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CUSTOMERBYTHENUMBERSSATISFACTIONZENDESKCUSTOMERSATISFACTIONINDEX,MARCH2012 TABLEOFCONTENTSWhatDrivesCustomerSatisfaction?AbouttheScienceTheZendeskCustomerSatisfactionIndex3HabitsofBest-in-ClassCompanies1 YESTERDAYSegregatedbychannelDisconnectedfrombusinessTreatedasacostcenterSubparconsumerexperienceTODAYInterconnectedchannelsupportCloselytiedtomarketing/salesTreatedasarevenueengineCriticaltoconsumerexperienceNEWCUSTOMERSUPPORT2 $338.5BTheamountbadcustomerservicecostsmajorcountriesaroundtheworldannuallySOURCE:GENESYSGLOBALSURVEY$289AveragevalueofeachlostbusinessrelationshipintheU.S.82%PercentageofAmericanswhosaidtheystoppeddoingbusinesswithacompanybecauseofpoorcustomerserviceSATISFACTIONCOUNTSWhenitcomestocustomerservice,satisfactioniswhatmattersmost.Infact,badcustomerservicecancostyoubillions.3 Zendesk’sCustomerSatisfactionIndexdeliversaperiodicmeasureofcustomersatisfactionbycollectingdatafrommorethan15,000companiesserving65millionconsumersacross137countries.CUSTOMERSATISFACTIONINDEX4 ThisglobalCustomerSatisfactionIndexistheresultofasimplequestionaskedtomillionsofcustomersattheendofaserviceinteraction:“Howwouldyouratetheserviceyoureceived?”GLOBAL86%CUSTOMERSATISFACTIONGLOBALBENCHMARK5 CUSTOMERSATISFACTIONBYINDUSTRYRealEstateITServices&ConsultancyHealthcareProfessionalServicesPersonal&BusinessSupportServicesFinancial&InsuranceServicesNonprofitEducationTechnology-HostingTravel,Hospitality&TourismMedia&TelecommunicationsSoftwareWebApplicationsTechnology-HardwareManufacturingMarketingRetail&WholesaleSocialMediaEntertainment&ArtsGLOBAL86%CUSTOMERSATISFACTIONZendeskcustomersallinteractdirectlywiththeirendcustomers,andallwanttodelightthoseendcustomers.Butsatisfactionvariesvastlyacrossindustries–someexpected,somenot.050%100%96%95%94%94%94%93%93%91%91%91%88%87%86%85%85%85%82%78%77%6 REALESTATEANDITCONSULTING/SERVICESRATEDHIGHESTINCUSTOMERSATISFACTIONOFANYINDUSTRY96%CUSTOMERSATISFACTION95%CUSTOMERSATISFACTIONRealEstateITServices&Consultancy7 GLOBAL86%CUSTOMERCUSTOMERSATISFACTIONBYCOMPANYSIZE1-910-99100-499500-4,9995,000+91%93%90%SATISFACTION50Thesmallestcompanies—whetheramom-and-popoperation,smallbusinessoratechstartup—performwellacrossalmosteveryindustry.010084%88%8 Yetoncethesecompaniesreachacertainscale—over10employees—servicesuffers.It’snotuntilcompaniesreachscale(500employees)andhavematureprocessesandstructuresthattheyrecovertheircustomerservicelevels.WHYDOMIDDLE-CLASSCOMPANIESSTRUGGLE?CUSTOMERSATISFACTIONBYCOMPANYSIZE1-910-99100-499500-4,9995,000+91%93%90%01005084%88%9 GLOBAL86%CUSTOMERCUSTOMERSATISFACTIONBYTARGETAUDIENCEBusinessesConsumersInternal(employees)SATISFACTION50Supportorganizationsserveoneofthreeaudiences—consumers,otherbusinessesorinternalemployees.Satisfactionvarieswidely,dependingonwhichaudienceyoudeliversupportto.010093%82%94%10 Supportsitesthatserviceconsumersscorethelowestofanyaudience.Andmanyconsumer-facingsupportsitesscorewellbelow75percent.BusinessesConsumersInternal(employees)93%94%Apparently,consumersarecrankywhenitcomestosupport.01005082%YOU’DEXPECTTHIS:CUSTOMERSATISFACTIONBYTARGETAUDIENCE11 