4TH EDITION STATE of the CONNECTED CUSTOMER

Insights from 15,000+ consumers and business buyers worldwide on unprecedented shifts in customer expectations and behavior SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 2

Our fourth "State of the Connected Customer" report provides a A Note from snapshot of a world thrown into flux by ongoing economic, health, Simon Mulcahy leadership, social justice, and climate crises. Personal and professional lives have merged, and customers are calling on businesses to adapt. Salesforce Chief Innovation Officer Amid this uncertainty, we wanted to look at the new landscape of customer engagement. What we found is that customer expectations and behaviors have shifted radically, rapidly, and permanently; as our physical world has shrunk, the digital imperative companies have contended with for decades has reached an abrupt tipping point. Customers demand digital-first convenience and are leaning on brands to innovate like never before. They're seeking not just more personalized experiences, but empathetic ones.

These crises impact more than companies’ digital endeavors; they are laying bare an urgency to earn and build trust while supporting and caring for all stakeholders – from employees and customers, to shareholders, to society at large. As a company that views business as a platform for change, we believe this must be viewed and acted upon as a transformational moment.

As the world adapts and shifts, challenge can — and should — breed opportunity, ingenuity and innovation; listening to the connected customer at this critical time and pivoting to meet their expectations will separate the businesses that emerge from this time stronger and more resilient from those that struggle to adapt. I sincerely hope you find these insights helpful as you navigate our new world.

Simon Mulcahy SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 3 What You’ll Find in This Report Data in this report is from a double-blind survey conducted from July 16 through August 18, 2020. Respondents represent 27 countries across For the fourth edition of the "State six continents. Data was weighted to accurately represent the general of the Connected Customer" report, population. All respondents are third-party panelists. For further survey Salesforce Research surveyed 12,000 demographics, see page 40. consumers and 3,600 business buyers worldwide to consider:

• How customer expectations and 3,600 12,000 behaviors are transforming amid business buyers consumers surveyed worldwide surveyed worldwide ongoing crises • Which criteria customers use to evaluate brands in an increasingly online world • Whether the rapid and extensive shift to digital will impact customer expectations in the long term • Why and how customers are holding companies to account in new and unprecedented ways

Due to rounding, not all percentage totals in this report sum to 100%. All comparison calculations are made from exact numbers (not rounded numbers).

Salesforce Research provides data-driven insights to help businesses transform how they drive customer success. Browse all reports at salesforce.com/research. SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 4 Contents

Executive Summary ...... 05

01 | Customer Connections Are Essential amid Crises ...... 06

02 | Understanding and Convenience Drive Differentiation ...... 13

03 | The Digital Imperative Hits Its Moment of Truth ...... 17

04 | Customers Demand That Brands Demonstrate Their Values ...... 22

Look Ahead: Lessons From Across Sectors and Industries ...... 25

Appendix ...... 26

Survey Demographics ...... 40 SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 5 Executive Summary

An ongoing string of crises has Customer Connections Are Essential amid Crises affected all facets of life, including 01 The events of this year have upended the relationships between a fundamental shift in how customers and brands. During a time when uncertainty and confusion customers connect with brands. reign, brands have an opportunity to reinforce and rebuild trust with The implications for companies new and loyal customers alike. Ninety percent of customers say how a across industries cannot company acts during a crisis demonstrates its trustworthiness. be overstated. Understanding and Convenience Drive Differentiation Empathy, personalization, 02 As each individual navigates change and uncertainty, empathy for and convenience, and digital support of customers’ unique needs, expectations, and challenges transformation are the keys to are as critical, as is providing a convenient, connected experience that customer relationships. As these eliminates unnecessary burdens in a stressful time. Fifty-four percent of same customers reevaluate the customers say it generally feels like sales, service, and marketing don’t role of business in society, the share information. notion of stakeholder capitalism is increasingly factored into The Digital Imperative Hits Its Moment of Truth purchase decisions. 03 Digital-first behavior is here to stay as customers develop new habits that will last for the long term. As digital engagement grows, customers expect companies to digitize their operations for multichannel, high- touch interactions. This relies in no small part on the use of personal information, and customers are calling for enhanced transparency and stewardship. Eighty-eight percent of customers expect companies to accelerate digital initiatives due to COVID-19.

Customers Demand That Brands Demonstrate Their Values 04 Long-overdue reckonings with social, economic, and ecological ills have come to the fore, and society is calling on businesses to do their part in righting wrongs. A failure to heed responsibilities to more than shareholders threatens bottom lines. Eighty-six percent of customers say the societal role of companies is changing. SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 6 01 Customer Connections Are Essential amid Crises Unprecedented Change Is Happening in Real Time

Spurred by a global pandemic the likes Customers Who Say the Following Has Transformed During 2020 of which society has not experienced in over a century, every facet of our personal and professional lives has changed. From how we interact with each other, to how we get around, to — for some of us — where we do our jobs, our day-to-day experiences look quite 63% 57% different than at the dawn of 2020.

The customer-brand relationship is not Obtaining goods and services Engaging with companies immune from this tidal wave of change. Whether buying for themselves or on behalf of their businesses, customers’ seemingly overnight shift to digital-first lifestyles has implications that reach far beyond our current crises. 62% This new dynamic — not to mention the % accompanying economic uncertainty 62 — poses extraordinary challenges to businesses across sectors, but it also presents an opportunity to rethink and Conducting their lives offline Conducting their lives online reset how they engage customers and, ultimately, provide value.

