#32: what's the cost of employee support & disjointed digitisation?

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This week we're?looking at?the latest in costs to businesses - are employee benefits and financial aid enough to match the current climate? Digitisation is also at a great cost; what is missing?

Employees need financial aid – is this being provided?

?? Research from? Blackhawk Network ?Extras has found that small to medium sized enterprises (SMEs) must be paying particular attention to their employee benefits.?The survey of 500 HR decision-makers (HRDMs) and 2,000 UK employees sought to understand attitudes towards workplace benefits. With clear disparities between what employees want vs. what they are currently receiving, businesses should review their benefits package ahead of the new tax year.??

The key finding from Blackhawk Network Extras’ research is that employees want more support, and failing to provide this could result in staff walking out the door. Already,?72% of businesses have suffered staff resignations over the last six months. 33% of all employers surveyed have noticed an increase in the number of staff leaving.??

However, the cost-of-living crisis cuts both ways. Many organisations are also feeling the pinch and might be unable to swing an inflation-busting pay rise or monetary bonus that might help them hold onto staff.

Disjointed digitisation is costing businesses

?? Twilio ’s newest study?has uncovered how businesses’ digital acceleration in 2020 has led to a wealth of channels that now need to be consolidated into nuanced, personalised customer engagement strategies in response to?today’s consumer needs. With customer retention a crucial metric amid economic uncertainty, failing to address this challenge could cost businesses significantly.

48% of the top 100 companies now offer online chatbots as a customer service channel.?Yet without taking advantage of first-party data to understand their customers and personalise their approach, businesses are missing key opportunities to engage with customers. For instance:?

• nearly one in five have cut their phone lines (18%)
• despite 87% of customers wanting to speak to a person directly to solve a query
• 37% of phone lines are not freephone

Consumer opinion reflects this missed opportunity: 39% feel that it is more difficult to reach UK companies now than it was in the past, despite there being more channels available than before.

Commentary share: The 2023 Spring Budget

?? The UK Spring Budget for 2023 has been released this week by the HM Treasury .?This set out the government’s plans for tax and spending policy.??Chancellor Jeremy Hunt has?looked to focus on tackling three of the five key priorities set out by the Prime Minister in January. That is to halve inflation; grow the economy; and get debt falling.?

We have comments from the retail and hospitality industries in line with the budget announcement.?

–? Eric Jorgensen , VP, Enterprise EMEA at Zendesk :

“To help reduce the strain of changing consumer habits and boost the hospitality and retail sector, the Mayor of London is pushing to reinstate tax-free shopping for overseas visitors in the Spring Budget announcement. The goal being to encourage international tourists back to London, and to drive demand back into shops and restaurants, who continue to be hit hard by the cost-of-living crisis and the pandemic.?

But as consumers are also tightening their belts in response to these economic headwinds, now is the time for retailers and businesses to focus on customer retention and securing customer trust and loyalty.”

–?Sam Martin, CEO of? Peckwater Brands :

“To allow hospitality to thrive, businesses required a major overhaul of the business rates system, a shot in the arm to staffing, and increased support with energy costs. The measures laid out for hospitality in the Spring Budget fall short of the level of support that industry leaders have been crying out for over the past year.

“Hospitality can be a driver for the economy and a source of both jobs and tax revenue, but without the right conditions to grow, we will likely see businesses shut down by high business rates, unaffordable tax bills and short staffing. Short-term support with energy bills may keep the lights on in the coming months, but without further action, the possibility of a return to pre-pandemic levels appears slim. I only hope more can be done to prop up businesses affected by rising costs, and that people will continue to support pubs, bars and restaurants in their communities.”

• New research from Sprinklr has found?alarming statistics for customer service teams and brands. The survey found significant challenges throughout the customer service journey, from basic data collection to?deploying advanced solutions like AI.?More than half of all respondents said?they struggle to even capture meaningful data about customers. 6 in 10 are struggling with ineffective AI solutions.?Key findings from the report include:?Digital and AI deficiencies; disconnected CX; impersonal interactions; and insufficient insights.
• Meta have announced plans to lay off 10k of their workers. This news comes off the back of the company cutting 11,000 jobs in November 2022.?In addition to the 10,000 jobs cut, 5,000 vacancies at the firm will be left unfilled, Mark Zuckerberg has told his workforce.?“We expect to announce restructurings and lay-offs in our tech groups in late April 2023, and then our business groups in late May 2023.”?
• Digital marketing platform Uberall has introduced new advancements in Artificial Intelligence (AI) and ChatGPT technology. This will assist location-based businesses in generating more revenue. These advancements will be integrated into various solutions across the Uberall CoreX platform –??including Messages, Reviews, and Local Inventory.
• NICE CXone ?has more than 1,000,000 agents and supervisors using the full breadth of its functionality daily. CXone provides leading organisations with full CXi (customer experience interactions) capabilities, creating seamless customer journeys across self and human service.?

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