CUSTOMER EXPERIENCE SERIES

THE STATE OF

CX IN INDIA
 02
Executive
Summary

03
Customer
Experience(CX)
Market Outlook

CONTENTS

06
State of CX
across Industries

10 15
CX across Way Forward –
Touchpoints Delivering
and Emerging superior Customer
Channels Experience

13
Demographics
based CX Levels
18
About Us
in India
FOREWORD
This is the second report in the India Customer Experience series based on Hansa
Cequity's proprietary Customer Experience Study.

Customer expectations are higher than ever. Customers today are hyperconnected,
distracted and spoilt for choice. In an era of product and service commoditization,
organizations are trying to create differentiated and unique experiences for their
customers. Technology and digital have given rise to newer customer journeys; in turn
changing the way customers interact with brands. Competitors are no longer from the
same industry; AirBnB, Uber, Amazon, Fintech are few such examples. Each of these
firms differentiate themselves by offering superior experiences to their customer base.

Our second report in the series explores the state of CX in India across key industries.
This is a unique report that is targeted at Indian urban and rural consumers to
understand their view of CX. This study covers 7 industries stratified for communication
channel, demographics, age groups, gender and geography. We have covered Banking,
Mutual Funds, Insurance, Retail, Automotive – Two-Wheeler and Four-Wheeler
Segments, Airline and Healthcare. The study leveraged Hansa Cequity’s proprietary
customer experience measurement metrics that cover four dimensions ascertained by
questions on customers’ satisfaction based on their most recent interaction with
brands. The study assesses the following four areas:

EASE OF RELEVANCE OF ACCURACY OF COMPLETENESS OF

INTERACTION THE INFORMATION INFORMATION THE INFORMATION
PROVIDED

We have also measured the overall ‘Satisfaction’ with the interaction based on these
parameters. The responses to these four questions together provide a comprehensive
and consistent view of customer experience delivered by companies.

Hansa Cequity | 01
EXECUTIVE SUMMARY
India is witnessing a significant digital and technology transformation. This is changing

the way customers perceive organizations; consume and interact with products and

services. Organizations are trying to simplify and differentiate the way they deliver their

products and services for their end customers. Customer Experiences are taking a

centre stage; superior products and services alone are no longer sufficient to attract,

retain and grow this new breed of customers.

Firms who have understood the importance of CX have begun to reap significant

business benefits. However, most brands today are falling short of providing superior

experience to customers. Our study of CX in the Indian market finds that there is scope

for brands to improve CX across areas.

Our study found that:

• Significant opportunity exists to improve CX across industries

• Brands need to focus on accuracy, relevancy and more importantly completeness

of information being provided across channels

• Organizations need to focus on equipping their staff / company representatives

with information and tools to deliver superior CX

• Newer digital channels of interactions are emerging. Traditional channels like

email and SMS are found to be less effective in comparison to websites, mobile
apps and social media

• Leverage the power of social media to build influencer networks

• Develop outside-in metrics to continuously measure and improve CX strategies;

traditional VOC metrics may no longer be sufficient

Hansa Cequity | 02
CUSTOMER EXPERIENCE (CX)
MARKET OUTLOOK
Our study across 7 industries reveals that a significant opportunity exists for organizations
to improve customer experience across all four areas – ease of information access,
accuracy of information, relevance of information and completeness of information.

Overall satisfaction levels across industries was low, over 39% of the total population
was not satisfied with their overall interaction with the brand. Only 21% of
the respondents were completely satisfied while the remaining were neutral in their
view. The younger respondents were less satisfied compared to the older age group.

0% 50% 100%

Airline Automotive - Four Wheeler Automotive - Two Wheeler

Banking Healthcare Insurance Mutual Fund Retail

Figure 1 – Satisfaction of interaction across industries and age groups

The slices represent various age buckets 1st, 2nd and 3rd slides represent ages 18-25, 25- 40 and
greater than 40, respectively

Even across the four key areas, the satisfaction levels were low and did not show
any significant improvement over the last year. The variance across industries and
various age groups is stark and it is important for brands to carve out engagement
strategies that appeal to all age groups.

Hansa Cequity | 03
Implication for Organizations
Significant opportunity exists for brands to improve overall satisfaction across
industries. It was found that respondents below 25 years were the least satisfied
with their interaction with the brands. Brands therefore need to craft strategies
that resonate with each of their audience groups.

47% of the total respondents felt that the information provided

to them during their interaction was not complete.

