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Accenture Global Megatrends Shaping Service Success
Accenture Global Megatrends Shaping Service Success
Accenture Global Megatrends Shaping Service Success
Global Snapshots
A region-by-region look at what customers
are expecting and what businesses need to
know about the service landscape.
North America
What Customers Experience5
86%
71%
84%
Over 80 percent of
consumers indicate
contacting customer service
multiple times for the
same reason as the most
frustrating experience
Regional Strengths
Many North American companies have
already invested heavily in websites,
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Regional Weaknesses
Despite the significant investments in
systems and technology, North American
companies often fail to meet growing service
expectations. For example, businesses
often fall short on delivering premium
services they offer and sell. Moreover,
service experiences are rarely seamless
across multiple functions and operating
partners. Nor are they tailored to customer
demographics. Many organizations also fail
to develop new service revenue streams and
optimize retail-level service inventories/
in-stock positions. They also lag in the
use of remote diagnosis and telemetry
On the Horizon
The new age customer in North America is
forcing service organizations to rethink their
channels. Social media is major component
of the marketing mix and has the potential
to become the primary channel for customer
interactions and service delivery. In addition,
the rise of connected machines and
equipment is driving the growth of Big Data,
advanced analytics and decision sciences.
Service organizations are striving to garner
actionable insights and redefining their
service offerings to better meet the needs of
ever evolving customers. And a few visionary
businesses are attempting to reach the holy
grail of services: to deliver a personalized
customer experience for each transaction in
a cost-effective manner.
APAC
What Customers Experience5
86%
84%
87%
Almost 90 percent of
Chinese consumers expect
timely and accurate updates:
sharing regular status updates
for responses to service
requests, detailing issues
that arise and informing
customers in advance
about likely service delays
Close to 90 percent of
Australian customers feel
frustrated at being on-hold
for a long time when
contacting customer service
Regional Strengths
Regional Weaknesses
The region lags in deploying technology
solutions for spare parts planning, asset
management and field-force enablement.
Gaps in introducing and executing
differentiated service programs are also
weaknesses, as are the issues with the
integration of multi-channel service and
support channels. Since services are viewed
as cost centers, many service organizations
are understaffed and struggle with issues
On the Horizon
The service evolution will likely follow a
path similar to that in developed regions,
but at a faster pace. In the next wave of
service transformation, companies will
invest in new technology service solutions.
Typically offered through the cloud,
these solutions will allow businesses to
select and implement solutions according
to their business needs without heavy
capital investment. As customers evolve,
segmentation and differentiated services
will gain ground in tier 1 cities. In rural and
remote areas, smart and frugal service
delivery innovations can potentially serve as
a model for future service expansion.
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Europe
What Customers Experience5
62%
85%
88%
Almost 90 percent of
customers from Spain
indicated that they would like
to get problems fixed on the
first attempt
Close to 90 percent of
German customers place
significant value on
the service staff being
knowledgeable and
would like to be offered
"the most suitable solution
for my problem"
Regional Weaknesses
Regional Strengths
Many European companies have
standardized service provisioning and
delivery mechanisms. Investments in
service technology solutions are on the
rise, especially for field force enablement
and enterprise asset maintenance.
On the Horizon
With rising customer expectations and
service delivery costs, the regional focus
will shift towards modularity in the service
chain. The shift may require companies to
leverage third-party provider capabilities in
Ability to execute
on premium service
programs
Premium customers want to be treated
as such. They demand a personalized,
differentiated and, above all, a complete
service experience. And since they often
know more about products and services
than providers do, customers can switch to
alternatives if their expectations are not
met. Premium service offerings, however,
often misfire because siloed service
functions can compromise service execution
capabilities. Indeed, many companies
lose track of important customers once
they leave the call center. Other issues
arise when companies fail to balance the
costs and service levels of differentiated
service programs. The potential result:
over-spending on some groups of
customers and missed opportunities to
attract those willing to pay more for
premium product and service bundles.
Always on
Individualized
Differentiated
ual
text on
n
o
i
C
mat
Infor
Scientific
Always On
Although customers are always on,
most companies arent. Customer service
is undergoing a major transformation as
technology digital, mobile, social offer
customers countless 24/7 touch points. New
age digital customers are seeking new forms
of service and support and new technologies
are emerging to provide it (See Figure 2).
However, these technologies and systems
are at different stages of maturity. Some
have already entered the mainstream: for
example, video tutorials in the electronics
and high tech sectors or social media
support, including Facebook and Twitter,
in consumer industries. Some are in their
adolescent phasesuch as social media
monitoring analytics and rich customer
service mobile applications. Others, such
Modular
Individualized
Customers have become tired of businesses
that force them to repeat information,
navigate their complex processes and
subject them to different sets of data
workflows as they move from one channel
to another. Trends show that they want
individualized services that meet their
needs based on contextual information.