See pages 29 and 30 for additional data segmentations. SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 7 01 Customer Connections Are Essential amid Crises Amid Crises, Experience Remains a Key Differentiator

Despite the change that has swept The Experience a Company Provides Is businesses and customers with as Important as Its Product or Services unprecedented speed and scale, customer experience still reigns supreme as a key 85% competitive differentiator. Combined with 79% employee experience, other research has found, customer experience also functions as a revenue accelerator.* Business Buyer Four-fifths of customers place the same Consumer emphasis on flawless engagement as they 80% do on product quality — the same share as during the economic expansion of 2018. That figure includes 83% of millennials, as well as 85% of business buyers, whose high standards underscore the critical nature of customer experience for B2B and B2C companies alike.

Extraordinary experiences help companies earn more than sales — they build relationships. Fifty-three percent of customers say they feel an emotional connection to the brands they buy from the most.

See pages 27 and 28 for additional data segmentations. * "The Experience Equation," Salesforce in partnership with Forbes Insights, October 2020. SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 8 01 Customer Connections Are Essential amid Crises Digital Innovation Drives New Standard of Engagement

All companies — regardless of whether or Actions Customers Say Companies Should Take in Response to COVID-19 not they delivered superior experiences before — are now challenged to meet an entirely new set of customer needs Total 64% Offer new ways to get and expectations. And those needs and existing products/ 70% expectations are largely digitally driven. services (e.g., digital % versions of traditionally 71% 69 in-person experiences) 88% of customers expect 77% companies to accelerate digital initiatives due to COVID-19. 45%

While a majority (54%) of customers 55% Expand customer believe companies should offer new engagement methods 61% products and services in response 54% to COVID-19, that’s significantly less 61% than the 69% who want companies to translate the products and services 55% they’ve enjoyed all along into new 57% formats (namely, digital versions of Offer new types of in-person experiences). Gen Z has a 54% products and services 53% particularly strong craving for 46% digital innovation.

Expanded methods of engagement — Baby Boomer Gen Xer Millennial Gen Zer including through digital channels — are also popular in a socially distant world, especially with younger generations. SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 9 01 Customer Connections Are Essential amid Crises Customers Seek Brand Renovation

The surge in digital life isn’t the only Degree of Business Improvements Generally Needed, According to Customers customer upheaval companies must navigate. This moment is by and large the time for businesses to overhaul how Trustworthiness

they operate, engage, and contribute to 60% 32% 7% 1% society across a variety of fronts. Environmental practices 78% of customers say this year’s crises should be a catalyst for 55% 34% 9% 2% business improvement. Service and support

From how they treat the environment to 50% 41% 8% 1% Major need the service and support they offer to the

very nature of their business models, the Products Moderate need

vast majority of customers see a major 46% 44% 9% 1% or moderate need for improvement. Minor need

Social practices No need The fundamental building block of relationships, trust rises above all other 45% 42% 11% 2% imperatives. Ninety-nine percent of customers believe companies need to Technology

improve their trustworthiness. 44% 43% 11% 2%

Business models

35% 49% 14% 2%

See pages 34 and 35 for additional data segmentations. SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 10 01 Customer Connections Are Essential amid Crises Trust Is Being Forged — or Not — with New Vigor

The criticality of building trust with Customers Who Agree with the Following Statements customers isn’t new, but its importance is magnified in the midst of a series of 82% cascading crises. Today, customers aren’t 73% just putting more emphasis on the 61% importance of trust in their relationships 54%

with brands but also setting a higher bar 2019 for earning that trust. 2020 90% of customers say how a company acts during a crisis A company’s It’s difficult for reveals its trustworthiness. trustworthiness matters a company to more than a year ago earn my trust As norms and worldviews shift and the actions of organizations come under more intense scrutiny, companies’ trust a company less trust a company more because of its response to because of its response to actions have greater consequences 31% this year's crises 51% this year's crises in the court of public opinion. These actions can influence whether or not existing customers choose to continue their relationships with a brand and whether or not new customers will choose to start one.

See page 42 for additional data segmentations. SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 11 01 Customer Connections Are Essential amid Crises Boomers and Zoomers Are Particularly Skeptical

While the majority of the population Customers Who Say the Following generally trusts companies to be honest and act with others parties' interests in 44% mind, a significant minority — a third or Total more in some cases — have their doubts. I don’t trust 41% companies to tell These individuals don't only question the truth 39% companies’ customer-centricity, but also % their performance as corporate citizens. 42 50%

48% of customers say they generally trust companies. 45% I don’t trust 40% A generational view proves valuable companies to act with society’s best for companies seeking to bolster trust, interest in mind 37% and in surprising ways. Baby boomers, 41% with their extensive life experiences, are 44% overall the most skeptical generation

when it comes to actions and 42% motivations of companies. However, I don’t trust the youngest generation — Gen Z — isn’t companies to act 36% with customers’ far behind. In fact, Gen Z customers best interests 31% are slightly more likely than baby 36% in mind boomers to doubt a company's honesty. 35% Conversely, millennials are the most trusting generation. Baby Boomer Gen Xer Millennial Gen Zer

