Zoho has published details of a survey into the state of Digital health. The data looks at the state of customer experience (CX) and employee experience (EX) in the UK. The headline statistics show that only 21% of UK businesses believe that their CX is excellent.
The survey, conducted by Censuswide, polled 1,531 senior digital transformation decision-makers across the UK, France, Germany, Spain, and the Netherlands, three hundred and six of whom were based in the UK. However, the surveys were conducted nearly ten months ago during the week beginning 24 August 2023. The data is, therefore, fairly historic.
Within the UK, there is a lot of room for improvement in the digital health of companies. The survey found that:
- 19% of UK businesses have good digital health
- 51% have average digital health
- 29% have poor digital health
The larger the firm, the better the digital health, with 33% of large UK businesses having good digital health, 14% of medium-sized businesses and only 11% of small businesses.
State of Customer Experience
The results (only the UK results were made available to Enterprise Times) would indicate that there is a relationship between digital health and the state of customer experience. 43% see improved customer experience as the top benefit of digital transformation.
That viewpoint was backed by the respondents, with 43% of respondents who rated their digital health as good more likely to rate their digital health as excellent. The reasons why so many cite such issues are varied:
- 74% struggle to find customers who are ‘promoters’ or advocates
- 71% struggle to retain customers
- 64% face challenges in reducing customer complaints
- 59% encounter problems in gaining positive customer reviews
All of these are linked. However, the research did not offer any qualitative insights into the reasons behind some of these, very high statistics. Also, there is information about what industries the respondents represent; the answers as to why customer retention is hard might vary enormously.
The customer sees
In retail, eduMe cited six reasons for delivering poor customer experience that could lead to poor retention:
- Long wait times
- Negative tone/attitude
- Passing customers from one colleague to another
- Lack of empathy and listening skills
- Outdated technology
- Poor knowledge of products and services
For eCommerce, outdated technology could lead to high cart abandonment rates, a key issue for customers not purchasing.
The survey respondents’ perceptions differ slightly
The Zoho research found some similar themes, with the main challenges to delivering customer service seen as:
- 23% are unable to see the entire customer journey across all touchpoints and departments
- 17% do not have the right software in place to be able to deliver good CX
- 12% are unable to collaborate easily across the business, which affects CX
- 15% point to poor leadership
- 15% said not having a strong customer support team was an issue
While the first three of these seem rooted in outdated technology, the last two, as well as most of the eduMe insights, are people-centric. Could having a bigger focus on the employee experience unlocks a greater customer experience Zoho posited.
Bringing technology to help customer experience
While the state of customer experience last year may have seemed dire, things are changing and may already have changed. 97% of UK business respondents said that they plan to invest more in CX in 2024.
Interestingly, that investment is more focused on those with good digital health. 58% of the respondents will invest more in AI for their CX investment, and 81% of those in good digital health will do so. Again, the question is why. It may be because those in good digital health are more confident that their data is in a good place. The survey also also which systems they would invest in:
- 50% will invest in customer support software
- 39% plan to invest in CRM software
It might have been interesting to see whether they already had these tools in place and were expanding an existing platform on investing in one for the first time. With one-third of respondents in each small, mid and enterprise businesses, the answers may vary. Certainly, such investment will improve CX, but there is more to CX than just technology.
Sachin Agrawal, Managing Director at Zoho UK, comments, “Customer experience is the lifeblood of any company today – it is no longer just a ‘nice-to-have’. An excellent experience can drive improved retention, loyalty, and advocacy, which are critical. It is clear from the findings that more needs to be done to not only drive further use of technology to help, but to educate on the right strategy to make a positive impact. We remain committed to helping our customers serve their customers better through digital transformation.”
The Rising Importance of Employee Experience
The pandemic, with lockdowns, a shift, albeit temporary for some organisations, to remote working, and a spotlight on mental health, has increased the focus on employee experience. 80% of respondents have focused more on EX over the last two years.
The catalyst for this was to increase staff retention, counter the Great Resignation (45%) and remain competitive (33%), presumably in the talent market.
Respondents also cited improved employee experience as one of the three top benefits of digital transformation. However, Zoho fails to define digital transformation. Those firms with good digital health are more likely to have improved EX.
How has EX increased? This is not always about soft benefits. As the eduMe study noted, improved technology and tools can help enhance EX. Despite this, improving EX was only a focus of 21% of businesses that have invested in cloud technology, almost as though it is an afterthought rather than part of the business case.
Looking back at investments, though, 85% of UK respondents with good digital health view such tools as very important. Compared with 44% of those with average digital health and just 14% of those with poor digital health in relation to EX.
There are clear benefits to having a good employee experience, with staff motivation as a key outcome. Other factors noted in the study indicate UK firms see:
- Prioritising the provision of the right technological tools (58%) to help them achieve their goals
- Clear communication of business objectives (39%)
Agrawal commented, “Businesses must realise the interplay between other functions and work holistically to improve customer experience. Employee experience is a crucial factor. If employees feel valued and are given the right digital tools to enable them to perform better and meet their goals, it has a direct impact on customer experience. Leadership and culture play a vital role here, too.”
Enterprise Times: What does this mean
The UK data of the digital health study provides some interesting insights. It might have been interesting to see how the UK compares with other countries in Europe. UK businesses are heading in the right direction with investment in technology and a focus on both CX and EX, which are intrinsically linked, which Agrawal rightly notes.
Zoho has solutions that will help solve the problems of business, from the recently launched Zoho CRM for Everyone and others, to customer support solutions such as its Helpdesk and other service solutions.
