A report from the Economist Intelligence Unit Omni-channel comes to small business Sponsored by Omni-channel comes to small business Executive summary Small businesses—defined here as companies with fewer than 100 employees and up to US$20m in revenue—have tended to rely on strong and close relationships with their customers Consumers, in turn, have always appreciated the local, friendly touch of a small business But as consumers embrace mobile devices and new-media channels, they are faced with a deluge of new options, tools and messages—consequently, their purchasing behaviours are evolving rapidly In this era of “omni-channel” marketing, small businesses face the challenge of engaging their individual customers better than ever and securing their satisfaction and loyalty In November 2014, the Economist Intelligence Unit (EIU) polled 363 executives and owners of small businesses from across the US to gauge how well they understand customer satisfaction, and how they intend to deliver unique and differentiated experiences across multiple channels Some of the key findings to emerge from the research include: l Small businesses may be overestimating how satisfied their customers really are Small businesses pride themselves on cultivating a close and personal connection with their customers Yet for most of them, understanding customer satisfaction is still a very organic, unsophisticated process The EIU survey shows that small businesses rarely deploy sophisticated metrics and processes, such as tracking the rate of repeat purchases by customers, analysing the rate of customer referrals, tracking complaints and returns, and conducting occasional spot surveys with customers, to capture and measure customer Self-reported performance over the past 12 months across revenue, profitability and customer satisfaction metrics (% respondents) Significantly outperformed Revenue growth vs competition Profitability vs expectations Moderately outperformed Performed on par Moderately underperformed 28 51 25 Customer satisfaction vs expectations 26 44 32 Significantly underperformed 11 21 38 Source: Economist Intelligence Unit survey, November 2014 © The Economist Intelligence Unit Limited 2014 Omni-channel comes to small business satisfaction In fact, the number-one method they deploy, chosen by 37% of respondents, is “no method”, and another 25% rely on qualitative measures of satisfaction based on in-person conversations with customers At the same time, small companies appear to be overestimating their customer satisfaction performance When asked to rate their own performance over the past 12 months, they are modest across most metrics—only 4-5% of respondents believe their company significantly outperforms peers in revenue growth or profitability However, some 26% believe they significantly exceeded their customers’ expectations and only 3% conceded that they might not be meeting customer expectations The smaller the respondents’ companies, the more likely they are to be over-confident about their customer-satisfaction performance l Human interactions are still critical to customer satisfaction, but new-media channels are the future Human-interaction channels, such as physical stores, phone hotlines, online chats, and e-mail and text correspondence, are still the most heavily used vehicles for customers to interact with small businesses and their brands At the same time, next to product and service quality, the quality of human interactions is seen as the foremost driver of customer satisfaction (47% of survey respondents selected it as a top-three factor), followed by the ability to resolve customer issues and complaints in a satisfactory manner (39%) It is no surprise, therefore, that personal interaction channels are perceived to be the most critical in keeping customers engaged and happy And while Internet, mobile and social media channels still lag in usage, investment in these channels is outpacing their perceived importance— reflecting the expected future importance of new-media channels in delivering a high-quality, seamless customer experience l A “reverse showrooming” phenomenon may be emerging as consumers rely more on new media to research and select products, but prefer a brick-and-mortar outlet for purchasing Much attention has been paid to the “showrooming” phenomenon plaguing retail, that is, the tendency of consumers to browse and try out products in brick-and-mortar stores, but then turn to online stores to find the lowest purchase price The EIU survey indicates, however, that new- Most critical drivers of customer satisfaction (% respondents) Quality of products or services 63 Quality of staff communications and interactions with customers 47 Ability to resolve customer issues and complaints in a satisfactory manner 39 Ease and speed of executing customer transactions 29 Providing the best possible price 23 Strong corporate values and a socially responsible mission 11 Availability and co-ordination of multi-channel communications and interactions with customers (including online, mobile and offline channels) 10 Quality of corporate communications and marketing messages Flexible exchange or refund policies Don’t know/None of the above Source: Economist Intelligence Unit survey, November 2014 © The Economist