Over 50% Of Companies Say Its Customer Experience Tactics Suck: Report

Over 50% Of Companies Say Its Customer Experience Tactics Suck: Report
SHARE
THIS



Epsilon today released the Customer Experience Maturity Report in partnership with Econsultancy, a global research firm.

The study surveyed 350 client-side (58 per cent of total respondents) and supply-side (42 per cent of total respondents) marketing, digital and ecommerce professionals based in Australia and New Zealand to explore regional maturity-level for customer experience (CX).

The research was collected via an online survey of Econsultancy’s user base between February 2016 and March 2016.

The research found that the majority of both client-side (53 per cent) and supply-side (61 per cent) respondents rate their companies as being ‘not very advanced’ in their approach to customer experience.

While client-side respondents felt ‘complexity of customer experience’ (31 per cent) was the biggest barrier preventing their organisations from improving the customer experience, supply-side respondents identified ‘lack of overall strategy/vision’ (41 per cent) as the primary hindrance.

The majority of respondents felt that optimising internal collaboration between multi-disciplined teams and using data to better understand behaviors were the most important factors in delivering a great customer experience over the coming year.

Jefrey Gomez, managing director, Asia Pacific at Econsultancy, said, “This research reveals that the complexities of delivering a relevant and consistent customer experience across all channels and touchpoints are significant. However, forward-looking organisations are making strides by focusing on three key ingredients: technology, data and ownership.”

“There are tremendous opportunities for brands to enhance customer experience delivery and achieve greater CX maturity,” said Michael Kustreba, managing director of Epsilon, Asia Pacific.

“Now is the time to address these shortcomings because consumers are expecting more from brands. The good news is that there are valuable insights from data, technology and proven methodologies that organizations can adopt to help them improve their customer experience delivery.”

Additional findings include:

CX will continue to be key differentiator over the next five years

More than three in five (63 per cent) client-side respondents indicated that the primary ways they will differentiate themselves from competitors over the next five years will be through providing better customer service, cultivating the digital customer experience or enhancing the digital customer experience, among others.

Most of the remaining (33 per cent) client-side respondents stated they will use product-related initiatives to differentiate themselves.

Customer experience is more advanced when it is the responsibility of the entire organization

Survey data showed that all respondents felt the responsibility for customer experience sits across a mix of different departments. 20 per cent of client-side respondents believed it was the responsibility of the whole organisation, versus nine per cent of supply-side respondents. When responses were segmented by level of self-declared CX maturity, the effect of different approaches becomes clearer.

In half of the ‘advanced’ companies, responsibility for customer experience is either shared across the organization (34 per cent) or resides in a dedicated customer experience team (16 per cent).

For companies rating themselves as ‘not very advanced’ or ‘immature,’ responsibility for customer experience is far more likely to lie within a mixture of different departments (40 per cent versus 18 per cent) or the marketing department (18 per cent versus five per cent).

Responsibility for CX is allocated, but budget is often not

Marketers reported that only seven  per cent of companies in the region have a single, dedicated budget for understanding the customer journey, while an additional 27 per cent have a dedicated budget split across different departments.

While most companies assign responsibility for customer experience, they are far less likely to allocate budget specifically for understanding the customer journey.

Understanding the customer journey is about driving business and helping customers

Survey respondents indicated that three of the major benefits of understanding the customer journey are business-related: increasing customer lifetime value/loyalty, driving revenue and profitability and improving relevance and effectiveness of marketing communications were all rated as major benefits of understanding the customer journey by both client-side and supply-side marketers.

New channels and innovations are relatively unimportant to marketers

The study found that organizations are less enthusiastic about improving customer experience through creative innovations and new channels, with 27 per cent of client-side respondents considering experimentation with channel-specific creative ‘not important’ for delivering a great customer experience.

‘Advanced’ companies are more likely to make improvements using insights

20 per cent of marketers surveyed rate their companies’ ability to make improvements and changes based on insights as ‘poor’ or ‘very poor.’ ‘Advanced’ organizations are nearly five times more likely to rate themselves as ‘excellent’ or ‘good’ versus the rest.

Both qualitative and quantitative insights are used to inform understanding of the customer journey

According to client-side respondents, quantitative data is the most important tool for insight on the customer journey, followed by web analytics and CRM data. Organizations who rated themselves as ‘advanced’ in terms of CX maturity are more likely to use user experience (UX) analysis techniques like touchpoint mapping, UX audits and heatmaps in addition to more traditional quantitative and qualitative insights.

Return on investment is being measured in traditional ways

The two most popular ways companies measure the return on investment for their customer experience initiatives are very similar to the ways in which most companies measure marketing efforts: increased conversion rates (45 per cent) and increased sales (43 per cent).

