It’s a no-brainer that good customer service experiences boost satisfaction, loyalty, and can influence top line revenue. Good service — whether it's to answer a customer's question prior to purchase, or help a customer resolve an issue post-purchase should be easy, effective, and strive to create an emotional bond between the customer and the company. Here are 5 top trends - out of a total of 10 - that I am keeping my eye on. My full report highlighting all trends can be found here:
Trend 1: Companies Will Make Self Service Easier. In 2015, we found that 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 can’t find online. In 2016, customer service organizations will make self-service easier for customers to use by shoring up its foundations and solidifying their knowledge-management strategy. They will start to explore virtual agents and communities to extend the reach of curated content. They will start embedding knowledge into devices — like Xerox does with its printers — or delivering it via wearables to a remote service technician.
Following the launch of my recent report, The Dynamics Of China’s Private Cloud Market, I’ve been getting briefing requests from vendors and inquiries from end users. My report addresses most of their concerns, such as the vendor landscape, business scenarios, and industry practices. However, following my discussions with many Chinese private cloud end users, I also thought it would be helpful to share with you the top developing trends among Chinese organizations using private cloud. They:
Are starting to expand private cloud scenarios for production applications.Initially, many Chinese organizations deployed private cloud solutions for development and testing scenarios. These organizations are now starting to transfer their business-critical workloads, such as CRM, databases, and other unique applications, to private cloud environments. Why? Because Chinese organizations have started to virtualize their critical workloads.For example, China Telecom set up a self-service private cloud platform for its eight province-level branch operators in 2011; in 2014, China Telecom started to gradually transfer its business and operations support systems (BSS/OSS) to the private cloud.
As 2014 winds down, I have taken the time to pause, and look ahead to what top customer service trends are surfacing for 2015 and beyond. Good service — whether it's to answer a customer's question prior to purchase, or help a customer resolve an issue post-purchase should be pain-free, proactive at a minimum and preemptive at best, deeply personalized, and delivered with maximum productivity. Here are 6 top trends - out of a total of 10 - that I am keeping my eye on. My full report highlighting all trends can be found here:
Trend 1: Customers Embrace Emerging Channels To Reduce Friction. In our recent survey, we found that web self-service was the most widely used communication channel for customer service, surpassing use of the voice channel for the first time. In 2015, we predict that customers will continue to demand effortless interactions over web and mobile self-service channels. They will also explore new communication channels such as video chat with screen sharing and annotation.
Trend 2: Companies Will Explore Proactive Engagement. Proactive engagements anticipate the what, when, where, and how for customers, and prioritize information and functionality to speed customer time-to-completion. In 2015, we expect organizations to explore proactive engagement - whether it's proactive chat, proactive offers, or proactive content - delivered at the right time in a customer's pre-purchase journey to help answer customer questions. They will use learnings from these proactive engagements to improve operational performance and to predict future customer behavior.
Banks and other types of firms in financial services typically like to know the answer to the question: “What are the others doing?” They leverage the answer when, for example, assessing their overall strategic position, planning for the transformation of their application landscape to a more powerful customer-centric approach, or determining the “best” sourcing approach for this transformation.
It is time to update the survey results: Forrester has just started surveying banks in North America, Europe, and further geographies about their major business drivers, the current state of their application landscape, their key issues and concerns, and their plans for the future. At a high level, the survey is designed to answer the question: “What are others doing?” Phrased in a different way, it targets the question: “What are the key trends regarding the transformation of the application landscape in financial services in the Age of the Customer?”
To make this survey successful, Forrester needs your help. If you are working in financial services in any role that is related to financial services business applications, architecture and strategy, please participate in Forrester’s Global Financial Services Architecture Survey 2014. If you have not yet received an email invitation, please contact me – JHoppermann (at) Forrester.com and I ensure that you will receive a link to the online survey.
Once upon a time, insurers sat in the power seat when it came to their interactions with policyholders. The insurers understood the magic behind how insurance was sold, how premiums were calculated, and how claims were adjudicated. Those days are gone. In the Age Of The Customer, consumers are changing the rules and who wield the power. Thanks to all things digital, consumers have shifted from being passive sideliners and are willing — and able — to play more active and demanding roles across the insurance business. That means that digital must now be a core underpinning of an insurer’s customer experience philosophy, not an endpoint.
Just what are the factors propelling North American insurer agendas this year? For starters, it’s about:
Booming growth in revenues and profits. 2013 was a very good year for most North American insurers --the best since the financial crisis. Many are sitting on hefty policyholder surpluses and capital.
The fallout from HealthCare.gov. Balancing political winds with project management reality heaped more pressure on already stressed health plans, thanks to shifting deadlines, relaxed employer mandates, and zombie health plans. And as a result, trust across the broad healthcare ecosystem was undermined.
The risk of emerging insurers to meet the needs of digitally empowered consumers. Consumers are getting being trained to expect even more from their digital interactions. New insurers are coming to market offering new digital experiences that simplify, personalize, empower, and reassure customers.
Extreme weather. US and Canadian insurers have shifted to a posture of adaptation, and are looking to arm policyholders with new tools to better protect them from natural hazard risks.
