< Previous10 C EO M I D D L E E A S T JULY 202 1 CUSTOMER RELATIONS t’s all too easy to take for granted the ways that commit- ted employees enrich the lives of their customers. The auto mechanic who spends a few extra minutes chatting with a senior citizen, the grocery clerk who compliments a shy child on a new pair of shoes, the hospital nurse who gives her patient’s hand a squeeze – all manifest a positive purpose. WITHOUT A CONSCIOUS EFFORT TO EMBED HUMANITY IN DIGITAL EXPERIENCES, WE ARE HEADED TOWARD A JOYLESS WORLD RULED BY MODELS THAT ARE POOR SUBSTITUTES FOR THE INGENUITY OF FRONTLINE EMPLOYEES By BAO-VIET LÊ, Partner at Bain & Company Middle East TECHNOLOGY AND ITS IMPACT ON CUSTOMER RELATIONS Small acts of compassion at the right moment come naturally to some people. But companies that earn strong loyalty from customers systematically teach and reward such behaviours. Now, though, many businesses have reached an inflec- tion point where digital technologies are replacing face-to-face interactions at a staggering rate. Leading companies in many service industries such as retail, telecommuni- cations, banking, and insurance thus are investing rapidly to build the technology, requisite data, and analytics capabilities to meet customers’ high expectations. In the vast body of work that companies are undertaking to digitise the experi- ence, they rarely ask one important question: How do you teach the algo- rithms to love your customers? A crisis of disconnection This is not to underestimate how recent advances in data analytics and technol- ogy can create unprecedented levels of personalisation and even connection with customers. Still, this opportunity comes with a massive risk. As companies build their digital operations and be- come less reliant on frontline employees, they risk losing the human connections. Digital metrics often fail to capture friction that annoys customers. And some technologies have unwittingly alienated customers or prospects: Mar- keting campaigns powered by artificial intelligence (AI) have sent inappropriate items to young people, while AI tools deployed by some banks to make credit decisions have wound up perpetuating biases against protected characteristics, such as race and, gender. At a fundamental level, many customers crave connection in their commerce. The surge of people return- ing to restaurants and stores in the wake of coronavirus vaccinations testifies to the social aspects of purchases. Without a conscious effort to embed humanity in digital experiences, we are headed toward a bleak and joyless world ruled by models that are poor substitutes for IJULY 202 1 CEO MIDDLE E A ST 11 the spontaneity and ingenuity of the best frontline employees. It doesn’t have to be this way. Com- panies that integrate the best of tradi- tional customer-centered approaches into the digital frontline will be able to combine the best of both worlds. They will create experiences that delight customers in ways that were impossible without the fusion of humanity and data. These elements include intensively using data to personalise the experience for customers; a robust feedback system that spurs continuous learning and improve- ment; a culture that puts the customer’s priorities at the centre of every decision; and empowered, engaged employees who view enriching customers’ lives as the core purpose of the company. Digital with a personal touch Many transactions can be fully digitised in ways that benefit customers. However, many situations merit a human touch – blended seamlessly with digital. No industry is more ripe for this opportu- nity than healthcare. During the Covid-19 pandemic, the use of telehealth accelerated, with digital interactions becoming a standard channel of care. Online video has made it possible to conduct many visits at a distance, but good doctors know when they need to see patients in person for a high-touch exam. How will companies with less obvious boundaries decide when and how to maintain that human touch? Surprisingly, some digital natives are leading the way. Wanted: Empathetic data scientists Data scientists, programmers, and de- signers will play critical roles in enabling the digital frontline. But an affinity for delighting customers is an anomaly for most tech-intensive roles. Training employees, and finding other ways to maintain the customer connection, such as gathering and listening to customer feedback, is so important for under- standing not just what customers do, but also how they feel. The digital frontline should have the same level of person- alisation, empathy, and engagement as human channels. In the race to rapidly digitise even more elements of the customer experi- ence and meet customers’ ever-growing demand for simple, easy, and person- alised digital experiences, it’s tempt- ing to rely largely on the promise of big data and AI-driven algorithms. But this is just one piece of the puzzle. Better products, delivery – indeed, the entire experience – depend on constantly reading the data and also listening to customers to understand their needs and feelings. Especially in complex or emo- tional interactions, there is no effective substitute for human interactions and human judgment. What does it take for companies to keep the human spark alive as they seize opportunities to build out the digital front line? Key elements such as using feedback to create a customer-centered culture among highly engaged employ- ees. Combining that culture with the right data and technology will power the next generation of loyalty leaders. “SMALL ACTS OF COMPASSION AT THE RIGHT MOMENT COME NATURALLY TO SOME PEOPLE. BUT COMPANIES THAT EARN STRONG LOYALTY FROM CUSTOMERS SYSTEMATICALLY TEACH AND REWARD SUCH BEHAVIOURS.” Key factor. Businesses should look into ways to embed the human touch in their interactions with customers. Tech talk. Bao-Viet Lê, Partner at Bain & Company ME.12 C EO M I D D L E E A S T JULY 202 1 urich International Life in the Middle East (Zurich) has revealed key insights in a study about national economic responses to the pandemic and how the future world of work and social protection has in many ways already arrived. Zurich gathered up-to-the-minute views from the UAE on five topics: how Covid-19 is reshaping the landscape of reskilling efforts in the insurance industry; pension provision; insurance and protection trends; Covid-19 vaccination impact as well as ‘duty of care’ as a concept. 1. Reskilling in the UAE – a more systematic, holistic approach? Research in the UAE reveals that most large insurers do contract third-party providers for upskilling and retrain- ing for a range of expatriate staff, but mostly on an ad hoc basis. We predict a wider, more systematic approach to upskilling in the future. A good indicator is watching the approach of forward-thinking organisations such as the Dubai International Financial Centre (DIFC), which through its FinTech Hive, is not only actively looking at promoting companies in this space, but is proac- tively upskilling and mentoring staff. In terms of Emirati development, the Central Bank of UAE is pushing insur- ers to recruit Emirati talent to develop and upskill this home-grown workforce, particularly actuarial staff. 2. Pensions – a move towards more flexible End of Service (EOS) schemes? Currently, end-of-service benefits in the UAE are given to employees as a lump sum payment, in lieu of other financial benefits that expat residents might expect in their native countries. The final settlement amount is a func- Z “COVID-19 HAS INCREASED AWARENESS OF FINANCIAL RISKS AMONG CONSUMERS.” Human investment. The idea that employers owe their workers a duty of care is clearly represented in large multinationals operating in the UAE. THE FUTURE OF THE UAE’S INSURANCE INDUSTRY A RECENT STUDY REVEALS HOW THE PANDEMIC HAS ALTERED THE WAY INDIVIDUALS AND ORGANISATIONS VIEW THE INSURANCE SECTORJULY 202 1 CEO MIDDLE E A ST 13 INSURANCE TRENDS tion of the employee’s final basic salary, contract type and amount of years served in the role and is defined under the UAE Labour Law. Marking an innovative develop- ment, DIFC announced its DIFC Employee Workplace Savings (DEWS) initiative, which sees a gratuity paid by the employer monthly. The monthly gratuity goes into a trust under the independent legal ownership of a master trustee and operates under supervision by a financial regulator. After a thorough research and selection process, DIFC selected Zurich Work- place Solutions (Middle East) Limited (a subsidiary of Zurich International Life Limited) as the scheme administrator to manage enrolment, contributions, withdrawals, etc. Offering unique flexibility, the total gratuity paid this way is put into low-cost, long-term investments with the goal of growing employees’ wealth. It also allows employees to have more control over their long-term savings through their own voluntary contributions to the fund. With DIFC offering an alternate model with its DEWS scheme, which sees employees actively contributing to their EOS benefits, while offering complete transparency, it’s a reason- able assumption that such innovations may lead to wider EOS benefit changes in the UAE market across a range of industries and sectors in the future. 3. Insurance and protection trends – a transition to new flexible business models? With life insurance penetration in the UAE currently at 0.5 percent, there will likely be a growth in the life insurance segment, especially when one considers that Covid-19 has increased awareness of financial and health risks among consumers. This has resulted in increased demand for life insurance and related products. Despite the increase in demand, Covid-19 has significantly impacted distribution capabilities on the intermediated side of the industry, which relied on face-to-face contact – an obviously unworkable model during the past 15 months. As a result, the pandemic has ushered in a renewed focus on the ability to reach consumers directly via digital means. On the macro-economic level, the UAE is currently projecting normal rates of growth, which would support demand growth across both the insurance retail and group segments. 