Recent research shows an undeniable shift towards self-service in customer interactions.
The trend isn’t surprising. Digital natives — being accustomed to instant solutions — find it convenient to solve problems without waiting on a human agent. With effective self-service, they can quickly access solutions and enjoy an effortless service experience.
However, if self-service falls short or there’s a clunky transition to assisted channels, the customer experience suffers. Given that 88% of customer journeys begin with self-service and often involve multiple touchpoints, it’s essential to ensure fluidity between these channels.
Why Self-Service is Gaining Popularity
Let’s unpack why self-service has gained such traction.
95% of companies have reported a dramatic increase in consumers requesting self-service options. 77% of consumers prefer brands that offer self-service solutions. 81% of customers express a desire for even more self-service options.
The reasons are twofold. It benefits both customers and businesses:
How does self-service affect customer satisfaction?
How does self-service affect businesses?
Convenience: Can access services on their schedule.
Empowerment: Gives more control over the experience.
24/7 Availability: Often available around the clock.
Consumer Expectations: Modern customers often expect self-service options.
Operational Efficiency: Reduces costs and speeds up service.
Scalability: Handles increased customer volume without adding staff.
Data Collection: Helps understand customer behavior.
Resource Allocation: Frees up employees for more complex tasks.
Self-Service Hurdles
Yet, as with all innovations, there are challenges that come with self-service.
According to a Forrester study, businesses waste nearly $22 million annually on unnecessary CX costs because customers struggle to self-serve.
A Gartner research indicating that 62% of customer service channel transitions are “high-effort” is a harsh reminder of these challenges.
Such statistics pose an interesting paradox: while companies are harnessing the power of self-service to reduce costs and improve CX, the transition from this service to human-assisted channels might be causing more harm than good.
The pursuit of speed, cost-effectiveness, and minimal human involvement has overshadowed a more thoughtful approach that puts people and customers at the center.
The push to digitally transform business processes has often been driven by a narrow focus on hard data, which can sometimes overlook the very people that technology was meant to benefit.
Building on insights from Gartner’s research, here are key strategies to ensure that the power of self-service and the necessity of human-assisted channels integrate seamlessly:
Limiting over-automation: Self-service should be an option but not the only option. While automation can enhance efficiency, it should complement, not replace, the human touch.
More guidance, not more choices: Offer clear guidance for customers during channel transitions. Rather than overwhelming them with choices, guide them through the process, ensuring they know support is readily available if needed.
Improve the IVR system: Many businesses have integrated a multitude of options into their IVR menus, thinking that offering more choices would cater to a broader range of customer needs. What that actually results in are complex menus that are difficult to navigate and take ages until the desired option is reached.
Transfer self-servicequestions to reps: Often, when customers change channels, the details they’ve shared or self-service steps they’ve taken often get lost, forcing them to provide the information again.
Not only does this affects customer satisfaction, but also, by avoiding the need for customers to repeat information, seamless transitions can save up to 4 minutes of valuable rep time per customer journey, according to Eric Keller, Senior Director in Gartner’s Customer Service Research Practice.
6 simple yet powerful strategies to improve customer retention
Can you remember the last time you re-engaged with your customers and tried to win them back?
At FrontLogix, we strive to create a superior customer experience by fusing technology and human support. Our ultimate goal is to maintain brand loyalty among your customers by striking a balance between automation and the human touch.
Let’s talk about how we can assist you in delivering exceptional customer support. Contact us today.
As Software-as-a-Service (SaaS) solutions become increasingly popular, so does the competition among its providers. And as it is much cheaper to retain existing customers than to acquire new ones, ensuring scalable and efficient customer service becomes crucial for business success.
However, meeting the growing demand while maintaining high customer satisfaction levels can be challenging. As your user base grows and your SaaS solution matures, you’ll likely receive more requests for new features, or witness changes in customer behavior. While new functionalities aim to improve the user experience, they can also lead to confusion or uncertainty among your users. Consequently, they may have more questions or seek clarification to fully understand the updated features and their implications.
Addressing these challenges requires a proactive approach to customer service. Your team should be prepared to handle the increased volume of feature requests, ensuring that these suggestions are carefully evaluated and considered for future development.
This article will discuss strategies to effectively manage scalability challenges in SaaS solutions when it comes to customer service excellence.
Strategies for scaling Customer Service in SaaS
1. Introduce a Customer Success Manager
SaaS brands must balance providing functional software and exceptional service to satisfy their customers. According to Vendr, the average medium-sized company spends $2.81 million annually or $9.762 per employee on SaaS. Despite this sizeable investment, many companies need help implementing and measuring their acquired tools’ ROI effectively.
When users do not fully adopt a product or experience UX issues, they become frustrated and will likely cancel their subscription. This, in turn, leads to customer churn and lost revenue for SaaS companies, which must invest money in customer acquisition to replace that lost revenue.