Context is the key to tailored offerings that
meet customer needs and preferences.
Current
24/7 Virtual Assistance on Web
Social media monitoring and analytics
(e.g. Consumer sentiment analytics)
Social Media SupportFacebook, Twitter etc.
C2C communities,
Peer to Peer Support
Contextual Information
Overall Relationship
Age
Gender
Income Profile
Ethnicity
Emotion/Sentiment
Location
Past Behavior
Buying History/Value
Loyalty
Experience
Interaction
Business Rules
Outcomes
Speed
Profit
Lower Costs
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Differentiated
Many companies have launched premium
service offerings for valuable customers.
But these programs are often limited to
front-end service operations only. When
the customer leaves the call center, most
companies lose track of them. More and
more, companies are looking to create
a differentiated service program end to
end from initial contact right through
to post-purchase consumption. After sales
service operations can define a successful
differentiated service strategy.
Many companies are coupling traditional
segmentation approachessuch as
demographics or channelwith new
segmentation criteria including cost-toserve and lead times. The combination
improves the ability for back-end operations
to realize front-end promises efficiently.
The new tack avoids overinvesting in service
experiences that customers dont value
while providing services commensurate
with the delivery cost. It also results
in more predictable customer behavior
and, ultimately, higher loyalty among a
companys most important segments
the objectives of a truly differentiated
service strategy. Of critical importance:
defining service variables that govern
the level of differentiated post-sales
service and operationalizing them in
different segments (See Figure 4)
Scientific
Service businessesboth profitable
aftermarket and internal maintenance
operationsare turning to rigorous, scientific
management methods used in production
Field Repair
Warranty Mgt.
Returns Mgt.
Maintenance
Sparing Program
Service Variables
Work Order Mgt.
Appointment Window
Cover Policy
Maintenance Schedule
Service Level
Labor/Resources Mgt.
Repair Lead-time
Extension of Goodwill
Return Options
Equipment Up Time
Turnaround Time
Scoper of Work/SLA
Extended Coverage
Extended Warranty
Exchange Options
Contract Mgt.
Guaranteed
appointment and lead
time.
Most extensive
coverage, generous
use of goodwill.
Paid-for Exchange by
mail (XBM) box sent
to customer.
Reliability Centered
Maintenance used to
predict failure.
Custom service
offerings available
Extended geography
coverage and support.
RMA automatically
issued.
Analytic services on
equipment failures.
Expedited claim
handling.
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On-site
replenishment-based
spares service.
Prioritized part
availability.
Labor
Materials
Network
Parts
Front End
Rough Cut Capacity Planning
Engine
Detailed Material and Capacity Plans
Back End
Purchasing/Vendor Execution
Job sequencing
Technician dispatching
PO issuance
Receiving materials
Modular
In these volatile economic times, many
companies, especially those with large
distributed asset bases and significant
service operations, struggle with cost
pressures and eroding margins. Increasing
commoditization and heightened
competition are reshaping the business
landscape, putting profits at risk and
forcing companies to reexamine their
cost structures.
Many effective service businesses are
responding to these challenges with a
modular service chain. The modularity
leverages the capabilities of third-party
service providers and combines global
and regional capabilities for flexible
service delivery. Modular service chains
can also drive agility, cost reduction, and
redistribution of risks while maintaining
customer satisfaction. This is especially
true for operators where the service supply
chain should not be a core competency,
but is important to serving customers,
such as a public utility or mining operation.
Specifically, the benefits can include:
Conclusion
Customer service used to be something that
involved face-to-face interaction with a
customer. It was about smiling, empathizing
with customers, and going that extra step
to help resolve their problems. While these
basics still hold, the information revolution,
coupled with fundamentally changing
customer behavior, is transforming services
across industries.
We believe that six megatrends are defining the
transformation. Technologies are maturing to address
the always on customer. Contextual information is
underpinning individualized service experiences and
more sophisticated segmentation is driving differentiated
services for important customers. Scientific management
and analytics are reshaping service delivery by supporting
new levels of service-value chain efficiency. Finally, modular
approaches to the service chain will bring new expertise
and capability to bear and provide agility in service operations.
These service megatrends will likely have a profound impact
on the transformation of customer service as it increasingly
defines the competitive reality for global and local companies.
As we stated earlier, its easy to see that weve entered into a
new golden age for services, and it is likely that the changes
well see in the next five years in services will be greater
than the combined changes of the last twenty-five years.
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References
About Accenture
Special Contribution
The authors would like to extend a special
note of thanks to Deepak Kumar Sinha
who helped in research, envisioning and
detailing the relevant trends for this study.
Deepak is a Manager in Accentures Global
Operations consulting practice. He has
wide experience across consulting and
industry in areas covering product life
cycle management, product development,
aftermarket services and manufacturing,
among others. Based in New Delhi, he can be
reached at deepak.k.sinha@accenture.com
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