander
Sweden Marketing, Sales and
Service Lead
Tel: +46 8 5368 4708

©2011 Capgemini. All rights reserved. Rightshore® is a trademark belonging to Capgemini.
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