Introducing a Customer Success Manager whose main focus is to build strong relationships with customers, ensure their success, and drive customer retention, is an effective way for companies to reduce churn, increase customer satisfaction and retention, and ultimately boost revenue.
2. Understand and anticipate demand
To successfully manage scalability challenges, it is vital to understand and anticipate customer demand. By analyzing historical usage patterns and conducting market research, businesses can estimate future growth and plan accordingly. This includes forecasting peak usage periods, identifying potential bottlenecks, and ensuring adequate resources to handle increased demand.
A workforce management (WFM) tool combined with WFM experts that can be set up correctly and interpret essential metrics can be incredibly helpful in understanding and anticipating customer demand.
These tools can provide real-time data on staffing levels, call volume, and other critical metrics, allowing businesses to adjust their resources accordingly. With the help of experts who can interpret and analyze this data, your business can make informed decisions about staffing levels, scheduling, and other essential factors that impact scalability.
3.Automate Processes and Support
Implementing automation in customer service processes can significantly improve scalability. Businesses can handle more customer queries with the same efficiency level by automating routine tasks, such as ticket routing, response acknowledgments, and frequently asked questions. This saves time, reduces manual errors, and allows customer service teams to focus on more complex issues.
4. Invest in a robust Knowledge Base and Self-Service options
Offering self-service options can empower customers and reduce the burden on your customer support teams. By providing a comprehensive knowledge base, interactive tutorials, and easily accessible support resources, customers can find answers to their questions quickly and easily.
5. Leverage AI and Machine Learning
Artificial Intelligence (AI) and Machine Learning (ML) technologies can significantly scale customer service operations. Chatbots and virtual assistants powered by AI can handle many customer queries simultaneously, providing instant responses and assistance. ML algorithms can also analyze customer data to identify trends, anticipate customer needs, and personalize support experiences.
6. Don’t forget the importance of Human Customer Service
While there is no doubt that AI-powered assistants have revolutionized the way businesses interact with their customers, it’s important to remember the value of human customer service. In certain situations, customers may require a more personalized and empathetic approach that can only be provided by a human representative.
Human customer service can also help build a stronger customer connection, increasing loyalty and retention. So while AI-powered assistants can be a valuable tool, businesses should be aware of the importance of human interaction for creating a truly great Customer Experience.
For more on Why chatbots will not replace human agents, head over here.
7. Provide excellent training for your Customer Support Team
Your customer support team is the face of your company, so it’s crucial to provide them with excellent training. Overall, training enhances customer satisfaction, improves interactions, and maintains a positive brand image through:
providing product and service knowledge
equipping representatives with conflict resolution skills
ensuring representatives understand the brand and company
improving efficiency and productivity
helping representatives adapt to changing needs
fostering continuous improvement
8. Regularly monitor KPIs
For optimum scalability, it’s important to consistently keep an eye on real-time analytics and performance metrics, like system efficiency and support ticket resolution metrics.
It’s also essential to track important customer success metrics, including:
Customer Retention Rate: Percentage of retained customers over a period.
Customer Churn Rate: Percentage of lost customers in a timeframe.
Customer Satisfaction Score (CSAT): Quick Customer Satisfaction survey using a rating scale.
Product Adoption: Usage frequency and milestone achievements.
Customer Lifetime Value (CLV): Estimated total revenue from a customer’s lifecycle.
Net Revenue Retention (NRR): Percentage of revenue retained considering cancellations, upgrades, and downgrades.
6 simple yet powerful strategies to improve customer retention
Can you remember the last time you re-engaged with your customers and tried to win them back?
Managing scalability challenges in SaaS solutions is crucial for achieving customer service excellence. Introducing a Customer Success Manager, understanding and anticipating customer demand, automating processes and support, investing in a robust knowledge base and self-service options, leveraging AI and machine learning, valuing human customer service, providing excellent training for the customer support team, and regularly monitoring key performance indicators (KPIs) are all essential steps in achieving scalability and delivering exceptional customer service in the SaaS industry. By prioritizing these strategies, businesses can position themselves for success in the highly competitive SaaS market while retaining and satisfying their valuable customer base.
FrontLogix is a next-gen Customer Experience (CX) BPO that skillfully merges technology with human assistance. Our use of automated experiences reflects our commitment to staying ahead of the curve while never losing sight of the importance of human interaction. We believe that this balance is key to fostering authenticity and brand loyalty among our customers. Contact us today to discuss how we can help you ace your Customer Support.
These days, Customer Experience (CX) is a hot topic in many industries.
With digital technology giving customers more access to information and more control over their purchasing decisions, it’s no surprise that online commerce experiences are becoming more common.
While we often think of online shopping in terms of retail, it’s worth exploring why CX and customer service are becoming increasingly important in the Automotive aftermarket. There are two primary reasons for this.
Reason No 1: The average age of vehicles is increasing
The global microchip shortage, combined with better-quality vehicles and longer car loans, means that the average age of cars in the U.S. has risen from 10.9 years in 2010 to 13.6 years in 2023. As a result, there is a growing demand for replacement parts, which is leading to growth in the Automotive Aftermarket industry.
