4 Cold, Hard Customer Experience Truths

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1 4 Cold, Hard Customer Experience Truths Uncovering the reality of the service experience in today s age of the consumer A WHITEPAPER BY SPi GLOBAL AND CALL CENTER IQ

2 There are four cold, hard truths that put today s customer management landscape into context. Introduction: A Golden Age Has Arrived Long the subject of ridicule and mockery, customer service is finally entering a golden age. Per Call Center IQ s annual customer experience report, businesses are finally beginning to appreciate the value of customer service. 73% of organizations now see customer satisfaction as a very important or solitary factor in evaluating call center performance. Customer satisfaction is the paramount call center objective for more than twice as many organizations as cost efficiency. Keeping with that customer-first philosophy, businesses defined C-Sat Score, customer retention rate, first call resolution and customer effort score not cost per call, average handle time and average speed of answer as their top call center performance priorities for the next twelve months. 91% of organizations require direct input from the customer evaluating their service offering, and 60% will not consider their call center initiatives successful until they positively impact performance against customerfacing metrics. Clearly rooted in the philosophical fabric of today s organizations, this commitment is also translating into action. Businesses currently rate their performance against C-Sat score at a strong 3.85/5. Performance against other customer-oriented metrics like First Call Resolution (3.72/5) and Customer Loyalty (3.59) are also strong. The transformation in philosophy and illustration of results proves that times are indeed a-changin when it comes to customer service. And they are not done changing. Satisfaction levels still have room to grow. Performance against metrics like customer effort (2.95/5) and Net Promoter Score (3.35/5) has considerably more room to grow. Virtually no organizations will reduce their investment into customer satisfaction endeavors, but many will retain status quo budget levels over the next 6-18 months. There are also four cold, hard truths that put today s customer management landscape into context. Some reveal why today s age of the customer, though indeed golden, does not shine as brightly as possible. Others reveal why today s age of the customer shouldn t shine as brightly as some advocates suggest. Truth #1: Customer Service has not Truly Gone Multi-Channel Noting that today s customer service interactions take place across many channels, some thought leaders oppose the continued use of the term call center. Contact center, they argue, is the more appropriate term. One should not mistake that movement as a sign that newer channels are gaining widespread traction. According to the annual Call Center IQ study, the only two support channels offered by the majority of organizations are telephone (90% offer live agent support, 51% offer support via IVR) and (51%). Popular social channels like Facebook and Twitter serve as support media for only 47% and 38% of organizations, respectively. WHERE ORGANIZATIONS SUPPORT CUSTOMERS Telephone (Live) Popular web offerings like self-service and live chat are in play for only 48% and 37%, respectively. Less than 25% of organizations offer support through mobile. Startlingly low in the present, the penetration levels are made even more jarring by organizations hesitance to add new channels. In giving it a score of 2.62/5, organizations ranked improving access to support in social or mobile channels to be their third-lowest priority for the next 6-18 months. The commitment to improving access to desired service in desired channel, which customer management thought leaders call the essence of customer-centricity in today s age of the customer, ranked only marginally better at a 2.77/5. A whopping 53% of organizations, meanwhile, said they will not even attempt to offer omni-channel service routed by customer preference. Only 11% intend to make it a significant priority. Telephone (IVR) ASA Web Self-Service And, as the chart shows, performance will only get stronger. Desire to improve C-Sat, FCR and Loyalty rate exceeds that for ASA and AHT. AHT CSAT FCR Loyalty Current Performance Desire to Improve Web Live Chat Twitter Facebook LinkedIn In-Person

3 By rating their social, mobile and overall omni-channel commitments at such a low level, organizations are clearly not all in when it comes to accepting a multi-channel world. Not simply incompatible with customer service rhetoric, organizational reluctance to embrace multi-channel communication runs in direct contrast to the seismic shift within the customer management landscape. Omni-channel is absolutely the direction we re going, says SPi Global s Brian Salvatori. While he acknowledges that some organizations will not need to be as expansive in their channel offerings as others, he notes that any efforts to offer multi-channel customer care cannot be half-hearted. You need to be all in. It can t be a situation where you have a Facebook page and then the marketing department of the organization runs it and focuses purely on getting the message out, says Salvatori. By rating their social, mobile and overall omni-channel commitments at such a low level, organizations are clearly not all in when it comes to accepting a multi-channel world. Truth #2: Organizations will be Proactive, but they will not Commit to 24/7/365 Care When a customer management thought leader advises businesses to serve customers on their terms, he is implicitly advising them to adopt a 24/7/365 approach to live customer care. After all, if a customer s terms are 1 am on Twitter or 3 am on the phone, how else would the organization assure it could properly respond? Organizations would doubtfully confirm that they do not care about delivering customers preferred form of service, but they did confirm (see above) that they do not prioritize the offering of access to desired service in desired channel for the next 6-18 months. More than 50% of businesses will increase their reliance on both practices. A believer in proactive engagement, Salvatori calls actively listening to the customer and identifying what the problem is and then partnering with them for a solution obligations for businesses that want to successfully engage and satisfy customers. Truth #3: Customer Satisfaction is about Consistency, not Moments From Nordstrom s tire refund to Morton s airport steak, special customer experience moments tend to garner the most publicity. As far as many media outlets are concerned, it is those moments that define customer-centricity. Organizations disagree. They believe their customers disagree. And they will not change their philosophies in the near future. Asked to rate the impact of customer experience elements on satisfaction levels, respondents to Call Center IQ s annual customer survey declared accuracy of service (4.25/5), quality of resolution typically offered (4.17), customer s ability to obtain desired resolution (4.11), the agent or information touchpoint s knowledge (4.08) and consistency of service (4.05) as the most relevant. Trendy, buzzworthy and relationshiporiented factors like perks, special customer experience moments, engagement not directly related to support and, yes, multi-channel experiences ranked as least relevant. When declaring their commitment to improving the various customer experience elements, organizations revealed a similar hierarchy. Unsurprisingly, they will therefore not spend the next 6-18 months launching a 24/7/365 customer care offering. KEY SATISFACTION RIVERS VS. WEAK SATISFACTION DRIVERS One of the lowest strategic priorities for the next 6-18 months, 24/7/365 support will remain completely off the table for 47% of organizations. Only 23% will even slightly increase their investments into 24/7/365 care, and none will make it a cornerstone of their focus. Not all customer-friendly practices are so unappealing. Proactive customer service and proactive engagement, both of which receive frequent support from thought leaders, are among business top priorities Accuracy Quality of Resolution Offered Ability to Get Desired Resolution Agent Knowledge Consistency Perks 360 Solution Social/Mobile Impact on Satisfaction

