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Self Service - Trends & Innovations
Gili Rosenbaum-Tumarkin | August 2016
Introduction
• Self-service can benefit both customers
and customer service organizations.
• Self-service increases custom...
The Self-Service Technology Market
• According to BCC Research, the global market for Self-service technologies will grow ...
Self Service Market Drivers
• Companies that meet customers expectations regarding service, can benefit from
increased cus...
Multi-Channel Strategy
• Customers expect companies to provide customer service on their channel-of-choice, and
they expec...
Multi-Channel Customer Behavior
• According to Oracle, multiple channels
need to be made available to
customers, as they s...
Multi-Channel Customer Behavior
• According to Microsoft’s 2015 Global State of Multichannel Customer Service Report,
Japa...
Industry Trends | Banking
• In order to diver better customer experience,
financial institutions are blending a physical /...
Industry Trends | Banking
• In Accenture’s 2015 North
America Consumer Digital
Banking Survey, 38% of
consumers rank good ...
Industry Trends | Banking
• Interactions by channels in the Banking industry
• How many times do you usually interact/get ...
Industry Trends | Banking
• In 2015, UK’s Barclay bank has given its self-service machines human
names like “Sally”, “Mike...
Industry Trends | Retail
• According to a 2015 Retale poll of more than 1,000
US internet users, 85% had used in-store sel...
Industry Trends | Retail
• According to Retale, 35% of respondents said the biggest issues with kiosks include
scanning it...
Industry Trends | Travel & Hospitality
• By 2018, 3 in every 5 passengers at airports will use their mobile phone for self...
Industry Trends | Travel & Hospitality
• A 2015 research conducted by the London City Airport, found that 53% of passenger...
Industry Trends | Travel & Hospitality
• In 2014, Starwood Hotels & Resorts launched the SPG
(Starwood Preferred Guest) Ke...
Industry Trends | Insurance
• According to Mckinsey, policy issuance, policy servicing, and claims will see
greater levels...
Industry Trends | Automotive
• According to a J.D. Power Auto Insurance report, Gen Y’s preference to interact
exclusively...
Self Service Consumer Motivations & Strategies
• Access to multiple choices that the customer can choose from and move thr...
Consumer Motivations
• Forrester data shows that 53% of customers are likely to abandon their online
purchases if they can...
Consumer Motivations
• According to The 2015 National Customer Rage Study by Oracle, the most
frequently cited damage resu...
Consumer Needs
• A 2015 Nuance research found that 9 in 10 respondents had used an automated self-service
system to answer...
Consumer Trends
• Forrester predicts that “customer service organizations will make self-service easier
for customers to u...
Channel Trends
• According to Forrester, web and mobile self-service interactions overtake all other
channels. Web self-se...
Channel Trends
• According to a Nice / BCG survey, successful problem resolution and customer satisfaction are still the
h...
Channel Trends | Mobile
• In line with
penetration and
use trends, mobile
is gaining
momentum as a
preferred service
chann...
Channel Trends | Mobile
• In 2015, Taco Bell disclosed that the average digital order with its
new mobile app is 20% highe...
Channel Trends | Social Media
• Social media,
however, is not
a popular self
service channel.
2016 Nice-BCG CX Survey
Channels Trends | Emerging Channels
• Forrester predicts that customer service organizations will explore new channels
suc...
Channels Trends | Online live chat
• Live chat, offering a quick and
convenient way to get
support, is becoming the
prefer...
Channels Trends | Online live chat
• Online chat adoption among customers has significantly risen from 38% in 2009 to
43% ...
Channel Trends | Messaging Apps
• In April 2016, Facebook announced it will allow
businesses to deliver automated customer...
Channel Trends | Messaging Apps
• In 2016, Nuance Communications, Inc.
announced ”Nina for Messaging”, which enables
compa...
Tools & Platforms | Virtual Agents
• IBM’S Watson Engagement Advisor is a cognitive agent
that interacts with customers vi...
Tools & Platforms | Video Chat
• Gartner estimates that more than 50 of the 500 largest global
businesses will introduce v...
Tools & Platforms | Hybrid Chat
• Hybrid Chat offers customers
to start their interaction with a
virtual avatar – by phone...