See pages 27 and 28 for additional data segmentations. SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 12 Spotlight: B2B Relationships Fall Short of Expectations

By and large, sales reps are falling short of business buyers’ 84% of business buyers are more likely to buy from a expectations by failing to demonstrate an understanding of company that demonstrates an understanding of their their unique circumstances, and by pushing products over business goals. solutions. In our latest survey of sales professionals, high performers — who constitute just 9% of respondents and are As an economic downturn squeezes budgets and business the most confident in their ability to close deals — were 24% buyers ruthlessly prioritize their investments, these trusted more likely than their underperforming competition to say advisor relationships are all the more critical. they connect with customers on a personal level.*

In B2B customer relationships, trust is built when sales reps offer tailored solutions based on a demonstrated understanding of a business’s unique challenges and goals.

* "State of Sales," Salesforce, September 2020.

Expectation Reality

of business buyers expect of business buyers say sales reps to demonstrate sales reps often lack 85% a firm understanding of 57% adequate knowledge of their business their business

of business buyers of business buyers say expect sales reps to most sales interactions 66% develop solutions rather 63% focus on products than pitch products rather than solutions

of business buyers of business buyers say expect a trusted most sales interactions advisor relationship 73% feel transactional with sales reps SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 13 02 Understanding and Convenience Drive Differentiation

Like all relationships, those between customer and company need to be Service Experiences Are Paramount nurtured to reach their full potential. Thus, the role of customer service has Customers Who Agree with the Following Statements evolved from merely addressing acute issues to fostering a sense of care. A positive customer service experience makes me more likely 91% Great customer service doesn’t just to make another purchase benefit trust and engagement — it benefits the bottom line and can even I will forgive a company for restore lost trust. Ninety-one percent its mistake after receiving 78% excellent service of customers say they’re more likely to make another purchase after a great

I have made purchase service experience. decisions based on the quality 71% of customer service Great service experiences are personalized, seamless, and quick — This year’s crises have simple in theory but hard to raised my customer 58% deliver in reality. service standards 83% of customers expect to engage with someone immediately when contacting a company — up from 78% in 2019.

52% of customers describe most service interactions as fragmented.

See pages 29-33, 37, and 38 for additional data segmentations. SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 14 02 Understanding and Convenience Drive Differentiation

Personalization has become so ubiquitous that most customers Companies Fall Significantly Short of Customer Expectations now expect nothing less from all of their interactions. Expectation Reality 52% of customers expect offers to always be personalized — up from 49% in 2019. 68% 37% of customers of customers say In a time when every customer is expect brands brands generally navigating their own set of uncharted to demonstrate demonstrate and evolving circumstances, empathy empathy personalization is a subset of something bigger: holistic understanding and, ultimately, empathy. If someone has lost their job, for instance, it’s tone deaf to send an offer for an expensive item they eyed before. Similarly, if a business 66% 34% owner has had to slash investments, of companies of customers expect it’s likely not the ideal time to push a generally treat companies to understand product or service upgrade. customers as their unique needs and unique individuals expectations Demonstrating 1-to-1 empathy on a grand scale is no small order, but customers are acutely aware of the disconnect between their expectations and reality.

See pages 39 and 40 for additional data segmentations. SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 15 02 Understanding and Convenience Drive Differentiation

Even brands with sterling reputations Convenience Is Still King can flounder if they don’t make it easy to do business. As the purchasing power of digital natives increases, the Customers Who Prioritize Extent of Customer Use of Convenience over Brand or Interest in the Following definition of convenience is shifting, too.

All generations prioritize convenience Self-service account portals 76% over brand, but this is particularly 69% 70% 59% 23% 17% 67% true for Gen Zers — a cohort that can’t Chatbots for simple customer service remember a time when anything wasn’t 43% 27% 30% on demand with a tap or swipe.

Recurring subscription services As a result, they are experimenting with 42% 26% 31% both established and emerging ways to Pre-orders of new or out-of-stock items simplify purchases. Self-service account Baby Gen Millennial Gen portals, popularized by retail banks, are Boomer Xer Zer 39% 41% 20% now used by more customers than not. Curbside pickup More cutting-edge offerings powered 30% 35% 35% by artificial intelligence (AI) and Automatic order replenishment automation are gaining traction, too.

28% 38% 33% During the current public health crisis, services that reduce risk — such as

Currently use curbside pickup — are also on the rise.

Interested in using 83% of customers expect flexible Not interested in using shipping and fulfillment options such as buy-online-pick-up-in-store.

See pages 31-33, 39, and 40 for additional data segmentations. SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 16 Spotlight: Connected Experiences Remain Elusive

Central to providing the trusted, empathetic, and convenient 76% of customers expect consistent interactions experiences customers demand is connected engagement across departments. across their various digital touchpoints. Providing this is easier said than done, particularly given customer expectations for 54% of customers say it generally feels like sales, a united front of salespeople, customer service agents, service, and marketing don’t share information. and other individuals armed with the same context and information.

Since last year, customers have sensed a slight degree of improvement from businesses in this regard, yet the majority still say their standards of engagement are not being met.

