Customer Experience Technology in Australia & New Zealand Market Research Report May 2017

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1 Customer Experience Technology in Australia & New Zealand Market Research Report May 2017

2 Content 1. Objec(ves & Methodology 2. Who Did We Interview? 3. Customer Experience Maturity 4. Data Analy(cs In Focus 5. Using Technology To Op(mise CX 6. Emerging Technologies 7. Cloud Migra(on 8. The Hallmarks of Smarter CX Organisa(ons

3 Background and Methodology

4 Research ObjecGve To understand how ANZ businesses are becoming smarter CX organisa(ons

5 Research Methodology n=282 senior decision makers regarding CX across ANZ n=174 respondents in Australia n=108 respondents in NZ Respondents were contacted through an online panel, as well as invites were sent to FiXh Quadrant, Oracle and AusContact databases 10 minute online survey Surveys were completed between 23 rd March 17 th April

6 Who Did We Interview?

7 A range of businesses opera(ng throughout Australia and New Zealand, across a range of industry sectors completed the survey Number of employees B2B vs B2C LocaGon employees employees 1,000-4,999 employees 22% 40% 25% Primarily business-toconsumer Primarily business-tobusiness 27% 39% 6% WA NT/ SA QLD NSW/ACT 17% 41% 5,000+ employees 12% Combina(on of consumer and business 34% 9% VIC/TAS 26% Turnover Industry $1 million - $9.99 million 33% Services Distribu(on 28% 46% North Island 85% $10 million - $99.99 million 37% Government 13% Manufacturing 9% South Island $100 million or more 30% Other 3% 15% Base Total: n=282, Australia: n=174, New Zealand: n=108 7

8 All respondents are responsible for developing CX strategy and management in their organisa(on, or have some level of influence Role Job Gtle Responsible for developing the strategy and execu(ng ini(a(ves 30% General Manager/Director 37% Significant influence 47% C-level decision maker (CEO) 14% Limited influence 23% Strategy/Sales/Marke(ng Manager 12% Gender Head of Customer Insight 11% CX Manager 9% 53% 47% Head of Contact Centre 7% Other roles influencing CX 10% Base Total: n=282, Australia: n=174, New Zealand: n=108 8

9 Customer Experience Maturity

10 A fixh of businesses believe they are able to deliver a high level of customer experience. The same propor(on, however rate themselves below average Customer Experience Maturity: Overall on a scale of 0-10, how do you rate your organisagon's ability to deliver a high level of customer experience? CX Laggards Do not deliver (0-6) 26% 22% CX Leaders: Deliver extremely well (9-10) 52% CX Followers: Catching up (7-8) Q17 Overall on a scale of 0-10, how do you rate your organisaeon's ability to deliver a high level of customer experience? Base n=282 10

11 Businesses that are more advanced on the CX Maturity scale are also more able to achieve above average revenue OrganisaGonal revenue growth over the last three years by CX maturity Below average in our industry About average in our industry Above average in our industry Total 5% 54% 41% CX Leaders (9-10) 2% 36% 62% CX Followers (7-8) 1% 58% 41% CX Laggards (0-6) 14% 61% 26% Q18 How does your organisaeon's revenue growth over the last three years compare to the average for your industry?/ Base n=282, CX Leaders n=61, CX Followers n=147, CX Laggards n=74 11

12 What are CX Leaders businesses doing differently?

13 Organisa(ons are combining data from mul(ple sources and touchpoints to enable personalised experiences relevant to each customer OrganisaGonal performance Poor (0-4) Average (5-6) Good (7-8) Excellent (9-10) Delivering a more predic(ve and personalised customer experience 13% 30% 42% 16% Combining customer data from mul(ple sources to inform our sales and marke(ng strategy 14% 30% 38% 18% Crea(ng accurate, individualised profiles for each customer 15% 34% 34% 17% Combining data from all channels/ touchpoints to provide a single view of the customer 19% 31% 34% 16% Channel integra(on 14% 37% 37% 12% Q19. Using a scale of 0 to 10 where 0 is a very poor performance and 10 is an excellent performance, how would you rate the performance of your organisaeon in Base n=282 13

