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

Digital Self Service Trends & Innovations

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  • Self Service - Trends & Innovations

    Gili Rosenbaum-Tumarkin | August 2016

  • 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


    Forrester, Trends 2016: The Future Of Customer Service, Jan 2016

    Top Customer Service Trends For 2016 according to Forrester

  • 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.

  • 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

  • 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


    Oracle, Modern Customer Care In a Multi-Channel World, Mar 2015

    The Modern Customer Journey (a multi-channel customer journey)

  • Multi-Channel Customer Behavior

    According to Oracle, multiple channels

    need to be made available to

    customers, as they serve different


    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


    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

  • Multi-Channel Customer Behavior

    According to Microsofts 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.

    Microsofts 2015 Global State of Multichannel Customer Service Report

  • Industry Trends | Banking

    In order to diver better customer experience,

    financial institutions are blending a physical / digital


    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

  • Industry Trends | Banking

    In Accentures 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.

  • 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

  • Industry Trends | Banking

    In 2015, UKs 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.

  • 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


    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.

  • 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.



  • 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 SITAs 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

    travelers 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


  • 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.

  • 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.


    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.


  • 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

  • Industry Trends | Automotive

    According to a J.D. Power Auto Insurance report, Gen Ys 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


    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


  • 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


    My time, my place

    No wait / lines

    Mobile self serviceConvenience

    Interactive tools such as VR & AR

    Multi channel experience

    Assistance and involvement of other users through social networks and forums



    Source: Schieber Research, 2016

  • 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 customers time.

    According to a Forresters 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 cant find online.

    Forrester, Online Self Service Dominates Yet Again. Why? Its An Effortless Way To Get To Your Answers, Jan 2016

    Forresters North American Consumer Technographics Customer Life Cycle Survey 2, 2015

    Forrester, Trends 2016: The Future Of Customer Service, Jan 2016

  • 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

  • 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

  • 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

    devices screen, or via a PC or mobile


  • 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.











    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.

  • 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

  • Channel Trends | Mobile

    In line with

    penetration and

    use trends, mobile

    is gaining

    momentum as a

    preferred service


    2016 Nice-BCG CX Survey

  • 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. cafs. The order-ahead feature accounts for about 15% of those payments, and 3% of total transactions.

  • Channel Trends | Social Media

    Social media,

    however, is not

    a popular self

    service channel.

    2016 Nice-BCG CX Survey

  • 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 customers 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)



  • 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.



    85% 85%84%


    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

  • 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.












    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

  • 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

    Facebooks 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.

  • 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


  • Tools & Platforms | Virtual Agents

    IBMS 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.


  • 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


    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%.

  • 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

    conversations history) if they

    are not satisfied with the

    answers they get.Spanish airline company Volotea

    is offering a Hybrid Chat feature

  • 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.

  • 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 shoppers cart using eBays Sight Search function.

    (Watch the video).


  • 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

  • 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,


    Online Chat / video chat,

    Email / instant messaging /

    SMS response systems, Social

    Customer Service

    Source: Schieber Research,


  • Thank You!

    The research was conducted by:

    Gili Rosenbaum-Tumarkin

    Schieber Research | Market Research & Competitive Intelligence

    www.researchci.com | [email protected]

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