Customer Journeys Continue Companies Make Limited Progress on to Take Winding Roads the Path to Connected Experiences

Customers Who Agree with the Following Statements Customers Who Agree with the Following Statements

74% 71% 64% 66% 66% 65% 59% 54%

I’ve used multiple I’ve used multiple It generally feels like I’m I often have to repeat or channels to start and devices to start and communicating with re-explain information to complete a transaction complete a transaction separate departments, different representatives not one company

2019 2020

See page 27-28, 31-33, and 39-41 for additional data segmentations. SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 17 03 The Digital Imperative Hits Its Moment of Truth Omni-Channel Engagement Breaks Customer Experiences by Design Customers turn to an average of nine channels to browse inventory, seek Top 10 Preferred Channels* advice, and make purchases. Millennials 2020 claim to use more channels than other generations, even Gen Z. 1 Email

2 1 Phone 76% of customers prefer different channels depending on context. 3 1 In-person

Online chat What hasn’t changed since last year is as 4 notable as what has. Email, phone, and 5 Mobile apps in-person engagement remain customers’ favorites, and online chat — often in the 6 2 Messenger apps form of website pop-up windows — and mobile apps continue to round out 7 4 Text/SMS the top five. 8 2 Online portals In 2020, messenger apps like WhatsApp and social media edged up in popularity. 9 NA Video chat Text/SMS and video chat made their 10 Social media debut on the list of customers’ 10 most- preferred channels this year. Increase in ranking from 2019 Decrease in ranking from 2019 No change At the end of the day, each individual has their own preferred means of engagement. In a world in which 66% of customers feel treated like a number, providing options and continuity between * Base: Customers who use the indicated channels. different channels is a differentiator. 2020 data is weighted to best reflect country-level populations, whereas 2018 and 2019 data were not. SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 18 03 The Digital Imperative Hits Its Moment of Truth Customers’ Digital Transformations Shift It’s no secret that with much of the into High Gear, and for the Long Haul physical world intermittently cordoned Customers Who Agree with the Following Statements off to various degrees, customers are spending increasing amounts of time COVID-19 has elevated my online. In fact, digital engagement expectations of companies’ 68% has hit a tipping point this year, with digital capabilities an estimated 60% of interactions I expect to spend more time taking place online, compared to online after the pandemic 61% than I did before 42% last year. COVID-19 is changing my 60% 68% of customers say they’re relationship with technology online more often than not.

This trend is expected to persist beyond Customers’ Estimated Split of Online and Offline Interactions with Companies the pandemic. Fifty-eight percent of consumers expect to do more online online interactions offline interactions shopping after the pandemic than 2019 42% 58% before, and 80% of business buyers expect to conduct more

business online. 2020 60% 40%

As consumers and business buyers alike spend more time in their home offices 2021 60% 40% and living rooms and less time in stores and offices, their rising standards have accelerated the timetable for digital transformation.

See pages 29 and 30 for additional data segmentations. SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 19 03 The Digital Imperative Hits Its Moment of Truth Ethics Comes to the Forefront as AI Becomes Commonplace The role of AI in everyday life is steadily becoming more recognized and understood. Customers Open to the Use of AI to Improve Experiences

46% of customers can think of an 66% 64% example of AI they use every day — 60% up from 40% in 2019. Total 52%

Overall, 60% of customers are open to the use of AI in customer engagement, 60% including 66% of millennials. That figure is down slightly from the 62% who agreed

in 2019, as a stubborn aura of distrust Baby Gen Millennial Gen surrounds the technology’s potential. Boomer Xer Zer Fewer than half (48%) of customers trust companies to use AI ethically, and 54% are concerned about its potential bias.

65% 54% 48% of customers are of customers are of customers trust concerned about concerned about companies to use unethical use of AI bias in AI AI ethically SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 20 03 The Digital Imperative Hits Its Moment of Truth A Lack of Transparency Limits the Potential of Digital Engagement Distrust in AI can be traced in large part to the data that powers it. Since 2019, Consumers Who Agree with the Following Statements more consumers have recognized the benefit they get from sharing personal Most companies 54% information, but nearly two-thirds still don’t use my personal information view its use cases as opaque. 47% to my benefit Only 27% of consumers completely Most companies aren’t 63% understand how companies use transparent about 2019 their personal information. how my personal 2020 information is used 63% Most worryingly, the share of consumers I feel like I’ve lost who feel they’ve lost control over 46% control over how my their personal information has risen personal information 61% dramatically over the course of just one is used year. This is despite two years having passed since the implementation of the European Union’s General Data of consumers want more transparency over how their Protection Regulation (GDPR), among % personal information is used other privacy legislation. 86

This dynamic presents a true conundrum for businesses which are also under pressure from these same consumers to provide personalization, empathy, and convenience that savvy use of data makes possible. SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 21 Spotlight: Contact Tracing Offers a Turning Point in the Data-Value Exchange

As the role of personal data comes under more intense Should businesses, nonprofits, and governments seize this scrutiny from individuals worried about transparency, control, opportunity to demonstrate the immense good that can come and ethical use, there is one area where they are more willing from transparent, ethical use of personal information, it could and ready to share it — in the fight against COVID-19. mark a turning point in how customers view, manage, and share their data. Consumers generally want to be a part of the COVID-19 solution, and 71% understand the role their personal Ultimately, time will tell if this data-driven public health information plays in the contact tracing efforts. initiative will lead to a mindshift on the parts of customers and companies alike in their data-value exchanges. 71% of customers expect COVID-19 to change how people think about their personal information.

