#TechTalk 117: Enhancing Customer Experience (CX) to Boost Sales and Customer Loyalty
During the last quarter, Qiscus held our #TechTalk event series. Being held at Blog 71 Yogyakarta, #TechTalk117 was attended by hundreds of SME owners around the Yogyakarta area. This event was held in collaboration between Qiscus, Faspay, and Avana. Faspay is a local start-up while Avana originates from Malaysia. At the event, attendees were fortunate to listen to a representative from each startup speak during the talk show segment. The panel of speakers consisted of Qiscus’ very own Special Projects Lead, the Head of the Merchant Acquisition Festival, Avana’s Country Manager as well as the Sales Director at LINE Indonesia.
This event was conducted by Qiscus to educate the masses about the use of technology to maximize business for SME owners, especially those residing in Yogyakarta. Particularly, the event focused on the latest trends in technology, especially with regards to the use of various channels as media of promotion and sales, to create the best shopping experience for customers.
With the ubiquity of mobile phones among Indonesians, many now find it normal to not just communicate but also shop and complete transactions on their mobile phones. For this reason, creating a business with mobile-friendly apps is a must. More than that, such apps and services must prioritize the Customer Experience. Convenience, on-the-go, multichannel or omnichannel, real-time, bite-size and customized experiences are some of the key factors that people today expect from businesses.
It is predicted that Customer Experience (CX) will be overtaking price points and branding as a key factor for customers before they make a buying decision. According to McKinsey, businesses which emphasise on positive CX see the results of increasing customer loyalty, happier employees, achieving more revenue with almost 5 to 10 percent higher and cost reduction by 15 to 25 percent within two or three years.
Based on another research by Forrester in 2017, the quality of CX tends to decrease in most industries and companies. This happens because CX is not placed as a priority for improvement despite the trend being that customers are always demanding for a pleasant CX.
In a recent study conducted by Periscope research, 78% of retailers admitted that their consumers did not have specific references to the brand and 45% of them also said that progress did not happen fast enough. This failure also causes a decrease in CX. In 2018, 30% of companies will see a further decline in CX’s performance, and the decline will impact on the company’s losses in the form of a minus business growth trend.
E-Commerce vs Social Commerce
In today’s world where the internet is god, E-Commerce is slowly replacing conventional stores. There is also a recent emergence of Social Commerce, which is beginning to replace conventional shopping transactions. It relies on Social Media as its main purchasing channel, no longer through websites or e-commerce applications only.
E-Commerce generally relies on the website and apps as a “shop”. Social Commerce, however, brings purchasing a notch higher by using social media as its main transactional channel, since customers would usually browse for products instead of asking about products, until they decide to buy them. Just like E-Commerce, Social Commerce also rely on the customers’ product feedback but may take newer forms such as posting a review on their personal IG accounts to encouragement, engagement, and conversions.
Even in terms of sales volume, these two have already reached a gargantuan number. Based on the Daily Social, reported by Mc Kinsey, the number of online commerce in Indonesia has reached $8 billion with $5 billion already contributed by E-Commerce while the rest is from Social Commerce. It is projected that in 2022, this value will reach $55 to $65 billion with Social Commerce contributions estimated to be around $15 to 25 billion.
Seeing the rapid development of E-Commerce and Social Commerce, it seems that both have begun to transform conventional transactions because they have begun to fulfill what customers want; convenience, on-the-go, multichannel/omnichannel, real-time, and bite-sized.
How To Face The Trend from the Tech Experts’ Perspectives
Understanding the context of current customers, businesses need technological adaptation, according to Anchali Kardia, the Sales Director at LINE Indonesia. LINE, as an instant messaging service provider application that is widely used in Indonesia, is trying to keep up with trade trends that are starting to shift towards e-commerce and social Commerce, which rely on many messaging applications as their channel.
LINE has launched an application that supports these activities, LINE Official Account, which was created as a LINE account for businesses. Through this, businesses can interact personally with customers and post on their own timelines which is visible and allows interactions by followers. In addition, LINE Official Account also supports broadcast message facilities to support businesses when they want to notify customers of products or promotions to those who are following their brands.
For Avana, which specialises in providing solutions for sellers, being accessible and knowing the right application or channel to use in order to reach the targeted audience is an extremely important point to note. Each channel brings with it its own slice of the market share. Young people, especially millennials, may be more familiar with Instagram and WhatsApp as compared to the older generation who may prefer other platforms.
Nonetheless, Avana also reminded the attendees that a brand’s website should not be neglected. A website is likened to the front page of your store. Customers will still conduct simple research via search engines so making your website appear as top results through Search Engine Optimization (SEO) will attract more people to browse your website.
According to Forbes, websites are vital when your business goes online. The website makes a professional impression so that it can be more attractive for customers to deal with your business. Website can also be positioned as a home base of all your online marketing activities. For example, when you engage with consumers through many channels, you can attract customers to then be transferred to your website to find out more about product details or to buy your product.
Understanding the complexity of Social Commerce, especially since it utilizes social media in its trading activities, Qiscus is the expert in helping businesses deal with the avalanche of communication and transactions that come with multiple social media platforms, which is basically the multi- or omnichannel concept. Many channels can be used by retailers, such as Instagram, Facebook, WhatsApp, LINE, and Telegram. Facebook and Instagram are frontliners of Social Commerce, starting from Facebook, which formed its own Marketplace in 2016 to connect buyers with retailers via Messenger.
Other players, like LINE and WhatsApp Business, continue to provide innovative solutions to link brands with customers in as fluid a communication process as possible via the various social chat applications. Even applications like Telegram, which does not explicitly provide business solutions, is able to help business owners leverage on its public group and channel features. The public group itself has even become a supergroup that can accommodate 100,000 users.
Of course, CX must take priority across all channels. Qiscus Multichannel is one solution to deal with problems that retailers may face when it becomes difficult to manage multiple channels while maintaining the best CX possible. Integrating various social messaging apps like LINE, WhatsApp, Telegram, Messenger and even Live Chat on your website can also be done on one dashboard, easing the job of your Customer Service team when replying to messages from various channels without switching between applications. Other advanced features, such as bots, can also give your brand the upper hand in managing your customers’ CX.
The advent of Social Commerce will also see the rise in challenges such as unintegrated payment and the few choices of payment methods. By integrating your online store with a payment gateway such as Faspay, you will help customers choose from several payment options. Faspay provides a variety of payment options, ranging from credit and debit, via Internet banking services, mobile banking, virtual accounts, e-money, as well as credit cards and Online Credit while offering a competitive fee in every transaction.
Present-day customers demand fast and easy services and reaching customers through many channels is beneficial for your business development efforts. Working on building a positive and seamless CX is not only a matter of how many channels your brand is accessible to but also the quality of the services we provide through each channel. Including other conveniences, such as payment integration features or technological innovations that help increase your brand awareness to the masses, will definitely contribute to maximizing CX, which will inevitably impact your brand’s growth.