The Automotive Aftermarket is currently valued at approximately €800.0 billion and is expected to grow annually by 3 percent, reaching €1.2 trillion by 2030, as reported by McKinsey.
Reason No 2: A new generation of customers is emerging – millennials
We’ve discussed Liquid Expectations, and how they have become fluid across industries. The millennial generation, being digital natives, benchmark customer experience to technology pioneers that rely heavily on customer experience. These industry trailblazers have effectively raised the bar for customer experience not only within their own sectors but across all industries.
Convenience has become key, and millennials expect:
hassle-free online shopping experiences
vast selection of products
easy navigation and search functions
multiple payment options
free, fast shipping
personalization through customized recommendations and tailored promotions
omnichannel customer support around the clock
The unique customer service challenges in the automotive aftermarket e-commerce
The automotive aftermarket involves many players and processes, such as OEMs, parts distributors, workshops, fleet operators, and end customers. Each of these players has different needs and expectations, and transactions are often complicated by factors such as vehicle compatibility, warranty, quality, and availability.
To provide a seamless and satisfying CX, the automotive aftermarket e-commerce sector needs to simplify processes, automate manual and repetitive tasks, and safeguard the supply chain for enhanced customer service and revenues, especially in times of disruption or uncertainty.
Key strategies to enhance the customer experience in the automotive aftermarket e-commerce
So, what are some key strategies to enhance CX in the Automotive aftermarket industry?
Partner with a CX Expert Seek a customer experience partner who possesses in-depth knowledge not only of CX strategies but also of the specific dynamics of the automotive and transportation industry. This expertise should encompass areas such as identifying parts, part sourcing, order processing, fraud detection, and more. A specialized partner can provide tailored solutions and help optimize your business processes.
Embrace CX Trends Find a BPO who stays updated with the latest developments in the CX sphere. Look for a partner capable of developing comprehensive strategies rather than just offering solutions. Leveraging customer data effectively, these strategies can enhance CX while simultaneously reducing costs.
Strategic Expansionof Existing Support Teams Consider augmenting your existing support teams by integrating professionals who act as powerful extensions of your current workforce. These individuals should be trained to match the standards of your existing representatives and demonstrate expert knowledge of your systems and workflows. By integrating seamlessly, they can contribute to improving operations without necessitating major changes to your business structure.
In conclusion
As the automotive aftermarket e-commerce industry continues to grow and adapt, effective CX strategies become imperative in fostering loyalty and delivering a superior customer experience.
By partnering with CX experts, staying attuned to industry trends, and expanding existing support teams strategically, businesses can optimize their customer support processes and ensure long-term success.
With the rapid rise of e-commerce, which allows for the modification of business models and the adoption of new ways of communicating with customers, automotive suppliers and distributors are under pressure to transition quickly.
6 simple yet powerful strategies to improve customer retention
Can you remember the last time you re-engaged with your customers and tried to win them back?
We not only know all about CX, but we also know all there is to know about the Automotive & Transportation industry. This industry-specific knowledge is what separates FrontLogix as a signal from the noise, making us the ideal companion in navigating the changing Automotive & Transportation industry. Get a quote today.
Somebody will contact you …(In an hour, in a day, or in a month?)
You’ve called the wrong department. Dial again and choose the correct extension…
Customers are willing to sit through yet another ‘Opus No. 1’ or ‘Only Time‘ musical track only when facing tricky and urgent matters. That’s why, for simpler questions, we’ve got self-service and chatbots to help, without the hassle of waiting on hold. We expect a robotic response from a robot, but when contacting a human representative, we need them to understand us, plead on our behalf, and provide a solution to the best of their ability.
This is what Customer Advocacy is all about.
To communicate that care over the phone or live chat, the language used makes all the difference. This is where the concept of Customer Advocacy Language comes into play.
In this blog post, we will review what Customer Advocacy Language is, explain why it is important, and provide a list of nine best practices and useful specific phrases to use in your customer service.
Customer Advocacy Language is a set of communication strategies, soft skills, choice of language, tone and phrases that your customer-facing teams should incorporate to demonstrate a commitment to customer satisfaction.
Advocacy is defined as any act that endorses, supports, defends, speaks in favor of, or pleads on behalf of others. The focus of Customer Advocacy Language is on building a positive relationship with the customer and creating a sense of trust and reliability.
Why is Customer Advocacy Language important?
Over the phone, the lack of body language and visual cues makes tone and language vital for effective and clear communication.
Your customer service representatives are (literally) the voice of your company. Every word said is one that your customers will associate with your brand.
It’s essential to convey empathy and support the customers’ needs in every conversation. Words have the power to shape thought. Even a single misused word that doesn’t align with the customer’s mindset can give the impression of insensitivity.