Intelligence Unit Limited 2014 Omni-channel comes to small business media channels play a bigger role in the prepurchase phase of the customer journey while traditional human-interaction channels are seen as relatively more important during the purchase phase, causing a potential “reverse showrooming” effect This suggests the need to rethink the balance and relative importance of different channels that drive customer experience and satisfaction l Seamless omni-channel delivery is still rare, hampered by old habits and the lack of financial and human capital Consumers—particularly those considering purchasing from businesses with fewer than 25 employees—are increasingly relying on multiple channels throughout their purchasing journey, especially when they research and select products and services However, most businesses not yet deliver a seamless omni-channel experience; only about one-fifth of survey respondents believe their company is able to so And their omni-channel delivery is more focused on the purchase phase and least targeted at the pre-purchase phase, where consumer omnichannel needs and behaviours seem to be concentrated One-quarter of respondents indicate their omni-channel delivery is very weak—10% of respondents claim to offer a poorly co-ordinated omni-channel experience and about 15% offer no omni-channel experience across the entire customer journey What prevents small businesses from providing better and more uniform omni-channel experiences? According to survey respondents, the top reasons are: insufficient funding, old habits and lack of human capital (all chosen as top-three obstacles by 23% of respondents) Other challenges include lack of technical skills, insufficient training and lack of focus from top leadership on the need to create an omni-channel experience for customers Less common obstacles are lack of understanding of customer needs and behaviours and poor collaboration among departments Nearly one-fifth of survey respondents report no major challenges and believe they already deliver a seamless omni-channel customer experience Whether this reflects reality or is merely an inflated perception is a question to explore further Smaller companies are considerably more likely to say they face no major obstacles, as well as to state that they offer a seamless omni-channel experience during both the purchase and post-purchase phases Smaller companies generally have simpler Top challenges preventing companies from delivering a seamless omni-channel customer experience (% respondents) Lack of financial capital to invest in creating a seamless omni-channel customer experience 23 Shortage of human capital required to co-ordinate the customer messaging and experiences across channels 23 Strong dependence on one or two channels for driving company revenues and customer satisfaction 23 No major challenges – we deliver a seamless omni-channel customer experience 19 Lack of training and skills to co-ordinate customer messaging and experiences across channels 15 Lack of technical skills and knowledge to develop seamless customer messaging and experiences for emerging channels 15 Lack of focus from top leadership on the need to create an omni-channel experience for customers 13 Lack of understanding of the needs and behaviours of our customers across channels 12 Poor collaboration and incentive alignment among different departments within the company Don’t know/None of the above 23 Source: Economist Intelligence Unit survey, November 2014 © The Economist Intelligence Unit Limited 2014 Omni-channel comes to small business operations and are sufficiently focused on their customers, hence co-ordination is not as much of an issue But they need to keep an eye on their customer satisfaction metrics to make sure they sustain this seamless experience as they grow l The ability to recognise the customer, seamlessly complete transactions across channels and deliver a synchronised marketing message are key to customer satisfaction When interacting with a business and a brand across different channels, customers want to feel that they are dealing with one entity—an entity that speaks to them with the same voice and operates in a uniform, reliable manner—regardless of which channel they happen to be using It is not surprising, therefore, that survey respondents selected the ability to recognise the customer and track their preferences in different channels as the most important omni-channel feature (69% rated it as very important or somewhat important), closely followed by the ability to initiate and seamlessly complete a transaction across different channels (65%) Addressing the customer with a synchronised marketing message and brand communication across channels was also deemed important For the time being, small businesses rely on simple methods (or none at all) to ensure that they deliver co-ordinated and coherent experiences across channels Twenty-nine percent of survey respondents say they actively solicit and act on customer feedback about channel experiences, while 30% admit to having no co-ordination tactics More sophisticated small businesses rely on having top leadership actively focused on monitoring the coherence of customer experiences across channels, consolidating responsibility for content and