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.

1. Self Service - Trends & Innovations
Gili Rosenbaum-Tumarkin | August 2016

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Channel Trends | Social Media
• Social media,
however, is not
a popular self
service channel.
2016 Nice-BCG CX Survey

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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:
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