The service is an integral part of the company development, which has already become a part of the corporate identity. Customer experience and high-quality service are the key to business success.
Dmitriy Pavlenko, Director of the international direction of Scheduling Worldwide by 4Service, shares the trends of the future.
In contrast to the past time, about 5 years ago, a good service has become a priority for both the client and the business of all the spheres of activity. The direction of the service is changing. People want personalization. If earlier the client orientation and personalization were only on the mouth, it is now clear that the future is for that.
The trend is that X generation (people born from 1963 to 1983) are replaced by millennials - Y generation (born in 1984-2003). According to forecasts in 2020, 50% of the main consumers will be people of Y generation, by 2030 the millenniums will constitute 70%. They become the main buying power. And this means that the business needs to be changed in accordance with their preferences. This applies to both goods and services.
By 2020, the investments in the technologies of all global corporations and their development will grow by 6 times. This is due to the need to meet the customers’ expectations that are to be changed.
Globalization affects business in such a way that there is a convergence of industries. As a result, there are collaboration and integration of the areas of activity. We already observe the expansion of the information space. And, in the period from 2017 to 2025, according to forecasts, the data consolidation will grow up 10 times. There will be more thorough segmentation of information.
Breaking the borders
Now we can observe the fact that the branch boundaries are blurred. For example, Uber is an IT company that works in the transport direction.
Amazon started with the sale of books. Now it's a kind of transformer of an IT company and a big market place in the world. Then it began to sell music CDs, and in November of the same year - video production. Later in the range there were MP3-records, software, video games, electronics, clothes, furniture.
Kindle is one of the most interesting products of Amazon. This is a series of e-book readers, food products and toys. Interesting is that the Kindle has very low operating margins. Since all the profits from the product the company invests in its development. By investing in its company, it generates innovative services. The company has effectively developed its savings system. In warehouses, the company replaces people with robots. Thanks to its Amazon Go system, the company reduces costs and increases the throughput of the stores. There are savings not only on wages, but also on cash collection, at cash registers and payment terminals. The technology allows you to reduce overhead costs and reduce the cost of goods in stores, compared to the stores that function under the old system.
Another important point is that simplified settlement procedures in the store increase the size of the average check. The easier it is to give away money; the more goods a person buys in a store. Such technologies allow creating and measuring a unique customer experience.
Already in 2017, 50% of CEOs of large companies (such as Microsoft, Intel AZURE) believe that their business models will soon cease to exist at all. The birth of absolutely new approaches to business management begins. The era of client-orientedness has begun. Already 10 years on the expanses of the CIS they talk about a customized service. But a few companies use this approach, synchronizing it with their strategy.
Now, the business needs to learn how to identify the main priority information and the direction in the company development and to work with them. We also need to struggle with conservatism and develop flexibility, adapting to global changes.
The era of emotional service
Together with the change of generations, the approach to the service is changing. As noted earlier, personalized service is already present and future.
70% of the Y generation willingly share their personal data. The impersonal messages and mailings no longer work. People do not want to get unnecessary information.
Marketing has achieved a mass effect. Together with the banner blindness, the rejection of traditional marketing approaches comes. Because of the large amount of information that grows, there comes an era of trust exclusively to recommendations. Now the credibility of bloggers is much higher than to the promises of brands.
Sarafan radio works and will develop rapidly. Recommendations, experience of leaders of opinions and close ones are valuable and of high priority for millennials.
The next trend is urbanization. If according to statistics in 1970 2 cities in the world had a population of more than 10 million people, in 2014 there are 23 of them, and in 2030 there will be 41 - twice as many over 15 years. It also affects the lifestyle, the service and the customers' demand for it. In megacities, the pace of life, the standards are different and this tells us that the service must be changed through these global changes. There must be a compliance of the business with the requirements of new realities.
