THIRD EDITION Insights and trends from over 3,500 service leaders and agents worldwideState of ServiceSalesforce ResearchState of Service2About This ReportFor the third edition of our “State of Service” report, Salesforce Research surveyed over 3,500 customer service agents and decision makers worldwide to determine: Service organizations biggest challenges and priorities The changing role of customer service agents The impact of artificial intelligence (AI) on the future of customer service How mobile workers fit into modern customer service Data in this report is from a double-blind survey conductedfrom November 27 through December 15, 2018 that generated 3,525 responses from full-time customer service agents and decision makers. Survey respondents are from North America, Latin America, Asia Pacific, and Europe. All respondents are third-party panelists (not limited to Salesforce customers). For further survey demographics, see page 54.Due to rounding, not all percentage totals in this report equal 100%. All comparison calculations are made from total numbers (not rounded numbers).Salesforce Research provides data-driven insights to help businesses transform how they drive customer success. Browse all reports at salesforce/research.975975975600Salesforce ResearchState of Service3About This ReportBreakdown of Service Performance LevelsHigh-performing customer service teams represent 28% of the survey sample. Customer service professionals surveyed include B2C, B2B, and B2B2C teams.46% 27% Underperformersrate their companys customer satisfaction as average or below28% High performersrate their companys customer satisfaction as excellentModerate performersall other customer service professionalsThroughout this report, data is examined relative to business performance to identify success patterns. High-performing customer service teams are those that rate their companys customer satisfaction as excellent.In this report, we refer to the following respondent groups.Decision Makers Service vice presidents, directors, and team leadersMobile Workers Front-line field service workers who interact with customers “in the field” at a customers home or place of workAgents Front-line service workers who interact with customers either remotely or in the field, inclusive of mobile workersService Professionals All survey respondents, inclusive of all groups aboveSalesforce ResearchState of Service4ContentsExecutive Summary .5The Fourth Industrial Revolution Drives Service Transformation .6Agents Take a Step Up .9AIs Impact Takes Shape .12Customer Engagement Goes Digital and Cross-Functional .17Mobile Workers Become the Face of Brands .21Last Look: Service Metrics Expand and Get More Specific .24Country Profiles .25Industry Profiles .38Appendix .48Survey Demographics .540102030405Salesforce ResearchState of Service5Executive SummaryFaced with ever-rising customer standards for fast, personalized, and connected engagement anytime and anywhere customer service professionals have a completely different mandate than in the past. The C-suite has taken notice of how service can drive elevated customer experiences, differentiate brands, and drive new revenue streams. As a result, service leaders are investing in their people, processes, and technology to drive nothing short of a transformation.Heres an overview of the trends driving service forward.With technology redefining their customers standards, the C-suite views service as a strategic asset. Priorities and budgets are following suit. Eighty-two percent of decision makers say their companys customer service must transform in order to stay competitive.The Fourth Industrial Revolution Drives Service Transformation01Particularly among top teams, the service agent role is becoming increasingly important. Todays agents are increasingly tasked with building relationships and driving revenue, and are swapping their mundane tasks for challenging, high-value work. Seventy-one percent of agents say their roles are more strategic than two years ago.Agents Take a Step Up02Artificial intelligence (AI) is viewed by decision makers and agents alike as a boon to customer and employee experience. AI adoption is nascent, but is set to soar as more teams turn to chatbots, text and voice analytics, and other use cases. Use of AI by customer service teams is projected to increase by 143% over the next 18 months.AIs Impact Takes Shape03In addition to being more closely aligned with departments across the organization, service is moving beyond the call center as customers embrace an array of digital channels. Sixty-six percent of service organizations are seeing increased digital case volume.Customer Engagement Goes Digital and Cross-Functional04The expanding mobile workforce is driving new revenue streams and brand differentiation. Arming mobile workers with the same capabilities as their office-based colleagues is viewed as key to this evolution. Eighty-four percent of decision makers are prioritizing improved or expanded mobile service.Mobile Workers Become the Face of Brands05Salesforce ResearchState of Service682%of service decision makers say their companys customer service must transform in order to stay competitive80%of service decision makers say emerging technology is transforming customers expectations of their service organizationTechnologys impact on customer expectations is not a new concept. Twelve years after the release of the first iPhone, however, the pace of innovation shows no signs of slowing as the Fourth Industrial Revolution accelerates. The proliferation of artificial intelligence (AI) in everyday life such as through personalized product recommendations and voice-activated personal assistants like Siri ups the ante for companies across industries to meet and exceed ever-rising standards of engagement. Today, end-to-end customer experience is the competitive differentiator, and customer service teams have unprecedented opportunity to elevate their role in the broader business. Service Transformation is Viewed as a Competitive Must01 The Fourth Industrial Revolution Drives Service Transformation80% of customers say the experience a company provides is as important as its products and services.