Tools & Platforms | Internet of Things
• According to Gartner, by 2018, 5% of customer service cases will be initiated by
...
Tools & Platforms | VR & AR
• In 2016, eBay and leading Australian retailer Myer have
launched the first-ever virtual real...
Channel Preference by Industry
• According to a Nice /
BCG survey,
customers select a
preferred channel
according to the
i...
Summary: Self Service Trends
• Community
Based Self
Service
• Assisted Self-
Service
• Content / big
data based
unassisted...
Thank You!
The research was conducted by:
Gili Rosenbaum-Tumarkin
Schieber Research | Market Research & Competitive Intell...
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Digital Self Service Trends & Innovations

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The global market for self service is experiencing growth, and research companies predict it will keep growing in the next few years. The main reason for growth is that self service can benefit both customers and companies.
Companies that deliver online self service are able to minimize costs (as long as service is provided efficiently) and benefit from increased customer satisfaction, customer loyalty, lifetime value and advocacy.
in terms of customer satisfaction, there is a clear preference for digital and multi-channel service. However, poor self service can cause the customer to abandon the channel. For organizations, self- service saves costs as long as the service is provided correctly and the information is synchronized between the different channels. Today, customer satisfaction is still very high when a live representative is involved, but our assessment is that in the near future, the picture may change following the entry of innovative tools that enhance the service experience significantly. We expect robots (or “bots”) to become the next preferred channel for self service, with the accumulation of data, which enables a better automatic service than ever before.

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Digital Self Service Trends & Innovations

  1. 1. Self Service - Trends & Innovations Gili Rosenbaum-Tumarkin | August 2016
  2. 2. Introduction • Self-service can benefit both customers and customer service organizations. • Self-service increases customer satisfaction with minimum frictions, and companies can minimize costs by deflecting agent-assisted interactions. • This report examines trends and innovations in self service, aimed at achieving the above goals by using new technology. Forrester, “Trends 2016: The Future Of Customer Service”, Jan 2016 Top Customer Service Trends For 2016 according to Forrester
  3. 3. The Self-Service Technology Market • According to BCC Research, the global market for Self-service technologies will grow from $54.4 billion in 2016 to $83.5 billion by 2021 with a compound annual growth rate (CAGR) of 8.9% for the period of 2016-2021. • According to an Allied Market Research report, the global self-service technology market (ATM Machines, Kiosk Machines, Vending Machines) would garner just $31.75 billion by 2020, registering a CAGR of 13.98% during the forecast period 2015 - 2020. According to the report, enterprises operating in sectors such as retail, healthcare, food & beverage, and banking would be the key demand facilitators.
  4. 4. Self Service Market Drivers • Companies that meet customers expectations regarding service, can benefit from increased customer satisfaction, customer loyalty, lifetime value and advocacy. • According to Forrester, companies that deliver online self service also enjoy lower operational costs, keeping cost per contact low, as long as customers don't have to move to another (possibly more expensive) channel to get their issue resolved. Forrester, “Online Self Service Dominates Yet Again. Why? Its An Effortless Way To Get To Your Answers”, Jan 2016
  5. 5. Multi-Channel Strategy • Customers expect companies to provide customer service on their channel-of-choice, and they expect a consistent excellent experience regardless of which channel they choose. Oracle: In this example a customer works with an insurance agent to obtain consultative advice and then uses multiple channels to research information, seek advice from friends on social networks, purchase a product, submit a claim, manage his account and ultimately refer a friend if he receives a superior experience on all communication channels. Oracle, “Modern Customer Care In a Multi-Channel World”, Mar 2015 The Modern Customer Journey (a multi-channel customer journey)
  6. 6. Multi-Channel Customer Behavior • According to Oracle, multiple channels need to be made available to customers, as they serve different goals. • IVR / mobile – for a narrow set of data • Online – for a larger set of data (e.g., details of various insurance policies) • face-to-face / representative communication – when searching for guidance. Oracle, “Modern Customer Care In a Multi-Channel World”, Mar 2015 Percentage of customer support traffic by channel for a large North American insurance provider, By Oracle