Unfortunately, in Russia the culture does not transform as quickly as in Europe or America. Therefore, a rapid flexible business response to the change is a huge competitive advantage. You need to customize the service in such a way as to get to the basic expectations of the audience that is necessary for your field of activity. The role of service is greatly enhanced.
In connection with the fact that by 2030 75% of the able-bodied population will be Y generation, the service needs to be built on the basis of emotions. Therefore, the businesses need to start research on emotions measuring. We also need to optimize the system of data processing, which will become many times greater. According to forecasts, as early as in 2018 the number of companies that conduct research and provide analytics will grow. As there are new, more complex systems of analytics. As the amount of information increases many times, the companies need to learn the selectivity of important information and use it correctly. Also, the rapid adaptation and construction of the company with an understandable purpose, transparent customer-oriented service strategy is important.
The business begins to be based on a new generation. Y generation has very different possibilities. 80% of Y generation prefer to spend money on impressions, not things.
By selling emotions and personal service, the business will increase the check and receive a loyal consumer, ready to recommend. The business should now start to focus on Y and Z generation. The choice of this audience is not based on brand marketing, but on emotions experienced when interacting with it and on recommendations.
The Nobel Prize for 2017 was awarded to Richard Thaler, a professor at the University of Chicago. He received the award "for the research in the field of behavioral economics." It has always been believed that the economics is an exact, rational science. It considers human behavior within the framework of rational choice. But the fact is that people do not always behave rationally. Systematic, that is, observed over and over with time on many people, deviations from rational behavior are studied by behavioral economics.
The behavior of consumers of Y generation is more irrational having an emotional color. They are harder to surprise. The task of the business is the customization of the service. We need to learn to do so that every client feels needed and involved in the company. This requires to rethink the approach to business and its adaptation to the trends of the future.
All creative is transformed into a service approach. The future is behind native advertising, which integrates into space. The consumer perceives it as a kind of game: gamification. Entertaining, involving content is in a trend.
Corporate culture of the future
Companies should also review their mission and values. According to research, the companies with a clear and understandable mission have by 20% higher income than the rest. For consumers not only a pleasant visual component of the brand is important, but also a corporate culture, the values that it broadcasts.
The main trend of the future service is the ability of the company's personnel to be flexible and open. Impaction is unacceptable, because Y generation, and Z even more so, support personal development and communication skills. The companies should develop the empathy of employees, the ability to think creatively and generate ideas. Millennials appreciate the unique qualities of a person.
This follows the next megatrend: a new look at employment. According to forecasts, in 2020 the number of long-term personnel will be 20%, and in 2025 - 30%. This significant growth suggests that the companies need to choose flexible HR strategies and interactions. It means: empower staff, create an atmosphere of openness, when each employee can safely express their opinions and ideas.
The companies use WOW technologies and others in order to satisfy the customer. But they forget about the staff. And emotional experiences in contact with the brand, for the most part, are provided by the company employees.
To do this, it is necessary that each employee understands the value of his role in the company. A successful business of the future is a human company with clear, understandable values and mission that are broadcasted to both customers and employees of the company.
Y generation wants to interact with people, despite advanced technologies using robots. They want a customized service and they are ready to provide personal data for this.
Therefore, the satisfied staff with the developed empathy and commitment to their brand is one of the key components of the business success in the future.
Let's sum up
Yes, technologies will continue to develop, the information field will expand. Investments in technology will increase at times. But all the actions of the companies will proceed from the requirements and requests of Y and Z generations. They will be the main driving force for both the workforce and the client for the next 20-30 years.
The future is for those companies that will build a smart service ecosystem and a simple, transparent corporate culture that will: understand, motivate, involve, develop the staff. Each employee should understand his role in the company, have the authority to flexibly adapt to the needs of customers and find an approach to them.
The mission of the future company should be aimed not only at a good product. The era of the product sooner or later passes. It can be replaced or copied. But the emotions that a person experiences when interacting with a brand are unique.
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