activities across all channels under one senior executive, and developing all marketing content and customer experiences with customers’ omni-channel needs in mind Most companies are focused on building and delivering omni-channel features to their customers, but investment may not be keeping up with demand The survey reveals that between © The Economist Intelligence Unit Limited 2014 one-sixth and one-fifth of respondents admit to having weak capabilities in these areas and only 9-10% of respondents say their company plans to make significant investments in these features in the coming two years Thus, many companies will be playing catch-up with the omni-channel leaders and customers’ expectations In the meantime, the omni-channel train will keep moving As these top-three features become table stakes in the future, attention will likely shift to the more sophisticated omni-channel capabilities, such as unified product assortment and pricing and real-time visibility of inventory across channels l Delivering a seamless omni-channel customer experience is highly correlated with strong financial performance What does it take to beat the competition? A number of things for sure, but one factor setting top performers apart seems to be a thorough understanding of their customers and the ability to give them a uniform experience across channels The EIU survey shows a strong correlation between being a leader in omnichannel delivery and strong business performance across several key metrics Respondents who rated their company as a market-leading omni-channel operator and innovator were more likely to outperform the competition in revenue growth (66% vs 29% among non-market-leading omnichannels operators), beat profitability expectations (55% vs 26%) and exceed customer expectations (74% vs 57%) At the core of this superior performance is a more sophisticated understanding of customer needs and satisfaction Companies that beat profitability expectations are much more likely to deploy a variety of methods to measure customer satisfaction, such as conduct regular formal quantitative surveys (18% vs 9% among companies that are on par with or not meet profitability expectations), track and analyse frequency of customer referrals (23% vs 15%), rate of repeat purchases by customers (23% vs 17%) and customer complaints and product returns (21% vs 12%) Small businesses, just as well as large ones, are Omni-channel comes to small business Methods used by companies to measure customer satisfaction and loyalty Exceeded profitability expectations On par with profitability expectations Fell short of profitability expectations (% respondents) 28 We not have a formal method for measuring customer satisfaction and loyalty Maintain a qualitative measure of satisfaction based on ongoing in-person conversations with customers 23 21 12 12 Conduct regular formal quantitative surveys of customer satisfaction 18 9 Collect and analyse customer ratings and reviews of our products and services 11 16 14 13 15 Conduct occasional spot surveys and interviews of customers Don’t know/None of the above 21 14 15 Track and analyse customer complaints and product returns 29 23 14 Track and analyse frequency of customer referrals 41 27 21 Track and analyse rate of repeat purchases by customers 40 11 Source: Economist Intelligence Unit survey, November 2014 facing the omni-channel imperative They are discovering the need to interact with their customers across the full spectrum of communication and transaction channels—from in-person and phone interactions to Internet, mobile and e-mail to packaging and signage, and potentially other media Those that overcome the © The Economist Intelligence Unit Limited 2014 inertia of old habits, invest in capturing pertinent customer information and in understanding the drivers of their customer satisfaction, and deliver a truly seamless customer experience throughout the customer journey and across channels will build a competitive advantage and achieve superior performance Omni-channel comes to small business Appendix: Survey results Percentages may not add to 100% owing to rounding or the ability of respondents to choose multiple responses In the past 12 months, how has your company performed relative to your competitors with regard to revenue growth? (% respondents) Significantly outperformed the competition Moderately outperformed the competition 28 Performed on par with the competition 51 Moderately underperformed the competition 11 Significantly underperformed the competition In the past 12 months, how has your company performed relative to expectations with regard to profitability? (% respondents) Significantly exceeded expectations Moderately exceeded expectations 25 Met expectations 44 Fell moderately short of expectations 21 Fell significantly short of expectations 6 © The Economist Intelligence Unit Limited 2014 Omni-channel comes to small business In the past 12 months, how has your company performed with regard to customer satisfaction? (% respondents) Significantly exceeded customer expectations 26 Moderately exceeded customer expectations 32 Met customer expectations 38 Fell moderately short of customer expectations Fell significantly short of customer expectations Which of the following methods does your