Zendesk Customer Experience Trends Report 2020

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Zendesk CustomerExperience TrendsReport 2020

010206091118232833Zendesk Customer Experience Trends Report 2020OverviewOur dataEvery company can inspire loyaltyKey findingsTrend 1:Every customer interactionis part of a conversationTrend 2:Customers expect your entire company tocollaborate to deliver a great experienceTrend 3:High Performers are harnessingconnected customer dataTrend 4:AI continues to fuel successof high-performing companiesTrend 5:CX gets a seat in the C-suite

1Welcome to the Zendesk Customer ExperienceTrends Report 2020, our second annual reporthighlighting top trends in customer experienceand engagement. With the Zendesk Benchmark,our data index of 45,000 companies usingZendesk across 140 countries, we explored howhigh-performing companies provide experiencesthat keep customers returning, and the bestpractices that separate the leaders fromeveryone else.We also ran an external survey that included customer serviceagents, customer experience managers, sales leaders, andcustomers located across nine countries to compare their opinionson customer experience and loyalty with the single best source ofdata on how companies actually use their customer servicesolutions, the Zendesk Benchmark.Zendesk Customer Experience Trends Report 2020

2Our dataBenchmark data from 45,000 companies across the globeUnited StatesCanadaMexico, Central & South AmericaAfrica & Middle EastAsiaAustralia & New Zealand2,00015,00019,0003,0001,0003,0003,000For this report, we analyzed how companies use Zendesk’s productofferings with the Zendesk Benchmark, our index of product usagedata from companies worldwide. We segmented companies by region,industry, employee count, and the target audience for their software,audiences that included customers (B2C), other businesses (B2B), andinternal employees (B2E).We also surveyed and interviewed 1,000 customer service agents,300 customer experience managers, 300 sales leaders, and3,000 customers located across Australia, Brazil, Canada, France,Germany, Japan, Mexico, the Netherlands, the United Kingdom, andthe United States. Survey results from customers were weightedon a country-level basis to adjust for differences between the surveysamples and distribution of each represented country’s generalpopulation across age, employment, and gender.Zendesk Customer Experience Trends Report 2020Europe

3Survey demographicsIn this report, we refer to the following respondent groups.AgentsFront-line customer service agentsRetailOtherTravel, hospitality, & tourism59%Retail is the mostpopular industryFinancial & insurance servicesHealthcarehave been in CXfor 3 yearsTechnologyGovernment & non-profitProfessional/business support servicesMedia & telecommunicationsEducation01020% of surveyed agents304061%are from B2Ccompanies% of surveyed agents50B2CB2BB2EOther4030Most agents workfor companies onthe older side20100Less than5 yearsBetween5 – 10 yearsBetween11 – 20 yearsBetween21 – 50 yearsOver50 yearsCustomer service leadersManagers, directors, and C-level leaders across an organization that may include customer service and customer successRetailOther61%Financial & insurance servicesRetail is the mostpopular industryProfessional/business support servicesIT & consultinghave been in CXfor 3 yearsHealthcareManufacturing & computer hardwareTravel, hospitality, & tourismEducationGovernment & non-profit01020% of surveyed managers304059%are from B2CcompaniesB2CB2BB2EOther% of surveyed managers504030Most managersare from oldercompanies20100Less than5 yearsZendesk Customer Experience Trends Report 2020Between5 – 10 yearsBetween11 – 20 yearsMore than20 years

4Sales leadersManagers, directors, and C-level executives leading sales teams on the front-end of customer experienceRetailOther76%have been asales leader for3 yearsManufacturing & computer hardwareRetail is the mostpopular industryFinancial & insurance servicesProfessional/business support servicesReal estateIT & consultingHealthcareEntertainment & gamingTravel, hospitality, & tourism49%are fromcompanieswith 100employees% of surveyed sales leaders01020% of surveyed sales leaders40504030Most leaders workfor companies onthe older side20100Less than5 yearsBetween5 – 10 yearsBetween11 – 20 yearsCustomersCustomers across the globe purchasing products, services, and software, on the receiving end of customerexperiences. Respondents were required to be 18 years of age and older. We analyzed differences in surveyresponses across three generational groups:Millennials/Gen ZersBorn between 1981 – 2000Gen XersBorn between 1965 – 1980Silent Generation/Baby BoomersBorn before 1965Zendesk Customer Experience Trends Report 202030More than20 years