14 CX leaders clearly outperform on data management and analy(cs and hence have a significant compe((ve advantage over the other segments Performance in the following areas (Rated 7-10) Leaders Followers Laggards Delivering a more predic(ve and personalised customer experience 97% Delivering a more predic(ve and personalised customer experience 63% Delivering a more predic(ve and personalised customer experience 15% Combining customer data from mul(ple sources to inform our sales and marke(ng strategy 84% Combining customer data from mul(ple sources to inform our sales and marke(ng strategy 59% Combining customer data from mul(ple sources to inform our sales and marke(ng strategy 27% Crea(ng accurate, individualised profiles for each customer 82% Crea(ng accurate, individualised profiles for each customer 55% Crea(ng accurate, individualised profiles for each customer 19% Channel integra(on 79% Channel integra(on 50% Channel integra(on 23% Combining data from all channels touchpoints to provide a single view of the customer 75% Combining data from all channels touchpoints to provide a single view of the customer 55% Combining data from all channels touchpoints to provide a single view of the customer Q19. Using a scale of 0 to 10 where 0 is a very poor performance and 10 is an excellent performance, how would you rate the performance of your organisaeon in Base n=282, CX Leaders n=61, CX Followers n=147, CX Laggards n=74 14

15 The majority of organisa(ons acknowledge the importance of accurate behaviour based data to enable a predic(ve, personalised experience on the device of choice Importance to customer experience strategy success to achieve the following: Providing customer experiences that are. Not important (0-4) Less important (5-6) Important (7-8) Extremely important (9-10) Responsive to a customer based on real- (me, in the moment behaviour 5% 18% 35% 41% Responsive to a customer based on their previous behaviour 5% 19% 44% 32% Personalised 6% 19% 32% 43% Op(mised to the device 10% 40% 31% Q12. How important is it to your customer experience strategy success to achieve the following? Base n=282 15

16 CX Leaders place a much higher level of importance on device op(misa(on Importance to customer experience strategy success to achieve the following (% rated 7-10) Leaders Followers Laggards Responsive to previous behaviour 90% Responsive to previous behaviour 82% Responsive to previous behaviour 53% Responsive in real (me 87% Responsive in real (me 80% Responsive in real (me 59% Op(mised to the device 90% Op(mised to the device 76% Op(mised to the device 46% Personalised 85% Personalised 82% Personalised 53% Q12. How important is it to your customer experience strategy success to achieve the following? Base n=282, CX Leaders n=61, CX Followers n=147, CX Laggards n=74 16

17 The customer is in charge and has many choices. Accordingly, loyalty will con(nue to decline if personalisa(on con(nues to be impeded by data and op(misa(on issues Challenges when it comes to meegng customer expectagons Digital channels and compe((on have made customers less loyal Customers prefer interac(ons to be on their terms Single greatest challenge 17% 15% All challenges 29% 31% Unable to deliver seamless personalised experiences Struggle to centralize our various data-sources and our customer data Purchasing journey is not properly op(mised for mul(ple/ mobile devices Compe(tors can provide a faster and smoother customer experience 18% 10% 7% 11% 28% 27% 24% 22% Digital marke(ng campaigns are resona(ng less Sales approach does not deliver on the promises of our marke(ng campaigns We are struggling to be heard above the noise of digital communica(ons 5% 6% 6% 14% 14% 17% Q1. Which of the following are your biggest challenges when it comes to meeeng customer expectaeons? Q2. And which one is your single greatest challenge? Base n=282 17

18 It appears that CX Laggards have not dealt with the data and integra(on issues as they perceive changes in customer behaviour and loyalty to be less of an issue. Playing catch up may be hard to do Greatest challenges when it comes to meegng customers expectagons Leaders Followers Laggards Customers prefer interac(ons to be on their terms 41% Customers prefer interac(ons to be on their terms 30% Customers prefer interac(ons to be on their terms 19% Customers more fickle and less loyal 34% Customers more fickle and less loyal 33% Customers more fickle and less loyal 24% Digital marke(ng campaigns are resona(ng less 25% Digital marke(ng campaigns are resona(ng less 12% Digital marke(ng campaigns are resona(ng less Struggling to centralize various data-sources 23% Struggling to centralize various data-sources 22% Struggling to centralize various data-sources 39% Online purchasing journey is not properly op(mised 23% Online purchasing journey is not properly op(mised 29% Online purchasing journey is not properly op(mised 15% Compe(tors can provide a faster and smoother CX 23% Compe(tors can provide a faster and smoother CX Compe(tors can provide a faster and smoother CX 26% Struggling to be heard above the noise of digital communica(ons 18% Struggling to be heard above the noise of digital communica(ons 14% Struggling to be heard above the noise of digital communica(ons 11% Unable to deliver seamless personalised experiences 16% Unable to deliver seamless personalised experiences 26% Unable to deliver seamless personalised experiences 42% Sales approach does not deliver on promises 13% Sales approach does not deliver on promises 13% Sales approach does not deliver on promises 16% Q1. Which of the following are your biggest challenges when it comes to meeeng customer expectaeons? Base n=282, CX Leaders n=61, CX Followers n=147, CX Laggards n=74 18