13%
23%

38%
ACCURACY OF COMPLETENESS
INFORMATION 47% OF INFORMATION

40%
39%

24%
26%
36% 36%

EASE OF RELEVANCE OF
INTERACTION INFORMATION

40%
38%

Satisfied Neutral Not Satisfied

Figure 2 – Hansa Cequity CX Levels across key parameters of experience satisfaction

Implication of organizations
While ease of interaction is important, brands need to focus on providing
accurate and complete information across customer touchpoints. It is important
for brands to invest not only in their channel and customer strategy but also in
content strategy.

Even across the four key areas, the satisfaction levels were low and did not show any
significant improvement over the last year. The variance across industries and various
age groups is stark and it is important for brands to carve out engagement strategies
that appeal to all age groups.

Hansa Cequity | 04
 CASE STUDY

For Emirates Bank NBD; CX is as Important as Economic Value Creation

and Financial Performance.
Creating unique customer experiences – the bank focussed on creating

products/services to appeal to customer needs. For e.g. A recently launched ‘Fitness

Account’ helps convert health to wealth, based on the number of steps, activity in the day

etc. Another example is the 60-second remittance account which helps customers easily

transfer fund using an app.

CRM Cockpit – The bank has created a concept of a CRM Cockpit which provides a

unified view of customers not only across the transaction/ banking system but also

around campaign responses, last communication, next best action etc. This application

empowers the internal staff to deliver better CX

5 Innovation Financial Services

Governance Economic Value Generated
Competitive Rates and Products Financial Performance
Wealth Management & Investments E-Banking Share Holder value Growth
Emiratization
Performance Recognition Relationship Financial Literacy
4 Entrepreneurship Education Banking Financial Inclusion
Green Lending Youth Development
Career Opportunities Compliance Mobilisation & Delivery
Investing in Local Suppliers Staff Technology
Employment Knowledge
Recycling Customer Experience
Importance to Stakeholders

Accountability
Physical Environment Social Inclusion
Transparency Fair selection of supplies
3
Human Rights Risk Management
Energy Consumption Vendors assessments on
Talent Development Ethical Practices
Pricing
Culture and Volunteering
Reputational Assessment
Public Health Employee Well being Responsiveness
Vendor Assessment Business Ethics
on Environmental Practices Privacy and Security
2 Responsible Lending
Carbon Footprint
Empowerment and Ownership
Invoking and Payment Diversity and Inclusion
Road Safety
Women’s Empowerment
Shareholder Engagement Equal Hiring Opportunities
Vendor Assessment
on Social Practices
1
Religious Donations Green Branches

0 1 2 3 4 5 6
Importance to Business

Hansa Cequity | 05
 STATE OF CX ACROSS INDUSTRIES
While across the industry the satisfaction levels were low, the financial sector was found to
be better performing than other industries.

Retail, Healthcare, Airline and Automotive were laggards especially when it

came to information completeness.

In an era where industry and geographical boundaries are blurring, it is important for brands to
differentiate themselves by providing superior experiences to their customers.

CX by Industry
100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
Airline Automotive Automotive Banking Insurance Mutual Fund Retail Healthcare
four wheeler two wheeler

Ease of Interaction Relevance Accuracy Completeness

Figure 3 – Industry-wise CX Levels

Digital and technology has given rise to newer touchpoints and self-service options
across web, mobile apps; the world of offline transactions continues to play a significant
role when it comes to delivering unique customer experiences. A significant amount of
business gets conducted with company representatives especially in Financial Service
Industries like banks, Retail Stores, Airline front line staff, Automotive dealers etc.

Our study found that only 14% of the respondents were fully satisfied with
their interaction with company representatives and over 46% were not
satisfied with the knowledge of the company representatives during their
interactions.

Hansa Cequity | 06
 Interaction with company representatives

37% 40%
42% 44%
51% 49% 49%
48%

32%
43% 30%

48%
36% 41% 42% 38%

28%
25%
20%
13% 14%
10% 10% 9%

Airline Automotive Automotive Banking Insurance Mutual Fund Retail Healthcare

4 wheeler 2 wheeler

Satisfied Neutral Not Satisfied

Figure 5 – Satisfaction across Company representatives

The dissatisfaction levels were highest in the Retail industry

Implication for Organizations

To reap benefits of marketing and sales efforts, organizations must
equip their representatives/staff with information and tools to deliver
superior experiences. Marketing without internal operational efficiencies
are less successful in the long run.