Customer Advocacy Language in Customer Care: 9 best practices with examples
1. Use the power of personalization
“A person's name is to him or her the sweetest and most important sound in any language.”
– Dale Carnegie.
Personalization through name mention
Addressing the customer by name establishes a bond in which you identify them as a named human being and more than just another ticket. When interacting with a new customer, politely ask for their name and use it throughout the conversation. For returning customers, consult your Customer Relationship Management (CRM) system to find their contact details. This will leave your customer feeling like their needs have been cared for by someone who truly understands them.
However, make sure the name-mentioning doesn’t sound forced, scripted, or overdone. A good rule of thumb is to mention their name at the beginning and end of the conversation.
The trick here is to strike the right balance between professional and personable. Avoid using overly friendly or informal language, as it can undermine your credibility and authority.
Personalization with a CRM tool
Use a CRM tool to take personalization to the next level. This software lets you organize relevant customer contact details, previous interaction with the service, frequent concerns, purchasing history and more ‒ displayed in a timeline layout. That way you can anticipate their query and needs based on previous interactions.
Personalized incentives
Instead of offering one-size-fits-all incentives, use the information you already have on your customer to reward them with personalized perks. VIP programs, loyalty points, personalized discounts, freebies, surprise gifts, exclusive events, and early access, are all examples of different incentive types.
Did you know: 71% of customers want companies to provide personalized experiences, and 76% are left frustrated when this does not happen. (McKinsey)
2. Use positive language
Working in support involves dealing with customers who are experiencing problems with your product or service, and you might experience some emotionally-charged scenarios. Your job is to provide effective solutions to customers’ problems while maintaining a positive and professional attitude.
This means using words and phrases that communicate positive connotations.
Positive language examples:
Avoid negative action words such as ‘won’t’ and ‘can’t’ that sound dismissive. Instead, focus on what you can do.
Instead of “That item is not available” try replacing it with “That item is currently out of stock, but I’ll be able to pre-order it for you. Would you like me to go ahead with that?”
Or instead of, “This is the hard part,” say, “This is the interesting part.”
Try replacing ‘You’ statements with ‘I’ statements and probing questions instead. That way, you show initiative, care, and responsibility while working together on finding a solution.
Instead of “You should call another department,” you can say, “I can transfer you to the right department.”
Or “You haven’t fully charged the battery” can be replaced with a probing question: “Have you tried fully charging the battery?”
3. Avoid passive voice
There is no faster way to lose customers’ trust in your business than to use the passive voice to distance yourself from accountability. This is particularly true when responding to customer complaints, as it may appear that you are not acknowledging responsibility.
True, customer service agents may feel tempted to use the passive voice in hopes of avoiding becoming the target of a customer’s wrath. But, wrong word choice can only aggravate an already irritated customer.
Instead of “There is a payment issue…” use “I have found the source of the issue, the payment…”
Keep in mind that using the active voice communicates a more personal and casual tone. Passive voice appears deceptive, lacks clarity and directness, and can lead to misunderstandings by failing to clarify who did what.
4. Remove the “Us versus Them” dynamics
“Sorry, that is our policy” is possibly the most annoying customer service phrase.
Customers are already under the idea that they are interacting with a faceless business representative who is biased in favor of the company. By using inclusive language when dealing with customers, you eliminate the Us vs. Them dynamic.
Instead of saying, “Sorry, that is our policy,” consider going the extra mile. Instead, say “We are able to do [ABC] or [XYZ], does either of that sound good to you?”
This way, you are downplaying the negative and offering an option to choose from, which helps your customer feel in control of their choices.
It’s best to steer clear of phrases that appear polite but are actually passive-aggressive.
Instead of saying, “As you are no doubt aware, our return policy is…,” ‒ simply state the policy. The same goes for “just so you know…” and “for future reference…”
Replace “Correct me if I’m wrong…” and “Let me know if I misunderstood…” with “What I’m seeing here is [XYZ], correct?”
Practice being clear about what you want to say, without hiding behind overly polite or passive language.
6. Maintain a consistent tone throughout
It is easy to unintentionally adopt a dismissive and closed-off tone when the customer is asking seemingly basic questions after a long conversation. However, it’s important to remember that even though representatives may deal with similar issues every day, each customer’s problem is unique and unfamiliar to them.
Try to keep a consistently warm and friendly tone throughout the entire conversation. For example, instead of asking, “Would that be all?” ‒ which may come across as cold or dismissive ‒ try asking, “Is there anything else I can do for you?”
This demonstrates your willingness to be of service and makes the other person feel valued and respected ‒ no matter how trivial their issue is.
Tip: If your service reps are receiving multiple support requests for the same issue, consider developing a business-specific knowledge base that includes frequently asked questions and their solutions.
7. Don’t waffle
Customers only want their problem resolved so they can get back to their day ‒ and you have other tickets in the queue. Use brief, clear statements without getting bogged down in too many details. Focus on addressing their issue while providing additional information only if needed.
