The zero-touch customer experience. Ericsson Consumer & IndustryLab, May 2018
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1 The zero-touch customer experience Ericsson Consumer & IndustryLab, May 2018
2 Ericsson Methodology Sweden Quantitative research Online interviews with smartphone users aged 16 and above in Brazil, China, Germany, South Korea, Sweden, the UK, and the US. US UK Germany Brazil China South Korea Qualitative research This included four focus groups with chatbot, artificial intelligence (AI) and smartphone users in the US and UK. Expert interviews Expert interviews were made with leading companies in the chatbot and consumer experience areas.
3 Key findings Consumers feel exhausted by interactions with telecom service providers Current digitalization efforts mirror the analog world Consumers expect a zero-touch customer experience
4 The smartphone user journey with telecom service providers Base: 7,000 smartphone users in Brazil, China, Germany, South Korea, Sweden, the UK, and the US
5 The journey is exhausting Time is critical for consumer satisfaction Share of satisfied consumers: Interacting with telecom service providers makes consumers feel exhausted It takes smartphone users 2.2 attempts and 4.1 days to complete an interaction 69% 51% 35% If interaction is completed in less than 1 day If interaction is completed in 1 2 days If interaction is completed in 3 4 days Base: Smartphone users aged above 16 years across Brazil, China, Germany, South Korea, Sweden, the UK, and the US
6 Personalization without losing control As well as being exhausted by interactions, consumers also perceive their relationship with telecom service providers to be impersonal and irrelevant. Half of consumers think their telecom service providers should use the information they already have about them and their behavior to provide a more personalized service. However, it is critical for them to be in control of their data and what is shared with third parties. Source: Ericsson Consumer & IndustryLab, The zero-touch customer experience,2018 Base: Smartphone users aged above 16 years across Brazil, China, Germany, South Korea, Sweden, the UK, and the US
7 In store and over the phone represents almost half of all interactions with telecom service providers Share of interactions done through different channels 30% 25% 20% 27% 24% 18% New channels like social media and apps represent less than 15 percent of all interactions 15% 10% 5% 3% 11% 6% 4% 2% 6% 0% In store Phone Other analog Operator website Traditional Operator apps Online customer service Digital Social media Other online channels Source: Ericsson Consumer & IndustryLab, The zero-touch customer experience,2018 Base: Smartphone users aged above 16 years across Brazil, China, Germany, South Korea, Sweden, the UK, and the US
8 Very small differences between digital and traditional channels on reducing effort and time Share of interactions done through different channels Traditional channels (in store, over the phone and postal mail) Digital channels (online, website, app, social media, live chat) Satisfaction (on a scale of 0 10) Time taken (days) Number of attempts Base: 7,000 smartphone users in Brazil, China, Germany, South Korea, Sweden, the UK, and the US
9 Attempts and time in different markets Attempts and time (in days) across 7 markets Days Attempts Days Attempts Days Attempts Days Attempts Days Attempts Days Attempts Days Attempts Brazil South Korea China Sweden Germany US UK Base: Smartphone users aged above 16 years across Brazil, China, Germany, South Korea, Sweden, the UK, and the US
10 A mirror of the analog world Telecom service providers are introducing new ways of interacting, but so far they have only created a digital experience that mimics analog, without reducing the effort required from consumers. 46% think their telecom service provider hides behind bad technology such as do-notreply s, automated replies and impersonal Contact Us forms Base: Smartphone users aged above 16 years across Brazil, China, Germany, South Korea, Sweden, the UK, and the US
11 Skyrocketing consumer expectations Digital leaders such as Amazon, Netflix, Apple and Google are giving consumers a one-click experience and raising expectations. App Website Fast delivery Multi device One-click check out 24/7 VIP customer care Proactive notifications Personalized offers Transparency Unlimited No binding times Effortless Voice assistants Anticipated needs Self healing
12 From one-click to zero-touch Telecom service providers still struggle to deliver a one-click experience 7 out of 10 smartphone users expect their telecom service providers to improve their experience by making better use of technology The zero-touch customer experience AI and automation would leverage existing data to personalize experiences, pre-empt needs and solve issues in the shortest possible time. Tech such as AI and analytics might help telecom service providers leapfrog and realize a zero-touch customer experience future Base: Smartphone users aged above 16 years across Brazil, China, Germany, South Korea, Sweden, the UK, and the US
13 The zero-touch evolution Meaningful interactions Accurate, personalized and pertinent marketing campaigns, promotions and offers AI and automation to pre-empt consumer needs and solve issues New ways of interacting, based on voice, gestures, and augmented or virtual reality 9% Almost 1 in 10 households in the US has a voice-enabled home assistant like Amazon Alexa and Google Home. Source: Ericsson Consumer & IndustryLab analytical platform 2017 Base: Smartphone users in US 56% More than half of smartphone users expect telecom service providers to anticipate their needs even before they realize what they are. Base: Smartphone users aged above 16 years across Brazil, China, Germany, South Korea, Sweden, the UK, and the US
14 High interest levels for zero-touch service concepts 42% A smart chatbot that can answer all queries and advise about the best deals and promotions 51% A self-healing service that would anticipate and automatically handle technical issues, as well as evaluate the health of your device 45% Biometric authentication using your voice or face when contacting customer service 46% A service that notifies you when you are running out of data and offers you the ability to buy data packs or top-ups within any app 53% Tailored customer rewards, based on interests, favorite brands and past data usage, etc., that you have declared to your telecom service provider Base: 7,000 smartphone users in Brazil, China, Germany, South Korea, Sweden, the UK, and the US
15 AI also raises concerns Percentage of consumers who agree with different statements Chatbots will make it hard to speak to a human being AI won t be as good at understanding my needs as a human being AI will show no empathy I am more comfortable trusting a human than AI when sharing sensitive data I find it too weird to talk to a chatbot 63% 60% 60% 58% 56% The automated voices that I speak to make me so frustrated. They don t understand me. I just want to talk to a human about it. Time is so valuable. I d rather just get straight to the person rather than also deal with a robot. Jennifer, 29, US focus group Chatbots makes me feel anonymized and unimportant 54% Base: Consumers who have questions about smart chatbots. Smartphone users in Brazil, China, Germany, South Korea, Sweden, the UK, and the US
16 Consumers want the best of both worlds Consumers want: AI to analyse and leverage existing data Automation of meaningless and effortful interaction pre-empting issues and anticipating needs Humans to leverage knowledge gathered by AI, while adding empathy and emotional intelligence
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