New IoT maturity report ranks Southeast Asia low
Genesys publishes study that measures Internet-of-Things-enabled customer experience maturity across Asia-Pacific
Genesys® (www.genesys.com/asia), the global leader in omnichannel customer experience and contact centre solutions, has released The 2016 Internet-of-Things (IoT)-Enabled Customer Experience (CX) Report for Asia-Pacific, a study that surveyed nearly 500 leaders across six key industries within 11 Asia Pacific (APAC) countries.
The study revealed that Southeast Asian (SEA) companies scored slightly lower in IoT-enabled CX maturity compared to the APAC average, but were on par with the region in terms of deployment and readiness.
Commissioned by Genesys in partnership with Frost & Sullivan, the report offers insights into how companies in APAC perceive Internet of Things (IoT) and to what extent they are adopting tools to enhance customer experience.
The research also examined the way organisations view IoT as a key enabler in enhancing customer experience and their readiness to take advantage of this emerging technology.
The SEA market’s maturity was primarily impacted by a lower perceived value of IoT-enabled CX, where just 27 per cent believed IoT improved their CX efforts and 34 per cent said it offered more benefits than costs.
Despite the lower perceived value compared to the wider APAC region, almost half (49 per cent) of SEA organisations were currently exploring or considering plans to tap into IoT for CX. In fact, SEA tied with India for having the second-highest number of companies that had implemented IoT-enabled CX or were implementing a trial.
“Our research confirms organisations in this region recognise that IoT can provide valuable customer insights and deliver richer customer experiences,” said Keith Budge, senior vice president, APAC at Genesys. “And in spite of the lower perceived value in Southeast Asia, we are pleasantly surprised that a high number of organisations either are evaluating ways to adopt IoT-enabled CX solutions or already have implemented trials.”
Gap between awareness and implementation
IoT is the key enabler in helping organisations consistently deliver a personalised and cohesive experience, especially in a converged environment where the customer journey encompasses both digital and physical channels.
Overall, the report reveals 83 per cent of respondents across APAC have some level of familiarity with IoT and nearly 50 per cent believe IoT is important in enhancing CX; however, despite this, only 15 per cent have implemented it.
Budge said: “The findings underscore the role of technology providers such as Genesys in helping APAC companies roll out successful implementations and, hence, truly realise the potential of IoT to improve CX.”
Benefits of implementation
Of those that had deployed IoT to deliver better customer journeys, more than 70 per cent said their solution enabled them to influence their customers’ buying and engagement decisions. More than a third of respondents recognised the high impact IoT had on enhancing customer satisfaction.
Other benefits cited by respondents include positive impacts on brand equity (33 per cent), improvements in operational efficiency (33 per cent) and an increase in employee productivity (35 per cent).
Across APAC, the study found businesses are realising the wide reaching benefits of implementing IoT. More than half (60 per cent) of respondents indicate at least having a starting point for their IoT journey, with 16 per cent looking to incorporate IoT into their organisation within the year. A further 29 per cent hope to accomplish this within the next two years.
Barriers preventing adoption
Some 75 per cent of SEA respondents viewed the management team, led by the CEO as a key stakeholder, as the primary driver of IoT-enabled CX strategies in their organisation.
However, the report identified a number of challenges preventing businesses from deploying IoT for CX, including a significant issue with organisations’ “understanding of IoT value proposition.” Commonly cited was a low level of C-suite awareness about the importance or value of IoT-enabled CX solutions.
Other key findings from the APAC report:
- There was a strong correlation between IoT deployment and higher Net Promoter Scores® (NPS®).*
- The perception of benefits provided by IoT-enabled CX was the lowest among C-level respondents.
- More than 70 per cent of respondents that had implemented IoT believed it had a positive impact on the development of new disruptive business models.
- The three industry sectors at the forefront of IoT-enabled CX adoption were communication service providers; logistics, transportation, and automotive; and retail, travel, and hospitality.
“This research helps put to rest the misconception that IoT is not ready or too difficult to build into customer experience solutions,” said Budge.
Krishna Baidya, associate director of Frost & Sullivan’s Digital Transformation Practice for APAC, added: “The success of an organisation hinges on its ability to understand what customers want and to deliver differentiated services. Using behavioural data made available through IoT solutions, businesses can proactively engage customers in ways that are more personalised, convenient, and deliver more value.”
On 22 March at 11:30 a.m. Singapore Time (SGT), Genesys and Frost & Sullivan will host a webinar to discuss the key findings of the report, as well as how to overcome adoption challenges and use IoT-Enabled Customer Experience as a competitive differentiator.
Register to attend at: http://www.genesys.com/asia/about-genesys/webinars/internet-of-things-cx-strategy
About the report
The 2016 IoT-Enabled Customer Experience (CX) Report for Asia-Pacific surveyed organisations in the following 11 countries: Australia, China, India, Indonesia, Japan, Malaysia, the Philippines, Singapore, South Korea, Thailand, and New Zealand.
On behalf of Genesys, Frost & Sullivan reached out to 479 leaders across six industries: banking and financial services; communication service providers; government, healthcare and utilities; insurance; logistics, transportation and automotive; and retail, travel, and hospitality.
Survey respondents were from organisations running customer contact centres employing at least 50 agents, and were involved in determining the customer experience strategy for their organisation, including system and process implementation.
Download your copy of the report, here: www.iotenabledcx.com.
Genesys® powers more than 25 billion of the world’s best customer experiences each year. We put the customer at the centre of everything we do and passionately believe that great customer engagement drives great business outcomes. More than 10,000 companies in over 100 countries trust the industry’s #1 customer experience platform to orchestrate seamless omnichannel customer journeys and build lasting relationships. With a strong track record of innovation and a never-ending desire to be first, Genesys is the only company recognised by top industry analysts as a leader in both cloud and on-premise customer engagement solutions. Visit www.genesys.com/asia.
*Net Promoter, NPS, and Net Promoter Score are trademarks of Satmetrix Systems, Inc., Bain & Company, and Fred Reichheld.