  7. 7. Multi-Channel Customer Behavior • According to Microsoft’s 2015 Global State of Multichannel Customer Service Report, Japanese customers regularly use an average of 2 service channels to interact with a brand or organization, while US and UK customers use an average of 4 service channels, and customers in Brazil use an average of 5. • The five most popular channels are: Email, telephone, live chat, search engine, and online self-service support portal/FAQs. Microsoft’s 2015 Global State of Multichannel Customer Service Report
  8. 8. Industry Trends | Banking • In order to diver better customer experience, financial institutions are blending a physical / digital approach. • According to a 2016 research from KPMG, 37% of US banking executives surveyed said that one of the primary priorities for transforming the physical bank experience was by deploying digitally enabled self service capabilities for teller transactions. • Additionally, 35% of respondents said that deploying digitally enabled self service capabilities for account opening and maintenance was another thing they are prioritizing. eMarketer, “How Is the Physical Bank Branch Experience Changing?”, May 2016
  9. 9. Industry Trends | Banking • In Accenture’s 2015 North America Consumer Digital Banking Survey, 38% of consumers rank good online banking services as the top reason they stay with their banks, ahead of branch locations and low fees. • According to the report, consumers say they use online banking most often, prefer it over other channels, and consider it to be the most important channel for banks to invest in over the next five years.
  10. 10. Industry Trends | Banking • Interactions by channels in the Banking industry • How many times do you usually interact/get in touch with your main bank, on monthly basis, using the methods listed? (Provide number of interactions) Accenture, “Banking Customer 2020”, 2015
  11. 11. Industry Trends | Banking • In 2015, UK’s Barclay bank has given its self-service machines human names like “Sally”, “Mike” or “Jake”, to make them friendlier. The naming came as research showed many people prefer to deal with staff rather than with machines. • The bank also launched its ‘Community Banking’ service, giving customers access to branch services, traditionally only available through a bricks and mortar branch, anywhere and at any time with all Community Bankers able to set up a branch remotely using just their iPad and Wi-Fi or 3G connection. ​
  12. 12. Industry Trends | Retail • According to a 2015 Retale poll of more than 1,000 US internet users, 85% had used in-store self- service checkout kiosks. According to CFI Group, 65% of U.S. internet users had used self-checkout registers. • Respondents report that the checkout process had the biggest impact on customer satisfaction, more than price or merchandise. • Of those who had used in-store self-service checkout kiosks 72% have done so because they had a limited number of items. the second most popular reason was not having to wait in line.
  13. 13. Industry Trends | Retail • According to Retale, 35% of respondents said the biggest issues with kiosks include scanning items, 24% said it is entering coupons, 16% - understanding the service screen, 15% - paying with cash and 14% - entering product codes. • Despite limitations, 49% of respondents wanted self-service kiosks in every store. In Italy, “Let's Pizza” offers a self service vending machine for made on the spot pizza from fresh ingredients In 2016, Waitrose announced its first UK cashless store, where customers are only able to make purchases with card or mobile devices at a self- service checkout. Retail-focus
  14. 14. Industry Trends | Travel & Hospitality • By 2018, 3 in every 5 passengers at airports will use their mobile phone for self-service check-in, with 72% of airlines offering automatic check-in options, according to SITA’s “The Future is Connected” report. • The report also found that 90% of airports will be offering automatic bag drop by 2018, adding that electronic scanning of documents is the area likely to grow fastest. The U.S. Customs and Border Protection (CBP) launched “Mobile Passport Control” (MPC), the first authorized app to expedite a traveler’s entry process into the United States. (Available in several U.S. states) In 2015, Melbourne Airport announced a fully self-service terminal, offering flyers check-in kiosks, printable tags for bags, dropping their bags in the conveyor belt for security screening and agents strolling the premises with iPads. In 2016 it announced testing Self-boarding gates.Airport-technology
  15. 15. Industry Trends | Travel & Hospitality • A 2015 research conducted by the London City Airport, found that 53% of passengers had checked in online and printed their boarding pass at home or downloaded it to their mobile phone, up from 43% the previous year. • Just 20% of travelers used a manned-check-in desk at the airport, dropping from 36% the year before. • Self-service check-in kiosks usage at the London City Airport has risen from 10% to 21% in 12 months. • These findings show that 80% of people catching a flight from London City Airport are now checking themselves in, whether online or via a self-service kiosk in the terminal.