5Benchmark performance methodologyWe used Benchmark data to understand best practices for customerexperience and engagement teams based on how they use Zendeskproducts to achieve results.In particular, we took a comparative look at high performingcustomer service teams. Throughout this report, we refer to HighPerformers, Moderate Performers, and Underperformers, identifiedbased on how they compare to other similar companies across thefollowing key metrics: First reply time Total time to resolution Self-service ratio, which compares self-service content views tototal ticket volume* Customer satisfaction (CSAT) ratingsHigh performers scored above the median for three or more metricsrelative to other companies serving the same target audience.Underperformers scored above the median for one or fewer metricsrelative to other similar companies, and moderate performersrepresent all other included companies.* This is the primary metric we look at to determine how well aknowledge base meets customer needs and deflects support tickets.Zendesk Customer Experience Trends Report 2020

INTROEverycompany caninspire loyaltyAs competition gets more fierce and economic uncertainty is awildcard, one thing is for sure: Customer loyalty can help drive thesuccess of a business. And the customer experience (CX) drivesloyalty. The data is clear:marketing promotions to the transparency of pricing models, andfrom the ease of the sales cycle to the quality of your customerservice. Naturally, loyalty also extends to the experience thatcustomers have within your actual products or service(s).74%Our survey findings underscore this reality: The factors that influencecustomer loyalty are owned across your sales, support, success,marketing, finance, and product organizations — in short, everythingthat contributes to loyalty is owned by everyone. While price isparamount to customers, service ranked as a close second. Theresults also suggest that different segments of your customer baseplace more importance on some attributes than others, alongdifferent interaction points. Younger generations and Americans arethe most loyal to their favorite brands, whereas customers over theage of 55, and in countries like Germany and Japan, are the mostlikely to feel neutral about brand loyalty.of customers feel loyalto a particular brand orcompany52%of customers reportgoing out of their way to buyfrom their favorite brandsGreat news. But loyalty is not a given — it’s anything but. Loyaltymust be cultivated and maintained, and without the right care,it’s easily lost.Loyalty is also not something that any single team can earn onbehalf of the entire company. Instead, it’s influenced by each stepof the experience that customers have with your company, fromZendesk Customer Experience Trends Report 2020

7When it comes to customer service’s impact on loyalty, servicematters most to younger customers and to customers in Brazil, and itmatters least in Japan, where convenience of purchase or use ismost likely to impact loyalty.How loyal do you feel toward your favorite brand(s)?PositiveNeutralNegativeMillennials/Gen ZGen XBaby Boomers/Silent GenUnited StatesFranceBrazilUnited 304050607080901007080% of surveyed customersWhich attributes make you feel loyal toward a brand?All other countriesBrazilJapanPrice62%Customer service57%Product/service offerings54%Convenience of purchase or use45%Brand reputation34%Personalization and promotions27%010203040% of surveyed customersZendesk Customer Experience Trends Report 20205060