Customers Lean into the Role of Data in Fighting a Pandemic

Customers Who Agree with the Following Statements

I understand the role of personal information in 66% contact tracing I expect to share personal information in order to return to my workplace and 57% social settings

I am not comfortable sharing personal information in order to return to my 24% workplace and social settings SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 22 04 Customers Demand That Brands Demonstrate Their Values

As digital transformation revolutionizes customers’ behaviors and preferences, Corporate Values Impact Customer Acquisition and Retention it’s not the only phenomena impacting their buying decisions. Consumers Who Say the Following Influence Their Decision to Buy from a Company 56% of customers have reevaluated the societal role of companies Total 82% 85% 78% 73% 76% 72% this year.

87% 86% Companies’ reputations are shaped 85% by the intersection of long-standing 83% 83% 82% 81% issues that have been laid bare by the 80% 79% events of 2020, including the treatment 77% 77% 76% 75% of employees, actions against racial 74% 74% 73% 73% and economic injustices, community

70% 70% involvement, and the existential threat of climate change. Treatment of Treatment Environmental Actions Actions on Community employees of customers practices on racial economic involvement In short, companies are being held during this during this injustices injustices to a higher standard, and in areas year’s crises year’s crises that boardrooms have largely not considered. Although many may assume Baby Boomer Gen Xer Millennial Gen Zer these sentiments exist solely among younger generations, they are in fact pervasive across all age groups.

See page 43 for additional data segmentations. SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 23 04 Customers Demand That Brands Demonstrate Their Values

Individuals know the power they wield as consumers and business buyers when Consumers Recognize Their Power to Influence Change it comes to building the world they want to see. Fifty-five percent of customers Consumers Who Agree with the Following Statements believe they have the power to influence change in companies. 71% In some instances, customers are cutting 61% 59% ties with brands until they’ve addressed 51% ethical shortcomings. Already, 62% of customers claim to have stopped buying from companies whose values didn’t align with theirs. This trend is also influencing B2B purchases.

75% of business buyers say vendors’ ethics increasingly factor I pay more I have stopped I have switched I have the power into their purchasing decisions. attention to buying from a to a company to influence companies’ company whose because its change in values than I values didn’t values aligned companies There is evidence that changing customer did a year ago align with mine with mine sentiment is impacting what it means to be a business in the first place, with the influential Business Roundtable organization reversing its long-standing support of shareholder primacy.*

See page 42 for additional data segmentations. * Business Roundtable. (August 19, 2019). Business Roundtable Redefines the Purpose of a Corporation to Promote 'An Economy That Serves All Americans' [press release]. SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 24 04 Customers Demand That Brands Demonstrate Their Values

Ultimately, the rising calls for businesses to stand for more than their financial Younger Generations Set the Accountability Bar Higher interests are a call for action, in addition to Hire a workforce that reflects Use tech ethically, even if it words. Eighty-nine percent of customers their communities reduces profits expect companies to clearly state their

14% 12% 10% 12% 19% 16% 13% 14% values, and 90% expect them to clearly 47% demonstrate those values. 56% 54% 47% 41% 39% 46% 46% As younger generations of customers claim more say in the trajectory of their world,

46% 47% they’ll view the degree to which companies 42% 41% 34% 35% 37% are responsible for acting in the best 30% interest of their communities, neighbors, and environment — among other things — Baby Gen Xer Millennial Gen Zer Baby Gen Xer Millennial Gen Zer as more important than their predecessors. Boomer Boomer Advocate for human Reduce carbon emissions and civil rights

10% 20% 17% 13% 14% 18% 17% 14% 38% 46% 41% 37% 51% 52% 42% 42%

50% 52% 45% 41% 41% 41% 29% 31%

Baby Gen Xer Millennial Gen Zer Baby Gen Xer Millennial Gen Zer Boomer Boomer See pages 44 and 45 for additional data segmentations. Not at all responsible Somewhat responsible Completely responsible SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 25 Look Ahead: Lessons from across Sectors and Industries

Customers navigate products, services, and experiences from Companies seeking to differentiate themselves are wise to a variety of industries throughout their day-to-day lives, criss- look beyond their immediate competition and evaluate how crossing between the personal and professional, digital and their capabilities stack up against other industries. physical, essential and supplementary. As they do this, their standards are being constantly influenced, with distinctions between sectors often blurred in their minds.

62% of customers say their experiences with one industry influence their expectations of others.

