Client: IT services company that provides consulting, IT and digital technology services.
Feedback Insights has been carrying out Customer Engagement Studies for this IT major for the last 7 years. We annually poll close to 200 accounts & ~ 800 respondents at the CXO & Senior level.
- Every year we conduct a Discovery workshop to understand the changes in the client’s service offerings, validations they seek & the initiatives they have put in place based on the insights from last year’s CSAT cycle.
- This enables us to design a very customized survey instrument to gather the right inputs which are specific to their business and service offerings.
- Responses gathered are a combination of qualitative and quantitative questions that enable us to get rich insights from customers and understand the sentiment.
Key Insights Delivered over the last few years:
- During the first few cycles of the CSAT, customers were perceiving them as a partner that provided good quality resources/strong body shopping capabilities.
More importantly, we also highlighted that customers’ expectations from our client and other mid-tier IT firms had begun to shift from being just resource providers / managing development projects, AMS engagements in existing technologies –> to building capabilities in emerging digital technologies and enabling their digital transformation**.
** – We identified this as an industry trend, as customers viewed mid-tier IT companies as being more responsive, cost competitive and agile while driving value through thought leadership initiatives for them.
The client was able to pick up this insight very early and this has enabled them to lead the curve in digital capabilities. Over the last few years our client has shifted focused to building its transformative capabilities in the digital space and successfully executed digital programs for its clients. The change in strategy over the years has been so pronounced that currently a major proportion of its revenues come from digital offerings.
- We also noticed that Customer Satisfaction ratings were relatively high, however the ratings for Customer Loyalty and Advocacy were low (as per industry benchmarks). This indicated a possible lack of stickiness among even their happy customers and this finding was highlighted to the CXO’s and senior management.
- A segment of unhappy customers was identified from among their small revenue customers. Our client had a long tail of smaller revenue customers and considerable efforts were being expended to service these customers which was not commensurate with the revenue/margins earned, the perceived customer value delivered and long-term profitability.
Business Outcome: Based on our findings, the company took a strategic decision to reduce its presence in its smaller accounts with a low long-term value. For a few of these accounts, where there was a possible future road map to increase value, they have focused on specifically expanding their digital offerings.
The outcome of our findings has over the years helped in building its company brand as an IT player with core strengths in enabling digital transformations. Each of these initiatives has in turn ensured a positive change in the perception of the company as well as increased Customer Satisfaction, Loyalty and Advocacy.