However, when trying to keep things short and sweet, make sure you don’t accidentally come across as abrupt. Take the time to ensure you fully understand the issue and that the customer is satisfied with the solution. Even after you’ve resolved the problem, don’t forget to ask if they need help with anything else.
8. Don’t get too technical
“Recalibrate the sensors and do a hard reset…”
It’s important to remember that customers may not be as familiar with the product or technical details as the support representatives. That’s why they’re reaching out for help in the first place! To make things easier for them, try to use simple language that everyone can understand and avoid technical jargon.
9. Show empathy
The definition of advocacy is any activity that advocates, endorses, promotes, defends, or appeals on behalf of others.
The name says it all ‒ customer care representatives should represent care and plead on behalf of the customers. They should be the friendly faces you reach out to when you need help or have any concerns.
As a customer rep, it’s important to show empathy by acknowledging customers’ feelings. It’s as simple as saying “I understand how frustrating that must be for you” or “I would feel the same way in your situation.” This lets them know you’re listening and that their experience matters to you.
Advocate for your customers and they will become your brand advocates.
Some quick Customer Service stats:
89% of customers are more apt to make another purchase after a positive customer service experience (Salesforce).
78% of customers would continue doing business with a company following a negative experience – if the customer care was good (Salesforce).
93% of customers are more likely to make repeat purchases from businesses that provide outstanding customer service. (HubSpot).
83% of customers are more loyal to brands that react to and resolve their complaints (Khoros).
6 simple yet powerful strategies to improve customer retention
Can you remember the last time you re-engaged with your customers and tried to win them back?
At FrontLogix, we know that customers’ interactions with our agents play a critical role in shaping their overall opinion of your business.
Therefore, we have implemented a rigorous 6-stage recruitment process to vet our customer rep candidates thoroughly. We evaluate their verbal and written communication skills and look for individuals with a “service-oriented” attitude.
Here, we’ll explore the promise of Conversational AI and the future of customer service. Will AI replace human agents? The answers are nuanced.
On November 30, the public was first given access to ChatGPT. This conversational AI chatbot’s capabilities have raised many questions about the future of business operations and AI’s impact on the job market.
With investors betting big on AI, a question arises ‒ will AI chatbots be the panacea for all ills? How will Conversational AI affect the future of Customer Service? Will human agents become redundant?
The answers are nuanced. But one thing is certain, the future of customer service is poised for a significant transformation.
In simple terms, Conversational AI is a computer program that is trained to understand and generate human-like text. Think of it as a chatbot that can answer questions, hold conversations, write (quite funny) jokes, songs, children’s stories, and much more. When interacting with this AI system, you feel like you’re talking to a real person, even though it’s just a computer program.
The power of these programs lies in remembering context and their capability of correcting themselves when wrong. Next-gen Conversational AIs have a learning model that improves over time with user feedback, offering better responses with each interaction. So, the more users interact with it, the smarter it gets.
How is Conversational AI different from other chatbots?
The most advanced conversational AI system to date ‒ ChatGPT ‒ is a true jack-of-all-trades. It can compose music, code software, and write lyrics, emails, and blog posts, creating content directly in several languages.
What sets it apart from other AI language iterations is its use of a generative model. It predicts the next word in a sequence based on the words that came before it, resulting in more conversational interactions.
This chatbot can mimic writing styles, avoid specific interactions, and learn from your inquiries thanks to its dialogue format. In other words, it may refine responses following additional questions, admit mistakes, challenge faulty premises, and then store what it has learned for future use.
What characterizes ChatGPT is its ability to present complicated concepts in simple terms. Think of head-spinning topics such as the Higgs boson. A simple Google search will give you a plethora of information, but you won’t understand much of it unless you are a particle physicist.
ChatGPT can simplify complex subjects into digestible chunks of information that the rest of us can understand ‒ even a 10-year-old.
ChatGPT explains Higgs boson to a 10-year-old
Conversational AI and the future of Customer Service
Conversational AI engines learn from the information they index. In the case of today’s most advanced conversational AI, ChatGPT, that is the database of internet knowledge and validated data sets.
That’s why ChatGPT can answer questions about everything that can be found online. However, this also makes it susceptible to biased responses, as the internet is flooded with biased opinions. The program is only as good as the data it is fed.
But when these types of AI-powered chatbots are fed with refined, validated, industry-specific content from deep databases, they can then build supreme knowledge based on that source – and deliver it conversationally to customers.
Generative AI will offer the most compelling use case for contact centers, as other bot platforms tend to be more scripted and less creative.
How can Conversational AI be implemented in Customer Service?
Conversational AI applications can be easily integrated with industry-specific knowledge bases through their API. Merging this organized information repository with AI-powered natural language processing chatbots will grant customers instant access to accurate self-service experiences that feel human-like.