19 Data AnalyGcs In Focus

20 The more tradi(onal data sources s(ll remain the most important to build customer profiles. However, more than one third of organisa(ons are placing more importance on user generated data created online, on device or on social media Most important data sources to build customer profiles Customer transac(on data 25% Customer feedback streams, e.g sa(sfac(on, NPS etc. 22% CRM data 18% Social media data 10% Web browsing data 8% Mobile device user generated data 6% Data generated by connected devices and sensors 6% Social network profiles 5% Q20. Please select which of the following data sources is the most important for your company to build customer profiles? Base n=282 20

21 CX Leaders place a higher level of importance on customer feedback streams, demonstra(ng they are more ac(vely embedding feedback, not just behavioural data when profiling Most important data source to build customer profiles Leaders Followers Laggards Customer feedback streams 28% Customer feedback streams 22% Customer feedback streams 16% Customer transac(on data 21% Customer transac(on data 22% Customer transac(on data 34% Social media data 13% Social media data 10% Social media data 7% CRM data 11% CRM data CRM data Web browsing data 8% Web browsing data 7% Web browsing data 8% Social network profiles 8% Social network profiles 6% Social network profiles 1% Data generated by connected devices and sensors 7% Data generated by connected devices and sensors 6% Data generated by connected devices and sensors 5% Mobile device user generated data 3% Mobile device user generated data 7% Mobile device user generated data 7% Q20. Please select which of the following data sources is the most important for your company to build customer profiles? Base n=282, CX Leaders n=61, CX Followers n=147, CX Laggards n=74 21

22 While customer feedback streams are considered to be very important, nearly one third of organisa(ons are facing difficul(es integra(ng this data into profiling Most difficult data sources to compile and use to build customer profiles Customer feedback streams, e.g sa(sfac(on, NPS etc. 27% CRM data 24% Social media data 24% Customer transac(on data 21% Social network profiles 21% Mobile device user generated data Web browsing data 18% Data generated by connected devices and sensors 18% Q21. Which data sources does your company find most difficult to compile and use to build customer profiles? Base n=282 22

23 CX Leaders businesses are most likely to acknowledge the difficulty of compiling customer feedback streams to build customer profiles. Laggards struggle to get to grips with the basics of building profiles around CRM and customer transac(on data Most difficult data sources to compile and use to build customer profiles Leaders Followers Laggards Customer feedback streams 36% Customer feedback streams 25% Customer feedback streams 23% Social media data 31% Social media data 18% Social media data 28% CRM data 25% CRM data 22% CRM data 27% Mobile device user generated data 23% Mobile device user generated data 19% Mobile device user generated data 19% Social network profiles 16% Social network profiles 22% Social network profiles 22% Web browsing data 15% Web browsing data 18% Web browsing data Data generated by connected devices and sensors 15% Data generated by connected devices and sensors 18% Data generated by connected devices and sensors Customer transac(on data 10% Customer transac(on data 22% Customer transac(on data 28% Q21. Which data sources does your company find most difficult to compile and use to build customer profiles? Base n=282, CX Leaders n=61, CX Followers n=147, CX Laggards n=74 23

24 Using Technology To OpGmise CX

25 Reflec(ng the ongoing issues with accessing data, organisa(ons will be inves(ng CRM, Data Analy(cs and Customer Feedback technologies over the next 12 months Top prioriges in technology investment to improve the customer experience over the next 12 months Highest priority All priori(es Customer Rela(onship Management Data analy(cs Customer feedback/voc 9% 13% 16% 36% 36% 39% Social media 11% 30% Digital technologies to manage web experience 12% 27% Knowledge management 7% 26% Mobile apps Contact centre/call centre E-Commerce 7% 9% 5% 22% 25% On average, businesses have 3.2 prioriges Mobile op(misa(on 5% Marke(ng automa(on 5% 18% Channel integra(on 2% 16% Q3. Which of the following are your organisaeon's top prioriees in technology investment to improve the customer experience over the next 12 months? Q4. What is your organisaeon's highest priority in technology investment to improve the customer experience over the next 12 months? Base n=282 25

