May 17, 2022
By Carolina Ortega, Teams Management at Xtendo Group
Companies that invest in their customer service achieve stellar results that allow them to exponentially accelerate their businesses, as reflected in data published in The State of CX Maturity 2021.
In the wake of the pandemic, there is one sector, alongside technology, that is gaining increasing strength among digital consumers: customer service. This is a sector that demands more personalization and efficiency to address needs.
In this article, we’ll explain the importance of customer service in post-pandemic times and how good management helps expand a business. Join us!
What is Customer Service?
It consists of the interrelated activities a business offers its customers to solve a need. The goal is to ensure that the service is accompanied by attraction, conquest, and customer loyalty. However, to achieve this, companies need to activate mechanisms of agility and technology to meet expectations.
Times have changed because, with the pandemic’s arrival, consumers have become more demanding when it comes to receiving a response. They expect an efficient service where communication is more personal and immediate. However, a service like customer service requires resources, technical and financial materials, and, most importantly, human capital that is willing to ensure the success of the business.
Advantages of Good Customer Service
Customer service is key to business growth, and this has been proven. That’s why we bring you the benefits of good communication with users, based on studies from organizations around the world:
- Helps brand reputation. Yes, poor customer service can lead to consumer defection. Remember, the goal is not to let them go to the competition; it’s better to retain them than let them leave. According to U.S.-based company Zendesk, 40% of customers begin purchasing from a competitor because of excellent customer service. Don’t let them go!
- There’s no better advertising than word-of-mouth. When customers receive good service, they are likely to recommend the brand and become its best ambassadors, leading to better conversion and stronger loyalty. According to Zendesk, 87% of customers share good experiences with others.
- Represents a competitive advantage for the company. Keep in mind that customer service is the only contact between the brand and the customer; thus, it can be a differentiating factor in the conversion process. 77% of organizations plan to increase their customer service and advisory teams in the next 12 months, according to a study by consultancy Deloitte.
- Good service matters more than the price of the product or service. 86% of consumers are willing to pay up to 25% more for a better experience, according to RightNow’s report. Customers want their needs met, and they’ll have no problem paying a little extra.
- Reduces problems and returns. Companies don’t always operate perfectly; we know that no business is free from issues, but it’s crucial to take care of customers. The key is to maintain clear communication, avoiding friction that could cause unexpected problems. According to RightNow, 73% of consumers would fall in love with a company based on the treatment received in customer service.
The idea is to build trust so that the brand’s reputation improves. Otherwise, the negative repercussions could affect the company. Offering efficient service will help promote a brand positively on any platform where it builds its strategy.
Company Personalization: Past and Future
One thing companies must acknowledge is that, regardless of their size or business model, they must focus on customer service. While it might seem like an investment at first, over time, they will see the results because it meets customer needs quickly and efficiently.
Moreover, when customer service is good and the desired results are achieved, the internal environment of organizations improves significantly, and business relationships with customers change.
Therefore, many companies are not just investing in this area but are also personalizing it to provide a better experience, meaning that the strategy works. Companies aiming to grow must understand and commit to improving this service.
Technology is advancing rapidly, as are digital media, so closer interactions with consumers will help address the demands that are increasingly being added to products and overall shopping experiences. Let’s look at how customer service has developed in the past and what the future holds:
In the past:
- Technology had a negative impact on the experience.
- The service hours were from 9 am to 5 pm, Monday to Friday.
- Customer interaction was controlled only by the company.
- There was a high volume of unresolved emails, and customers had to repeatedly state their problems, regardless of the communication channel.
- If a product needed repair, the customer had to take the initiative.
In the future, it is expected:
- Technology will have a positive impact on the experience.
- Service hours will be 24 hours, every day.
- The customer will decide how they want to interact (email, social media, mobile devices, etc.).
- Interactions and email volumes will be resolved in real time.
- Initiatives to resolve product issues will come from the company.
- Customer information will be centralized in a single system.
The shift toward the transformation and digitization of spaces should be prioritized, with customer service as an efficient tool to ensure that real-time communication is effective and guarantees the expected changes.
Real-Time Metrics
Any action companies take, especially on digital platforms, must be measured in real time to ensure that operations are more efficient and that the business’s profitability is optimized and improved.
To achieve this, it’s necessary to enhance the skills of the work teams alongside technological channels, so customer service becomes a strong link in the company. However, to improve continually, it must be measured. Here are four metrics you should pay attention to if you’re part of an organization looking to enhance this area:
- Service level. Measures the performance of the team by comparing it to the previous day, week, or month.
- Average response time. Evaluates the average time it takes to respond across different channels.
- Average response time vs. contact volume metric. Helps compare response times per representative with the number of service requests received.
- Average response time via chat vs. chat volume. Shows data for specific channels like chat.
Why is Real-Time Measurement Important?
With the arrival of the pandemic, companies have been forced to accelerate their processes, so much so that technology has become a fundamental link in growth because it helps manage consumer information and resolve their needs as quickly as possible.
But if you’re still wondering why companies should manage their processes in real time, here are four reasons to make it clearer:
- Greater opportunity. When information is available instantly, companies can react better to opportunities. This, of course, depends on the organization’s viewpoint, but it facilitates analysis and understanding of impacts on brands.
- Helps prevention. Data helps improve strategies along the way, guaranteeing improvements and visualizing their impact on the business.
- Promotes change. Companies can respond more quickly when they have real-time information. Their dynamics change because they can effectively face and react to situations.
- Measures operations. Technology provides a wealth of data that, when analyzed and measured, can point to new directions. Indicators assess the efforts of all teams in growing the company.
- Accelerates projection. The more information, analysis, and measurement of data a company has, the faster the acceleration or growth of the brand. This greatly facilitates company management.
An efficient customer service experience ensures that consumers rate their experience positively and also provides the expected conversion rate. It’s a great opportunity to improve the organization and the level of commitment from work teams.