company use to measure customer satisfaction and loyalty? Please select three (% respondents) Maintain a qualitative measure of satisfaction based on ongoing in-person conversations with customers 25 Track and analyse rate of repeat purchases by customers 19 Track and analyse frequency of customer referrals 17 Track and analyse customer complaints and product returns 15 Conduct occasional spot surveys and interviews of customers 14 Conduct regular formal quantitative surveys of customer satisfaction 12 Collect and analyse customer ratings and reviews of our products and services 12 We not have a formal method for measuring customer satisfaction and loyalty 37 Don’t know/None of the above In your opinion, which of the following are the most critical drivers of customer satisfaction and loyalty? Please select three (% respondents) Quality of products or services 63 Quality of staff communications and interactions with customers 47 Ability to resolve customer issues and complaints in a satisfactory manner 39 Ease and speed of executing customer transactions 29 Providing the best possible price 23 Strong corporate values and a socially responsible mission 11 Availability and co-ordination of multi-channel communications and interactions with customers (including online, mobile and offline channels) 10 Quality of corporate communications and marketing messages Flexible exchange or refund policies Don’t know/None of the above © The Economist Intelligence Unit Limited 2014 Omni-channel comes to small business Through which of the following channels customers commonly interact with your company and your brand? Please select three (% respondents) In-person human interaction channels (eg, brick-and-mortar stores, showrooms, branches, offices) 62 Remote human interaction channels (eg, phone, online chat, online collaboration) 60 Remote correspondence channels (eg, e-mail, SMS, text messaging) 53 Traditional Internet channels (eg, websites, cloud solutions, online stores) 23 Social media channels (eg, Facebook, Twitter, Pinterest, YouTube apps and websites) 15 Public and trade event channels (eg, PR events, conventions, trade shows) Mobile channels (eg, mobile apps, mobile Internet, alerts) Non-traditional media channels (eg, blogs, online video channels) Traditional media channels (eg, TV, radio, print, outdoor advertising) Don’t know/None of the above In your opinion, which of the following channels are most critical to driving greater customer satisfaction and loyalty? Please select three (% respondents) In-person human interaction channels (eg, brick-and-mortar stores, showrooms, branches, offices) 70 Remote human interaction channels (eg, phone, online chat, online collaboration) 54 Remote correspondence channels (eg, e-mail, SMS, text messaging) 41 Traditional Internet channels (eg, websites, online stores, cloud solutions) 25 Social media channels (eg, Facebook, Twitter, Pinterest, YouTube apps and websites) 14 Public and trade event channels (eg, PR events, conventions, trade shows) 10 Mobile channels (eg, mobile apps, mobile Internet, alerts) Traditional media channels (eg, TV, radio, print, outdoor advertising) Non-traditional media channels (eg, blogs, online video channels) Don’t know/None of the above © The Economist Intelligence Unit Limited 2014 Omni-channel comes to small business In which of the following channels has your company invested most heavily in the past years? Please select three (% respondents) In-person human interaction channels (eg, brick-and-mortar stores, showrooms, branches, offices) 50 Remote human interaction channels (eg, phone, online chat, online collaboration) 37 Remote correspondence channels (eg, e-mail, SMS, text messaging) 33 Traditional Internet channels (eg, websites, cloud solutions, online stores) 26 Social media channels (eg, Facebook, Twitter, Pinterest, YouTube apps and websites) 15 Mobile channels (eg, mobile apps, mobile Internet, alerts) Public and trade event channels (eg, PR events, conventions, trade shows) Traditional media channels (eg, TV, radio, print, outdoor advertising) Non-traditional media channels (eg, blogs, online video channels) Don’t know/None of the above 16 In your view, which of the following channels are most critical to your customers’ experience during the pre-purchase phase (ie, when they discover, research, compare and decide to purchase your products and services)? Please select three (% respondents) In-person human interaction channels (eg, brick-and-mortar stores, showrooms, branches, offices) 59 Remote human interaction channels (eg, phone, online chat, online collaboration) 50 Remote correspondence channels (eg, e-mail, SMS, text messaging) 38 Traditional Internet channels (eg, websites, cloud solutions, online stores) 29 Social media channels (eg, Facebook, Twitter, Pinterest, YouTube apps and websites) 12 Public and trade event channels (eg, PR events, conventions, trade shows) 10 Mobile channels (eg, mobile apps, mobile Internet, alerts) Traditional media channels (eg, TV, radio, print, outdoor advertising) Non-traditional media channels (eg, blogs, online video channels) Don’t know/None of the above © The Economist Intelligence Unit Limited 2014 Omni-channel comes to small business In your view, which of the following channels are most critical