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

technology.

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

channels.

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

goals.

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

guidance.

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

approach.

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

registers.

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.

Retail-focus

http://www.retail-focus.co.uk/news/1887-waitrose-to-open-cashless-store

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

http://www.airport-technology.com/news/newsmelbourne-airport-trials-sitas-self-service-boarding-to-improve-passenger-experience-4917581

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.

NFCworld

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.

http://www.nfcworld.com/2014/11/03/332389/starwood-hotels-picks-bluetooth-mobile-room-keys-work-smartphones-apple-watch-devices/

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

price.

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

portal.

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

Empowerment

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

Personalization

Engagement

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

phone.

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.

31%28%

56%58%

0%

10%

20%

30%

40%

50%

60%

70%

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

channel.

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)

econsultancy

https://econsultancy.com/blog/61813-how-asos-sky-and-schuh-use-live-chat-to-personalise-online-shopping/

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.

92%

88%

85% 85%84%

77%

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.

38%

43%

65%

0%

10%

20%

30%

40%

50%

60%

70%

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

http://www.digitaljungle.agency/wechat-the-release-of-the-self-service-moments-ads-platform/

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.

https://www.youtube.com/watch?v=I_L_g6bt4v0

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

content.

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).

https://www.youtube.com/watch?v=yAuiXhJPnr8

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,

aggregators

Online Chat / video chat,

Email / instant messaging /

SMS response systems, Social

Customer Service

Source: Schieber Research,

2016

Thank You!

The research was conducted by:

Gili Rosenbaum-Tumarkin

Schieber Research | Market Research & Competitive Intelligence

www.researchci.com | hamutal@researchci.com

More articles and researches on Carmelon Digital

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