Internalhelpdesks(thinkofyourITteamthathandlesemployeerequestsforsoftwareornetworkhelp)havehighercustomersatisfactionratingsthanhelpdesksthatsupporteitherconsumersorotherbusinesses.WHATYOUWOULDN’TEXPECTISTHIS:CUSTOMERSATISFACTIONBYTARGETAUDIENCEBusinessesConsumersInternal(employees)93%82%PerhapsITdoesn’tdeserveitsunhelpfulstigma?05010094%12 93CUSTOMERSATISFACTIONBYCOUNTRY*UNITEDSTATES:87%UNITEDKINGDOM:83%INDIA:70%100%0%100%0%100%CANADA:93%0%100%0%RUSSIA:80%100%0%100%SPAIN:81%0%100%0%AUSTRALIA:93%0%100%FRANCE:57%100%GERMANY:88%0%ITALY:81%100%0%BRAZIL:79%100%0%100%%13AustraliaandCanadaleadourCustomerSatisfactionIndexat0%50%*Countrieswiththelargesteconomiesareshown THELEADERSANDLAGGARDSCUSTOMERS’SATISFACTIONBYCOUNTRY*THELEADERSSATISFACTIONSCORECROATIA:98%100%100%100%100%0%PORTUGAL:96%0%THAILAND:96%0%GREECE:95%0%THELAGGARDSSATISFACTIONSCORECHINA:59%100%100%100%100%0%FRANCE:52%0%QATAR:45%0%TURKEY:43%0%*Minimum100satisfactionratings14 SOWHATDRIVESCUSTOMERSATISFACTION?15 Biggercompaniesthatefficientlydeliverhigh-qualitysupportatalargescalehavethemostsatisfiedcustomers.THISISTHEWINNINGFORMULAFORCUSTOMERSATISFACTIONDEVELOPEDBYZENDESK16 CUSTOMERSATISFACTIONEFFICIENCYHowwelldoyouhandlecustomerissues?FirstResponseTimeQUALITYWhatisthequalityofthesupportyougive?%ofTicketsResolvedSCALEHowmanyissuesareyoureceiving?###NumberofTickets17 SIZEMATTERSEachticketconstitutesacustomerinteraction,makingitagoodmeasureofthefrequencyandscaleofyourcustomertouches.Customersincreasinglyservethemselvesviathewebthroughwell-craftedonlineforums,FAQsandknowledgebases.Onaverage,Zendesk-poweredhelpdeskshandlemorethan600ticketspermonth,anddrivemorethan2,600pageviewstotheironlineforums.1,6251,5601,4951,413979692675613527505413385360337315267261212181SocialMediaEntertainment&ArtsTravel,Hospitality&TourismRetail&WholesaleMarketingMedia&TelecommunicationsWebApplicationsFinancial&InsuranceServicesSoftwareEducationHealthcareManufacturingTechnology-HostingTechnology-HardwarePersonalandBusinessSupportServicesNonprofitProfessionalServicesRealEstateITServices&Consultancy01,0002,000F(X)=SCALExEFFICIENCYxQUALITYNUMBEROFTICKETSBYINDUSTRY18 Wehavealimitedbudgetandstaff,soweneedtomakesurewe’redelightingourcustomersasefficientlyaspossible.Thisiswhyfirst-responsetimeisagreatefficiencymeasure.Theaveragefirst-responsetimeacrossallZendeskticketsisover23.6hours.Thosetakingmorethanadaytogetbacktocustomersmaywanttoreexaminetheirprocesses.F(X)=SCALExEFFICIENCYxQUALITYFIRSTRESPONSETIMEBYINDUSTRYManufacturingMarketingEntertainment&ArtsEducationFinancial&InsuranceServicesNonprofitITServices&ConsultancyTechnology-HardwareRetail&WholesaleSocialMediaRealEstateHealthcareMedia&TelecommunicationsPersonalandBus.SupportServicesSoftwareProfessionalServicesWebApplicationsTravel,Hospitality&TourismTechnology-Hosting024hrs48hrs36hrs12hrs38.2hrs32.7hrs31.5hrs30.8hrs28.6hrs28.3hrs28.2hrs28.1hrs26.6hrs25.9hrs24.8hrs22.9hrs22.7hrs22.3hrs21.5hrs18.2hrs18.1hrs14.7hrs14.5hrs19 ITServices&ConsultancyEducationEntertainment&ArtsFinancial&InsuranceservicesTechnology-HardwareHealthcareTechnology-HostingManufacturingMarketingMedia&TelecommunicationsNonprofitProfessionalServicesRealEstateRetail&WholesaleSocialMediaSoftwarePersonal&BusinessSupportServicesTravel,Hospitality&TourismWebApplications0%50%100%78%82%90%85%71%88%76%77%89%86%85%85%82%87%85%82%82%84%86%F(X)=SCALExEFFICIENCYxQUALITY%OFTICKETSIN1TOUCHBYINDUSTRY20ThepercentageofticketsresolvedinonetouchacrossallZendeskticketsis85%Zendesk’sthirdmeasureisquality,whichismeasuredbyone-touchtickets.