Hansa Cequity | 07
 CASE STUDY

In-Store Training Academies Offer Lessons On The Sales Floor by Walmart

Retailer Walmart transitioned training its employees via computer based courses to offer
real-life retail lessons at in-store training academies. Sections of participating stores
are permanently renovated into classrooms, complete with flat-screen monitors and
iPads for every associate in the program; lessons incorporate a mix of interactive
classroom sessions and hands-on experience with shoppers inside the building.
Walmart will open over 200 academies with dedicated teaching staff by the end of 2017,
offering 1,40,000 employees onboarding and continued learning opportunities.

Industry wise CX levels across key areas show that across industries, completeness
of information shows the highest dissatisfaction levels. The banking and financial
industry showed the highest levels of satisfactions.

AIRLINE AUTOMOTIVE-FOUR WHEELER

Completeness Completeness

Relevance Relevance

Accuracy Accuracy

Ease Ease

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

Satisfied Neutral Not Satisfied Satisfied Neutral Not Satisfied

AUTOMOTIVE-TWO WHEELER BANKING

Completeness Completeness

Relevance Relevance

Accuracy Accuracy

Ease Ease

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

Satisfied Neutral Not Satisfied Satisfied Neutral Not Satisfied

Figure 6.1 – Industry wise CX Levels across – Ease of Interaction, Accuracy, Relevance and Completeness

CASE STUDY

Delta Is Introducing Biometric Self-Service Bag Drops For Faster Check-In

Delta is launching a self-service bag drop that uses facial recognition to check luggage.
Customers using the service can print their luggage tags at standard airline kiosks, then
continue on to the self-service bag-drop machines. The machines use biometric facial
recognition technology to match travellers' identities to their passport photos.

Hansa Cequity | 08
 MUTUAL FUND INSURANCE

Completeness Completeness

Relevance Relevance

Accuracy Accuracy

Ease Ease

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

Satisfied Neutral Not Satisfied Satisfied Neutral Not Satisfied

RETAIL HEALTH CARE

Completeness Completeness

Relevance Relevance

Accuracy Accuracy

Ease Ease

0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100%

Satisfied Neutral Not Satisfied Satisfied Neutral Not Satisfied

Figure 6.1 – Industry wise CX Levels across – Ease of Interaction, Accuracy, Relevance and Completeness

CASE STUDY

Aegons’ Easy to Do Insurance

Under the motto 'Easy does it', customers can calculate their insurance premium using
an online calculator. When they are ready to proceed, they can use their Facebook log-in
to automatically pre-fill their personal information. The product then links to other
available databases to gather additional data, such as the type of houses in your
postcode.

No Signatures Required

From a marketing perspective, Kroodle uses Facebook to notify the customer's friends
when they have taken out insurance or made a claim. This level of transparency is
expected to reduce claims.

To add to the social nature of the product, Kroodle also offers rewards for referees and
referrals via Facebook. The Kroodle platform is suitable for scaling up to global use,
which is perfectly aligned with the global nature of Facebook.

Hansa Cequity | 09
CX ACROSS TOUCHPOINTS AND
EMERGING CHANNELS
Digital and Social has given rise to newer channels of interactions. ’Omnichannel’
interaction is the new buzz word. For respondents who have interacted with brands
across various channels;

Traditional voice based interactions were found to be most effective. This

year however, mobile apps and social media engagements were found to
be more effective than email based interactions.

3%
7%

23%
10%

CHANNEL
EFFECTIVENESS
18%
20%

19%

Phone Mobile App Web Store Social Media Email SMS

Figure7 – Channel Effectiveness for respondents who used more than one channel

Implication for Organizations

New channels of interactions are emerging; brands need to be where their
customers are – mobile apps, websites and social media. Being present on
traditional channels are no longer sufficient.

Hansa Cequity | 10
 CASE STUDY

Capital One Ready Set Bank: Online Banking Made Easy for the elderly
Ready, Set, Bank™ is a new educational tool designed to help older adults bridge the
digital divide and leverage online banking to better manage their money and enhance
their financial well-being. Capital One recognizes the importance of ensuring all people
have the skills necessary to successfully manage their personal finances. That's why
they partnered with leaders in the fields of digital learning, aging and technology – to
develop Ready, Set, Bank™ - a generic, non-branded instruction tool that is easy to use,
engaging, and helpful to older adults at any stage of computer knowledge.