Why chatbots will not replace human agents
Unquestionably, these next-gen chatbots will have an immediate impact on a number of jobs, including data entry and processing, basic programming, and ‒ simple customer support roles. Still, these jobs won’t entirely disappear but pivot into a new direction.
Indeed, generative AI will put a jetpack on customer service efficiency and step into the shoes of clunky, rule-based chatbots. However, it won’t replace human agents. Why? Below are four reasons supported by survey data.
1. Customers believe that businesses have lost touch with the human element of CX
A recent study by PwC found that a whopping 59% of all customers believe that businesses have lost touch with the human element of CX. This sentiment is echoed by 82% of US consumers and 74% of non-US consumers who desire more human engagement in the future.
While AI and automation can help increase customer service efficiency, the personal touch and human approach will remain important for a great Customer Experience.
2. Customers place twice as much importance on friendly agents as on low wait times
These findings are supported by the latest Qualtrics’ Global Consumer Trends Report for 2023. It revealed that customers crave more human connection when interacting with a brand and that companies must “act more human” to win their loyalty.
When asked what makes them happy, customers placed twice as much importance on friendly agents as on low wait times.
3. People are not comfortable with chatbots resolving their conflicts or trusting them with payments
According to a recent survey conducted by Userlike ‒ a chatbot solutions provider ‒ customers are willing to chat with a bot for simple inquiries such as product specifications, order status and shipping policies.
However, only 23% of those polled were confident in relying on a chatbot to resolve conflicts, and just 30% were comfortable using one to make a payment.
In fact, 60% of respondents indicated that they would be willing to wait in a queue if it meant speaking with a human agent rather than receiving instant assistance from a chatbot.
Surprisingly, nearly all of the survey respondents allowed chatbots to help them with one task: connecting them with a human customer support representative.
4. Technology can often be impersonal and frustrating
While AI-powered customer service is efficient, it lacks the emotional intelligence that comes with human interaction, particularly when dealing with complex or emotionally charged situations. Have you ever yelled at your phone’s automated message while trying to reach a live person at a call center?
Humans are social beings, with a deep-seated need to connect with others. This need is mirrored in our desire for social interaction and relationships, and in this age of advanced technology, people crave human connection even more. If customers have some say in the matter, it’s unlikely that chatbots will eliminate the need for human reps.
A growing body of research shows that if customers have some say in the matter, it's unlikely that chatbots will eliminate the need for human reps any time soon.
Through their integration with industry-specific knowledge bases, conversational AI-powered chatbots have the potential to usher in a new era of customer service.
While next-generation AI will most certainly be the end of clunky chatbots, it will not replace human agents any time soon. Study shows that a personal connection still plays a major role in the Customer Experience.
All in all, Conversational AI chatbots offer a promising future in the field of customer service. It is up to businesses to explore the benefits of this technology while striking a balance with human connection to gain customer loyalty.
FrontLogix is a next-gen Customer Experience (CX) BPO that skillfully merges technology with human assistance. Our use of automated experiences reflects our commitment to staying ahead of the curve while never losing sight of the importance of human interaction. We believe that this balance is key to fostering authenticity and brand loyalty among our customers.
Contact us today to discuss how we can help you ace your Customer Support.
In this blog post, we’ll explore what is CSM, what are the 5 fundamental principles of CSM, the role of a Customer Success Manager, and how to measure the success of the CSM program.
First introduced by tech companies, Customer Success Management (CSM) finds its way (and rightly so) into every customer-centered business. Businesses of all sizes have embraced CSM in an attempt to increase retention, revenue, and Customer Lifetime Value.
Let’s start from the top.
What is CSM, exactly?
Customer Success Management (CSM) is the practice of managing customer relationships to maximize customer satisfaction and the value they get from a product or service.
The goal of CSM is to take proactive actions to reduce problems customers may experience with a brand – which helps increase customer loyalty and improve a company’s bottom line. It involves a variety of activities and processes, including onboarding, training, guidance, customer support, and customer feedback.
The 5 fundamental principles of CSM
Below are the five pillars of customer success management that you should know:
Focus on the customer: Creating a customer-focused culture and ensuring that you tailor each interaction with customers to meet their individual needs.
Proactive engagement: CSM involves proactively reaching out to customers to understand their needs and help them achieve their goals.
Collaboration: Customer success management involves collaboration between the customer, Customer Success Managers, and other teams within the company, such as product development and sales.
Monitoring and measuring success: Measuring success through regularly monitoring key metrics will help identify areas where customers may be struggling.
Continuous improvement: CSM should be seen as an ongoing process rather than a one-time project. This includes continuously measuring performance indicators such as retention rates and satisfaction scores.
How does a Customer Success Manager (CSM) role fit in?
The role of a Customer Success Manager is to ensure the implementation of CSM practices. They act as the customers’ voice, cultivating strong customer relationships, and demonstrating that they have their best interests at heart.
Aside from good soft skills, Customer Success Managers must have a strong understanding of the product or service they are selling in order to provide knowledgeable support when needed.
