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Dialogues on delight: Customer Experience Trends in India 2016
Dialogues on delight: Customer Experience Trends in India 20162
Dialogues on delight: Customer Experience Trends in India 2016 3
Foreword ......................................................... 04
About this report .............................................. 05
Key insights .................................................... 06
Customer experience in India, an overview ..... 10
Need for dialogues on delight .......................... 14
State of customer experience, 2016 ............... 16
Conclusion ....................................................... 32
Dialogues on delight: Customer Experience Trends in India 20164
The concept of Customer Experience (CX) has evolved significantly over the years, from being based largely on transactions and personal equations between the customer and seller, to include the entire customer journey. Many companies are now looking at making every customer touch point count for a positive and differentiated experience.
Recent advances in technology and digital media as well as the increase in customer empowerment through social media on the one hand and the risk of commoditization of products and services on the other, have spurred a deeper focus on CX. Internet usage and penetration via smartphones and broadband have made customers more comfortable with social media and other digital platforms. Companies are increasingly focusing on creating differentiation through CX, and are pushing significant investments into CX design and solutions. If this trend continues, can India produce any brands that can be considered best-in-class globally?
Our report tries to make sense of the trends and focus areas for three key verticals: retail, e-commerce and financial services. We have also included two points of view from the suppliers perspective (based on a survey among 31 CXOs across industry sectors) and the customers perspective (using anonymized data from the CloudCherry platform over the last one year) to help us define the state of customer experience in 2016.
We would like to thank all our participants who responded to the survey their inputs, along with the layer of insights gained from the CloudCherry platform, helped provide a unique perspective to this study.
Irrespective of the stage of maturity of your brand in its CX journey, we hope this report will give you an insight into how brands in India are developing their CX strategies and what is the current state of CX in India. We hope this study will help initiate conversations around designing a more meaningful and differentiated Customer Experience putting your customer at the center of everything you do.
Dinesh Mishra Partner Advisory Services and Customer Practice Leader (India) EY
Vinod Muthukrishnan CoFounder & CEO CloudCherry
Dialogues on delight: Customer Experience Trends in India 2016 5
EY & CloudCherry are delighted to release Dialogues on delight Customer Experience Trends in India 2016. We believe that the data, information and insights in this report will serve as a starting point for many dialogues on customer delight among key stakeholders. Such conversations will ultimately result in better customer experiences in India. We hope you enjoy reading this report as much as we enjoyed creating it.
To give you an understanding of how this report is structured, the report is divided into the following sections:
1. Section I: Customer Experience in India, an overview In this section, we provide a brief historical perspective on the evolving customer experience in India. This will provide a context to the findings of 2016.
2. Section II: Need for Dialogues on Delight Given this context, we establish the need for regular Dialogues on Delight with your customers.
3. Section III: State of Customer Experience, 2016 This is the core of the report; the state of CX in India in 2016.
About this report
Dialogues on delight: Customer Experience Trends in India 20166
Key insights 1
Dialogues on delight: Customer Experience Trends in India 2016 7
1. Over 80% of the CXOs interviewed believed that CX in India was worse (68%) or far worse (13%) than the best in the world. Only 16% believed that CX in India was on a par with the best in the world.
2. CXOs believe there is room for improvement in CX across the entire customer journey, in prepurchase, during purchase and post purchase phases.
3. 74% of the respondents indicated that the importance of customer experience management (CEM) is growing within their company.
4. 53% of those surveyed said that a single person owns the ultimate responsibility for CEM. Of these, 47% stated that the responsibility lay with the head of the customer service department, followed by the marketing head (20%) and the CEO (13%).
5. More than 80% of the respondents felt that once they receive any adverse feedback from customers, they act within a predetermined time limit. The percentage increases when a single person is responsible for CEM at a company.
6. The top five challenges indicated by CXOs in delivering the best possible CX are:
a. Maintaining consistent experience across multiple channels (57%)
b. Measuring and tracking CX across the entire journey (57%)
c. Limited technological solutions in this field (45%)
d. Acting on data being collected to improve CX (41%)
e. Customer interface related issues, such as attrition and lack of training (38%)
7. More than 80% of the respondents stated that the budgets for CEM-related activities are expected to be higher than the previous year.
8. The top 3 CX areas where brands are focusing on are::
a. Listening to customers across all channels and building this back into CX redesign
b. Providing a consistent experience across all channels
c. Utilizing the power of word of mouth by leveraging CX as a focus area
9. The majority of the respondents agreed that managing CX on digital channels is a critical priority for companies and subsequently brands feel the need to provide a seamless online and offline experience.
10. 70% of the respondents strongly agreed that there will be an increase in discussions on CX at the highest level within companies in the next two to three years.
11. 96% of the respondents indicated that they will use feedback data as an input for R&D, product design, service design and services delivery basically Customer Experience led enterprise design.
Dialogues on delight: Customer Experience Trends in India 20168
1. NPS for brands using the CloudCherry platform:
a. Average NPS for companies in the retail sector for 2QCY16 is in the range of 61 to 87. Currently, retail brands on the CloudCherry platform measure NPS for in-store experience only.
b. Average NPS for companies in the financial services sector for 2QCY16 varies a lot, from 5 to 79. The variation is due to the relative poor NPS of some of the touchpoints, especially call center.
c. Average NPS for companies in the e-commerce sector for 2QCY16 varies from 24 to 51. In this sector, the variation is due to the relatively poor NPS for experiences delivered by third parties (especially travel portal services).
a. Unless in-store experience is completely overhauled (which is rare), improvements in NPS at a company level are typically relatively slow and steady in this sector..
b. Companies in India typically measure instore experience, with little focus on shopping experiences on their websites.
c. Parameters that are measured include:
i. Product range which can drive comparisons to ecommerce sites where more variety is possible
ii. Store team which can drive customer delight by understanding customer requirements and suggest products or services as per their need.
iii. Store ambience which can reduce NPS as a result of a one off-event such as unclean restrooms.
d. Garnering feedback on other aspects of the journey (prepurchase and postpurchase) has still not gained traction.
Insights: customer view
Dialogues on delight: Customer Experience Trends in India 2016 9
3. Financial services
a. Some improvements being made in call center experience by companies using the CloudCherry platform are improving the minimum average NPS.
b. Financial services companies are collecting feedback for touchpoints such as branch/office, internet accounts and contact centers.
i. Expectations of banking customers from the contact center experience (IVR options and interactions with phone banking officer) are not being met.
ii. Experience with visits to branches/offices is also not as good as in the retail sector because of the time taken at branches (waiting time), and concerns around understanding customer problems or needs and offering an immediate solution.
iii. The highest ratings are typically for services delivered over the Internet.
c. Overall, the ratings are lower than leading retail chains
a. In e-commerce, there is a conscious effort to bring about improvements in services delivered by third parties (especially in the travel segment), leading to an increase in minimum average NPS.
b. Parameters that are measured include selection and purchase, usage (for services), postpurchase (for products) and contact center.
5. The key likes (which increase NPS) are related to user