  16. 16. Industry Trends | Travel & Hospitality • In 2014, Starwood Hotels & Resorts launched the SPG (Starwood Preferred Guest) Keyless system, powered by the SPG app, that enables guests to bypass the front desk and unlock their room with a simple tap of their smartphone. NFCworld According to The Financial Times, in 2015 several airline companies reported testing a digital bag tag. Since 2011 Qantas Airways Ltd. of Australia is offering the “Q Bag Tag”, a permanent electronic bag tag, allowing flyers that check-in online or by mobile (before arriving to the airport) to go directly to the Bag Drop, as the tag sync with their details.
  17. 17. Industry Trends | Insurance • According to Mckinsey, policy issuance, policy servicing, and claims will see greater levels of self-service, automation and streamlined digital processes. • The number of requests to call centers and back offices will drop sharply as a result, and the company predicts that fewer customers will call to change the list of items covered by their household contents insurance, change their address or banking information, or ask about the status of a claim by phone. Mckinsey, “Insurance on the threshold of digitization: Implications for the Life and P&C workforce”, Dec 2015
  18. 18. Industry Trends | Automotive • According to a J.D. Power Auto Insurance report, Gen Y’s preference to interact exclusively through digital self-service (web or mobile) has increased from 21% in 2011 to 27% in 2015 (Gen X: 19% in 2011 vs 23% in 2015, Boomers: 10% vs 12%, Pre-Boomers: 4% vs 6%). Turo app offers peer-to- peer car rental service. customers can rent a vehicle from a community of local car owners throughout the US and Canada, for a convenient price. In 2015, Hyundai offered its 2015 Sonata owners to install an Android Auto integration software with a do-it- yourself download option using its new MyHyundai portal.
  19. 19. Self Service Consumer Motivations & Strategies • Access to multiple choices that the customer can choose from and move through the channels seamlessly • More decision supporting tools, including independent sites • The customer sometimes determines the level of service • DIY – engages and empowers the customer Empowerme nt • My time, my place • No wait / lines • Mobile self service Convenience • Interactive tools such as VR & AR • Multi channel experience • Assistance and involvement of other users through social networks and forums • Personalization Engagement Source: Schieber Research, 2016
  20. 20. Consumer Motivations • Forrester data shows that 53% of customers are likely to abandon their online purchases if they can't find quick answers to their questions. 73% say that the most important thing companies can do to provide good customer service is value the customer’s time. • According to a Forrester’s survey, 39% of US online adults prefer online customer service over speaking to a person on the phone. The survey found that in 2015, web and mobile self-service interactions exceeded interactions over live-assist channels, which are increasingly used by customers as escalation paths to answer harder questions whose answers they can’t find online. Forrester, “Online Self Service Dominates Yet Again. Why? Its An Effortless Way To Get To Your Answers”, Jan 2016 Forrester’s North American Consumer Technographics Customer Life Cycle Survey 2, 2015 Forrester, “Trends 2016: The Future Of Customer Service”, Jan 2016
  21. 21. Consumer Motivations • According to The 2015 National Customer Rage Study by Oracle, the most frequently cited damage resulting from customer problems was lost time: people have become more confident in their ability to use technology, making them convinced they can accomplish tasks by themselves faster with self-service tools instead of depending on others. • Even the perception of speed can be a powerful motivator: “the self-service checkout line at the grocery store is not necessarily faster, however, people are still drawn to it because they believe they can get themselves through the line faster.” Oracle, “Redefining Customer Experience Through Self-Service”, Mar 2016
  22. 22. Consumer Needs • A 2015 Nuance research found that 9 in 10 respondents had used an automated self-service system to answer a question or complete a task. 59% of respondents agreed that the availability of an automated self-service option has improved customer service. • Consumers expressed desire for companies to offer advanced systems to help them find answers and solve problems easily. Nuance, “The Millennialization of Customer Service”, 2015
  23. 23. Consumer Trends • Forrester predicts that “customer service organizations will make self-service easier for customers to use by solidifying their knowledge-management strategy and exploring virtual agents and communities to extend the reach of curated content.” • According to Forrester, organizations will embed knowledge into devices, or deliver it via wearables to a remote service technician. Forrester, “Trends 2016: The Future Of Customer Service”, Jan 2016 Xerox has a knowledge base embedded in its connected devices and it monitors them to make real-time performance information available. When an issue occurs, customers can troubleshoot via the device’s screen, or via a PC or mobile phone.
