The Wall Street Journal published an article this past weekend that painted a dismal picture of the state of customer service. As the article points out, far too many companies are looking at customer service purely as a way to gauge how far is too far before a customer walks away. Is it 6 calls to your telephone provider? Is it an angry call to an airline, in which case you are routed to the A team of agents to talk you down.
It’s no wonder the function is cast in such a negative light when some industries continue to leverage customer service technology only as a means to mitigate risk with consumers instead of actually engaging them. But, it shouldn’t be this way. I have spent my entire adult life building technology with the mission to help brands deliver service experiences that their customers and agents both love. The technology is available to deliver these personalized, efficient, and effortless experiences.
Failing to do so is a missed opportunity that comes at a significant cost.
According to the American Express 2017 Customer Service Barometer, more than half of Americans have scrapped a planned purchase or transaction because of bad service, and 33 percent of Americans say they’ll consider switching companies after just a single instance of poor service. The numbers don’t lie; U.S. companies lose more than $75 billion annually due to poor customer service.
As a result, I am seeing the most forward-thinking companies and industries take a different approach to customer service. They are using customer service solutions and technologies as a means to build a tighter bond with their consumers. They are changing the old mindset that customer service is a cost center and instead view it as an opportunity to build loyalty, and grow revenue through standout experiences.
For example, when it comes to making a purchase, Gartner reports that 64 percent of people find customer experience more important than price. The research firm even predicts that more than 50 percent of organizations will redirect their investments to customer experience innovations in 2019. Furthermore, The Temkin Group found that a moderate increase in customer experience will generate an average revenue increase of $823 million over three years for a company with $1 billion in annual revenues.
How is this playing out? Among the most beloved companies out there, I’ve seen everything from companies committing to a 365 day-a-year customer service schedule, where every single person, including the CEO, takes holiday and weekend shifts in an effort to better understand the kinds of issues that arise.
I’ve seen companies make the decision to send brand new replacements for products damaged by customers rather than having the customer experience a moment of dissatisfaction or worry about having to make a repair.
I’ve seen companies smartly leverage customer data, so that service agents can go into conversations with a clear idea of where it’s heading, leading to a dramatic increase in faster, successful resolution on the first try.
And finally, I’ve seen more and more companies make the decision to resolve service issues across social platforms in order to meet customers where they are, and ultimately have a more authentic and honest dialogue.
So how should companies begin to think about customer service when moving it away from a downside protection to an upside advantage? From a cost to a profit center? Here are three ways to begin.
- Use Customer Data to Add Value to the Experience: With more customer data available than ever and the power of AI to quickly process it, companies can find more ways to resolve customer issues and add value to the overall relationship for both parties. Taking a customer-centric approach to service means getting away from the old paradigm that customer’s contacting a business are problems that need to be resolved fast rather than an opportunity to take all you know about that customer and enhance your relationship with them.
- Personalize Service For All Customers: Don’t just look to suddenly do right by your angriest customers, while treating only your VIPs with class all the time. All of that customer data can provide companies and agents with a holistic view of their customers and the ability to personalize each interaction instead of using it to push buttons. With customers having more power and choice than ever before they expect the brands they favor to personalize their interactions at all times, and understand and even anticipate their needs. Providing a highly personalized experience that puts the customer relationship first is key to modernizing the customer experience.
- Get Ahead Of Bad Situations: Do not, and I repeat, do not wait for angry customers to get ahead of you. If a pizza is going to be late, let your customer know. If an order is going to be out of stock, don’t just update your customer, but provide alternatives. With access to the data and the right tools and processes, much of this can be automated ahead of time.
It’s time for a reimagining of what customer service can be. Done correctly, customer service that is personalized, efficient, and effortless drives engagement, community among users, and loyalty with brands. Forget about the customer service cost center of last century and look to build the customer experience center that will differentiate you for years to come.