As Other Sectors Influence Customer Expectations, Competitive Fields Widen

Best and Worst Performing Sectors Across the Following Criteria, According to Customers*

Customer- Product Service/Support Responses to Social Environmental Innovation Centricity Quality Quality 2020 Crises Responsibility Responsibility

1 Technology 1 Healthcare 1 Healthcare 1 Healthcare 1 Healthcare 1 Healthcare 1 Nonprofit 3 2 Automotive 2 Travel & hospitality 2 Technology 2 Technology 2 Technology 2 Nonprofit 2 Healthcare Top

3 Communications 3 Retail 3 Consumer goods 3 Communications 3 Consumer goods 3 Consumer goods 3 Manufacturing

10 Nonprofit 10 Manufacturing 10 Financial services 10 Financial services 10 Financial services 10 Media 10 Communications

11 Travel & hospitality 11 Financial services 11 Media 11 Media 11 Travel & hospitality 11 Financial services 11 Financial services tom 3 Bot 12 Government 12 Government 12 Government 12 Government 12 Automotive 12 Automotive 12 Media

*Based on answers of “completely describes." APPENDIX SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 27

Customers Who Agree with the Following Statements

The experience a company 85% 79% 83% provides is as important as its products/services 79% 81% 75%

80% I expect consistent interactions 73% 78% across departments 75% 78% 77%

I expect all company 74% 64% 69% representatives to have the same information about me 65% 68% 63%

65% 67% I often have to repeat or 66% re-explain information to different representatives 65% 67% 56%

73% 48% 65% I expect connected experiences 53% 59% 57%

67% 48% 63% I expect companies to anticipate my needs 54% 58% 61%

It generally feels like I’m 60% 50% 56% communicating with separate departments, not one company 52% 56% 53%

60% 48% 49% I generally trust companies 45% 48% 46%

Business Buyer Consumer Baby Boomer Gen Xer Millennial Gen Zer SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 28

Customers Who Agree with the Following Statements

This year’s crises should be a catalyst 81% 78% 80% for business improvement 77% 78% 75%

I expect companies to take 81% 70% 79% a larger role in caring for society than I did last year 74% 76% 76%

COVID-19 has elevated 80% 59% 76% my expectations of companies’ digital capabilities 65% 70% 68%

COVID-19 has transformed how I 74% 54% 70% obtain goods and services 61% 66% 66%

COVID-19 has transformed how I 68% 53% 68% conduct my life offline 61% 64% 66%

I expect to spend more time online 74% 51% 69% after the pandemic than I did before 58% 65% 59%

COVID-19 has transformed how I 75% 51% 69% conduct my life online 58% 63% 67%

COVID-19 is changing my 74% 50% 66% relationship with technology 56% 63% 61%

This year’s crises have raised my 72% 52% 64% customer service standards 55% 60% 54%

COVID-19 has transformed how I 75% 46% 64% engage with companies 52% 60% 54%

I’ve reevaluated the role of 73% 46% 64% businesses in society since the beginning of the year 52% 59% 57%

I’ve become more trusting 65% 43% 58% of a company due to its response to this year’s crises 47% 52% 48%

I’ve become less trusting 36% 26% 34% of a company due to its response to this year’s crises 58% 31% 38%

Business Buyer Consumer Baby Boomer Gen Xer Millennial Gen Zer SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 29

Customers Who Agree More with Each Statement

I expect companies Most It generally seems Most to accelerate I prefer Convenience Most sales customer like sales, service, companies Convenience is I expect sales digital initiatives personalized is more interactions I’d rather buy support and marketing treat me as more important representatives due to products or important are product- from a small interactions teams don’t share a unique than product to pitch COVID-19 services than brand focused business are seamless information individual choice products

89% 84% 75% 71% 66% 65% 63% 62% 58% 59% 54% 56% 46% 47% 47% 43% 41% 34% 31% 30%

11% 16% 34% 25% 29% 35% 37% 38% 42% 41% 46% 44% 54% 53% 53% 57% 59% 66% 69% 70%

I expect I prefer Brand is more Most sales I’d rather buy Most customer It generally seems Most Product I expect sales companies to standardized important than interactions from a large support like sales, service, companies choice is more representatives slow digital products or convenience are solution- business interactions and marketing treat me like a important than to develop initiatives due services focused are fragmented teams are number convenience solutions to COVID-19 coordinated

Business Buyer Consumer SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 30

Customers Who Agree More with Each Statement

I expect companies to accelerate I prefer personalized Convenience is more Most sales interactions are I’d rather buy from a small digital initiatives due to COVID-19 products or services important than brand product-focused business

89% 87% 88% 86% 79% 74% 74% 74% 71% 71% 67% 68% 70% 70% 61% 62% 61% 57% 55% 52%

11% 13% 22% 14% 26% 21% 26% 26% 29% 29% 33% 32% 30% 30% 39% 38% 39% 43% 45% 48% I expect companies to slow digital I prefer standardized Brand is more important Most sales interactions are I’d rather buy from a large initiatives due to COVID-19 products or services than convenience solution-focused business

It generally seems like sales, Convenience is more I expect sales Most customer support service, and marketing teams Most companies treat me important than product representatives to pitch interactions are seamless don’t share information as a unique individual choice products

57% 55% 52% 47% 47% 47% 49% 43% 44% 50% 41% 35% 35% 38% 32% 32% 30% 31% 32% 32%

43% 45% 48% 53% 53% 50% 53% 51% 57% 56% 62% 62% 59% 65% 68% 68% 70% 69% 68% 68%

Most customer support It generally seems like sales, Most companies treat me Product choice is I expect sales interactions service, and marketing teams are like a number more important than representatives to develop are fragmented coordinated convenience solutions

Baby Boomer Gen Xer Millennial Gen Zer SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 31

