Help needed to convince local businesses of value of IoT for CX
Internet of things may be a buzz phrase at the moment, but ANZ organisations aren’t buying into it for customer experience initiatives.
A new report from omni-channel and contact centre solutions company Genesys, in partnership with Frost & Sullivan, shows Australia and New Zealand rank the lowest in IoT-enabled customer experience initiatives within Asia Pacific markets, with local businesses showing reluctance to integrate IoT into customer experience initiatives.
More than 80% of those surveyed in ANZ saying IoT is a low or neutral priority compared to other customer experience initiatives.
Genesys says a further 60% of businesses say they have no plans to incorporate IoT into customer experience (CX) initiatives.
Among the challenges preventing businesses from deploying IoT for CX was a significant issue with organisations understanding the IoT value proposition, and a low level of C-suite awareness about the importance or value of IoT-enabled CX solutions.
Keith Budge, Genesys APAC senior vice president, says the research found the overwhelming majority of respondents across APAC believe customer lifetime value is the most significant business benefit delivered by an effective customer experience strategy.
“Despite acknowledging that IoT is a key enabler of sophisticated customer experiences, we were surprised to find Australia and New Zealand organisations lag behind the region when it comes to the adoption of IoT-enabled customer experience solutions,” Budge says.
The report, does, however, show that when companies deploy IoT to deliver better customer experience, there are positive results, with more than 70% saying their IoT solution enables them to influence customer buying and engagement decisions. More than one-third of those surveyed recognised the ‘very high’ impact IoT had on enhancing customer satisfaction.
Other benefits cited included positive impacts on brand equity (33%), improvements in operational efficiency (33%) and increased employee productivity (35%).
Krishna Baidya, associate director of Frost & Sullivan’s Digital Transformation Practice for APAC, says the success of an organisation hinges on its ability to understand what customers want to deliver differentiated services.
“Using behavioural data made available to organisations through IoT solutions, organisations can proactively engage customers in ways that are more personalised, convenient and deliver more value,” Baidya says.
The report shows that while 83% of APAC-wide respondents have some familiarity with IoT and nearly 50% believe it is important in enhancing CX, only 15% have already implemented IoT.
Across Asia Pacific the report found 60% of businesses have a starting point in their IoT journey, with 16% looking to incorporate IoT in their organsation within the year. A further 29% hope to accomplish this within the next two years.
Budge says the findings underscore the role of technology providers, including Genesys, in helping APAC companies roll out successful implementations and realise the true value of IoT to improve CX.
The survey covered nearly 500 leaders across a range of organisations in 11 APAC countries.