26 Leaders are inves(ng in enterprise feedback management technologies and social, whereas Laggards and Followers are focusing on CRM PrioriGes in technology investment to improve the customer experience over the next 12 months Leaders Followers Laggards Customer feedback/voc 46% Customer feedback/voc 36% Customer feedback/voc 27% Social media 41% Social media 29% Social media 22% Data analy(cs 36% Data analy(cs 35% Data analy(cs 38% Mobile apps 31% Mobile apps 27% Mobile apps 18% Knowledge management 30% Knowledge management 27% Knowledge management 22% E-Commerce 28% E-Commerce 19% E-Commerce 16% Digital technologies to manage web experience Customer Rela(onship Management 26% 25% Digital technologies to manage web experience (content and Customer Rela(onship Management (CRM) 26% 41% Digital technologies to manage web experience (content and Customer Rela(onship Management (CRM) 31% 45% Contact centre/call centre 21% Contact centre/call centre 22% Contact centre/call centre 22% Mobile op(misa(on 21% Mobile op(misa(on 22% Mobile op(misa(on 14% Marke(ng automa(on Marke(ng automa(on 15% Marke(ng automa(on 22% Channel integra(on 16% Channel integra(on 17% Channel integra(on 15% Q3. Which of the following are your organisaeon's top prioriees in technology investment to improve the customer experience over the next 12 months? Base n=282, CX Leaders n=61, CX Followers n=147 Laggards n=74 26

27 Technology investment is driving disrup(on across many aspects of organisa(ons. While customer engagement is a key focus, technology is recognised as an enabler of culture change, skillsets, sales and marke(ng and innova(on Main drivers of technology investment within the business Increasing customer engagement over the en(re life cycle 44% Building a culture and new skillsets for the future 34% Increasing customer conversion in digital channels 30% Greater speed in geong your products and services to market 28% Leveraging data and customer insights to gain compe((ve advantage 28% Building an environment that allows teams to test and learn 24% Op(mising self-service to improve CX and drive efficiency Protec(ng your proposi(on from the compe((ve threat from disruptors 21% 23% Q14. Which of the following do you see as main drivers of technology investment within your business? Base n=282 27

28 CX leaders are using technology investment to increase agility and overcome compe((ve threats Main drivers of technology investment within the business Leaders Followers Laggards Increasing customer engagement over the en(re life cycle 48% Increasing customer engagement over the en(re life cycle 45% Increasing customer engagement over the en(re life cycle 39% Building a culture and new skillsets for the future 36% Building a culture and new skillsets for the future 37% Building a culture and new skillsets for the future 24% Greater speed in geong your products and services to market 36% Greater speed in geong your products and services to market 31% Greater speed in geong your products and services to market 16% Increasing customer conversion in digital channels 31% Increasing customer conversion in digital channels 29% Increasing customer conversion in digital channels 30% Protec(ng proposi(on from compe((ve threat from disruptors 31% Protec(ng proposi(on from compe((ve threat from disruptors 22% Protec(ng proposi(on from compe((ve threat from disruptors 11% Building an environment that allows teams to test and learn 30% Building an environment that allows teams to test and learn 25% Building an environment that allows teams to test and learn 16% Leveraging data and customer insights to gain compe((ve advantage 26% Leveraging data and customer insights to gain compe((ve advantage 31% Leveraging data and customer insights to gain compe((ve advantage 26% Op(mising self-service to improve CX and drive efficiency 26% Op(mising self-service to improve CX and drive efficiency 19% Op(mising self-service to improve CX and drive efficiency 30% Q14. Which of the following do you see as main drivers of technology development within your business? Base n=282, CX Leaders n=61, CX Followers n=147, CX Laggards n=74 28