Degree of Business Improvements Needed, According to Customers

Trustworthiness

Business Buyer 59% 32% 7% Baby Boomer 61% 31% 6% Millennial 60% 32% 7%

Consumer 60% 32% 7% Gen Xer 60% 33% 6% Gen Zer 55% 34% 9%

Environmental practices

Business Buyer 56% 34% 9% Baby Boomer 54% 34% 9% Millennial 56% 33% 9%

Consumer 55% 34% 9% Gen Xer 55% 35% 8% Gen Zer 53% 36% 10%

Service/support

Business Buyer 51% 40% 8% Baby Boomer 50% 41% 8% Millennial 50% 41% 8%

Consumer 50% 41% 8% Gen Xer 53% 39% 7% Gen Zer 42% 44% 11%

Products/services

Business Buyer 49% 42% 7% Baby Boomer 46% 45% 9% Millennial 46% 44% 10%

Consumer 45% 45% 10% Gen Xer 47% 44% 8% Gen Zer 40% 46% 12%

Technology

Business Buyer 51% 40% 8% Baby Boomer 42% 44% 13% Millennial 47% 42% 10%

Consumer 43% 44% 12% Gen Xer 46% 43% 9% Gen Zer 38% 41% 18%

Social practices

Business Buyer 45% 42% 12% Baby Boomer 44% 42% 12% Millennial 46% 42% 10%

Consumer 44% 42% 11% Gen Xer 45% 43% 11% Gen Zer 41% 45% 11%

Business model 85%

Business Buyer 40% 47% 12% Baby Boomer 34% 50% 14% Millennial 36% 48% 14%

Consumer 33% 50% 15% Gen Xer 37% 49% 12% Gen Zer 23% 52% 21%

Major need Moderate need Minor need SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 32

Customers Who Agree More with Each Statement

Business Buyer Consumer Baby Boomer Gen Xer Millennials Gen Zer

44% 37% 37% 39% 40% 37% It’s easy for a company It’s easy for a company to earn my trust to earn my trust

It’s hard for a company It’s hard for a company to earn my trust to earn my trust

56% 63% 63% 61% 60% 63% SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 33

Customers Who Agree with the Following Statements

A positive customer service 89% 93% 91% experience makes me more likely to make another purchase 92% 92% 85%

I expect to solve complex problems 82% 87% 79% by speaking to one person 83% 84% 75%

I expect to interact with 84% 87% 81% someone immediately when I contact a company 83% 85% 72%

78% 77% 79% I will forgive a company for its mistake after receiving excellent service 78% 79% 73%

I have made purchase 79% 70% 73% decisions based on the quality of customer service 69% 73% 64%

72% 73% 70% I’ll chose not to buy from a company with long customer service wait times 70% 70% 64%

Business Buyer Consumer Baby Boomer Gen Xer Millennial Gen Zer SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 34

Customers Who Agree with the Following Statements

87% 79% 88% I expect flexible shipping/ order fulfillment options 83% 84% 89%

I expect consistent 80% 73% 78% interactions across departments 75% 78% 77%

I expect all company 74% 64% 69% representatives to have the same information about me 65% 68% 63%

73% 63% 72% I expect brands to demonstrate empathy 66% 67% 70%

76% 62% 70% I expect companies to understand my unique needs and expectations 63% 67% 67%

I often have to repeat or 66% 65% 67% re-explain information to different representatives 65% 67% 56%

69% 51% 63% I expect companies to engage me proactively 54% 58% 51%

73% 48% 65% I expect connected experiences 53% 59% 57%

67% 48% 63% I expect companies to anticipate my needs 54% 58% 61%

It generally feels like I’m 60% 50% 56% communicating with separate departments, not one company 52% 56% 53%

66% 47% 59% I feel an emotional connection to the brands I buy from the most 49% 52% 54%

Business Buyer Consumer Baby Boomer Gen Xer Millennial Gen Zer SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 35

Customers Who Agree with the Following Statements

82% 82% 78% 78% 78% 76% 72% 75% 63% 64% 66% 53%

I have used multiple methods I have used multiple devices I have used multiple methods I have used multiple devices of communication to start and to start and complete of communication to start and to start and complete complete a single transaction a single transaction complete a single transaction a single transaction

Business Buyer Consumer Baby Boomer Gen Xer Millennial Gen Zer SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 36

Customers Who Agree with the Following Statements

68% 56% 67% I expect flexible shipping/order fulfillment options 61% 63% 62%

71% 53% 68% I have switched to a company because its values aligned with mine 59% 62% 64%

82% 70% 77% I pay more attention to companies’ values than I did a year ago 71% 73% 72%

90% 89% 88% I expect companies to clearly state their values 88% 88% 90%

90% 91% 90% I expect companies to clearly demonstrate their values 90% 89% 84%

89% 85% 88% The role of companies in society is changing 85% 86% 83%

71% 52% 59% I have the power to influence change in companies 51% 57% 49%

86% 80% 84% A company’s trustworthiness matters more than it did a year ago 81% 83% 75%

90% 90% 90% How a company acts during a crisis reveals its trustworthiness 89% 89% 88%

82% 85% 80% Businesses that are silent about injustices make those injustices worse 82% 82% 81%

