Moving from Multi-channel to Omni-channel Customer Engagement:
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1 Moving from Multi-channel to Omni-channel Customer Engagement: Intelligent Interaction Analytics are the Foundation A Frost & Sullivan White Paper
2 frost.com Introduction... 3 Growth of Digital Customer Engagement... 3 Empowered, Demanding Customers... 3 Richer Social, Mobile and Web... 4 Move from Multi-channel to Omni-channel Experiences... 4 The Importance of Multi-channel Analytics... 6 Solution Considerations: Factors in Choosing a Best-in-Class Platform... 7 Conclusion and Recommendations... 9 About HP WFO Software...10 contents
3 Moving from Multi-channel to Omni-channel Customer Engagement: Intelligent Interaction Analytics are the Foundation Introduction Consider this: Can the sophisticated use of analytics trump the old business advantages of geography, speed to market and proprietary technology? Frost & Sullivan believes that contact center insight analytics has the potential to yield significant competitive advantages: efficient and effective execution, smart decision making, understanding important customer insights, and the ability to squeeze every last drop of value from business processes. Even as companies are investing heavily in Digital Customer Engagement initiatives, the majority of contact centers are not harnessing all of the data sources available to them. However, today s platforms utilize advanced analytical functionality to rapidly identify customer, contact center, agent, and enterprise issues, trends, insights, and much more. Current solutions analyze the data, find trends, and deliver actionable recommendations to improve business performance. The overarching goal is to deliver richer and more personalized experiences to customers. Contact center analytics makes up a group of solutions that provides managers with tactical and actionable insights and recommendations. Good analytics solutions find patterns in the data and make this information available in real time. Change is continuous, and the plethora of new communication channels in the market is evolving at warp speed. This paper also contains Frost & Sullivan s most recent contact center research and trend data coverage. It includes enterprise considerations for complete customer experience management and discusses the importance of customer sentiment analysis. The Growth of Digital Customer Engagement Empowered, Demanding Customers With the rise of mobile and social technologies, customers are now more knowledgeable, empowered, and demanding than ever. Their ability to access and share information anytime, anywhere, puts them in control of their own experience. Why do we care? It s because these always-on connected customers expect to do business with companies on their terms including how, when and where they choose to interact for customer service and support. Now, the real work begins. A changing consumer landscape serves up challenges that can confound the most well-intentioned enterprises and providers. Consumers are expecting service on the channels they prefer. Like it or not, it s increasingly outside of voice, IVR and . To that end, Frost & Sullivan is witnessing a significant shift from traditional channels voice and to newer, digital channels mobile, social, Web, chat, and video. As shown in Chart 1 below, traditional channels accounted for 53% of customer interactions in However, in 2016, the opposite will be true, with digital channels forecasted to represent 54% of customer service interactions in This data is based on a Frost & Sullivan survey of over 300 contact center organizations in North America in
4 frost.com Chart 1: Channel Usage Customer Interaction Channel Usage (Percent of Total) Traditional Channels (Voice-live agent, IVR, ) Digital channels (Chat, Mobile app, Social media, Video,Web self-service) 53% 54% 47% 46% In 2014 Expected in 2016 Source: Frost & Sullivan 2014 Contact Center Survey; N=305 Enterprises in North America It is therefore critical for customer service organizations to develop new and expanded capabilities to support a growing array of digital channels. Richer Social, Mobile and Web The data shows that traditional channels, particularly phone interactions, are declining in overall volume. They are also increasing in complexity. Here s what it means: Consumers often prefer a digital-first touchpoint in contacting a brand. A person may start to find answers or resolve issues via digital channels first. If unsuccessful, they may escalate to a chat or video playback option. A phone call to customer care is probably the last resort. At this juncture in the journey, they are a lot better educated about products and services, but also may be angry and upset. Hence, brands that are prepared to meet these types of customer challenges have a chance to build deeper customer relationships and loyalty. Conversely, those companies that are not able to deliver risk losing customers and valuable business to rivals. The Move from Multi-channel to Omni-channel Experiences Contact centers need the capabilities to cover all aspects of multi-channel communication across all industries. The challenge for the call center executive is in determining how to invest in the processes and technologies needed across multiple channels. We believe that it s imperative to give agents the single view needed to give customers direct access to the experience they desire all at the right cost for the organization. Frost & Sullivan defines Omni-channel as seamless and effortless, high-quality customer experiences that occur within and between contact channels. It ensures that data and context from the initial contact carries over to subsequent channels, reducing customer effort, improving the customer interaction, and enabling the business to tailor the customer journey. 4