8Understanding the link between loyalty and how you serve yourcustomers throughout the entire customer experience is critical.Loyalty is tied to a customer’s ongoing choice to do business withyou, refer others to you, give you the benefit of the doubt, and havethe sense of a positive relationship with you. Or the alternative: cutties and take their business to your competitor. The factor thatdetermines which door your customers choose is service: Goodexperiences drive loyalty. Bad experiences tank it.In this year’s research, we’ve uncovered new insights into whatconstitutes good experiences versus bad ones. Customerexpectations around response times are also very clear: Customerswant fast replies to their questions, on the channel of their choice.They choose channels based on the speed of reply they wantand around the complexity of their question. When customers reachout, they expect you to be collaborating internally so that they don’thave to repeat themselves. Customers also want to take care ofproblems themselves, using self-service — and they are open tobots and artificial intelligence (AI) if it means fast, efficient resolutionto their issues.In your opinion, which are the mostimportant aspects of a good customerservice experience?I can resolvemy issue quicklySupport is available 24/7,i.e. in real timeThe support agentis friendlySupport is available throughmy desired contact methodI don’t have to repeatmy informationThe company proactivelyreaches out to provide supportI am able to find answers onlinewithout contacting an agentThe company offers to call back ifcan’t reach an agent immediatelyI am offeredrewards or freebiesIn your opinion, which are the mostfrustrating aspects of a bad customerservice experience?01020304050% of surveyed customersLong hold/wait times whileinteracting with an agentAutomated system that makesit hard to reach a human agentRoughly half of customers say they wouldswitch to a competitor after just one badexperience. In the case of more than one badexperience, that number snowballs to 80%.Having to repeat myinformation multiple timesSupport agentis unfriendlyThe agent doesn’t havesufficient information on fileCustomer support is onlyavailable at incovenient hoursNot being able to find theinformation I need onlineSupport isn’t available throughmy desired contact method0102030405060% of surveyed customersOn the flipside, when customers feel ignored, have to repeatthemselves, or cannot get an answer quickly, you lose the opportunityto create loyalty and are more likely to lose their business.This presents a challenging landscape for any company to navigate,but with insight into trends by age and region, and a strongknowledge of your own customer base, you can begin to takemeaningful actions that build loyalty.Zendesk Customer Experience Trends Report 202060

9Key findingsCustomers want to communicate with companies over the samefamiliar channels they use to talk with friends and family. Moreover,they want fast and efficient responses. This is why it’s importantthat every contact be rooted in a single thread of communication,so customers feel like they are having one continuous conversationwhere they don’t have to re-explain who they are and whattheir issue is.The experiences companies provide don’t alignwith customer preferencesConsidering the prevalence of digital, mobile brand interactions,it’s surprising that opportunities to connect with customers throughknowledge bases and communities, or via social and in-appmessaging are underutilized. Less than 30% of companies offerself-service, live chat, social messaging, in-app messaging, bots orpeer-to-peer communities. This matters because it represents anopportunity for these companies to pull ahead of their competitionand differentiate around how they meet customers — as well as forother businesses to catch up. There’s also a huge opportunity gapwhen it comes to creating opportunities to automate responses andprocesses, and to deflect easily answered questions. Conversationsare happening in these spaces, with younger generations, Gen Zand Millennials, most likely to use social and messaging channels.30%Less than 30% of companiesoffer self-service, live chat, socialmessaging, in-app messaging, botsor peer-to-peer communitiesZendesk Customer Experience Trends Report 2020Self-service is a missed opportunityOnly a third of companies offer some form of self-service, whetherthrough a help center, knowledge base or FAQ. What’s more, HighPerformers, according to Benchmark data, are 76% more likely tooffer self-service. Part of the self-service paradox is that manycompanies that do provide a self-service option don’t allow agentsto add to it or regularly refine the offering. Half of managers say theirteam lets agents add to self-service over time, but only a third ofsupport agents say their team has a self-service strategy in place.76%High Performers, according toBenchmark data, are 76% more likelyto offer self-serviceCustomer data impacts the bottom lineCompanies that leverage the most customer data — those in the top25% of managing data relative to other similar companies — see36% faster resolutions and a 79% reduction in wait times. They alsosolve four times the number of customer requests. These gains inproductivity are hard to argue with, especially considering that HighPerformers are more likely to take an omnichannel approach,offering customer interaction through more channels, utilizing morefeatures, leaning on more data and analytics, and empowering theirteams with both more training and autonomy, especially when itcomes to knowledge management.