The web-based program includes 44 micro-learning videos designed to equip older

adults with the skills they need to manage their money online - like navigating mobile
banking apps, creating alerts for account activity and protecting identify from fraud.
Viewers can watch the entire series or select individual videos to learn new skills.

With newer touchpoints being introduced, it is also important to ensure that the
organizations get their channel and content strategy in place for this media. Most
brands today are actively investing in social media as an active channel for CRM.
Our study finds that most of the respondents were partially satisfied with their
interactions with the brands over social media.

54%

43% 16%

3%
35%

3% 46%

Interaction Satisfaction
Response TATs
Fully Satisfied Partially Satisfied Within a day In an hour
Somewhat dissatisfied Never More than a day

Figure 8 – Interaction Satisfaction on Social Media Figure 9– Response TAT on Social Media

Over 81% of respondents received responses within the same day on

social media and only 3% of them never received a response from the
brands. Younger respondents were found to have higher levels of satisfaction through
their interaction with social media

Hansa Cequity | 11
 100%
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
18-25 years 25 to 40 years Greater than 40 years

Fully Satisfied Partially Satisfied Somewhat dissatisfied

Figure 10 – Satisfaction across company representatives

Implication for Organizations

Social media is emerging as one of the key channels of interaction. It is
important to leverage this channel of engagement by providing customers with
accurate, relevant and complete information. This channel can help create high
levels of engagement and customers can play key roles as influencers and
brand ambassadors on social media.

Hansa Cequity | 12
DEMOGRAPHICS BASED CX LEVELS IN INDIA
Consumer dynamics are changing. India will be the youngest country in the world by
2020, with median age of 29. According to the World Economic Forum Report, the Indian
middle class doubled in size over an eight-year period from 300 million in 2004 to 600
million in 2012 and is currently at 1.2 billion. Since 1990, households with high
disposable income have risen twenty-fold.

What does this mean for organizations? They need to tailor the experiences to meet the
demands and needs of this population which can no longer be ignored.

27%
33% 34%
39%
46% 45%

35%
30%

40% 47%
39%
43%

37% 38%
21% 18% 17%
11%

18-25 years 25 to 40 years Greater than 18-25 years 25 to 40 years Greater than
40 years 40 years
Metro Non metro

Satisfied Neutral Not Satisfied

Figure 11 – Overall satisfaction of the interaction across age groups

Our study found that respondents in the age group 25-40 years on an
average were more dissatisfied as compared to other age groups; which
respondents greater than 40 years on and average were most satisfied
with their interactions. The dissatisfaction levels of the youth 18-25
years of age was the highest in Metros.

This emphasizes the fact that the younger audience tends to be more demanding
especially in areas where choice is abundant. Education also seems to be playing a role
in satisfaction levels, higher the education; higher is the level of satisfaction.

Hansa Cequity | 13
 33% 37% 34%
40% 40%
45% 50%

75%

41% 43%
27% 53% 39% 38%
33%

19% 27%
21% 22% 21% 22%
17% 13%
6%

Metro Non metro Metro Non metro Metro Non metro Metro Non metro

SSC HSC Graduate Post Graduate

Satisfied Neutral Not Satisfied

We tried to look at a few variables like location, usage of emerging channels like social media and

age group to see if distinct patterns emerge. Interestingly, we found that the younger generation

from metros were the least satisfied as compared to respondents greater than 40 years.

Implication for Organizations

Customer Experience means different things to different people and so does
satisfaction of interactions; organizations need to craft segment specific
experiences based on geographic locations, age of customers, education etc. This
primarily stems from the fact that the needs, values and behaviours of each
segment may be distinct.

Hansa Cequity | 14
WAY FORWARD – DELIVERING SUPERIOR
CUSTOMER EXPERIENCE
In an era where choices are aplenty, and products/services are being commoditized; a

laser-sharp focus on CX and customer obsession is essential. The boundaries between

products and services and industries are blurring. All companies need to start

identifying themselves as ‘Customer Centric’ organizations if they want to survive in

this fast-changing world. So what does this mean for organizations?

