Welcome to the April edition of our "More Human" CX industry newsletter. As in our previous editions, we are highlighting key developments and trends within the CX industry to provide inspiration and strategic guidance to CX leaders and contact center professionals.
In this edition we will cover the latest on the state of Consumer Sentiment and how the current trends are continuing to impact CX organizations around the world. We also discuss our motivations for becoming a Certified B Corp in an environment where a new league of consumers adjust their purchase behavior towards companies who commit to a purpose-driven Triple Bottom Line.
1. Consumer Sentiment: While we are starting to see steady overall cautious optimism combined with a meaningful spend recovery, companies are still adjusting to the pandemic driven structural changes primarily (i) the digital e-commerce transformation, (ii) the At-Home Economy, and (iii) a significant shock to Customer Loyalty. McKinsey's latest Consumer Sentiment Study outlines 6 fundamental shifts to consumer behavior of which some will have lasting impact:
We believe the two most significant implications to the CX industry are (i) the lasting shift to e-commerce and (ii) the significant shock to customer loyalty:
Shift to e-commerce: We have reported extensively on how the shift to e-commerce has resulted in an avalanche of new customer inquiries. With reopening of Brick-and-Mortar retail we have seen some signs of normalization, however the share of online purchases as a share of total retail is still significantly higher than pre-pandemic. E-commerce oriented credit card purchases in Q1 accounted for 48% of all retail purchases compared with only 37% at the beginning of 2020 - an increase of 35%! Consequently, volumes are plateauing on higher levels for the foreseeable future, increasing the need for innovative solutions to shift volumes to efficient channels such as chat and self-help solutions.
Customer Loyalty: We believe that the shock to loyalty elevates Customer Service into an even more essential role as customer retention efforts move into prime focus. Of the three quarters of Americans who changed their shopping behavior since COVID-19 began, around 40 percent say they have changed brands, with the level of brand switching doubling in 2020 compared to 2019. This trend is more prevalent among Gen Z and Millennial consumers and therefore is even more alarming. Creating reliable, authentic customer experiences with a proactive mindset, while lending a helping hand to your customers, will allow you to earn loyalty from your most important constituency: The Customer. As we have not seen such a drop in Loyalty in decades, innovative ideas and an overall review of the customer service setup is necessary.
2. The need for a Purpose-Driven Business approach: Looking back at 2020, it is hard to come up with any positive impacts the pandemic has caused. But, there is at least one: After rising steadily for decades, global carbon dioxide emissions fell by 6.4%, or 2.3 billion tons, in 2020, as the COVID-19 pandemic squelched economic and social activities worldwide, according to new data on daily fossil fuel emissions. I am only highlighting this, because this is important for a large group of consumers who care about sustainability and want to do business with purpose - driven companies. Businesses that are striving to establish themselves as a force for good is what Millennial and Gen Z continue to look for. Whether they are prospective employees, customers or community partners, these important groups of consumers call for businesses to contribute to society in meaningful ways including practicing sustainability, diversity, and inclusivity. Recent research from Cone Communications backs up such demands and accountability:
To create a deeper and more meaningful culture, VIPdesk became a certified B-Corp in 2019. The certification process is not easy and requires substantial implementations of policies and business practices that benefit employees, clients, the local community and the environment. As Customer Service impacts so many people inside and outside each organization, we can play a key role in creating more sustainable and forward looking companies. What was most important about VIPdesk becoming a certified B Corp, is our belief in the idea that "to create positive change no step is ever too small." It's what our employees are seeking. It’s what customers are demanding. And it’s what the world needs now. Please also review our latest blogpost featured below.
Finally, I wanted to shift your attention to a new book by Jeff Toister released last week. With the bold title "The Guaranteed Customer Experience" Jeff sets the bar pretty high. In his latest book, Jeff provides an inside look at how leading organizations use experience guarantees to fuel customer-driven growth and shows the real reasons why people love these companies and remain loyal customers. "The Guaranteed Customer Experience turns the concept of a guarantee on its head. An experience guarantee goes beyond merely warrantying a product against defects. It encompasses the entire customer journey to promise an experience that never falls short of expectations" says Jeff Toister.
As always, please reach out with any questions or comments, I would be grateful for any feedback and suggestions for this publication. We recommend signing up for CCW Digital, April 6-8 - State of Contact Center Technology. The first significant industry event of the year and a perfect opportunity to learn about new technologies and best practices.
In Q2, we will hopefully see the transition from a reactive pandemic-driven environment to a business climate spurred by optimism and innovation which will create the foundation for a long awaited return of the Travel and Hospitality Industry.
We would like to wish all our readers a prosperous and customer-centric April.
Becoming a business that believes in and practices a triple bottom line of People, Planet, and Profit is not a simple process. But it is the right thing to do if your business supports its employees, customers, and community..
10 CX Thought Leaders you need to follow to stay in tune with the pulse of the industry
Following a shortlist of thought leaders will allow you to better understand the environment your organization is operating in and help react with proven best practices in mind. Here are a few names you should consider.
The Lasting impacts of COVID-19 on the Customer Service Industry
Most industry professionals agree. COVID-19 has changed our industry forever. While some of the changes will revert when the pandemic ends, this blog discusses the implications most likely to stay forever.
Customer Service Representatives - The real Frontline workers!
Customer Service Representatives are feeling the full impact of the pandemic both from a volume and sentiment perspective. This blog provides some valuable tips on how to express gratitude for what they are accomplishing.
Celebrating You Team With a Virtual Annual Awards Ceremony
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Remote Working Whitepaper: Your Complete Guide to Happy, Healthy, and Productive Work from Home Team Members
More than ever before, working remotely has been a topic many of our partners have asked us about during the coronavirus outbreak. To help them, VIPdesk has created this whitepaper so everyone can benefit from our years of remote working experience.
CCW Digital, April 6-8 - State of Contact Center Technology
CCW Digital is the online version of CCW's spring conference. This event is free and with a special focus on call center technology offers a good opportunity to catch up on latest trends, capabilities and innovations in this area.
ICMI Contact Center Expo – A Digital Experience will feature 2 days of live keynotes, interactive sessions and robust networking through AI-powered matchmaking, group chats, roundtables, happy hours and more ways to connect.
Frost and Sullivan has a history of conducting exceptional conferences for the Customer Experience community. The organization characterizes this event as an "Exclusive & Purposely atypical experience"
As the first organization, CCW is planning to hold an in-person show and provide the customer service community with learning, benchmarking and networking experiences they are accustomed to. CCW is currently developing both the event program and the safety and sanitation plan for this ambitious event.
VIPdesk, a premium provider of outsourced customer experience solutions, utilizes a select team of remote work-at-home Brand Ambassadors (customer service professionals), located throughout the U.S., to provide elevated customer experience for luxury and premium brands. As a certified B-Corp, Women-Owned-Corporation, and Best Workplace winner, VIPdesk is on a fast mission to elevate the human experience with its team members and its partners. Talented team members of VIPdesk not only excel in delivering superior customer service but are passionate ambassadors of the brands they serve. VIPdesk's suite of services include Omni-Channel Customer service handling including all traditional and digital contact channels, full AI and assisted AI solutions, social media management, back office support, and customer experience consulting.