  24. 24. Channel Trends • According to Forrester, web and mobile self-service interactions overtake all other channels. Web self-service use increased from 67% in 2012 to 76% in 2014. 31% 28% 56% 58% 0% 10% 20% 30% 40% 50% 60% 70% Online forums/communities use virtual agent 2012 2015 Forrester, “Online Self Service Dominates Yet Again. Why? Its An Effortless Way To Get To Your Answers”, Jan 2016 • From 2012 to 2015 online forums/communities use increased from 31% to 56%; virtual agent use increased from 28% to 58%; respondents also reported using speech self-service 55% of the time.
  25. 25. Channel Trends • According to a Nice / BCG survey, successful problem resolution and customer satisfaction are still the highest when live representatives are involved via phone/ visit). Website self service is next. 2016 Nice-BCG CX Survey
  26. 26. Channel Trends | Mobile • In line with penetration and use trends, mobile is gaining momentum as a preferred service channel. 2016 Nice-BCG CX Survey
  27. 27. Channel Trends | Mobile • In 2015, Taco Bell disclosed that the average digital order with its new mobile app is 20% higher than traditional orders made with a human cashier, mostly from orders for additional ingredients. • Starbucks introduced its Mobile Order & Pay feature, that lets customers order and pay for beverages in advance and pick them up without waiting in the cashier line. • According to the company, in February 2016, about 7 million orders were placed through mobile devices in U.S. cafés. The order-ahead feature accounts for about 15% of those payments, and 3% of total transactions.
  28. 28. Channel Trends | Social Media • Social media, however, is not a popular self service channel. 2016 Nice-BCG CX Survey
  29. 29. Channels Trends | Emerging Channels • Forrester predicts that customer service organizations will explore new channels such as messaging apps, video chat, and remote control devices to perform tasks on the customer’s behalf in 2016. Forrester, “Trends 2016: The Future Of Customer Service”, Jan 2016 UK footwear retailer Schuh reported lifts of 4x in conversion rates and 10% in average order values for sessions involving video instead of text chat (source: Forrester) econsultancy
  30. 30. Channels Trends | Online live chat • Live chat, offering a quick and convenient way to get support, is becoming the preferred way for customers to contact customer service. 92% 88% 85% 85% 84% 77% Customer satisfaction for live chat is higher than any other channel Chat Voice Web Form Email Facebook Twitter Zendesk, “The zendesk benchmark Q1 2015 In focus: live chat”
  31. 31. Channels Trends | Online live chat • Online chat adoption among customers has significantly risen from 38% in 2009 to 43% in 2012 to 65% in 2015, according to Forrester research. 38% 43% 65% 0% 10% 20% 30% 40% 50% 60% 70% Online Chat Adoption 2009 2012 2015 Forrester, “Online Self Service Dominates Yet Again. Why? Its An Effortless Way To Get To Your Answers”, Jan 2016
  32. 32. Channel Trends | Messaging Apps • In April 2016, Facebook announced it will allow businesses to deliver automated customer support, e- commerce guidance, content and interactive experiences through chatbots. 1-800 Flowers is using Facebook’s Messenger chatbots to allow users to order followers, pay for them, and track their delivery via the app. In June 2016, Creative Virtual made its natural language virtual agent technology, V-Person, available within Facebook Messenger. This integration provides users with instant, 24/7 access to information and support through a natural language dialogue. users can be seamlessly escalated to a live chat agent within Messenger with their conversation history being passed from virtual to live agent.
