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PwC
(Customer) Experience is everything:Here is how to get it right
www.pwc.ru
June 8, 2018
Martijn Peeters, Retail & Consumer Leader
PwC
Are people still required for perfect shopping experience in this technology driven world?
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Instead of shopping assistants…
Instead of service assistants…
… we use our mobile phones
… we use automatized systems
PwC
Customer experience remains one of the main drivers of brand loyalty that retailers need to consider…
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… to avoid the risk of losing touch with the customer in this new omni-channel technology driven world
"Yes, excessive automation was a mistake. To be precise, my mistake. Humans are underrated“
Elon Musk
The price premium is real—and it is big.
Bad experience is driving customers away — fast.
Access to Customer Data – only after building trust
Customer experience is a cornerstone of successful retail business model
Know your customers to create good experience
Get the competitive advantage from combining right technologies and right people
PwC
What truly makes for a good experience? There is a formula for getting it right in PwC’s “Experience is everything” survey
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PwC surveyed a representative sample of 15,000 people from 12 countries, via an online survey and in-field interviews and more than 600 people in Russia
Drive experience Employees Empower RetailerCustomer
technologyEnabling
PwC
63%
65%
74%
75%
77%
87%
89%
Germany
UK
Australia
USA
Argentina
China
Brazil
73% of consumers across the world consider a positive experience as the major driver of customer loyalty
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% of global respondents, 2017 Average across the world
Importance of customer experience in choosing brands in different countries
73%
PwC
Consumers are willing to pay more for a customer experience that goes beyond the norm and brings together the best elements of people, technology and service with a smile.
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69%
72%
76%
77%
78%
78%
80%
Level of importance% of global respondents, 2017
Willingness to pay more% of global respondents, 2017
29%
34%
42%
43%
35%
41%
52%Speed and convenience Speed and convenience
Knowledgeable service Knowledgeable service
Easy payment Easy payment
Convenience Convenience
Friendly service Friendly service
Up-to-date technology Up-to-date technology
Human interaction Human interaction
PwC
The price premium is real—and it is big: up to a 16% price premium on products and services, plus increased loyalty
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7%
7%
10%
12%
14%
16%
Coffee
Hotel stay
Dinner
Airline tickets
Car insurance
Winter coat
How much global customers would pay for providing them with greater experience, %
While every industry saw a potential price bump for providing a positive customer experience, luxury and indulgence purchases benefit the most from top-flight service.
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20% 40% 60% 80%
33%
25%
22%
21%
20%
19%
19%
18%
14%
13%
Airlines
Healthcare
Pharma
Retail
Banking
Mobile/Internet
Investments
Insurance
Software
Technology
Experience gap
Level of satisfaction
Level of importance
There is clear 21% gap in retail in what customers expect versus the satisfaction they are actually getting
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% of global respondents, 2017
% of global respondents, 2017
PwC
Bad experience is driving customers away — fast. There will not be many chances to get it right.
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What drives customers to take their money elsewhere? Here are top negative shopping influencers% of global respondents, 2017
40%
42%
45%
50%
60%
67%
Bad employee attitude
Unfriendly service
Untrusted company
Unknowledgeable employees
Inefficiency
Product not available
30% 1 bad experience is enough to loose 30 % of customers
50%
Several experience
fails drive half of
customers away
PwC
Get the must-do’s right: speed, convenience, helpful employees and friendly service matter most for consumer satisfaction
10
39%
40%
53%Face-to-face interaction with knowledgeable and helpful salespeople
Personalized offers
In-store screens that display product lines
Globally In Russia
37%
59%
69%Face-to-face interaction with knowledgeable and helpful salespeople
Personalized offers
Convenient store navigation
Shopping experience that gives satisfaction% of respondents, 2017
PwC
Personalized services are rising as already seen in emerging markets
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16%
17%
22%
36%
23%
USA
Germany
UK
China
Global (Average)
The need for more personalized offers in different countries% of respondents, 2017
PwC
Younger generation values customer experience issues more
12
Percentage of consumers who would pay more for elements of customer experience% of global respondents, 2017
19%
28%
24%
50%
52%
54%
32%
39%
40%
59%
60%
63%
Brand personality
Trust
Loyalty
Design
Fun
Mobile experience
Gen Z
General population
PwC
How to win the experience wars?