10Customers expect teams to collaborateAI is an ongoing driver of successConnecting customer data also helps improve collaborationbetween teams, a key element in the success of high performingteams. Sales and support teams are partners in cohesivelyconnecting early customer interactions with later ones. Customerservice leaders say their teams collaborate more with sales than withany other internal organization. And as sales leaders expect bothrevenue growth and team growth, companies need to put data towork across teams, using shared tools to engage with customersfrom the initial sale throughout their experience with a product orservice. Findings show that more than 70% of customers expectcompanies to collaborate on their behalf, and 68% of customers areannoyed when their call is transferred between departments.Artificial intelligence is continuing to permeate organizations at alllevels. It’s driving success among high performing teams that areusing AI to deflect tickets, reduce the time that agents spend onanswering requests, and efficiently scale customer engagement.High Performers also pair AI-powered Answer Bot with a self-servicestrategy — 84% of managers who use Answer Bot say they also havea strategy to continually add to their self-service resources.70%Findings show that more than 70%of customers expect companies tocollaborate on their behalf, and 68%of customers are annoyed whentheir call is transferred betweendepartmentsCustomer experience is becoming a priority forcompaniesThe role of the Chief Customer Officer (CCO) is on the rise, and 30%of customer experience leaders say this person ultimately owns thecustomer experience. Forward-thinking companies have a CCO,and companies started in the past five years were 63% more likelyto have a CCO than older companies. These companies want aleader who is focused on customers and knows how to understandand prioritize them across the business.63%Companies started in the pastfive years were 63% more likelyto have a CCOZendesk Customer Experience Trends Report 2020Companies using Answer Bot have the most well-developedknowledge bases in terms of articles, contributing agents,categories, and a higher self-service ratio, which compares selfservice content views to total ticket volume. Use of AI becomesparamount because 42% of customer service leaders expectrequests to grow, whereas just 36% expect to be able to expandheadcount. This gap represents the sweet spot where AI can help.84%84% of managers who use AnswerBot say they also have a strategyto continually add to their self-serviceresources

TREND 1Every customerinteraction is partof a conversationCompanies must align the experiences they provide with customerexpectations. That’s everything from how a customer firstexperiences your company or product to each conversation thatthey have with your employees and every interaction they haveonline. Each customer journey is made up of moments where theexperience can go awry and a customer’s loyalty can be lost. Whiletechnology is now making it possible to connect the customerexperience more cohesively if applied well, it can just as easily makethe experience feel disjointed. This sea change is especially evidentin customer support, where companies are increasingly offeringservice that spans communication channels and connects data sothat each interaction becomes part of one longer conversation inthe customer’s history.That’s powerful because reaching customers on the supportchannels they prefer is often a challenge all on its own. For somecustomers, phone and email remain preferable channels to interactwith a business because they are long ingrained — but for others,Zendesk Customer Experience Trends Report 2020getting fast, live responses or being able to help themselves isnot only preferred, but table stakes. We’re all used to speakinginformally and conversationally, the way we do with friends andfamily, and many customers expect businesses to be able to adaptand add each new channel that comes online. Yet it doesn’t makesense to add channels unless they are connected — linking togethernot only customer service inquiries, but sales, marketing, ande-commerce conversations, too.Companies leading the way are offering support across a broadspectrum of channels, typically also backed by a self-serviceoffering, yet must grapple with consumer expectations that bleedfrom one channel to the next. The immediacy of a message orlive chat can raise customers’ expectations for speedy responsesover email. And the details are in the data: Communicating quicklyand according to your customers’ channels of choice is a powerfulpotential driver of loyalty.

12How do you typically resolve your issues with a company?Baby Boomers/Silent GenGen XPhone66%Email49%Online form28%Messaging28%Chat24%Social media9%Community forum7%Voice assistant device4%Millennials/Gen Z01020304050607080% of surveyed customersExpectations vary by support channelCustomers expect to be able to communicate with companiesusing the channels they prefer, which now represent a host oftechnologies to staff efficiently and connect to your tech stack. Witholder generations, it’s no surprise that tried and true methods ofemail, phone, and in-store interactions, remain the stalwarts, thoughpatience for response times is shortening as 51% of respondentsexpect a response in under five minutes on the phone, and 28% ofrespondents expect the same on live chat.Millennials and Gen Z, in particular, express a growing preferencefor channels that suggest even more immediate responses — socialmedia, in-app messaging, and social messaging apps — thoughsurvey data suggests that preference for these channels is notbased on speed alone.Messaging is a quick and easy way for customers to begin aconversation, and messages via an app or social media can be sentasynchronously, much like an email, at a time that’s convenient.Similarly, the response can be read at a time that works for thecustomer. Only 7% of respondents expect a response to a message inunder 5 minutes, though most e

on customer experience and loyalty with the single best source of data on how companies actually use their customer service solutions, the Zendesk Benchmark. Welcome to the Zendesk Customer Experience Trends Report 2020, our second annual report highlighting top trends in customer experience and engagement. With the Zendesk Benchmark,

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