Forrester began surveying global banking platform deals in 2005. For 2013, we evaluated about 1,600 banking platform deals submitted by 29 vendors and located in about 130 countries. Shortly, we will publish the final results of this evaluation. Today, I want to offer some initial trends:
Counted deal numbers are the second highest ever. The number of counted new named deals is the second level we have yet recorded. The number of new-named deals shrunk; extended business deals increased and the banking platform market grew.
The banking platform market shifted gears again. Top 10 vendors still represented the vast majority of new named deals that we counted, but fewer vendors than in 2012 enjoyed more than ten percent of all counted deals.
Banks' total assets indicate three vendor categories. One group of vendors won very small banks only and another group’s projects reached up to medium sized-banks. Only six vendors’ clients touch the total assets range of tier 1 banks (and go beyond it).
All the details will be available with a series of forthcoming reports focusing on the success of the participating vendors, the regional success perspective, as well as delivered functionality. If you do not want to wait: I will share some of the results during a Forrester Teleconference on February 27 As always, let me know your thoughts: jhoppermann (at) forrester.com.
When my teenage son is interested in purchasing a mobile phone, some PC equipment, or a games console, he will typically spend weeks gathering the necessary information to arrive at a well-informed decision. He once told me that he feels this is necessary to make the best use of his savings — a trait that I do not always observe banks around the world exhibiting.
Recently I had a phone call with a few people from the business side of a medium-size bank somewhere in the world. Their challenge? They wanted to use the best method to find the mobile banking application most suited to their bank. Their real challenge? They had no time to make a deeper assessment of their individual business and technology situation and only wanted to get proof that their approach would be the right one. They wanted a clear recommendation within a few days.
Unfortunately, it’s not that easy. When I know nothing about a bank’s business environment, its supporting application landscape, and its underlying technology, I am very reluctant to offer more than a long list of business applications, regardless of whether the topic at hand is mobile or cross-channel solutions, core banking, or something else. This is in line with a research report about best practices for banking platform transformation that Forrester published some time ago. At the time, we identified a few key reasons common to major banking platform transformation failures. One of those reasons: ill-designed shortcuts.
Forrester’s latest survey on financial services architecture shows that financial services firms in general, and banks in particular, put a high priority on a few selected topics (see the figure below). Our banking-specific research for AD&D professionals has focused on topics like banking architecture, banking platforms including core banking, Internet and mobile banking (to be published soon), and multichannel enablement. Forrester’s more industry-neutral research has covered aspects such as analytics, business intelligence, big data, customer relationsship management and other, less industry-specific, areas of business applications.
We have also started preparing a report about the key building blocks of today’s risk management solutions. However, my recent discussions with Forrester clients have covered plenty of additional topics, including anti-money-laundering, branch apps, private wealth management, lending in retail/consumer banking, corporate/commercial lending and its syndicated flavors, mortgages, trading, and treasury, just to mention a few.
During the past decade, I have worked with many analyst relations (AR) people as well as specialist AR firms. I have never blogged about them in the past, and I have no intention to do so in the future. Earlier this week, however, I saw that an employee of one of the specialist AR firms authored and published a comment on my most recent report: “Global Banking Platform Deals 2011: Functionality”.
This comment gives the impression that my report only provides common wisdom in that it only suggests that “one of the key differentiators for system selection is a strong track record.” The author also explains that this “may be at odds with the current market landscape as new regulations are set to change the way that the capital markets work and vendors are all developing new functionality to cope” – just to mention a few examples.
My perception is that the author either did not read my entire report or preferred to focus on the six-and-a-half-line summary of an eleven-page report – with a comment that is longer than the summary. Why this perception? First of all, the report is about banking platforms, and Forrester’s definition of banking platforms does not even mention capital markets. More importantly, I do not disagree at all with the author’s statement as far as the relevance of supporting new regulation is concerned – just the opposite, albeit more from the perspective of retail/consumer, private, or corporate/commercial banking.
Let’s take a step back, first. You started as the “mobile person” two to three years ago. You siphoned a hundred thousand dollars or so from the eBusiness team budget and got a mobile optimized web site and maybe an application or two built. You measured your success by engagement – web traffic and application downloads. Maybe you measured direct revenue. Life was easy.
Two to three years later, as eBusiness professionals, you’ve got some experience with building, deploying and maintaining mobile services. You’ve added tablets to your portfolio. Hopefully you’ve convinced your organization that you need at least a 7-figure budget. Most industries have seen clear financial returns on these investments so that hasn’t been too hard. As eBusiness professionals working on mobile, you were feeling a lot of love.
In 2011, you benchmarked yourselves versus your competition. You looked at native applications by platform and key functionality on mobile web and applications. You took a deep breath and said, “ok, we’ve done it. We have mobile services. We’ve checked the box. Mobile web traffic and sales are growing. We’re good.” Perhaps others with fewer services are thinking, “I can see what we need to do. I think we can catch up if I can get some budget.”
The thing you are seeing though is – the finish line is out of sight. Mobile has only gotten more complicated – not less. No one feels comfortable. No one feels they can slow down, stop spending, or rest. Anxiety levels are high.