to your customers’ experience during the purchase phase (ie, when they select, order and pay for your products and services)? Please select three (% respondents) In-person human interaction channels (eg, brick-and-mortar stores, showrooms, branches, offices) 64 Remote human interaction channels (eg, phone, online chat, online collaboration) 56 Remote correspondence channels (eg, e-mail, SMS, text messaging) 45 Traditional Internet channels (eg, websites, cloud solutions, online stores) 20 Mobile channels (eg, mobile apps, mobile Internet, alerts) Social media channels (eg, Facebook, Twitter, Pinterest, YouTube apps and websites) Non-traditional media channels (eg, blogs, online video channels) Traditional media channels (eg, TV, radio, print, outdoor advertising) Public and trade event channels (eg, PR events, conventions, trade shows) Don’t know/None of the above In your view, which of the following channels are most critical to your customers’ experience during the post-purchase phase (ie, when they receive, utilise and troubleshoot your products and services)? Please select three (% respondents) In-person human interaction channels (eg, brick-and-mortar stores, showrooms, branches, offices) 62 Remote human interaction channels (eg, phone, online chat, online collaboration) 60 Remote correspondence channels (eg, e-mail, SMS, text messaging) 51 Traditional Internet channels (eg, websites, cloud solutions, online stores) 17 Social media channels (eg, Facebook, Twitter, Pinterest, YouTube apps and websites) 12 Mobile channels (eg, mobile apps, mobile Internet, alerts) Non-traditional media channels (eg, blogs, online video channels) Traditional media channels (eg, TV, radio, print, outdoor advertising) Public and trade event channels (eg, PR events, conventions, trade shows) Don’t know/None of the above 10 © The Economist Intelligence Unit Limited 2014 Omni-channel comes to small business In your view, what is the pattern of your customers’ needs and behaviours when they interact with your company across the different phases of the purchasing journey? (% respondents) Consistently use multiple channels Sometimes use multiple channels Rarely use more than one channel Consistently use only one channel Pre-purchase phase (ie, when customers discover, research, compare and decide to purchase products and services) 18 33 23 Purchase phase (ie, when customers select, order and pay for products and services) 13 31 10 29 Post-purchase phase (ie, when customers receive, use and troubleshoot products and services) 15 29 Don’t know/Not applicable 15 14 25 13 15 15 How would you rate your company’s delivery of an omni-channel experience to your customers across the different phases of the purchasing journey? (% respondents) Seamless omni-channel experience Somewhat co-ordinated omni-channel experience Poorly co-ordinated omni-channel experience No Pre-purchase phase (ie, when customers discover, research, compare and decide to purchase products and services) 18 35 11 Purchase phase (ie, when customers select, order and pay for products and services) 21 31 omni-channel experience 14 11 Post-purchase phase (ie, when customers receive, use and troubleshoot products and services) 19 35 10 Don’t know/Not applicable 22 15 21 15 22 In your view, what are the main challenges preventing your company from delivering a seamless omni-channel experience for your customers? Please select three (% respondents) Shortage of human capital required to co-ordinate the customer messaging and experiences across channels 23 Lack of financial capital to invest in creating a seamless omni-channel customer experience 23 Strong dependence on one or two channels for driving company revenues and customer satisfaction 23 No major challenges – we deliver a seamless omni-channel customer experience 19 Lack of training and skills to co-ordinate customer messaging and experiences across channels 15 Lack of technical skills and knowledge to develop seamless customer messaging and experiences for emerging channels 15 Lack of focus from top leadership on the need to create an omni-channel experience for customers 13 Lack of understanding of the needs and behaviours of our customers across channels 12 Poor collaboration and incentive alignment among different departments within the company Don’t know/None of the above 23 11 © The Economist Intelligence Unit Limited 2014 Omni-channel comes to small business In your opinion, how important are the following omni-channel features to driving customer satisfaction and loyalty? (% respondents) Very important Somewhat important Synchronised marketing message and brand communication across channels 30 Not important 36 Ability to recognise the customer and track their preferences in different channels 33 12 12 36 Unified database of products and prices used across channels 25 19 19 36 Co-ordination and real-time visibility of inventory in different channels 22 22 36 Co-ordinated promotions and marketing events spanning multiple channels 23 Don’t know/ Not applicable 22 15 34 23 18 Ability to initiate and seamlessly complete a transaction across different channels 33 27 32 15 20 How would you rate the strength of your company’s capabilities with regard to the following omni-channel features? (% respondents) Strong capabilities