4 When it comes to driving call center performance in general, it s about making sure that you truly are measuring and inspecting (the service against your expectations). Brian Salvatori VP Business Development, SPi Global Immediately evident is the extent to which customer satisfaction continues to be predicated on the quality of the transactional experience. Yes, hefty perks for loyal customers and new channel offerings can supplement the support experience, but organizations believe the heart of the experience and the core of satisfaction comes from the fundamental quality of the interaction. Are the agents knowledgeable? Is the information accurate? Do problems get resolved? Is the experience consistent? While SPi Global s Brian Salvatori believes the wow factor comes into play late in the customer s journey, he agrees that it begins with consistently delivering on customer expectations. It s about setting the right expectations, making sure you didn t create new pain points for the customer, and then delivering a little bit more of the value, says Salvatori. Service does not have to be newsworthy. It has to be consistently valuable and consistently resolute. Truth #4: Old-Fashioned is the New Fashion Amid a sea of cutting-edge call center solutions like virtual agent applications, social media support suites and speech analytics platforms lie more traditional, basic offerings like CRM systems, customer interaction platforms and customer feedback solutions. It is those along with training software and call center coaching that rank as organizations priority solutions for the next 6-18 months. Consistent with the notion that customer satisfaction comes down to the core of the customer experience, businesses are most committed to investing in core call center solutions. Respondents revealed customer satisfaction measurement solutions, agent coaching, CRM applications, customer interaction management platforms, web self-service applications and customer feedback tools as their top solution priorities. Of the six, only web self-service can lay any claim to the notion of being trendy. Salvatori is not surprised with the breakdown. In his view, customer feedback management and effective agent engagement strategies are pivotal to driving customer satisfaction. When it comes to driving call center performance in general, it s about making sure that you truly are measuring and inspecting (the service against your expectations), notes Salvatori. He adds, Agent training/coaching/ call monitoring these are going to be (key drivers). Customer Centricity: The Good in the Underwhelming To a customer management thinker who believes businesses must commit to 24/7/365 care in a multitude of channels, today s landscape will seem very underwhelming. Forget walking the walk businesses are not even talking the talk when it comes to numerous customer service directives. But it is precisely because businesses are ignoring the most buzzworthy customer care elements that a sense of optimism should define the call center space. While they might be wrong about what they are classifying as too buzzworthy to warrant action, they are promisingly focusing attention on customer service essentials rather than trendy or gimmicky solutions. That they are shifting attention to customer-oriented metrics, shifting spending to core technologies and agent engagement services and shifting priority to customer experience elements like accuracy and consistency suggests that they are not looking for shortcuts to success. They are not looking for stuntdriven publicity; they want to earn their reputation by efficiently and accurately serving customers. Businesses, this proves, have become serious about the customer experience. They are serious in their claim that customer satisfaction represents the truest objective of the call center. And as long as that mindset prevails, there is reason for optimism that the requisite evolution such as that involving omni-channel customer care will naturally follow. On September 8, SPi Global s Brian Salvatori will join Call Center IQ for an interview revealing how to develop an efficient and effective customer feedback program in today s age of customer-centricity. Stay tuned for details.

5 About SPi Global SPi Global is one of the world s largest and most diversified Business Process Outsourcing (BPO) service providers in terms of clients, geographic presence, and capabilities. It has defined the highest standards of excellence together with its clients for Knowledge Process Outsourcing (KPO) and Customer Relationship Management (CRM). Its global team of over 19,000 dedicated BPO professionals makes this possible. About Call Center IQ Formed through the union of Call Center Week, the world s largest and most influential customer service event, and Customer Management IQ, the world s largest and most influential customer service online platform, Call Center IQ reigns as the most significant community, resource hub and advisory for call center and customer experience professionals.

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