29 The smart use of technology to deliver beper customer experiences and opera(onal efficiency will drive revenue, reten(on and compe((ve advantage for businesses Main business outcome businesses are expecgng from technology investments in 2017 Op(mising the customer experience Increasing revenue Improving opera(onal efficiency e.g. faster and more responsive enquiry management Increasing customer reten(on 15% 18% 17% Increasing compe((ve advantage 13% Reducing opera(ng costs e.g. lower cost to serve customer 9% Increasing employee engagement 5% Protec(ng against disruptors/start-ups 2% Q13. What is the main business outcome you are expeceng from the investment you will be making in technologies to support the customer experience in 2017? Base n=282 29

30 CX Leaders are expec(ng technology to enhance their compe((ve advantage to drive acquisi(on, whereas Followers and Laggards are more focused on customer reten(on Main business outcome businesses are expecgng from technology investments in 2017 Leaders Followers Laggards Op(mising the customer experience 30% Op(mising the customer experience 16% Op(mising the customer experience Increasing compe((ve advantage Increasing compe((ve advantage 15% Increasing compe((ve advantage 5% Improving opera(onal efficiency 16% Improving opera(onal efficiency 16% Improving opera(onal efficiency 19% Increasing revenue 15% Increasing revenue 19% Increasing revenue 19% Reducing opera(ng costs 7% Reducing opera(ng costs 9% Reducing opera(ng costs 9% Increasing customer reten(on 5% Increasing customer reten(on 18% Increasing customer reten(on 15% Increasing employee engagement 5% Increasing employee engagement 3% Increasing employee engagement 9% Protec(ng against disruptors/start-ups 2% Protec(ng against disruptors/start-ups 3% Protec(ng against disruptors/start-ups 3% Q13. What is the main business outcome you are expeceng from the investment you will be making in technologies to support the customer experience in 2017? Base n=282, CX Leaders n=61, CX Followers n=147, CX Laggards n=74 30

31 Technology investment will provide customers with a personalised, low effort experience oxen delivered via a self-service solu(on Main customer outcome businesses are expecgng from technology investments in 2017 Providing a more seamless and integrated customer experience 34% Suppor(ng self-service for customers 21% Providing a more predic(ve and personalised customer experience 19% Crea(ng an emo(onal connec(on with customers 13% Speeding up product delivery 11% Q15. What is the main customer outcome you are expeceng from the investment you will be making in technologies to support the customer experience in 2017? Base n=282 31

32 CX Leaders appear to have moved through self-service ini(a(ves and are now focused on crea(ng emo(onal connec(ons with customers as well as op(mising the supply chain to speed up product delivery Main customer outcome businesses are expecgng from technology investments in 2017 Leaders Followers Laggards Providing a more seamless and integrated customer experience 34% Providing a more seamless and integrated customer experience 32% Providing a more seamless and integrated customer experience 36% Crea(ng an emo(onal connec(on with customers 23% Crea(ng an emo(onal connec(on with customers 16% Crea(ng an emo(onal connec(on with customers 1% Speeding up product delivery Speeding up product delivery 9% Speeding up product delivery 9% Providing a more predic(ve and personalised customer experience 16% Providing a more predic(ve and personalised customer experience Providing a more predic(ve and personalised customer experience 19% Suppor(ng self-service for customers 7% Suppor(ng self-service for customers 22% Suppor(ng self-service for customers 30% Q15. What is the main customer outcome you are expeceng from the investment you will be making in technologies to support the customer experience in 2017? Base n=282, CX Leaders n=61, CX Followers n=147, Laggards n=74 32

33 Interes(ngly, more organisa(ons believe Gen X will benefit from their technology than Millennials and Gen-Y. As technology investment should reduce complexity and therefore effort, it makes sense that any technical skills gap between genera(ons will be negated Main customer demographic that will benefit from technology investments Millennials/Gen-Y (14-34 years old) 37% Gen-X (35-50 years old) 43% Boomers (51-69 years old) 7% Silent Genera(on (70+ years old) 2% Not sure 11% Q16. What is the customer demographic that will benefit most from the investment you will be making in technologies to support the customer experience in 2017? 33

