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  • 24 June 2015 08:58

Australasian Companies Taking Charge of Digital Transformation

New research by the Economist Intelligence Unit reveals link between investment in customer experience and increase in profitability, revenue growth and customer retention

SYDNEY — June 24, 2015 —Genesys (www.genesys.com/anz), the market leader in omnichannel customer experience (CX) and contact centre solutions, today released a global study revealing that an upsurge of CX investment by Australasian companies over the next three years will accelerate their digital transformation and pave the way for innovation. Motivated primarily to improve customer loyalty, the upsurge in investment can be linked to the direct correlation the survey found between CEO engagement in customer experience and company performance in revenue growth and profitability.

The new study of C-suite executives by the Economist Intelligence Unit (http://www.eiu.com/home.aspx), also found that 86 per cent of Australasian C-level executives considered “improving CX” a key driver for their company’s digital transformation. In line with this finding, the report discovered that Australasian companies were set to invest heavily on CX innovation. Twenty per cent of the respondents said they planned to boost their investment by more than one quarter (27 per cent) in the next three years, up from 15 per cent three years ago, reflecting the growing appetite for digital CX channels.

On a global scale, larger companies are now cutting back on their investment, with just 12 per cent planning a similar increase over the next three years, putting Australasia ahead in the race to lead CX innovation.

“More and more senior executives are beginning to not only understand their digital consumer but also see the urgent need for CX innovation to be prioritised on their investment agenda and to keep up with today’s digitally driven customer,” said Bruce Eidsvik, Manager Director, Genesys, Asia Pacific.

“With this in mind, organisations need to consistently evolve to meet the growing demands of their customers, build trust, increase loyalty and drive revenue growth.”

The study highlighted traditional CX channels in Australasian companies were set to drop to 45 per cent in terms of importance in the next three years, compared to 60 per cent currently, with these channels to be overtaken by social media, web self-service (web transactions without human assistance) and online assistance. However, 60 per cent of Australasian business leaders still believe face-to-face interaction between companies and customers is an important and effective CX channel.

The report also suggests improving customer retention is an important factor driving increased spending in CX programs at Australasian companies. More than one-third (40 per cent) of the Australasian respondents said increased customer retention was one of the benefits of CX investment, followed by increased sales and improved customer satisfaction, both identified by 18 per cent of respondents.

A direct correlation between CEO engagement in customer experience and profitability is also driving the investment. The survey found that when CEOs lead CX initiatives, they were more likely to transform a company’s future success. Fifty eight per cent of Australasian companies reported a much higher profitability than their competitors when the CEO was in charge of customer experience.

Supporting the CX paradigm, a significant number of Australasian companies (67 per cent) were also more likely to measure the success, or return on investment, of CX initiatives. This compares higher than results across the Asia Pacific region (66 per cent), Europe (59 per cent) and North America (51 per cent).

“Ambitious companies are driving large investments in customer experience initiatives to adapt to the digital communication channels customers are demanding,” said Charles Ross, senior editor at the Economist Intelligence Unit and lead researcher of the study. “By prioritising CX and placing the CEO in charge, companies are taking an extra step to drive revenue growth and improve profitability.”

Genesys partnered with EIU in order to gain a deeper understanding of how Australasian businesses valued the role of customer experience in their organisations. The research titled, ‘The value of experience: How the c-Suite values customer experience in the digital age’, was conducted with 516 C-suite executives in 21 countries, including Australia and New Zealand.

Survey Methodology

The Economist Intelligence Unit surveyed 516 senior-level executives in April 2015 from 21 countries. The vast majority of respondents (464) were C-suite executives, including 165 CEOs, while the remaining 52 respondents were business unit leaders. Sponsored by Genesys, this Economist research and survey included executives from a wide range of industries worldwide, spanning four regions: Asia Pacific, Latin America, North America and Europe. The sample comprised of 30 respondents from Australia and New Zealand from a range of industries, including retail banking, insurance, telecommunications and media.

The Asia Pacific report with Australia and New Zealand results are available for download (http://www.genesys.com/anz/about-genesys/resources/the-value-of-experience-how-the-c-suite-values-customer-experience-in-the-digital-age), and click here (http://www.genesys.com/anz/about-genesys/resources/the-value-of-cx-in-the-digital-age-infographic) to download the infographic.

Join Our Webinar

For a deeper analysis into the study and to learn what companies can do to improve their customer experience initiatives, join the global Genesys webinar (http://www.genesys.com/about-genesys/webinars/the-missing-link-connecting-customer-experience-with-revenue-growth-profitability), “The Missing Link: Connecting Customer Experience with Revenue Growth and Profitability,” with researchers from the Economist Intelligence Unit.

About Genesys

Genesys is the market leader in omnichannel customer experience (http://www.genesys.com/customer-experience) and contact center solutions in the cloud and on-premises. We help brands of all sizes make great CX great business. The Genesys Customer Experience Platform (http://www.genesys.com/platform-services) powers optimal customer journeys consistently across all touchpoints, channels and interactions to turn customers into brand advocates. Genesys is trusted by over 4,500 customers (http://www.genesys.com/about-genesys/customer-stories) in 80 countries to orchestrate more than 100 million digital and voice interactions each day. Visit us at www.genesys.com or call us at +1.888.436.3797.

About The Economist Intelligence Unit

The Economist Intelligence Unit is the world leader in global business intelligence. It is the business-to-business arm of The Economist Group, which publishes The Economist newspaper. The Economist Intelligence Unit helps executives make better decisions by providing timely, reliable and impartial analysis on worldwide market trends and business strategies. More information can be found at http://www.eiu.com/ or https://twitter.com/theeiu.

Media Contact

Krissie Vitasa Hill+Knowlton Strategies for Genesys krissie.vitasa@hkstrategies.com +61 2 9286 1206

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