  33. 33. Channel Trends | Messaging Apps • In 2016, Nuance Communications, Inc. announced ”Nina for Messaging”, which enables companies to engage with their customers via two-way messaging on mobile devices. • In 2015, WeChat released a new service enabling to manage Moments Ads via a self-service platform. Users are able to automatically “top-up” their account without having to reach an ads sales team. digital jungle
  34. 34. Tools & Platforms | Virtual Agents • IBM’S Watson Engagement Advisor is a cognitive agent that interacts with customers via a smartphone, a browser or a robot. Acting as a virtual agent, Watson speaks to customers in plain, conversational English, giving and delivering answers clearly. When not sure if it has the right answer, it will deflect the call to a live agent. Watch a video Source: IBM In 2016, Hilton Worldwide and IBM announced a collaboration to pilot “Connie”, the first Watson-enabled robot concierge in the hospitality industry. Connie can inform guests on local tourist attractions, dining recommendations and hotel features and amenities.
  35. 35. Tools & Platforms | Video Chat • Gartner estimates that more than 50 of the 500 largest global businesses will introduce video-based chat by 2018 for customer- facing interactions. • According to the company, video chat provides customers with a richer sense of presence, personalized experience, and real-time sharing of content. Gartner, “Gartner Says Weak Mobile Customer Service Is Harming Customer Engagement”, Jan 2015 • Amazon is offering the Mayday button for its Fire Tablet, allowing users to connect to an Amazon Tech advisor that can co- pilot the user by drawing on the screen, or walking the user through how to do something itself, or doing it for them. Mayday is available 24x7, 365 days a year, for free. Source: Amazon Waliceo Health Insurance offers its visitors different channels to contact customer service including telephone, email and since 2014, Click to Chat, Click to Call and Click to Video (offering extra convince for its customers with hearing difficulties). According to the company, satisfaction rate of visitors who were supported in real-time via Chat, Call or Video is at 89%.
  36. 36. Tools & Platforms | Hybrid Chat • Hybrid Chat offers customers to start their interaction with a virtual avatar – by phone or by online chat - and advance to a live agent (that will have conversation’s history) if they are not satisfied with the answers they get. Spanish airline company Volotea is offering a Hybrid Chat feature
  37. 37. Tools & Platforms | Internet of Things • According to Gartner, by 2018, 5% of customer service cases will be initiated by Internet-connected devices, up from 0.02% in 2014. • Gartner predicts that "things" (excluding PCs, tablets and smartphones), will grow to 26 billion units in 2020. The added connectivity, communications and intelligence of such devices makes them ideal for services currently delivered by humans. Forrester, “Trends 2016: The Future Of Customer Service”, Jan 2016 • In 2014, Amazon introduced Echo, a smart voice-controlled wireless speaker. Users can ask Echo for information, music, news, ordering a pizza from Domino's or requesting an Uber ride, from across the room and get results or answers instantly. • In 2015, Amazon launched its new Dash Button, a pre-set physical Button for product-reordering that Amazon Prime members can place anywhere in their homes with a single push of a button.
  38. 38. Tools & Platforms | VR & AR • In 2016, eBay and leading Australian retailer Myer have launched the first-ever virtual reality department store, with product information updated in real time. More than 12,500 Myer products can be browsed, selected and added to a shopper’s cart using eBay’s Sight Search function. (Watch the video).
  39. 39. Channel Preference by Industry • According to a Nice / BCG survey, customers select a preferred channel according to the interaction reason 2016 Nice-BCG CX Survey
  40. 40. Summary: Self Service Trends • Community Based Self Service • Assisted Self- Service • Content / big data based unassisted self service • Completely transactional / unassisted Online payment, ordering, billing information FAQ, product / service information and instructions (e.g., videos, IVR, Virtual Assistants( Peer to peer platforms, aggregators Online Chat / video chat, Email / instant messaging / SMS response systems, Social Customer Service Source: Schieber Research, 2016
  41. 41. Thank You! The research was conducted by: Gili Rosenbaum-Tumarkin Schieber Research | Market Research & Competitive Intelligence www.researchci.com | hamutal@researchci.com More articles and researches on Carmelon Digital Marketing website: http://www.carmelon-digital.com

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