4. Covid-19 impact trends – no material change to related risk calculations or pricing anticipated It is unlikely that preferential health- related insurance contracts will be offered to individuals on the basis of vaccination against Covid-19. Without long-term scientific data on longevity and impact, and with a need to account for several different types of vaccines and their efficacy rates, pricing these risks is not possible. In practical terms, everyone is expected to be vaccinated in the UAE within the next year, so a material pricing difference is unlikely. Deaths per capita of the infection rate are very low in the UAE, so vaccination would not materially change risk calculations. 5. Duty of Care – a substantial corporate shift towards the international model? The idea that employers owe their workers a duty of care is clearly repre- sented in large multinationals operating in the UAE. It is recognised from an ESG (environmental, social and govern- ance) perspective as having a positive impact on profitability. Companies that look after their staff will benefit in the longer term through better retention, engagement, and happiness scores. Walter Jopp, CEO of Zurich in the Middle East, says: “While it’s a challenge to predict trends, one thing is certain – the pandemic’s economic impact has given rise to different in- novations in business systems, their coordination, and labour productivity. One particular insight gleaned from our research is that the digital revolution has provided employees and businesses opportunities to adapt and indeed even prosper during the pandemic.” “While it remains to be seen how the regional industry overall adapts and evolves in response to recent challenges and opportunities, at Zurich, we remain committed to offering our customers world-leading products and services at a local level across the Middle East.” *Zurich Insurance Group’s ‘Shaping a Brighter Future of Work’ report was published in collaboration with Oxford University. “THE PANDEMIC’S ECONOMIC IMPACT HAS GIVEN RISE TO DIFFERENT INNOVATIONS IN BUSINESS SYSTEMS.” Driving change. Walter Jopp, CEO of Zurich Middle East.14 C EO M I D D L E E A S T JULY 202 1 TIME | ROLEX n the past year, connectivity has taken the spotlight. It turbo- charged our resilience and ac- celerated digital adoption, bringing much needed services and resources to people during the most challenging period in recent history. Now, as we look ahead to a hybrid future, investing in connectivity will prove crucial to boosting the momen- tum gained, and picking up the pace of progress as we ‘build back better’. Connectivity is increasingly regarded as a human right as defined by the UN – with access to the internet enhancing our right to health, education, freedom of assembly, and freedom of expression. To deliver on the possibilities of a better- connected future, it is vital that the digi- tal infrastructure which enabled hospital appointments, educational learning, and personal finances for many, becomes ac- cessible for all. At the heart of our recent progress in the digital sphere has been broadband. It has formed the foundation for today’s smart infrastructure and supported the development of many connectiv- ity advancements. However, according to the World Bank, while 80 percent of citizens in advanced economies can avail of broadband access, this extends to only 35 percent of the population in develop- ing countries. With significant disparity in acces- sibility between rural and urban areas to this day, the emergence of 5G holds many of the answers to the question of global and equitable connectivity. 5G could support rural residents’ ac- cess to telemedicine services, control effi- cient irrigation systems to improve water management, and even revolutionise first responders’ approach to emergency situ- ations. Through 5G-enabled augmented reality (AR) we can also realise new dimensions in 3D visualisation, support blockchain-powered platforms to govern identity, and bring autonomous vehicles to people in all locations of the world. By working collaboratively, global public and private sectors together can THE PATHWAY TO A TECH-DRIVEN FUTURE Mohammed Amin, Senior Vice-President – MERAT, Dell Technologies, explains how broadband has formed the foundation for today’s smart infrastructure and supported the development of many connectivity advancements I DIGITAL FUTUREJULY 202 1 CEO MIDDLE E A ST 15 DIGITAL FUTURE address this challenge, evolve national infrastructures, and deliver a fairer, more accessible and connected future. In fact, countries across the Gulf have already achieved great strides in driving digital inclusion where the internet penetration rates are high. Better connected: The business imperative There is an opportunity to build