Think of CS Managers as a combination of white-glove support and sales experts.
Customer Success Manager roles and responsibilities:
Onboarding of new customers, which includes educating the customer about the product’s features and functionality, defining specific goals, and providing customers with everything they need to be successful and complete those goals.
Providing support and guidance to customers to help them get the most value out of the company’s products or services.
Responding to customer inquiries and concerns in a timely and professional manner.
Identifying and addressing potential issues that may impact customer satisfaction.
Upselling and cross-selling the product.
Collaborating with other teams within the company to resolve customer issues and identify opportunities for improvement.
Analyzing customer data to identify trends and opportunities for improvement.
Developing and implementing customer success plans and programs.
Acting as the Voice of the Customer and fostering solid relationships with customers.
Collecting feedback and reporting on the effectiveness of customer success initiatives.
Building and maintaining solid relationships with customers to encourage loyalty and retention.
Customer Success Manager traits:
Can sympathize with customers and prioritize their needs while establishing long-term ties that go beyond simple rapport.
Is adaptable to changing customer needs and expectations, and able to identify and implement solutions quickly.
Possesses customer-facing experience, especially in support or sales.
Has a thorough understanding of the product, its value, and the results it produces.
A proactive and strategic thinker that anticipates future trends.
Great leadership, analytical acumen, and problem-solving skills.
Strong communication, organizational analysis, and solution focus.
Ability to handle stress.
Measuring the success of your CSM Program
One way to measure the effectiveness of the CSM program is to track key metrics such as:
Customer Effort Score (CES) measures how much effort is put in by customers to interact with the business.
Customer Lifetime Value (CLV) calculates a customer’s total worth to your organization over the course of their relationship with you.
Engagement Rate measures the level of interaction and engagement of a group of people with a particular product, service, or organization.
Retention Rate measures how many customers continue to use a product, service, or organization over a certain period of time.
Net Renewal Rate measures how many customers renew their use of a product, service, or organization over a certain period of time.
Customer Health Score reflects the overall well-being of a company’s customer base. It is often used to identify customers who may be at risk of churning or stopping their use of a company’s products or services.
Customer Satisfaction Score measures how satisfied customers are with a company’s products or services. It is typically calculated using customer feedback, which can be gathered through surveys, interviews, or other forms of customer research.
Expansion Revenue is the additional revenue generated by existing customers as they increase their use of a company’s products or services.
Onboarding Engagement Rate measures the level of interaction and engagement of new customers or users with a product, service, or organization during the onboarding process.
Daily Active Users (DAU) and Monthly Active Users (MAU) measure the percentage of a company’s user base that is active daily and monthly.
Depending on the goals of the customer success program and the specific needs of the organization, there might be other, more relevant metrics to be tracked. To evaluate the effectiveness of the program, carefully choose the essential metrics and track them over time.
How FrontLogix can help
Do you require the services of an experienced Customer Success Manager?
FrontLogix is a BPO specializing in customer experience (CX) and can assist you with skilled Customer Success Managers to track specific customer KPIs. Above all, we sincerely care about keeping your current subscriber base, exceeding their expectations, and adding additional delighted consumers.
Probably the most truthful adage today is that just about anything is only a few clicks away. A new pair of Air Maxes? Click. Feeling like Thai food tonight? Click. That customer support agent wasn’t helpful? Click and unsubscribe. After all, why should they stay loyal to a business when there are tons of others that can provide them with the products and experiences they seek?
Today’s society has evolved into a digitally omnipresent system, with tons of information and options available at our fingertips. Convenience and instant gratification have become the cornerstones of customer expectations.
No matter whether your business is looking for a purchase, sign-up, or booking, 80% of customers say the experience a company provides is just as necessary as its products or services (source). In order to improve user experience and foster long-term relationships, understanding customer communication touchpoints is crucial.
What is a Multichannel Interaction?
Multichannel interaction means customers interact with a business through multiple direct and indirect communication channels – websites, applications, email, social media, etc., as opposed to a single-channel interaction.
Why should you adopt (at least) a Multichannel Approach?
As today’s customers spend more time on product/service research and have more options to choose from, they have much more control over the buying process than marketers do. Thanks to the rapid increase of available channels, customers are now everywhere. And so are your competitors. If that is not a good enough reason, consider this: customers who use multiple channels spend three to four times more than single-channel customers.
What is Omnichannel and why is it better than a Multichannel Approach?
As discussed in theNext-Generation CX & Omnichannel Support blog post, the omnichannel approach, just like its multichannel counterpart, involves a variety of channels. The key difference between the two is the focal point of the marketing strategy. Omnichannel revolves around the customer and their experience, while multichannel is centered around placing the product or service in front of as many customers as possible. With a multichannel approach, although the customer interacts with a brand on several channels, those interactions are siloed – every channel operates independently, without interconnectivity or data sharing with others.