Synchronised marketing message and brand communication across channels 19 Ability to recognise the customer and track their preferences in different channels 24 Moderate capabilities 40 33 26 19 24 23 34 Co-ordination and real-time visibility of inventory in different channels 13 30 Don’t know/ Not applicable 16 Co-ordinated promotions and marketing events spanning multiple channels 15 31 Unified database of products and prices used across channels 15 Weak capabilities 30 17 33 18 38 Ability to initiate and seamlessly complete a transaction across different channels 22 30 21 27 In the next years, how extensively you think your company will invest in the following omni-channel capabilities and features? (% respondents) High investment Moderate investment Low investment Synchronised marketing message and brand communication across channels 34 29 Ability to recognise the customer and track their preferences in different channels 11 34 28 Co-ordinated promotions and marketing events spanning multiple channels 10 30 Unified database of products and prices utilised across channels 28 Co-ordination and real-time visibility of inventory in different channels 28 Ability to initiate and seamlessly complete a transaction across different channels 32 12 © The Economist Intelligence Unit Limited 2014 30 Don’t know/ Not applicable 28 27 29 29 34 31 35 31 28 Omni-channel comes to small business How you identify and prioritise what investments to make and in which customer channels? Please select all that apply (% respondents) Poll customers for their needs and opinions 35 Track and analyse customer behaviours across channels 29 Follow industry trends and adopt emerging best-practice strategies 27 Strive to match or exceed the channel capabilities of our direct competition 20 Measure and analyse channel activity and transactions 19 Rely on external consultants to assess periodically our channel capabilities Employ external experts to help us devise and implement our channel strategy Channel strategy is a top priority and our top leadership is actively engaged in omni-channel capabilities assessment and investment decisions Don’t know/None of the above 29 How are you ensuring that customer messaging and experiences are co-ordinated and coherent when customers interact with your company across different channels? Please select all that apply (% respondents) We actively solicit and act on customer feedback about channel experiences 29 Responsibility for content and activities across all channels is consolidated under one senior executive 20 Top leadership is actively focused on monitoring the coherence of customer experiences across channels 20 All our marketing content and customer experiences is developed with customers’ omni-channel needs in mind 20 We leverage the same technology and tools to deliver content and experiences in different channels 15 We conduct regular staff training to ensure that employees understand our omni-channel capabilities and can communicate them well to customers 15 Departments responsible for different channels and activities collaborate closely to ensure co-ordination 12 We invite mystery shoppers, bloggers and reviewers to test and critique our customer experiences in different channels Don’t know/None of the above 30 Relative to your competition and other market players, how would you rate your company’s position as an omni-channel operator and innovator? (% respondents) Market leader 10 Early adopter 32 Follower 34 Laggard 23 13 © The Economist Intelligence Unit Limited 2014 Omni-channel comes to small business In which region are you personally located? What is your primary industry? (% respondents) (% respondents) Professional services Northeast 15 25 Retailing Midwest 26 Construction and real estate South 26 Financial services West 23 Entertainment, media and publishing IT and technology What are your organisation’s global annual revenues in US dollars? Manufacturing (% respondents) Automotive $1m or less 45 $1m to $5m Education 32 Agriculture and agribusiness $5m to $10m 15 Consumer goods $10m to $20m Government/Public sector Healthcare, pharmaceuticals and biotechnology Approximately how many people does your organisation employ? Transportation, travel and tourism (% respondents) Chemicals 1-10 50 10-25 Logistics and distribution 27 25-50 Telecommunications 15 50-100 Other, please specify 27 What is your main functional role? Which of the following best describes your title? (% respondents) (% respondents) General management 48 Sales Founder/Owner/CEO/President 53 CFO/Treasurer/Comptroller Operations and production CTO/CIO/Technology director Finance CMO/Head of marketing Customer service Business development Other C-level executive Head of business unit Marketing SVP/VP/Director 11 IT Manager Communications Human resources Procurement and supply-chain management Other 12 14 Energy and natural resources © The Economist Intelligence Unit Limited 2014 20 Other Omni-channel comes to small business Whilst every effort has been taken to verify the accuracy of this information, neither The Economist Intelligence Unit Ltd nor the sponsor of this report can accept any responsibility or liability for reliance by any person on this white paper or any of the Cover: Shutterstock information, opinions or conclusions set out in the white paper 15 © The Economist Intelligence Unit Limited 2014 London 20 Cabot Square London E14 4QW United Kingdom Tel: (44.20) 7576 8000 Fax: (44.20) 7576 8476 E-mail: london@eiu.com New York 750 Third Avenue 5th Floor New York, NY 10017 United States Tel: (1.212) 554 0600 Fax: (1.212) 586 0248 E-mail: newyork@eiu.com Hong Kong 6001, Central Plaza 18 Harbour Road Wanchai Hong Kong Tel: (852) 2585 3888 Fax: (852) 2802 7638 E-mail: hongkong@eiu.com Geneva Boulevard des Tranchées 16 1206 Geneva Switzerland Tel: (41) 22 566 2470 Fax: (41) 22 346 93 47 E-mail: geneva@eiu.com [...]