5 Moving from Multi-channel to Omni-channel Customer Engagement: Intelligent Interaction Analytics are the Foundation Frost & Sullivan believes that traditional, voice-centric call centers are morphing into Omni-channel centers of excellence. Some in the industry suggest the term, relationship hubs. The Omni-channel consumer wants to be able to use all available channels simultaneously, including the (retail) in-store experience. This consumer will also expect a positive experience in every communication channel in which they engage. To support this effort, agents in contact centers today are utilizing a wider arsenal of communication tools voice, video, , IVR, Web chat, file sharing, and social media. Frost & Sullivan believes that traditional, voice-centric call centers are morphing into Omni-channel centers of excellence. Some in the industry suggest the term, relationship hubs. The proliferation of channels and devices that consumers now have at their fingertips is creating an operational challenge for every contact center. As shown in Chart 2, one-third of contact center organizations state that their contact channels are fully integrated, while the largest proportion is mostly integrated. By 2016, 54% expect to be fully integrated (a 64% growth rate), primarily due to 50% of mostly integrated contact centers transitioning to full integration. Chart 2: Omni-channel Capabilities Integration of Contact Channels to Deliver Omni-channel Customer Experiences 17% 5% Don't know Not at all integrated Partially integrated Mostly integrated Fully integrated 49% % 40% 64% increase 54% In 2014 Expected in 2016 Source: Frost & Sullivan analysis We currently see the leaders in the industry moving very rapidly to deploy technology and processes. Their goal is to convert traditional contact centers into true multi-channel organizations with a single view of the customer. This structure provides valuable, integrated data for both customers and agents. 5
6 frost.com The Importance of Multi-channel Analytics Business Discovery Must Yield Actionable Insights The explosive amount of user-generated content on the Web makes it extremely difficult to uncover meaningful insights that can be acted upon. In all of the chatter and massive amounts of collected data, companies are desperate to gain a complete and holistic picture of their customers activity in real time. The reason is because today, most companies deliver what we refer to as fractured multi-channel experiences. When customers move from one channel to another, their context and history doesn t move with them. So they have to repeat their effort or problem when they move between channels. This situation results in lower customer satisfaction, missed opportunities for upsell/cross sell, and eventually customer churn. One of the key foundational elements along this journey is having a multi-channel analytical framework that captures and analyzes customer interactions both traditional and digital channels. One of the key foundational elements along this journey is having a multi-channel analytical framework that captures and analyzes customer interactions both traditional and digital channels. Once the groundwork is established, the next step is to leverage that insight as part of your company s operational systems. This would include CRM, contact center, and WFO systems in order to deliver meaningful Omni-channel customer experiences. The Impact on Workforce Optimization (WFO) Tools Chart 3 shows the wide variety of uses for WFO applications in the enterprise. More than 65% of respondents use the platform to understand customer behaviors, preferences and intentions; 60% look to identify process improvements. Chart 3: Enterprise Use of WFO applications 65% Using WFO Applications For 62% 60% 58% 56% 43% 1% Understanding customer behaviors, preferences, and intentions Traditional users such as call recording, scheduling, adherence, QA and training Identify process improvements Improve effectiveness of marketing campaigns Agent performance management Aligning contact center with other business units Other Source: Frost & Sullivan analysis 6
7 Moving from Multi-channel to Omni-channel Customer Engagement: Intelligent Interaction Analytics are the Foundation The takeaway from the research findings is that enterprises have found that the process of developing loyal, high-performing agents is tied directly to customer satisfaction and efficient business operations within the call center. It is a key factor for healthy customer interaction management (CIM). Benefits include: Lower attrition rates; Improvement in agent-to-customer communication; and Inclusion of effective tools for the desktop. Battling agent turnover and improving the overall customer experience continue to be top priorities in contact centers across the globe. No one can deny the importance of agent retention as a key benchmark for best-inclass contact center performance. Chart 4 below shows the dramatic increase that is predicted in the integration of WFO and Multi-channel applications from 2014 to As shown in Figure 4 below, only 22% of contact center organizations stated that they have fully integrated both. That proportion is expected to grow to 51% (a 132% increase) by This is important because it will mean greater collaboration and sharing of customer insights between sales, marketing, and customer service. This will ultimately drive greater revenue and value for the business. Chart 4: Percent Integration of WFO and Multi-channel Applications Integration of WFO and Multi-channel Contact Handling Applications 10% Don't know Not at all integrated Partially integrated Mostly integrated Fully integrated % 41% 22% 36% 132% increase 51% In 2014 Expected in 2016 Source: Frost & Sullivan analysis Solution Considerations: Factors in Choosing a Best-in-Class Platform Is it possible? A Singular Platform for Every Customer Touch Point Simply put, Multi-channel analytics involves data aggregation and analysis of multiple consumer communication sources. The platform choices can be overwhelming, while today s consumers frolic in a frenzied multi-device, multi-channel environment. Frost & Sullivan has assembled a number of solution considerations and pointed questions to be considered when selecting a best-in-class contact center analytics platform: 7