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Knowing your customers
Focusing digital investments
Building trust
Superior employee experience
Leverage data for providing more personalized and individual service
Measure customer experience and set KPIs
PwC
71%
44%
75%
25%
Excellent customer experience starts with superior employee experience
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Technology + people together improves customer experience: Those who get it right combining right technologies and right people can improve customer experience and get a competitive advantage.
29%
43%
28%
Agree
Don’t know
Disagree
No
Yes
More than 40% of customers strongly disagree that once technology
becomes advanced we won’t need people for great customer experience
75% of customer wants to interact with a real person
more than technology improves
Only 44% of respondents believe that employees understand their needs
Current gap in employees understanding customers
Consider importance
Satisfied with understanding
27%
PwC
Creating friendly convenient service is crucial for successful customer experience
15
Right Wrong
“Delivering Happiness”
“Your call is very important to us, the operator will possibly answer you…
not sure”
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0%
3%
3%
18%
71%
0%
32%
3%
0%
61%
Current investments in digital are not sufficiently focused at creating better customer experience
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Globally In Russia
2016 2017
The value that companies expect from digital technology investments?% of companies,
Grow revenue
Increase profits
Achieve cost savings
Create better customer experiences
Innovate the products
45%
57%
12%
12%
4%
7%
25%
10%
5%
2%
2016 2017
PwC
Using technology should provide a seamless experience
17
Right Wrong
Self check-outs technology implementation1.
“No lines. No checkout. (No, seriously.)”
Self check-outs technology implementation1.
I enjoy irony as much as the next person, as
long as I’m not the next person
PwC
Higher income group are more
demanding for speed and convenience
Russian consumers have different preferences depending on their income level
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21%
35%
37%
42%
Availability in stock
Fast reliable delivery
Loyalty program
Easy to use mobile site
Above 70K RUB, 2017
20%
24%
32%
35%
Availability in stock
Customer reviews and feedbacks
Trust the brand
Return policy
Lower income group pays more
attention to trust issuesBelow 70K RUB, 2017
PwC
43%
More than half of Russian consumers considers reducing online risks by shopping only with trusted companies
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Most popular methods of reducing risks among Russian consumers
Only use credible/ legitimate websites
60%
Avoid clicking on ads/pop-ups
56%
Minimise the amount/type of data given out
41%
Restrict any requests for location sharing
32%
Use different passwords for
different websites
38%
Use trusted payment providers (e.g. PayPal)
% of respondents, 2017
PwC
Building trust is essential for providing customers with better shopping experience
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How much customers trust a company determines how much they are willing to share personal information.
I am happy to share my location to get personalized offers
on my mobile
59% 20%
21%
I expect a retailer to have up-to-date information on our
interaction across all channels
33%
29%
38%
I am comfortable with a retailer
monitoring my shopping patterns and purchases to tailor
offers specifically for me
36%
24%
40%
No Don’t know
Yes
No Don’t know
Yes
No Don’t know
Yes
PwC
Artificial intelligence can play a key role in customer experience improvement
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Tracking customers’ movements
Visualization of customer speed in the market can reveal areas of interest and zones where optimization measures are needed.
Customer complaint resolution
Modeling Customer Satisfaction notes uncovered common complaint categories, severity levels, and root causes to improve reporting and remediation
Contact center optimization
Deep learning and analysis to sales call recordings and CRM data to identify features that were predictive of successful sales outcomes
PwC
Measure the experience and make it a KPIFor example: Customer Satisfaction at the Push of a Button
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HappyOrNot terminals already installed in more than 100 countries look simple, but the information they gather is revelatory. They register thousands of customers’ impressions in a day
Frictionless: Self-explanatory, effortless and anonymous
Allowing to analyze customer satisfaction during the day
Identifying problem locations in real time
PwC
Technology & people together, improving customer experience
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There are clear opportunities for advancements by using new technologies and digitizing business and processes more that will have an impact on customer experience, but it could be positive, frustrating or a little bit of both.
Good customer experience minimizes friction, maximizes speed and efficiency and maintains a human element and has a tangible impact that can be measured in money
The price premiums consumers are willing to pay adds up for companies who goes beyond the usual and brings together the best elements of people, technology and service.
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Advancing technologies don’t forget about people
PwC
www.pwc.ru
Thank you!
© 2018 OOO PricewaterhouseCoopers Advisory. All rights reserved. In this document, “PwC” refers to OOO PricewaterhouseCoopers Advisory. which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity.
Martijn Peeters
Partner, Retail & Consumer Leader
+7 (495) 967 6144