... Unit Limited 2014 Omni- channel comes to small business In your opinion, how important are the following omni- channel features to driving customer satisfaction and loyalty? (% respondents) Very important Somewhat important Synchronised marketing message and brand communication across channels 30 Not important 36 Ability to recognise the customer and track their preferences in different channels 33 12 12... co-ordinate the customer messaging and experiences across channels 23 Lack of financial capital to invest in creating a seamless omni- channel customer experience 23 Strong dependence on one or two channels for driving company revenues and customer satisfaction 23 No major challenges – we deliver a seamless omni- channel customer experience 19 Lack of training and skills to co-ordinate customer messaging... of an omni- channel experience to your customers across the different phases of the purchasing journey? (% respondents) Seamless omni- channel experience Somewhat co-ordinated omni- channel experience Poorly co-ordinated omni- channel experience No Pre-purchase phase (ie, when customers discover, research, compare and decide to purchase products and services) 18 35 11 Purchase phase (ie, when customers... different channels 9 32 12 © The Economist Intelligence Unit Limited 2014 30 Don’t know/ Not applicable 28 27 29 29 34 31 35 31 28 Omni- channel comes to small business How do you identify and prioritise what investments to make and in which customer channels? Please select all that apply (% respondents) Poll customers for their needs and opinions 35 Track and analyse customer behaviours across channels... actively focused on monitoring the coherence of customer experiences across channels 20 All our marketing content and customer experiences is developed with customers’ omni- channel needs in mind 20 We leverage the same technology and tools to deliver content and experiences in different channels 15 We conduct regular staff training to ensure that employees understand our omni- channel capabilities and... strategies 27 Strive to match or exceed the channel capabilities of our direct competition 20 Measure and analyse channel activity and transactions 19 Rely on external consultants to assess periodically our channel capabilities 9 Employ external experts to help us devise and implement our channel strategy 9 Channel strategy is a top priority and our top leadership is actively engaged in omni- channel capabilities.. .Omni- channel comes to small business In your view, which of the following channels are most critical to your customers’ experience during the purchase phase (ie, when they select, order and pay for your products and services)? Please select three (% respondents) In-person human interaction channels (eg, brick-and-mortar stores, showrooms, branches, offices) 64 Remote human interaction channels... co-ordinate customer messaging and experiences across channels 15 Lack of technical skills and knowledge to develop seamless customer messaging and experiences for emerging channels 15 Lack of focus from top leadership on the need to create an omni- channel experience for customers 13 Lack of understanding of the needs and behaviours of our customers across channels 12 Poor collaboration and incentive alignment... to customers 15 Departments responsible for different channels and activities collaborate closely to ensure co-ordination 12 We invite mystery shoppers, bloggers and reviewers to test and critique our customer experiences in different channels 6 Don’t know/None of the above 30 Relative to your competition and other market players, how would you rate your company’s position as an omni- channel operator... 2 CTO/CIO/Technology director 1 Finance CMO/Head of marketing 6 Customer service 5 Business development 3 1 Other C-level executive 1 Head of business unit 5 Marketing SVP/VP/Director 3 11 IT Manager 2 Communications 2 Human resources 2 Procurement and supply-chain management 1 Other 12 14 Energy and natural resources © The Economist Intelligence Unit Limited 2014 20 Other 6 Omni- channel comes to small .. .Omni- channel comes to small business Executive summary Small businesses—defined here as companies with fewer than 100 employees and up to US$20m in revenue—have tended to rely on strong... Economist Intelligence Unit Limited 2014 Omni- channel comes to small business In your opinion, how important are the following omni- channel features to driving customer satisfaction and loyalty? (%... 31 28 Omni- channel comes to small business How you identify and prioritise what investments to make and in which customer channels? Please select all that apply (% respondents) Poll customers