Business Buyer Consumer Baby Boomer Gen Xer Millennial Gen Zer SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 37

Degree to Which the Following Factors Influence Buying Decisions

A great deal/somewhat A little Not at all

Baby Boomer 79% 16% 4% Treatment of Business Buyer 88% 10% 2% employees Gen Xer 84% 13% 4% during this year’s crises Millennial 86% 11% 3% Consumer 82% 14% 4% Gen Zer 87% 11% 2%

Baby Boomer 83% 14% 3% Business Buyer 89% 9% 2% Treatment of Gen Xer 86% 11% 3% customers during this Millennial 88% 9% 2% year’s crises Consumer 85% 12% 3% Gen Zer 83% 13% 3%

Baby Boomer 76% 19% 5% Business Buyer 86% 11% 3% Gen Xer 81% 15% 4% Environmental practices Millennial 82% 13% 4% Consumer 78% 17% 5% Gen Zer 81% 16% 3%

Baby Boomer 70% 20% 10% Business Buyer 77% 15% 5% Actions Gen Xer 74% 18% 8% on racial injustices Millennial 78% 15% 7% Consumer 73% 18% 9% Gen Zer 77% 15% 8%

Baby Boomer 74% 19% 7% Business Buyer 81% 15% 4% Actions on Gen Xer 78% 17% 5% economic injustices Millennial 79% 16% 5% Consumer 76% 18% 6% Gen Zer 77% 18% 5%

Baby Boomer 70% 23% 7% Business Buyer 80% 16% 5% Gen Xer 75% 19% 6% Community involvement Millennial 77% 18% 6% Consumer 72% 21% 7% Gen Zer 70% 23% 7% SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 38

Degree to Which Customers Believe Companies Are Responsible for the Following

Completely responsible Somewhat responsible Not at all responsible

Baby Boomer 41% 42% 18% Business Buyer 51% 37% 12% Reducing Gen Xer 41% 42% 17% carbon emissions Millennial 50% 37% 14% Consumer 43% 40% 17% Gen Zer 52% 38% 10%

Baby Boomer 36% 48% 36% Business Buyer 51% 39% 9% Reporting their Gen Xer 39% 46% 14% environmental impacts Millennial 49% 40% 11% Consumer 40% 45% 15% Gen Zer 54% 36% 10%

Baby Boomer 39% 42% 20% Business Buyer 49% 38% 13% Reporting Gen Xer 38% 43% 18% their carbon emissions Millennial 48% 37% 15% Consumer 41% 41% 19% Gen Zer 50% 34% 15%

Baby Boomer 35% 46% 19% Using tech Business Buyer 49% 40% 11% ethically, Gen Xer 37% 46% 16% even if it reduces Millennial 46% 41% 13% profits Consumer 38% 45% 17% Gen Zer 47% 39% 14% SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 39

Degree to Which Customers Believe Companies Are Responsible for the Following

Completely responsible Somewhat responsible Not at all responsible

Baby Boomer 30% 56% 14% Hiring a Business Buyer 44% 48% 8% workforce that Gen Xer 34% 54% 12% reflects their communities Millennial 42% 47% 10% Consumer 34% 53% 13% Gen Zer 41% 47% 12%

Baby Boomer 30% 57% 13% Business Buyer 45% 46% 9% Investing in the Gen Xer 33% 55% 12% communities where they do Millennial 43% 48% 10% business Consumer 34% 54% 12% Gen Zer 45% 42% 14%

Baby Boomer 29% 51% 20% Business Buyer 42% 45% 13% Advocating for Gen Xer 31% 52% 17% human and civil rights Millennial 41% 46% 13% Consumer 33% 50% 17% Gen Zer 45% 41% 14%

Baby Boomer 29% 54% 18% Business Buyer 43% 47% 10% Recruiting Gen Xer 31% 54% 18% a diverse board of Millennial 41% 48% 11% directors Consumer 33% 52% 15% Gen Zer 46% 42% 12% SURVEY DEMOGRAPHICS SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 41 Survey Demographics

Customer Type Country

Australia...... 4% Business Buyers...... 23% Belgium...... 4% Consumers...... 77% Brazil...... 4% Denmark...... <1% Finland...... <1% Generation France...... 4% Baby Boomers (born 1946-1965)...... 31% Germany...... 4% Gen Xers (born 1965–1980)...... 28% India...... 4% Millennials (born 1981–1996)...... 32% Ireland...... 4% Gen Zers (born after 1996)...... 9% Italy...... 4% Japan...... 4% Netherlands...... 4% Gender New Zealand...... <1% Male...... 57% Norway...... <1% Female...... 42% Philippines...... 4% Other...... 1% Poland...... 4% Singapore...... 4% South Africa...... 4% South Korea...... 4% Spain...... 4% Sweden...... 4% Switzerland...... 4% Thailand...... 4% United Arab Emirates...... 4% United Kingdom...... 4% United States...... 8% SALESFORCE RESEARCH STATE OF THE CONNECTED CUSTOMER 42 Learn more about connected customers and business transformation

Tableau Dashboards The Experience Equation Segment key findings by demographics New research developed in partnership with Forbes and geographies in our interactive Insights shows how customer and employee Tableau dashboards experiences influence growth.

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