“One-touch”ticketsarethoseresolvedwithonlyoneserviceinteraction.Thehigheryourone-touchpercentage,thehigheryourservicequality. ZENDESKBENCHMARKScale630TicketsperMonthSatisfaction86%CustomerSatisfactionEfficiency23.6hrsFirst-ResponseTimeAcross15,000GlobalAccounts21 INTERESTINGANECDOTESABOUTSATISFACTIONSCORENUMBEROFTICKETSBYINDUSTRYSATISFACTIONSCOREBYINDUSTRYFIRSTRESPONSETIMEBYINDUSTRYSocialMediaEntertainmentZendeskBenchmarkAverage77780%100%50%86###0(hrs)102023.658.95044.6401,6251,5601,5606300(Tkt)2,0001,00030Lowsatisfactionratingsaretheresultofhighticketvolumeandslowfirst-responsetime,asevidencedbyconsumer-facingcompanies.22 3HABITSOFBEST-IN-CLASSCOMPANIES23 Datacanbeoverwhelming,buttherearethreeclearbehaviorsthatseparatebest-in-classcompaniesfromtherest:IMMEDIATERESPONSEMATTERSYOUHAVETOBEWHEREYOURCUSTOMERSARELETYOURCUSTOMERSSERVETHEMSELVESBEST-IN-CLASSCOMPANIES24 10:03FACTOID:100%0%IMMEDIATERESPONSETheclockbeginstickingthemomentyoureceiveaticket.Respondingquicklyhasthesinglegreatestimpactoncustomersatisfaction.ONHOLD90%Companieswithanaveragefirst-responsetimeunder10hourshavecustomersatisfactionover90percent.25 Today,it’scriticaltobeavailablewhereyourcustomerswanttoreachyou:yourwebsite,Facebook,Twitter,email,phoneorchat.Companiesthatsupporttheircustomersacrossmultiplechannelsdrivehigherengagementandrespondfastertocustomerinquiries—allincreasingsatisfaction.BEWHEREYOURCUSTOMERSARE26 LETCUSTOMERSSERVETHEMSELVESFORUMVIEW:TICKETRATIOAllCompaniesSoftwareBest-in-ClassSoftware100%0%SATISFACTION86%100%100%87%0%93%0%FORUMVIEWS/TICKET4.24.07.5Companiesthatofferrichself-servicecustomersupportforumsandFAQshaveahigherlevelofcustomersatisfaction.Best-in-classcompaniesinvestinself-service,andthosewithhigherforumtrafficdrivegreatersatisfaction—especiallyinthesoftwareindustry.27 THESCIENCEABOUT28ZENDESKBENCHMARK “WHAT’SMEASUREDIMPROVES”PETERDRUCKER29 ZENDESKDELIVERSATGLOBALSCALE100MILLIONSERVICEINTERACTIONSPERYEAR13715,000SERVEDMILLION65CUSTOMERSENTERPRISESCOUNTRIES30 INSIGHTSBASEDONACTUALHELPDESKUSAGE:Weofferthemetricsyouneedtomeasureyoursupportvolume,helpdeskefficiencyandqualityofengagement.LOADSOFCOMPARISONS:WiththeZendeskBenchmark,youcancompareyourselftotheoverallpopulationofZendesk-poweredhelpdesks,toyourindustrypeers,tocompaniesofsimilarsizeortocompaniessupportingsimilarendusers.TheZendeskBenchmarkisnotyourtypical“expert”survey.It’scomprisedofmetricsbasedonrealproductusageandcustomerengagement.THEBENCHMARKISMEASUREDBY31 ZENDESKBENCHMARKDATACOLLECTIONFROMMASSIVECUSTOMERBASE11,000+AccountswithUsageData(Q42011)10,000+SurveyRespondents(Accounts)Large-ScaleDemographicandUsageData32 CustomerSatisfaction#ofTicketsperMonthFirst-ResponseTimeTicketsperAgent%ofTicketsinOneTouchSatisfactionRatingfromEndUserTotalVolumeofNewTicketsFirst-ResponseTimeDuringBusinessHours#ofTicketsSolvedperActiveAgentTicketsResolvedinOneHumanInteractionOverallMonthlyForumTrafficMeasureofCustomerSelf-ServiceClick-ThroughRateforForumSearchesMETRICSTHATMATTERTICKETSARETHECOREOFSUPPORTINTERACTIONSFORUMSDRIVECUSTOMERSELF-SERVICE#ofForumViewsForumView:TicketRatioForum-SearchEffectiveness33 YOUCANSTARTMEASURINGTODAYYOURCUSTOMER’SSATISFACTIONWITHZENDESK34 35