upon what we have learned so far – keeping the accelerated pace of digital transformation revolving, with innovative connectivity projects that put citizens at the heart of this progression. By enabling more people to plug into global flows of information, communica- tion, and services, digitalised infrastruc- ture could add another $1.5 trillion to $2 trillion to GDP in the coming years, showcasing the current value of strategic investment in this area. Organisations across the Middle East and Africa are keeping pace with global investment levels in the newer technolo- gies available on the market, including Edge and AI, and some like Saudi Arabia and UAE are even ahead of others glob- ally when it comes to investing in 5G, ac- cording to the Dell Technologies Digital Transformation Index Report 2020. The businesses that lay the ground- work for 5G now with emerging tech- nologies, like edge computing and data analytics will gain the competitive advantage. They will be poised to seize the opportunity to effectively personal- ise services, flexing and responding to real-time, data-driven consumer needs. With the roll-out of lower latency con- nectivity, entire industries will transform and flourish. Smart factories will bring greater efficiencies, supply chains will become more transparent and even the transport of goods and people will evolve with the use of automated vehicles and high-speed travel networks. Mixed reality will come on stream as a viable method for remote employee training – or class- room learning. In the meantime, a wider section of society will have the option to work from home with better accessibility and improved balance across many facets of their everyday lives. These are the innovations we are already aware of – but what about those that are not yet imagined? A scalable, technology-enabled recovery, founded on connectivity and availing of the latest innovations will help to ensure that the strides we have made through necessity in the past year can be built upon, delivering better health, learning, and quality of life outcomes for all. We have an opportunity to rebuild and reimagine our world. At the centre of any grand plans, we will find digital transformation – if harnessed effectively, technology can be an enabler and an equaliser, supporting new and agile ways of working, customer interaction, and data innovation. It can facilitate growth potential across the board and create a better future for all of us. “THERE IS AN OPPORTUNITY TO BUILD UPON WHAT WE HAVE LEARNED SO FAR – KEEPING THE ACCELERATED PACE OF DIGITAL TRANSFORMATION REVOLVING.” “ WE HAVE AN OPPORTUNITY TO REBUILD AND REIMAGINE OUR WORLD. AT THE CENTRE OF ANY GRAND PLANS, WE WILL FIND DIGITAL TRANSFORMATION.” Information. The GCC has already achieved great strides in driving digital inclusion where internet penetration rates are high.16 C EO M I D D L E E A S T JULY 202 1 s a CEO, it can get lonely at the top with few people to turn to in the time of need. As you go about your daily routine, there are good days and bad. Some days are just over the top. Perhaps you are facing cash-flow issues because of late payments of banks cutting your credit lines. Times are tough and you are finding it difficult to confront your fellow employees and inform them about being made redundant or letting them know their project has to be put on pause. Maybe you are having difficulty saying no, resulting in too many commitments which is stretching you even further. How is this affecting your family life? How is this affecting your health? Are you able to maintain a healthy work-life balance without either one interfering with the other? More importantly, what impact is this creating on your mental wellbeing? Take for instance, you list down your pain points and you score it on a scale of 1-10. People, time, money, execution, red tape, saying no, and fulfilling com- mitment are all pain points that need to be addressed. Now that this is done, I will share two tools that you can apply immediately to declutter some of the mental and physical baggage in your life allowing you to lead with more clarity. Implement a morning routine “The first hour of the morning, is the rudder for the day,” American social reformer and speaker Henry Ward Beecher said. It is no secret that most successful leaders have a morning routine to get them to a place where they can create maximum impact. I would like to share my personal routine to help you get started: • Move for 15 minutes. After being fairly still for so many hours, it is time to get the body in motion again through movement to get the heart rate back up and pump blood around the body to wake up all the organs. • Deep breathing for 10 minutes. I am talking about those deep breaths which make your belly go in and out. Do this to get more oxygen to all your cells and come alive. A “JUST IMAGINE HOW MUCH BETTER YOU WILL FEEL AFTER THE MORNING ROUTINE – MORE ENERGY FOR MORE IMPACT.” THE IMPORTANCE OF A GOOD DAILY