34 Emerging Technologies

35 Intelligent Personal Assistants/Chatbots and Internet of Things are the top emerging technologies that are believed to most improve CX Emerging technologies believed to significantly improve the customer experience Top technology All technologies Intelligent Personal Assistants / Chatbots 14% 36% Products that communicate directly with manufacturers and customers (Internet of Things) 16% 29% Video assistance 9% 26% Service or sales through MSN Messenger, WeChat or WhatsApp 10% 21% Augmented reality so that products can augment the way they look 8% Ar(ficial Intelligence 9% 19% Wearable devices Virtual Reality using gaming technology to create interac(ve environments Robo(cs 5% 4% 7% 14% 16% 18% Drones 2% 11% Q7. Which of the following emerging technologies do you believe will significantly improve the customer experience? Q8. And which emerging technology do you believe will most improve the customer experience? Base n=282 35

36 Leaders are more likely to acknowledge the poten(al of Intelligent Personal Assistants/Chatbots and connected devices to enable new customer experiences Emerging technologies believed to significantly improve the customer experience Leaders Followers Laggards Intelligent Personal Assistants / Chatbots 41% Intelligent Personal Assistants / Chatbots 37% Intelligent Personal Assistants / Chatbots 30% Internet Of Things 36% Internet Of Things 29% Internet Of Things 24% Wearable devices 30% Wearable devices 18% Wearable devices 11% Video assistance 28% Video assistance 27% Video assistance 22% Service or sales through MSN Messenger, WeChat, etc. 25% Service or sales through MSN Messenger, WeChat, etc. 21% Service or sales through MSN Messenger, WeChat, etc. 18% Augmented Reality 23% Augmented Reality 18% Augmented Reality Ar(ficial Intelligence 18% Ar(ficial Intelligence 21% Ar(ficial Intelligence 15% Robo(cs 16% Robo(cs 14% Robo(cs 14% Virtual Reality 15% Virtual Reality 19% Virtual Reality 12% Drones 13% Drones 9% Drones 12% Q7. Which of the following emerging technologies do you believe will significantly improve the customer experience? Base n=282, CX Leaders n=61, CX Followers n=147, CX Laggards n=74 36

37 Nearly half of businesses will have Intelligent Personal Assistants / Chatbots, predic(ve analy(cs, video assistance and products directly communica(ng with manufacturers and customers implemented by 2020 Key areas of technology Already implemented + Planning to implement by 2020 = Total implemented by 2020 Intelligent Personal Assistants / Chatbots 25% 33% 58% Video assistance 25% 21% 47% Products that communicate directly with manufacturers and customers 24% 21% 45% Service or sales through MSN Messenger, WeChat or WhatsApp 21% 41% Augmented reality so that products can augment the way they look 11% 17% 28% Virtual Reality using gaming technology 12% 14% 26% Wearable devices 13% 13% 26% Ar(ficial Intelligence 9% 16% 25% Robo(cs 10% 11% Drones 8% 8% 16% Q9. Which of these emerging technologies have you already implemented or trialled in your business? Q10. Which of these emerging technologies are you planning to implement by 2020? Base n=282 37

38 Leaders are more advanced in their trial and implementa(on of emerging technologies and hence are more likely to recognise the benefits Leaders Key areas of technology already implemented/trialled Followers Laggards Ave # tech implemented/trialled: 2.2 Ave # tech implemented/trialled: 1.6 Ave # tech implemented/trialled: 1.2 Intelligent Personal Assistants / Chatbots 36% Intelligent Personal Assistants / Chatbots 23% Intelligent Personal Assistants / Chatbots Internet Of Things 34% Internet Of Things 23% Internet Of Things 18% Service/sales through Chat Platorms, e.g. WhatsApp 26% Service/sales through Chat Platorms, e.g. WhatsApp Service/sales through Chat Platorms, e.g. WhatsApp 12% Wearable devices 25% Wearable devices 12% Wearable devices 5% Video assistance 23% Video assistance 31% Video assistance 16% Virtual Reality using gaming technology 18% Virtual Reality using gaming technology 13% Virtual Reality using gaming technology 5% Drones 13% Drones 7% Drones 5% Augmented Reality 11% Augmented Reality 14% Augmented Reality 4% Ar(ficial Intelligence 11% Ar(ficial Intelligence 9% Ar(ficial Intelligence 8% Robo(cs 11% Robo(cs 9% Robo(cs 9% Q9. Which of these emerging technologies have you already implemented or trialled in your business? Base n=282, CX Leaders n=61, CX Followers n=147, CX Laggards n=74 38