*“State of the Connected Customer,” Salesforce Research, June 2018.Salesforce ResearchState of Service701 The Fourth Industrial Revolution Drives Service TransformationTransforming a department that has historically been viewed as a necessary cost center into a strategic asset is no easy task. Looking ahead, executives increasingly understand that customer service transformation requires an investment of time, talent, and, resources. Nearly seven in 10 decision makers say executives allocate the budget needed to modernize customer service operations. Whats more, the majority of service teams expect budget increases next year. High-performing teams are far ahead of underperformers when it comes to investment in service modernization.Businesses Are Investing in Service TransformationHigh Performers vs. Underperformers 2.0x more likely to have received budget increases last year.High performers Moderate performers Underperformers79%86%67%70%83%49%64%73%44%53%69%34%Service Decision Makers Who Agree with the Following StatementsI can justify a business case for service investmentsExecutives allocate the budget needed to modernize customer service operationsWe expect a budget increase next year79%69%We received a budget increase last yearData represents service decision maker responses.63%54%Salesforce ResearchState of Service801 The Fourth Industrial Revolution Drives Service TransformationCustomer service transformation is shaking up priorities. First and foremost, service decision makers seek to bring their most valuable resource their employees up to task by arming them with the skills they need. This is an ongoing, rather than one-and-done, initiative. This top objective is followed closely by improving the processes, workflows, and technologies employees rely on. Several of these priorities such as improved processes, technologies, and workforce skills directly address some of the most pressing challenges facing todays customer service organizations. And although the C-suite is largely addressing the perennial challenge of budgetary constraints, customer service teams must still contend with their top obstacle of keeping up with ever-changing customer expectations.Service Priorities Reflect a Changing Business Role1Improving workforce skillsTop Service Priorities*Top Service Challenges*1Keeping up with changing customer expectations2Improving processes and workflows 2Budgetary constraints3Improving service technologies3Ineffective or inefficient processes4Integrating service across the business 4Insufficient tools and technologies5Pivoting from a cost center to a profit center 5Underskilled agents*Data represents service decision makers who report as a high priority in the next two years.*Data represents service decision makers who report as a major challenge.Salesforce ResearchState of Service902 Agents Take a Step UpMore than seven in 10 agents say their jobs are more strategic than they were two years ago, and a similar number view their customer interactions as relationship-oriented, rather than transactional. When customers expect personalized, connected, and fast engagement, agents are charged with more than closing as many cases in as little time as possible.This sentiment reflects an enlightened view of agents among customer service decision makers and the organizations they lead. Seventy-eight percent of service professionals say their company views agents as customer advocates, and 75% view them as brand ambassadors.Service Agents Have Updated Job Descriptions85% of service decision makers view investment in agents as a vital part of service transformation.75%79%59%74%81%63%71% of service agents believe their role is more strategic than it was two years agoUnderperformers UnderperformersModerate performers Moderate performersHigh performers High performers72% of service agents say their interactions with customers are relationship-orientedSalesforce ResearchState of Service1002 Agents Take a Step UpAgents welcome their increased responsibility and more strategic duties. In fact, more than half (51%) of agents want more challenging work. Yet opportunities to extend beyond traditional duties arent being spread evenly.Service decision makers realize that the transition from resetting passwords to, say, upselling a customer based on their unique needs is not a matter of flipping a switch. Nearly two-thirds (63%) of service decision makers cite improving workforce skills as a high priority, and over three-quarters (77%) are making significant investments in agent training.These investments are paying off. At the same time agents take on more challenging work, 70% of them say they get the training they need to do their jobs well, and over half (55%) even have access to on-demand training that allows them to learn when and where it works for them.63% of agents at high-performing organizations spend most of their time solving complex issues, versus 43% at underperforming organizations.Investment in Agents Correlates with Service Performance78%88%57%59%77%52%Service Decision Makers Who Agree with the FollowingWe are making significant investments in agent trainingImproving workforce skills is a high priority over the next two years77%63%77%83%52%59%64%42%Service Agents Who Say the FollowingI have access to on-demand training55%I get the training I need to do my job as best as I can70%High performers Moderate performers UnderperformersHigh performers Moderate performers Underperformers