Happy Friday! ‘This week in CX’ brings you the latest roundup of industry news.
This week, we’re looking at the latest research studies that are affecting marketers from releasing their creativity into their campaigns, and how they’re adapting to global consumer shifts. There’s also new studies being revealed into broadband providers and the hospitality industry.
Key news
- By 2026, 20% of inbound customer service contact volume will come from machine customers, according to Gartner, Inc. By 2024, Gartner anticipates 100 million requests for customer service will be raised by smart products.
- In conjunction with YouGov, Expert Reviews surveyed 4,664 people in the UK to discover how some of the nation’s top broadband providers performed. Plusnet emerged as the best provider for a second year in a row, with 83% of the company’s customers declaring themselves happy with the reliability of the service and 7 out of 10 saying they were satisfied with the customer service. However, costs appear to be rising, with 43% of those surveyed reporting an increase in their broadband bills since signing up. 44% of those surveyed said their broadband price had increased by up to 24%.
- Despite the cost-of-living crisis, over half of UK consumers (59%) would be willing to pay more for a product of service if it guaranteed a positive digital experience. Of those that would pay extra, 10% of them would pay up to +25% more for a great DX. This data comes from FullStory.
- Workers in customer-facing roles are stressed and nearly one-third (31%) think about quitting their job multiple times a month, according to new research from Qualtrics. More than two in five (44%) say their workloads have increased, and one-third say customers have become ruder over the past year.
- Using Twilio Segment’s Customer Data Platform, Sanofi are now able to create targeted omni-channel marketing campaigns that better educate healthcare providers about new drugs and treatment plans. Sanofi was able to speed up patient processing by 95% – from roughly 3 days to 3 hours
- Sitel Group – CX products and solutions provider – has this week rebranded to the name Foundever. The rebrand to Foundever reflects the company’s commitment to innovation, dynamism and best-in-class CX delivery. You may not realise, but you speak to Foundever whenever you tweet, talk to a chatbot at your bank, return items you’ve purchased online, dial specific emergency numbers, or even contact TikTok.
Connection news
A keynote speaker at last year’s UK CXA hosted by Awards International, Leslie Stretch is retiring and transitioning into an advisory role at Medallia. Stretch was Medallia’s CEO for four years and was responsible for leading Medallia to an IPO, and making 10 key acquisitions.
To replace Leslie is Joe Tyrell. He brings deep expertise in the finance and technology industries, with over 30 years of experience helping businesses introduce new innovations in automation, artificial intelligence and data-driven workflows, driving record revenues and profitability.
Pressure increasing on utilities, broadband and phone providers
Content Guru have revealed that service providers are failing to meet certain aspects of the proposed regulations from the Consumer Telephone Service Standards Bill. The proposed bill, first tabled in late 2022 and currently seeking further sponsor support, aims to improve the CX provided by utilities, broadband and phone providers.
It will hold them accountable through enhanced regulation; such as financial penalties for providers that make customers wait over ten minutes to speak with a human agent. The research, carried out by the Censuswide on behalf of Content Guru, found that service providers are failing to meet the proposed maximum waiting time regulations in 97% of phone interactions.
The emergence of digital, social and self-service channels have changed the face of customer service in recent years. As a result, almost half 47% of consumers would now prefer to solve their query through these channels. However, 89% of those that tried digital, social, or self-service support channels in the past year had to resort to phoning their provider as their query could not be resolved.
Public support for increased regulation across a variety of sectors is strong. Over three-quarters (76%) of people think that industries should have their CX services better regulated, with over a third wanting more regulation around customer service within local government (35%), government agencies (33%) and public healthcare (31%).
Hospitality consumers’ expectations have risen alongside inflation
A study from from CGA by NielsenIQ in collaboration with Reputation has unveiled the extent to which macroeconomic factors have fundamentally shifted the customer journey to include online engagements.
The study includes insights from a survey of around 2,300 nationally representative consumers in Britain, France and Germany. It is of those who have visited a pub or restaurant over the past six months – looking at their decision making process before, during and after a visit.
It found that consumers are still keen to eat out, in spite of inflationary pressures. They are turning to digital channels to help them make decisions. However, rather than searching for the cheapest option, they would rather make fewer visits and prioritise great value and quality when they spend their money.
The report highlights several key takeaways on consumer habits when visiting pubs, bars and restaurants:
- Across Britain, France and Germany, 23% of all consumers say they demand more from venues than they did 12 months ago.
- Across the three countries, nearly 71%, agree that eating and drinking out is the treat they most look forward to.
- The cost of living crisis is a major concern, with 65% of British consumers reporting that they are worried about cost increases and 42% stating that they are dining out less frequently than they did before the COVID-9 pandemic.
“While consumers are still keen to treat themselves, they are pulling back on the frequency of pub, bar and restaurant visits, making every step in the customer journey a make or break moment for operators. With consumers prioritising the best value for their money, hospitality industry leaders must find ways to elicit, analyse and take action on customer feedback, so they can make continuous improvements to the guest experience.”
– Chris Sparling, CX Strategy Director at Reputation
What’s holding marketers back from creativity?
New research has been released by Optimizely this week. It includes data from over 100 in-house marketing professionals across the UK. The research has identified budgetary constraints as the #1 issue holding creative marketing back.
Despite nearly 63% of marketers wanting to be more creative in 2023, almost half feel their creativity is being hampered by shrinking budgets. 36% surveyed blame poor technology for the lack of creativity. 36% point a lack of access to data as a key reason.
The research shines a light on the tension between marketing and other departments on how best to navigate periods of economic downturn. While 74% of marketers say that creativity is still “essential” in the face of budget cuts, 70% also describe their colleagues as being “risk averse” in the current climate leading to conflicting stances on how best to shape business strategy for the coming year.
“Creativity is an essential part of marketing, even during cutbacks. But great creativity requires data and insight, it requires an understanding of customer needs and an opportunity to experiment. Brands that lean in, and put creativity-first, are often those that maintain their customers during times of economic uncertainty.”
– Shafqat Islam, Optimizely’s CMO
EMEA brands are prioritising retention in 2023
Braze’s annual Customer Engagement Review highlights the pivots marketers made in 2022 and the shifts they are likely to make in 2023 to adapt to global changes in consumer behaviours.
The study reveals several key shifts for marketers this year;
- Budget for customer retention has overtaken customer acquisition for the first time. This constitutes more than half (51%) of marketer’s budgets as the looming recession and increasing new customer acquisition costs make this a priority.
- Lack of effective data leaves brands flying blind. 34% of brands plan to send more messages to their customers in 2023. But, simultaneously say collecting and managing data is still their number one challenge. The vast majority (80%) of EMEA-based companies say that they are collecting too much data, resulting in information on hand that they can’t use effectively.
- Brands shift to cost-of-living messaging. 57% of brands plan to send more messages offering helpful advice like bill reminders and offers of support
- Cookie phaseout still not a priority. While Google has announced plans to phase out third-party cookies by 2024, less than half (net 43%) of marketers in EMEA said they are planning to reduce their reliance on third-party cookies this year. While there has been some change since 2021, when just 27% of brands were planning to phase out their cookie reliance, the pace of change risks being too slow to meet next year’s deadline.
Thanks for tuning into CXM’s weekly roundup of industry news. Check back next Friday for the latest updates of the week!