8 frost.com Multi-channel. Can the analytics platform: Capture interactions across all traditional and digital channels? Bring all that information together to analyze for meaningful insights at a customer level, customer segment level, and overall brand level? Leverage these insights across touchpoints, applications, and users? Integration Does the contact center analytics platform integrate easily and well with key operational systems? Quality monitoring Workforce management and scheduling Coaching and performance management Contact center, CRM, and marketing automation Ease of Deployment and Use Is the platform easily deployed with minimal professional services? Are administrators able to customize the presentation layer, including setting up views and dashboards specific to definable user roles? Will the system reveal live analysis of interaction content? Can users set up and build customized reports (tables, dashboards, charts) with relative ease? Functionality Is the platform scalable and agile? Can the data sets grow in complexity while benefiting other functional areas (marketing, sales) as new channels emerge? Does the system dynamically and automatically provide dashboard-based analytics that show progress in meeting relevant KPIs, including service-level agreements? Can the solutions optimize and centralize the distribution of all interactions across all communications channels? Product Roadmap What kind of R&D resources and capitalization has the provider invested in the platform? Does the product suite offer a full range of modules that can be deployed separately or operate seamlessly together? What is the timeline for new releases and product updates? 8
9 Moving from Multi-channel to Omni-channel Customer Engagement: Intelligent Interaction Analytics are the Foundation Conclusion & Recommendations Providing consistently excellent customer service has become one of today s top differentiators for enterprises across virtually every vertical market. As organizations struggle to balance customer satisfaction with the drive to increase revenue and minimize costs, they are increasingly exploring technologies and processes that help heighten the customer experience on one hand and help uncover actionable intelligence for informed business decisions on the other. Building Internal Support Strategic Objectives and Alignment. Determine the customer data sources and the business outcomes you are seeking. You want to track customer behavior across every potential engagement channel, regardless of entry point sales, service or support. The team must be able to paint a holistic picture of customer drivers, behaviors, and buying patterns by way of a rich customer dataset. An analytics platform should be mapped to corporate goals to uncover customer needs, predict future buying behavior, improve C-sat levels, and make agents more productive. Executive Team Sponsorship. In order to get funding and support, an executive (CXO) must be engaged and designated as the analytics champion. The right leader ensures that the campaign will have the organizational backing and accountability. Make sure that the proper stakeholders (sales, marketing, contact center) are on the team. Companies will need to allocate fairly substantial budgets for investments in analytics architecture, technologies, and management. Therefore, the project s success must be tied to the company s financial goals. Only in this way can the team build and manage a roadmap for success, as well as measure results. Best Practices Recommendation Short List 1. Recognize the Multi-channel nature of customer interactions. 2. Leverage these insights for customer service, marketing, and compliance applications. This benefits all customer experience stakeholders (end-user customers, agents, supervisors, QA analysts, marketing analysts, risk and compliance analysts, and executive teams). 3. Tightly integrate analytics tools with the operational systems that will ultimately consume and leverage these insights WFO, contact center, and CRM systems. Right Toolset, Right Company There are literally dozens of vendors in the contact center industry that provide customer interaction analytics solutions and suites for agent performance. Market dynamics and recent technical innovations bring new advances, functionality, complexity and challenges to daily contact center operations. This places customer contact analytics squarely in the spotlight as a must-have tool in today s contemporary contact center. Frost & Sullivan believes that contact center analytics properly deployed with the right partner and the right platform puts the delivery of integrated, intelligent and insightful customer interactions right at your fingertips. 9
10 frost.com About HP WFO Software With a 32-year history of innovation in the contact center industry and more than 20 technology patents, HP WFO Software provides enterprise contact centers with call recording, integrated workforce optimization and advanced Voice of Customer analytics backed by HP s superior customer service. HP s workforce optimization solution, HP Qfiniti, is a modular suite that includes tools designed to optimize workforce management, quality monitoring, liability recording, performance management, coaching and elearning, and surveying. Advanced Voice of Customer discovery is provided by HP Explore, an industry-leading analytics and reporting solution that enables the enterprise to quickly recognize and act upon customer insights in multichannel, multi-language environments. Working in close partnership with business customers around the world, HP WFO Software delivers true competitive advantage in the marketplace by enabling contact centers to drive down lower total cost of ownership and significantly improve customer service. Learn more at 10
11 Auckland Bahrain Bangkok Beijing Bengaluru Buenos Aires Cape Town Chennai Colombo Delhi/NCR Detroit Dubai Frankfurt Houston Iskander Malaysia/Johor Bahru Istanbul Jakarta Kolkata Kuala Lumpur London Manhattan Miami Milan Mumbai Moscow Oxford Paris Pune Rockville Centre San Antonio São Paulo Seoul Shanghai Shenzhen Silicon Valley Singapore Sophia Antipolis Sydney Taipei Tel Aviv Tokyo Toronto Warsaw Silicon Valley 1 E. Evelyn Ave., Suite 100 Mountain View, CA Tel Fax San Antonio 7550 West Interstate 10, Suite 400 San Antonio, TX Tel Fax London 4 Grosvenor Gardens London SW1W 0DH Tel +44 (0) Fax +44 (0) GoFrost myfrost@frost.com Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today s market participants. For more than 50 years, we have been developing growth strategies for the Global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies? For information regarding permission, write: Frost & Sullivan 1 E. Evelyn Ave., Suite 100 Mountain View, CA 94041
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