ROUTINE FOR CEOS AS YOU GO ABOUT YOUR DAILY ROUTINE, THERE ARE GOOD DAYS AND BAD, BUT THERE ARE WAYS TO COPE WITH NEGATIVE SITUATIONS, SAYS AUTHOR AND ENTREPRENEUR SAAHIL MEHTA SELF-DEVELOPMENTJULY 202 1 CEO MIDDLE E A ST 17 SELF-DEVELOPMENT • Meditate for 20 minutes. There are so many types of meditation – find the one that works for you. You can even just sit in silence and reflect. This is a great way to come to a balance between the mind and the heart. • Journal for 15 minutes. Write down what you are grateful for and what you are excited about at that movement in time. Next, put down the top priorities of the day to ensure you complete those and end with any statement to make you feel great. Just imagine how much better you will feel after the morning routine – more energy for more impact. Overcome confrontational conversation Previously, I would try to avoid what in my mind I thought were confrontational conversations. Examples of these would include sharing bad news with fellow team members or being in conflict with other members of the C-suite. I had the habit of buttering things up or caving in a bit just to move forward. What I didn’t realise was that I was not being truthful to myself which over time was causing conflict within. Things had to change. Before I share the break free framework, I want to highlight two very important factors in this equation in order to have a successful outcome: • Have clarity on what outcome you wish to achieve, otherwise you are just entering a dense forest not knowing which direction to go. • Be fully aware of your emotions. I used to enter these conversations with emotions such as fear, anger or resentment whereas now I enter with love, compassion or empathy. How do you expect to achieve a positive outcome if you enter with negativity? Now that we have that cleared, below is the framework I have designed (feel free to redesign as you see fit). It goes without saying that you should be in a quiet place with no distractions. • Stay calm: No raising of voices and ab- solutely no physical violence of any kind. • Do not point fingers but rather talk about how you feel. Share facts only when it is about the other person. • Listen to the other person when they are speaking and not the voice in your head. Very often we are analysing what they are saying or formulating a response. • Do not make assumptions and keep asking questions to be crystal clear. Also do not assume they understood everything you said so ask questions to validate. • Do not judge but rather understand the other person’s perspective. Just to highlight this point further, imagine we are facing one another and I draw a 6 on the ground. What do you see? There can be multiple perspectives to everything. • If you feel your emotions rising, just take a pause and take three deep breaths (or more if required). You can change your thoughts but you cannot take back what you have said. These are two tools which you can apply immediately to reduce your mental clutter and become a better leader. Not only will you see greater results within, but also with your team members around you amplifying the benefits for the or- ganisation. Are you ready to break free? *Saahil Mehta helps leaders overcome the mental and physical clutter people tend to gather up by presenting highly effective tools that help them scale their personal summits. Daily planning. Write down the top priorities of the day to ensure you complete them. Foundation. Leaders need to have clarity on what outcome they wish to achieve, Mehta says. “SUCCESSFUL LEADERS HAVE A MORNING ROUTINE TO GET THEM TO A PLACE WHERE THEY CAN CREATE MAXIMUM IMPACT.”18 C EO M I D D L E E A S T JULY 202 1 TIME | ROLEX his time it’s for everyone. The Covid-19 pandemic has changed the way the world does business. It has accelerated the global shift away from cash transactions and towards digital. And as big mer- chants sped up their transitions during the slowdown, many smaller merchants had to adapt in an attempt to try and keep up. Recent research conducted by Visa found that during the pandemic, 43 percent of small merchants started sell- ing products and services online for the HELPING COMPANIES TO INNOVATE Akshay Chopra, Vice President, Head of Innovation & Product Design for CEMEA at Visa, discusses the impact innovation has had and will have in supporting businesses recover, in light of the unprecedented events and conditions T INNOVATION transition goes as smoothly and pro- ductively as possible for businesses both small and large. Visa and our merchant partners across the region are seeing evidence of this trend daily and together we are working hard to create new and useful products that consumers will find convenient, secure and safe to use. I believe this shared spirit of innovation, which persisted even during the tough- est of times, will bear fruit and help businesses to recover from the financial repercussions posed by the pandemic. The stakes are sky-high, and three statistics