Multichannel Customer Experience Report
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1 Market Data / Supplier Selection / Event Presentations / User Experience Benchmarking / Best Practice / Template Files / Trends & innovation Multichannel Customer Experience Report In association with Foviance
2 Multichannel Customer Experience Report Published November 2010 All rights reserved. No part of this publication may be reproduced or transmitted in any form or by any means, electronic or mechanical, including photocopy, recording or any information storage and retrieval system, without prior permission in writing from the publisher. Copyright Econsultancy.com Ltd 2010 Econsultancy London 2nd Floor, 85 Clerkenwell Road London EC1R 5AR United Kingdom Telephone: +44 (0) Econsultancy New York 41 East 11th St., 11th Floor New York, NY United States Telephone:
3 Contents 1. About Econsultancy About Foviance Executive Summary and Highlights Introduction by Foviance Methodology and Sample Methodology Respondent profiles Role within responding organisation Business sector Geography Annual company turnover Job role Type of company Type of agency Findings Customer experience strategy Dominant competitive strategy Differentiation through superior customer experience Importance of multichannel customer experience strategy Company strategy for improving the customer experience Ease of implementing a customer experience strategy Long-term business performance and customer experience Gaining a single view of the customer Touch points Touch points used to communicate directly with customers Integration of channels with customer experience strategy Barriers Greatest barriers to improving the multichannel experience Problems improving the customer experience How to improve the customer experience Multichannel Customer Experience Report In association with Foviance
4 6.4. Measurement Organisational framework for measuring multichannel Methods to measure effectiveness of customer experience Most useful data source for measuring customer experience Ownership and budget Ownership of multichannel customer experience Dedicated budget for improving customer experience Job roles Multichannel Customer Experience Report In association with Foviance
5 1. About Econsultancy Econsultancy is a digital publishing and training group used by more than 200,000 internet professionals every month. The company publishes practical and time-saving research to help marketers make better decisions about the digital environment, build business cases, find the best suppliers, look smart in meetings and accelerate their careers. Econsultancy has offices in New York and London, and hosts more than 100 events every year in the US and UK. Many of the world's most famous brands use Econsultancy to educate and train their staff. Some of Econsultancy s members include: Google, Yahoo, Dell, BBC, BT, Shell, Vodafone, Virgin Atlantic, Barclays, Deloitte, T-Mobile and Estée Lauder. Join Econsultancy today to learn what s happening in digital marketing and what works. Call us to find out more on +44 (0) (London) or (New York). You can also contact us online. Multichannel Customer Experience Report Page 1
6 2. About Foviance About Foviance: better customer experiences Foviance is a cross-channel customer experience consultancy to the world's leading brands. We help clients drive business performance through better: Customer relationships Marketing effectiveness Use of technology Customer focused culture We use our proprietary Foviance Framework to help clients understand, define, assess and make improvements to their customer experience. The Foviance Framework: Multichannel Customer Experience Report Page 2
7 Our expertise includes: Customer experience strategy Customer insight Customer experience testing Customer analytics Customer experience and services design Client knowledge development Foviance works with each client to solve their single or multi-channel challenges in the area of customer experience using a range of established tools or proprietary solutions. For further information: Tel:+44 (0) , info@foviance.com, web: 3. Executive Summary and Highlights The Multichannel Customer Experience Report, published by Econsultancy in association with Foviance, is based on a survey of more than 500 companies and agencies. The research examines the extent to which organisations have a strategy for providing a joined-up customer experience and how close companies are to the holy grail of a single customer view. It is clear that while the vast majority of companies understand the impact on business performance, very few organisations have integrated, cross-channel processes and systems in place, or a strategy to help them to achieve this. Almost half of company respondents (49%) say that a joined-up multichannel customer experience is very important to their organisation, and a further 41% say it is quite important. More than two thirds of companies (68%) recognise a strong link between long-term business performance and customer experience, while 24% say there is a weak link. Only 8% say there is no recognition of a link. But nearly one in 10 companies (9%) surveyed, including organisations with revenues exceeding 1 billion, say there is no strategy for improving the customer experience. A further 69% say they are just beginning to develop the strategy. Only 22% of companies say they have a well-developed strategy. Multichannel Customer Experience Report Page 3
8 4. Introduction by Foviance This report provides real insight about how businesses are thinking and acting in the area of multi-channel customer experience. The issue is important today because it builds upon the retention strategies that many have adopted as a result of the global recession. But there are other, more pressing reasons why it is a key strategic challenge for organisations as they face an increasingly commoditised service economy and greater customer power brought about by the continuing evolution of the internet. Most importantly, it is a source of competitive advantage for those that can become truly customer-centric and there are various examples in the report that identify where businesses are on this journey. As this report reveals, the challenges range from organisational culture to basic budgeting, but the opportunity is tangible and most people surveyed recognise the direct link between customer centricity and business performance. Those that manage to pull it off will be the brands we all look to in the future and that customers talk about both off and online. Paul Blunden, CEO, Foviance 5. Methodology and Sample 5.1 Methodology This report is based on a survey of more than 500 respondents to an online survey 1 carried out in June and July Respondents included both client-side (in-house) and supply-side respondents (i.e. those working for agencies, consultancies or technology companies with an interest in customer experience). The findings are shown for both client-side ( company respondents ) and supply-side ( agency respondents ) separately. Information about the survey, including the link, was ed to Econsultancy s user base. The incentive for taking part was access to a complimentary copy of this report just before its publication on the Econsultancy website. If you have any questions about the research, please Econsultancy s Research Director, Linus Gregoriadis (Linus@econsultancy.com). 1 Econsultancy uses Clicktools for its online surveys Multichannel Customer Experience Report Page 4
9 5.2 Respondent profiles Role within responding organisation More than half of survey respondents (53%) work for an organisation interested in improving the customer experience, while some 41% work for agencies, consultancies or technology vendors. Figure 1: Which of the following most accurately describes your job role? Response: 541 Multichannel Customer Experience Report Page 5
10 6.1.3 Importance of multichannel customer experience strategy Almost half of companies (49%) say a joined-up multichannel customer experience is very important to their organisation, and a further 41% say it is quite important. Only 9% say it is not very important and 1% say it is not at all important. A similarly large proportion (91%) of supply-side respondents [Figure 12] believe that a joined-up multichannel experience is either very important or quite important (for their clients), but slightly fewer respondents (42%) believe that it is very important. Companies Figure 2: How important is a joined-up multichannel customer experience to your organisation? Response: 264 Multichannel Customer Experience Report Page 6
11 6.3 Barriers Greatest barriers to improving the multichannel experience Companies were asked to indicate the most significant barriers which prevent them from improving the multichannel customer experience. Survey respondents could check up to three options. For client-side respondents [Figure 26], there is no single issue which is overwhelmingly the biggest obstacle to success. The most commonly cited issue is organisational structure, which is one of the three greatest barriers for 41% of respondents. Companies Figure 3: What are the three greatest barriers preventing your organisation from improving the multichannel customer experience? Methodology note: respondents could check up to three options Response: 245 Multichannel Customer Experience Report Page 7
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