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German Consumers Demand Sustainability and Conscious Consumption

May 13, 2024

Mustafa Cagri Koc, Head of Global Customer Experience & Global Customer Care at MediaMarktSaturn Retail Group GmbH offers a clear picture of the German customer mind set, the sustainability priorities of businesses, and how MediaMarktSaturn approaches customer care to ensure prompt and effective resolutions of customer inquiries and issues.

“While sustainability is a key focus, affordability remains paramount, particularly for lower-income groups. Customers across the board seek value for their money, desiring choice, comfort, and the security of reputable brands at reasonable prices,” says Mustafa Cagri Koc, Head of Global Customer Experience & Global Customer Care at MediaMarktSaturn Retail Group GmbH, a German retailer of consumer electronics and related services.

Mustafa has been with the company since 2017, initially serving as the local responsible in Turkey before extending his support to several countries. Since 2022, 2he has assumed global responsibilities within the organisation. Mustafa’s role encompasses overseeing the overall Net Promoter Score (NPS) of the company, leading teams in customer experience, service design, and contact centre vendor management.

Talking to us about the demands of modern customers, Mustafa offers a clear picture of the German customer preferences, the priorities of the businesses, and how MediaMarktSaturn approaches customer care to ensure prompt and effective resolutions of customer inquiries and issues.

Excerpts from the interview:

How are customer expectations changing in Germany?

As customer expectations continue to evolve, influenced by benchmarks set by innovative industries such as Airbnb and Uber, the bar for exceptional consumer electronics (CE) experiences is set higher. Customers now expect a seamless integration of online and offline interactions, necessitating a fluid transition between digital platforms and physical stores. Moreover, the growing emphasis on data security underscores the importance of trust between consumers and CE companies. In today’s landscape, data is seen as a valuable currency, exchanged by customers only when they perceive a clear benefit or value addition.

The modern consumer also prioritises sustainability, with younger demographics leading the charge for eco-conscious practices. This shift in mentality towards sustainable consumption is driving companies to embed sustainability into their core values. For our company, sustainability is not just a trend; it’s part of our DNA. We are committed to supporting our customers in adopting a sustainable lifestyle by offering energy-efficient products and services that extend the lifecycle of our offerings.

While sustainability is a key focus, affordability remains paramount, particularly for lower-income groups. Customers across the board seek value for their money, desiring choice, comfort, and the security of reputable brands at reasonable prices. With access to a wealth of information, today’s consumers are empowered to make informed decisions and are increasingly confident in negotiating prices to ensure they receive the best possible deal.

How does MediaMarktSaturn approach customer care and multichannel support?

Quality assurance is paramount through our OneCare Vendor strategy, where Service Level Agreements (SLAs) and First Contract Resolution (FCR) are contractually stipulated to ensure impeccable service delivery.

We use phone, email, contact forms, live counselling, chats, chatbots and voicebots as omnichannel platforms to reach our customers in the best possible way.

Also Read: Driving a Fundamental Shift Towards Asynchronous Communications

What key metrics do you recommend to measure the success of customer service efforts, and how have these evolved over time?

Response Time
This metric measures how quickly customer inquiries are responded to. Initially, response time was measured in hours or days. However, with the advent of real-time communication channels like live chat and social media, response time expectations.
Resolution Time
It gauges the time taken to resolve customer issues or inquiries. Historically, this metric was focused on closing tickets or completing calls. Today, it’s more about first-contact resolution and minimising the need for customers to follow up repeatedly.
Customer Satisfaction (CSAT)
CSAT measures the satisfaction level of customers with the service received. Initially, it was often assessed through surveys conducted via email or phone. Nowadays, it’s often collected through in-app or post-interaction surveys, providing more immediate feedback.
Net Promoter Score (NPS)
NPS measures the likelihood of customers to recommend a company’s product or service to others. This metric has become increasingly important as word-of-mouth recommendations carry significant weight in the digital age. It has evolved to include more sophisticated segmentation and analysis techniques.
Customer Effort Score (CES)
CES assesses the ease with which customers can get their issues resolved. Initially, this was measured through surveys asking customers how much effort they had to put into resolving their issue. Now, it often involves analysing customer journey data to identify pain points and streamline processes.
First Response Time (FRT)
FRT measures how quickly a customer receives an initial response to their inquiry. With the rise of omnichannel support, tracking FRT across different channels has become crucial for providing consistent and timely support.
Churn Rate
Churn rate measures the percentage of customers who stop using a company’s product or service over a given period. While not traditionally considered a customer service metric, it’s increasingly seen as an outcome of poor customer service experiences, highlighting the importance of proactive support and retention efforts.
Agent Performance Metrics
These include metrics such as average handling time, customer satisfaction ratings per agent, and adherence to scripts or guidelines. These metrics have evolved to focus more on quality interactions rather than simply minimising time spent per interaction.

If you could “magic wand” away a customer pain point, what would it be and why?

If given the opportunity to wave a magic wand and eliminate a customer pain point, it would undoubtedly be the seamless delivery of all orders directly into customers’ hands, within the promised time and without any damages. This choice stems from the observation that a significant portion of customer grievances and complaints are intertwined with fulfilment issues, such as delays, damages, or failed deliveries. By ensuring flawless delivery experiences, we can address a key source of frustration for our customers and enhance overall satisfaction with our services.

What emerging tech excites you, and how do you think will it transform CX?

The use of Generative AI will be particularly interesting, as it can offer many opportunities to make better use of the customer feedback we receive. This will enable us to better identify potential pain points through data analysis and thus develop our own solution proposals.