39 Leaders are turning their apen(on to the customer engagement and sales opportuni(es offered by chat platorms Service/sales through Chat Platorms, e.g. WhatsApp Leaders 29% Key areas of to implement by 2020 Service/sales through Chat Platorms, e.g. WhatsApp Followers 21% Laggards Ave # tech to implement: 1.6 Ave # tech to implement: 1.6 Ave # tech to implement: 1.5 Service/sales through Chat Platorms, e.g. WhatsApp 15% Intelligent Personal Assistants / Chatbots 28% Intelligent Personal Assistants / Chatbots 35% Intelligent Personal Assistants / Chatbots 31% Internet of Things 23% Internet of Things Internet of Things Virtual Reality 22% Virtual Reality 11% Virtual Reality 14% Video assistance 21% Video assistance 24% Video assistance 18% Augmented Reality Augmented Reality 17% Augmented Reality 15% Ar(ficial Intelligence 15% Ar(ficial Intelligence 19% Ar(ficial Intelligence 10% Wearable devices 11% Wearable devices 15% Wearable devices 10% Robo(cs 9% Robo(cs 10% Robo(cs 13% Drones 4% Drones 9% Drones 9% Q10. Which of these emerging technologies are you planning to implement by 2020? Base n=282, CX Leaders n=61, CX Followers n=147, CX Laggards n=74 39

40 Cloud MigraGon

41 Full migra(on to the cloud is highest amongst CX Leaders businesses Which of the following best describes the current status of your organisagons technology infrastructure? Fully hosted on premise 27% 28% 23% 32% Par(ally migrated to the cloud (either public or private) 48% 28% 57% 47% Fully migrated to the cloud (either public or private) 25% 44% Total Advanced Average Laggards Q5. Which of the following best describes the current status of your organisaeons technology infrastructure? Base n=282 41

42 The majority of CX Leaders that needed to migrate to the cloud in order to provide high levels of CX have already done it so What plans do you have for future cloud migragon? (Amongst businesses fully hosted on premise) No plans to migrate to the cloud Planning to migrate beyond 2 years 56% 65% 50% 58% Planning to migrate in next 1-2 years 6% 24% 25% Planning to migrate in next 12 months 15% 18% 15% 9% 12% 12% 13% 4% Total Leaders Followers Laggards n=75 n=17* n=34 n=24* Q6. What plans do you have for future cloud migraeon? (Amongst businesses fully hosted on premise/pareally migrated) / Base n=211 *CauEon, low base size, results are indicaeve only! 42

43 The Hallmarks of Smarter CX OrganisaGons

44 The Hallmarks of Smarter CX Organisa(ons 1. Achieving Above Average OrganisaGonal Performance Businesses that are more advanced on the CX Maturity Scale are also more able to achieve above average revenue CX Leaders clearly outperform on data management and analy(cs and hence have a significant compeggve advantage over the other segments CX Leaders are using technology investment to increase agility and overcome compeggve threats CX Leaders are expec(ng technology to enhance their compeggve advantage to drive acquisigon, whereas Followers and Laggards are more focused on customer reten(on 2. Focusing On Data To Drive Customer Centricity CX Leaders place a higher level of importance on customer feedback streams, demonstra(ng they are more ac(vely embedding feedback, not just behavioural data when profiling. Accordingly, they are also inves(ng in enterprise feedback management technologies With higher importance on customer feedback streams, CX Leaders are most likely to acknowledge the difficulty of compiling customer feedback streams to build customer profiles 44

45 The Hallmarks of Smarter CX Organisa(ons 3. CreaGng EmoGonal ConnecGons With Customers CX Leaders appear to have moved through self-service ini(a(ves and are now focused on crea(ng emo(onal connec(ons with customers. Examples of how they are achieving this include: Op(mising the supply chain to speed up product delivery Placing a much higher level of importance on device opgmisagon 4. ImplemenGng And InvesGng In Emerging Technologies CX Leaders are more likely to acknowledge the of connected devices and intelligence to enable new customer experiences CX Leaders are more advanced in their trial and of emerging technologies and hence are more likely to recognise the benefits CX Leaders are turning their to the customer engagement and sales offered by chat plaiorms 45

46 For more informa(on please contact: T: F: E: W: Level 6, 107 Mount St, North Sydney, NSW, 2060, Australia F: T: L: ABN: ACN: