How does Zendesk win customers

Zendesk publishes new study results: Service has a huge impact on customer loyalty

Annual benchmark report confirms that the simplicity and excellence of customer experiences have a direct impact on customer loyalty

Berlin - January 15, 2020 - Zendesk, Inc. (NYSE: ZEN) today announced the Zendesk Customer Experience Trends Report 2020. It analyzes how companies can drive customer loyalty, what is most important to consumers when interacting with companies, and what sets leading companies apart from their competitors. The annual report is based on the results of global surveys and the Zendesk Benchmark, an index of product usage data from more than 45,000 companies worldwide who use Zendesk.

Customers have higher expectations of companies than ever before. At the same time, their loyalty is waning. According to the report, just one bad experience with a company can turn about half of all consumers worldwide to competition. Several bad experiences move even 80 percent to a change. The study also shows that good customer service is an important driver of customer loyalty and, second only to price, determines whether customers are loyal to a brand.

"We are in a completely new age of customer expectations, in which service can decide whether a company is or not," summarizes Elisabeth Zornes, Chief Customer Officer at Zendesk. "In order to build a loyal customer base and really differentiate themselves, companies - no matter what size, industry or region - have to offer a comfortable and smooth customer experience and earn new business with a customer with every interaction."

As customer expectations continue to rise, the Zendesk Customer Experience Trends Report 2020 shows that companies are not meeting those expectations. As a result, for example, many of the channels that consumers want for a quick and efficient solution are not offered. Only a third of companies offer self-service options such as knowledge bases. Less than a third offer chat, social messaging, in-app messaging, bots or communities.

At the same time, these companies are in competition with companies that offer targeted solutions for the benefit of the customer and thus increase the pressure on everyone. Established brands, such as Disney, Levi Strauss & Co. or Four Seasons, are always one step ahead because they invest in new technologies in order to continue to offer a simple and excellent customer experience.

This represents a challenging environment. The report shows what companies of all sizes and in all sectors can do to offer excellent customer service and thereby acquire loyal customers:

Maintain seamless communication
Nowadays customers expect seamless communication without disruptive interruptions or channel changes. Half of all consumers worldwide want to be contacted by companies on the channels they already use to communicate with friends and family. Companies that do actually get better service ratings and are twice as likely to have taken an omnichannel approach that combines support, self-service and live channels such as phone and chat. Because in order to meet customer expectations for quick and efficient answers, customer experiences have to be anchored in a single line of communication across different channels.

Another result of the Zendesk Customer Experience Trends Report 2020: Sales and support teams should work more closely together to link initial and subsequent customer interactions. This internal cooperation is also what 67 percent of German consumers want. This is already the case with leading companies: their support teams work more closely with sales than with other areas. To meet sales leaders' expectations for both revenue and team growth, organizations need to leverage data across teams using shared tools to support customers from the original purchase through the entire customer experience.

Use customer data
Customers are less concerned about data protection with their data than they were a year ago. In 2019, Zendesk research showed that 25 percent of Germans wanted to share as little data as possible, while that number has dropped to 12 percent this year. The results of the Zendesk report show that customers agree that companies track their data if this leads to better interactions. Carefully managed and interpreted correctly, companies can use such data to better understand their customers and thus proactively identify opportunities to improve their service.

The most successful customer service teams are already connecting their data using an open and modern CRM platform. Thanks to linked data sources, they can offer a personalized service based on customer preferences and ensure that customers do not have to repeat their information. The results from Zendesk show that companies that link the most data can solve their tickets more than a third faster, cut their waiting times by 79 percent and process four times as many customer inquiries at the same time.

Courage for Artificial Intelligence
AI is the future in customer service, but many companies have not yet realized the potential of the technology. Zendesk's report shows that only 37 percent of customer experience teams use AI. The most successful teams are twice as likely to use AI across more channels and with more customer interactions.

Make customer experience a C-level issue
More and more companies are realizing the value that the customer experience has for them. Innovative companies are therefore increasingly creating positions for managers who understand customers and can stand up for their concerns. A recent Forrester report found that the number of customer experience executives in both B2B and B2C companies has grown by more than a thousand percent in five years.² The results of the Zendesk report highlight this: Younger, forward-thinking Companies founded in the last five years are 64 percent more likely to have a Chief Customer Officer (CCO) who is responsible for the customer experience.

According to Zendesk, customer service managers expect their customer inquiries and their teams to grow by 42 percent and 36 percent, respectively. As companies continue to invest and focus on the customer experience, it is critical that they make customer service teams a central part of their corporate culture and strategy. With the right tools and systems, companies can help their service people succeed and use data to make better decisions.

The complete results of the Customer Experience Trends Report 2020 are available for download at https://www.zendesk.de/resources/zendesk-customer-experience-trends-report-2020.

Via the Customer Experience Trends Report
The report combines the results of the Zendesk benchmark, which brings together usage data from 45,000 Zendesk customers, with the results of surveys and focus group surveys among customer service managers, agents and consumers in Australia, Brazil, Canada, Germany, the UK and the UNITED STATES.

About Zendesk
The best customer experiences are created with Zendesk. Zendesk is a CRM company that develops support, sales, and loyalty software to strengthen customer relationships. Zendesk products are powerful and adapt flexibly to the needs of companies of all sizes and industries. Over 150,000 paying customers from hundreds of industries offer service and support in more than 30 languages. Zendesk is headquartered in San Francisco and operates 17 offices worldwide. You can find more information at www.zendesk.de