KEY TAKEAWAYS
Providing superior Customer Experience is no longer an option; organization
must work on measuring CX consistently by Significant opportunity exists to
improve CX across industries

Brands need to focus on accuracy, relevancy, and more importantly

completeness of information being provided across channels

Customers are fickle and demanding. Organizations must develop CX strategies

to cater to all segments of customers whether younger/older

Organizations need to focus on equipping their staff/company representatives

with information and tools to deliver superior CX

Newer digital channels of interactions are emerging. It is important for

organizations to invest in channel and content strategy for these new channels;
else it would end up becoming another touchpoint for grievance handling

Leverage the power of social media to build influencer networks

CX must be measured across a number of areas, traditional VOC programs may

no longer be sufficient; newer metrics of CX are needed

Hansa Cequity | 15
IMPLICATION FOR ORGANIZATIONS

Providing superior Customer Experience is no longer an option; organization

must work on measuring CX consistently by embracing an outside-in view of
products and services

Organizations must rethink their content strategy for each of the touchpoints.
Being present on digital channels is not good enough if it does not solve
customer pain points

Customer facing roles can no longer be complacent; organization must invest on

knowledge workers. Leverage the power of data and analytics to empower staff

The world of online and offline are blurring, new channels of interactions are
emerging; channel strategy will play a huge role in improving CX

Develop CX metrics like “Customer First scores” across touchpoints

Develop CX vision and strategy with a “Customer First” principle and then work
backwards towards technology and tools

Hansa Cequity | 16
APPENDIX
1 ABOUT OUR RESEARCH

Our research is the second in the series of ‘State of CX in India’; our last report was published

in 2016. This study covered 7 key industries – Automotive, Banking, Mutual Funds,

Insurance, Retail, Healthcare and Airlines.

The study was built to focus on India as a market. Since it is unique; understanding

customers’ perception of CX was the primary aim of this study.

2 SURVEY DEMOGRAPHICS

Gender # Location #
Female 104 Metro 555
Male 823 Non-Metro 372
Grand Total 927 Grand Total 927

Education # Age #
SSC 27 18-25 years 217
HSC 33 25 to 40 years 562
Graduate 441 Greater than 40 years 148
Post Graduate 303 Grand Total 927
Others 123
Grand Total 927

3 REFERENCES

• https://www.weforum.org/agenda/2016/11/6-surprising-facts-about-india-s-exploding-middle-class/

• https://blog.walmart.com/opportunity/20170417/what-is-a-walmart-academy-how-theyre-building-confidence-and-careers

• https://www.emiratesnbd.com/en/assets/File/ENBD_Sustainability_Report.pdf

• https://www.psfk.com/2017/05/delta-introducing-biometric-self-service-bag-drops-for-faster-check-in.html

• https://www.grovo.com/readysetbank/welcome

• https://www.aegon.com/en/Home/About/Products/Innovative-products/

AUTHOR ADDITIONAL CONTRIBUTORS

Ÿ Shweta Ram Ÿ Saket Rathi

Ÿ Prathmesh Nair
Ÿ Sumit Jha

Hansa Cequity | 17
 ABOUT HANSA CEQUITY

CEQUITY’S BUSINESS IS HELPING

COMPANIES ENHANCE CUSTOMER EQUITY.
Founded in 2007 with the belief on customer equity being the only differentiator in
the next era of business, Cequity works with top management teams to create and
operate customer-centric strategies as a strategic asset.

Our work across clients, independent research and studies done by us to

understand customer value drivers, show a strong correlation between superior
customer experience and strong improvement in the bottom line.

WHO WE WORK WITH?

Our clients are typically bold, ambitious business leaders who seek to create a
customer intelligence led differentiation. They have the talent, will and
open-mindedness required to succeed. They are not satisfied with the status quo
and are looking to transform customer experience in their firms.

WHAT WE DO?
We help companies acquire, retain and manage customers optimally. We help
managements define actionable customer strategies driven by data, analytics,
marketing technology and creative insights. We take it a step further by working
with management teams to implement and operate on these strategies to achieve
desired success.

HOW DO WE DO IT?
Our elegant integration of multiple services as a service platform - strategy, data,
analytics, technology, campaign management, digital, customer relationship centres
and creative solutions; creates outstanding results for our clients. Our deep
experience as a consulting and operating partner to clients enables us to achieve
tangible business impact and success for them.

Hansa Cequity | 18
To know more, contact us at marketing@cequitysolutions.com

Consulting I Data Management

Analytics & Insights I Campaign Management
Digital Experience I Customer Experience

403 & 404, B Wing,

4th Floor, Commercial Office Towers,
Kohinoor City Mall, Kirol Road, Off LBS Marg,
Kurla (W), Mumbai 400 070.
Email: marketing@cequitysolutions.com
http://www.hansacequity.com

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