 

 

Latest News

Women In Media Profile: Danni Wright
  • Media

Women In Media Profile: Danni Wright

We'd be headlining Danni Wright's Women in Media profile the "Wright stuff" if it wasn't utterly predictable and naff.

by B&T Magazine

B&T Magazine
Industry Generates A Record $10.5m For Social Impact
  • Media

Industry Generates A Record $10.5m For Social Impact

UnLtd, the media, marketing and creative industry’s social purpose organisation has announced a total industry contribution of $10.5m to social impact in FY18. The total value of funds, services, inventory and time donated by the media, marketing and creative industry increased by 21per cent compared to the previous financial year due to a growth in […]

Posterscope Promotes Two
  • Media

Posterscope Promotes Two

Posterscope, Dentsu Aegis Network’s specialist out-of-home agency, has promoted Ryan Hedditch to the newly created position of national head of strategy and Samantha Summers to Sydney Group Business Director. In his new role, Hedditch is charged with driving the continual improvement and transformation of the Posterscope offering to clients and partners. Summers’ promotion will see her lead […]

Outbrain Accelerates Growth With APAC Promotions
  • Media

Outbrain Accelerates Growth With APAC Promotions

Native discovery platformOutbrain has announced several movements in its regional leadership team, with plans to make more new hires. This comes on the heels of two senior appointments it made in February, after closing a record year in the region with expansion into new markets. Yoav Tourel has been promoted to head of sales for […]

Clems Syd & Extra GUM Unveil YouTube Digital Stage
  • Media

Clems Syd & Extra GUM Unveil YouTube Digital Stage

YouTube EXTRA Gum has launched EXTRA Support Acts, a program created to support Australia’s up and coming musicians by transforming pre-roll ads on YouTube into a digital support stage. It has been created in partnership with Clemenger BBDO Sydney as creative lead, Universal Music Australia and BRING for talent and music strategy and content, MediaCom and YouTube. The […]

OMD Australia Tops 2018 RECMA Rankings
  • Media

OMD Australia Tops 2018 RECMA Rankings

OMD Australia has taken the top spot for Australia’s Number 1 media agency in size, according to RECMA’s 2018 ‘Overall Activity Volume Rankings’ report released last week. Additionally, the company was named first in profile classification with a dominant profile for the 3rd consecutive year, along with vitality ranking and structure ranking. Furthermore, OMD Australia was also named […]

Red Agency Bolsters Sydney Team
  • Media

Red Agency Bolsters Sydney Team

Judging by the image, it seems Red Agency may have had no staff whatsoever prior to this hiring spree.

Nine Appoints Editor For 9Honey
  • Media

Nine Appoints Editor For 9Honey

B&T's editor coincidentally spilled honey on his shirt while typing this. And by typing, we mean copy and pasting.

Y&R Sydney Scores Best&Less   
  • Advertising
  • Media

Y&R Sydney Scores Best&Less  

Y&R wins Best&Less amid rumours the clothing shop its changing name to 'Somewhat OK&Reasonably cheap'.

Women In Media Profile: Judy Sahay
  • Media

Women In Media Profile: Judy Sahay

B&T's Women in Media profiles are like a wave washing over you. Even more so if an actual wave washes over you.

by B&T Magazine

B&T Magazine
How B2B Companies Can Use Their Customer Data More Effectively (And Why They Need To)
  • Marketing
  • Opinion

How B2B Companies Can Use Their Customer Data More Effectively (And Why They Need To)

In this opinion piece, SalesPreso co-founder and CMO Joel Thomson (pictured below) explains how B2B companies can use their data more effectively and deliver a personalised customer experience that matches their B2C counterparts. From the Cambridge Analytica scandal to the EU’s recent GDPR legislation, this year has prompted individuals all over the world to consider […]

Opinion

by B&T Magazine

B&T Magazine
M&C Saatchi Launches THIS Film Studio
  • Advertising
  • Marketing
  • Media

M&C Saatchi Launches THIS Film Studio

Not one to rest on its laurels, M&C Saatchi unveils new production studio it hasn't called 'Not One To Rest On Laurels'.

Creative Agency Launches Project Management Tool ‘Hassl’
  • Advertising
  • Technology

Creative Agency Launches Project Management Tool ‘Hassl’

Yesterday at TedX Melbourne the team behind award-winning, Melbourne-based agency Your Creative launched their new tech venture Hassl, the project management platform taking on Trello and the likes. With the belief there was a better design solution to project management, the platform has been developed over the last two years in collaboration with their clients. […]

ABC Axes Tom Ballard’s Tonightly
  • Media

ABC Axes Tom Ballard’s Tonightly

It's one of the ABC's edgier, controversial shows, but Tom Ballard's proven too edgy and controversial for ABC chiefs.

Taboola Strengthens APAC Programmatic Offering With New Partnership
  • Advertising
  • Media

Taboola Strengthens APAC Programmatic Offering With New Partnership

Global discovery platform Taboola has announced a strategic partnership with Wider Planet, Korea’s largest demand-side and data management platform. The partnership builds on Taboola’s programmatic efforts in Asia-Pacific, and will bring together Korea’s largest demand platform for agencies and brands to provide access to Taboola’s global audience through premium publisher placements. The partnership means advertisers […]

The Haus Picks Up Two New Clients
  • Marketing

The Haus Picks Up Two New Clients

The Haus announces two new client wins. Admittedly, not as good as winning three, but far better than losing four.