from research by Visa show the underlying challenge for merchants, and especially smaller merchants: • Fully 53 percent of CEMEA con- sumers who shop for groceries online made their first online order during 34% The compound annual growth rate (CAGR) of the contactless payment market through to 2023, according to Juniper Research first time, and 39 percent of them began accepting contactless payments. Like many other financial players, Visa has a role to play in ensuring this JULY 202 1 CEO MIDDLE E A ST 19 INNOVATION Moving: Prior to the pandemic, we have always worked closely with Etihad Guest to find new ways for their members to earn and spend Etihad Guest Miles on their everyday transactions. During the pandemic, given travel was at a near standstill, airlines wanted to maintain their connection with members. For Etihad Guest, this meant developing an innovative app which provides Etihad Guest members with an instantaneous and rewarding shopping experience. So, we at Visa helped the airline launch the Etihad Guest app, through which – in a regional first – their members can regis- ter their Etihad Guest Visa cards to the Etihad Guest app and use the card to earn miles or pay for goods using miles, wherever Visa is accepted in the UAE. Within less than a year, the app has been recognised by the Stevie Awards as the best innovation and general utility app of 2021. Grooving: Let’s go global for this category. Entertainment venues are reopening in many countries, but cash is not on the guestlist. At the Super Bowl in Florida this February, Visa and the National Football League ensured that all pay- ments inside the stadium were cashless. Fans arriving with cash were presented with the possibility of converting their paper currency to a prepaid Visa card at dedicated ATMs, at no additional cost. Living: Digital transformation is not just about sales, but about the entire busi- ness. Last year, Visa partnered with the region’s first super app, Careem, to allow drivers to have immediate access to their earnings by pulling funds from their Careem account to their Visa cards. As cash usage fell across the CEMEA region during the pandemic, it became harder for some workers to get quick access to their earnings. And so digital solutions such as this one were embraced. At Visa, we strongly believe the unprecedented transformation towards cashless payments will last well beyond the pandemic. the pandemic and 49 percent made their first online pharmacy order. • In the Middle East and North Africa alone, contactless payments went from 51 percent of all face-to-face Visa transactions in December 2019 to 78 percent a year later. • And yet 59 percent of small merchants considered themselves less than proficient with new forms of technology. The user and merchant journeys are changing dramatically, and to gain a deeper understanding of the trends impacting merchants today, we at Visa have divided it into five categories: buy- ing, selling, moving, grooving and living. In each category we have worked with merchants to find innovative solutions, and I believe these case studies will prove to be most instructive: Buying: Portmone is a payment service in the Ukraine that wanted consumers to feel more comfortable with cash- less transactions. Together we came up with a solution at Visa’s Innova- tion Centre in Dubai that builds trust by making the payment process more user-friendly. It works like this: A customer orders three pairs of shoes. Funds are temporarily blocked on his Visa account (like when you check into a hotel). When the shoes are delivered, the customer decides whether to accept all or some. After he con- firms delivery of the desired shoes, his phone receives a link that he follows to confirm receipt, or a QR code that the courier scans. At that point the payment is made. The buyer immedi- ately sees the total cost of the shoes including delivery. In our pilot project, this safe-delivery system increased the volume of cashless sales for all merchants who took part – in one case lifting volume by 86 percent. Selling: Paga is a mobile money wallet in Nigeria where the solution is focussed on merchants more than consumers. “ENTERTAINMENT VENUES ARE REOPENING IN MANY COUNTRIES, BUT CASH IS NOT ON THE GUESTLIST.” Embracing change. Chopra believes cashless payments will last well beyond the pandemic. When we spoke to merchants across the country in late 2020, they said the cost and complexity of digital payment scared them; they were comfortable with their cash register. The solution – with Samsung as a third partner in the process – was to provide the merchants with cellphones that came loaded with a sales app with a very-simple user interface. The mer- chants paid for the phone on an instal- ment plan that they could cover with a slice of their sales. The app also comes with a variety of value-added services, from digital payroll to inventory man- agement, that will allow small merchants to effectively grow their business.Next >