Annual Zendesk Customer Experience (CX) Trends
Report highlights CX as an imperative for growth
Over 70% of businesses see a direct link
between customer service and business performance
Zendesk’s landmark annual research has highlighted the potential
for businesses to drive business success with a focus on customer
experiences as more than two thirds of consumers (70%) report
making purchase decisions based on the quality of customer service
they receive. The global Zendesk (NYSE: ZEN) Customer Experience
(CX) Trends Report 2022 shows that a majority of businesses
surveyed agree there is a direct link between customer service and
business performance. Despite this, many consumers (54%) feel
customer service is an afterthought for businesses, indicating a
gap between consumer expectation and company actions.
“Businesses cannot afford to take a transactional approach to
their relationships with customers. Customer service is now a key
differentiator, but this year’s report reveals gaps exist between
expectation and delivery,” said Adrian McDermott, Chief Technology
Officer, Zendesk. “Customers are noticing this gap and voting with
their business - and that’s perhaps the clearest signal to
businesses that change needs to happen, and fast.”
The report draws on input from customers, agents, customer
service leaders, and business leaders from across 21 countries.
Data was also gathered from more than 97,500 Zendesk customers who
participated in the company’s Benchmark program. As customers call
out increased expectations and the readiness to switch after just
one bad experience, the need to close the gap between these
expectations and the customer experience delivered have never been
more urgent. The opportunity cost for many is nothing short of
revenue loss and missed opportunities for growth.
Consistent Truths - Customer Service Can Drive Growth
Nearly three quarters of those surveyed (73%) see a direct link
between customer service and business performance, with two thirds
(64%) estimating that customer service has a positive impact on
business growth. The opportunity is not simply to deliver a single
solution-based interaction with the consumer, but to use that point
of engagement as an opportunity to deepen the relationship.
Customer engagement is up 14% from the previous year, representing
more opportunities to upsell or cross-sell to happy customers.
This cuts both ways though, and the insights reveal that
customer expectations can drive or stifle growth plans. As
consumers spend more online, a majority say that their customer
service expectations have increased in the past year. Channels play
a big part in meeting these increased expectations and
particularly, being where the customer is. However almost half the
companies surveyed did not have a strategic plan for customer
service over the immediate to medium term.
Key insights:
- 61% of consumers say that their customer service expectations
have increased over the past year
- 90% of consumers say they are willing to spend more with
companies who personalize the customer service experience
- Only 54% of companies report having a three-year strategic plan
for customer service
- 89% of consumers say they are willing to spend more to buy from
companies that offer them the chance to find the answers they need
themselves
- Companies are evenly divided between those who still view CX as
a cost centre and those who believe it is a revenue-generating
engine for growth
The Agent X Factor
Increased expectations leads to increased pressure on agents,
who act as the front line. In fact the research found that nearly
three quarters of respondents (71%) agree that customer service
agents are essential to driving sales.
When it comes to resolving issues, almost half the consumers
surveyed are looking for agents who are helpful and empathetic.
Given a good experience, customers are also more open to
recommendations from service agents. Many businesses, though, have
yet to recalibrate their view of customer service as a cost center.
This means that investments in optimizing the function have not
kept pace with growth, let alone with increasing customer
expectations. While a majority of businesses acknowledge customer
service agents as being pivotal to driving sales, a very small
number of those same agents are extremely satisfied with their
workloads.
- Nearly half of consumers say that helpful and empathetic agents
are what matters most when they want to resolve a customer service
issue.
- 63% of consumers are open to product recommendations from
service agents.
- 15% of agents are extremely satisfied with their workloads
Agent empowerment is a clear focus area for 2022, as agent
burnout continues to be a challenge. Only 20% of agents are
extremely satisfied with the quality of training they receive. Pair
this with the fact that 68% of customers feel that businesses need
to improve agent training, and there is a business case for
investing in what agents need. These also include better
performance metrics, clear advancement opportunities and,
fundamentally, more respect.
Closing Gaps and Mapping Paths To Growth
Nearly three quarters (72%) of business leaders say that their
organization views customer service as a critical business
priority, but 40% report that it’s still not owned by the C-suite.
While the insights clearly indicate a business case for investments
in customer experience, this isn’t necessarily being followed
through with executive sponsorship or the right tools or programs,
such as training for agents. Alongside this is the need for
customer service metrics to be mission critical and reviewed with
the appropriate frequency and gravitas. Over 74% of business
leaders say the ROI of their organisation’s spend on customer
service over the past 12 months has been positive. However, only
30% strongly agree that customer service spending has kept pace
with company growth.
“The business case for customer service is clearer than ever and
getting buy-in from the top is a critical first step. Getting
leadership engagement relies on evolving the key metrics - look
beyond CSAT and identify the broader business impact that can tell
a compelling story,” McDermott adds. “This year’s findings bring
into sharp focus the need for there to be a more concerted effort
across the organization - including better integration of systems
and a regular review of metrics. In short, let the insights lead
you.”
Additional Resources
Download the 2022 CX Trends report here
Check out the upcoming virtual events here
Methodology
Zendesk’s 2022 CX Trends Report surveyed more than 3,511
consumers and 4,670 customer service leaders, agents and technology
buyers from 21 countries and organizations ranging from small
business to enterprise during July and August 2021. Results from
each survey were weighted to remove bias from the survey
samples.
Zendesk Benchmark product usage data came from over 97,500
Zendesk customers worldwide who participate in the Zendesk
Benchmark. Zendesk Benchmark data is based on product usage from
July 2020 to July 2021.
About Zendesk
Zendesk started the customer experience revolution in 2007 by
enabling any business around the world to take their customer
service online. Today, Zendesk is the champion of great service
everywhere for everyone, and powers billions of conversations,
connecting more than 100,000 brands with hundreds of millions of
customers over telephony, chat, email, messaging, social channels,
communities, review sites and help centers. Zendesk products are
built with love to be loved. The company was conceived in
Copenhagen, Denmark, built and grown in California, taken public in
New York City, and today employs more than 5,000 people across the
world. Learn more at www.zendesk.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220118005046/en/
Kaylee Hill press@zendesk.com
Zendesk (NYSE:ZEN)
Historical Stock Chart
From Mar 2024 to Apr 2024
Zendesk (NYSE:ZEN)
Historical Stock Chart
From Apr 2023 to Apr 2024