With the omnichannel experience, the interactions from various channels are integrated into a single experience – so when your customer abandons a cart on a shopping platform, they see an ad for that item on social media. And they can seamlessly continue the conversation with customer support from an app to email, from chat to phone call, without having to explain their issue from the start.
With an omnichannel approach, the customer is truly king. Putting them in the driver’s seat can serve as a brand differentiator, resulting in increased customer trust and better user experience. The advantages of centralized data, cohesive brand strategy, improved inventory turnover, and increased agent productivity lead to increased revenue.
6 simple yet powerful strategies to improve customer retention
Can you remember the last time you re-engaged with your customers and tried to win them back?
To stay on top, your business should be everywhere your customers are. And since customer experience is extremely valuable to any business or organization, it should always be a priority. With this in mind, an omnichannel approach consistently outperforms a simple multichannel approach, giving customers more autonomy and making your operations more efficient and informed.
Long gone are the days when “Great Expectations” was just a Charles Dickens novel.
In the past, competition in business was primarily defined by companies selling products or services directly comparable to yours. However, the landscape is changing. Now, it’s about how well businesses are meeting or exceeding customer expectations, shaped significantly by their interactions across various sectors.
Today’s customer service expectations are influenced not just by direct competitors, but also by experiences with companies from entirely different industries. Tech giants like Apple, Airbnb, Uber, and others have redefined what an excellent customer experience looks like. They’ve set a new standard not just within their own industries but across all business sectors, introducing us to the concept of experiential competitors.
Let’s delve into the liquid customer expectations definition: This concept implies that customers’ expectations are fluid and extend beyond industry boundaries.
For example, a guest may expect the check-in process at a local hotel to be as seamless as their experience at a major airport like LAX. If a business fails to deliver an efficient, hassle-free experience, customers may associate that negative experience with the brand, impacting their perception and loyalty.
In essence, businesses today are competing in a field where exceeding customer expectations is vital, irrespective of the industry.
The definition of customer expectations has broadened, encompassing the best experiences customers have had anywhere. For any company looking to stay competitive, it’s crucial to understand this shift and strive to create customer experiences that are not just good for the industry—but are outstanding on a global standard.
Mastering Liquid Expectations: A Guide to Exceeding Customer Expectations
Self-service and AI-assisted support:
Meeting and even exceeding customer expectations often starts with self-service and AI-assisted support. Customers generally believe that finding solutions themselves is quicker than contacting customer service. However, this can lead to frustration if self-service options are not up to par. According to aNuance study, 58% of customers cannot resolve their issues through self-service.
Investing in agent expertise:
When it comes to customer expectations, the competence of your agents is a key factor. If self-service tools don’t cut it, customers expect your agents to effectively step in. The ability of agents to resolve issues efficiently plays a huge role in exceeding customer expectations. Training your agents well is not just an operational expense; it’s an investment in meeting customer service expectations.
Human-to-human connection:
Despite the advancements in AI and automation, they can’t fully replicate the impact of a genuine human interaction. In many cases, customer expectations include the desire for empathy and understanding that only human agents can provide. This human-to-human connection is vital in building trust.
Responsiveness:
A Stella Connect survey shows that response time matters most when it comes to customer service. Consider investing in agent tools and training that resolve customer issues quickly and efficiently and keep customer effort scores low.
Adopt an omnichannel customer experience:
Omnichannel support provides a seamless journey and offers a unified experience to each customer. Every customer service channel is linked, data is centralized, responses are streamlined, and customer effort is reduced.
6 simple yet powerful strategies to improve customer retention
Can you remember the last time you re-engaged with your customers and tried to win them back?
At the end of the day, your customer is comparing the experience you deliver with all other service organizations they interact with, not just your industry competitors. Investing in your agents and technology is your best step toward meeting customers’ liquid expectations. How do you compare with today’s tech pioneers?
FrontLogix provides intelligent, trained, and equipped representatives alongside automation solutions to pick up the conversation at any point. We’ll also help provide an in-depth analysis of your customer’s decision-making process. Together, we’ll understand their choices and suggest ways to optimize and improve to meet their needs better. Get in touch.
The truth is – Millennials and Generation Z are constantly bombarded with marketing messages. They have more options than ever before, and slowly but steadily, traditional marketing methods are dying off.
Brand loyalty, defined by how customers value their interactions and experience with a brand, trumps brand marketing.
This calls for a shift in how the customer journey is perceived. The key here is to look at the digital strategy through the lens of customer experience. Customers expect businesses to understand their individual tastes and preferences and interact with them as individuals. A personalized customer experience delivers tailored offers, products, and messages to each individual. Companies should focus their efforts on end-to-end customer journeys that are powered digitally but driven personally.
The reshaped future starts with a shift to digital-first, customer-centered engagement while reimagining the roles of customer care agents.
When it comes to digitalization, AI has proven its worth throughout the customer journey, enabling proactive self-service in the form of chatbots, voice assistants, extended reality, etc. AI tools are also essential for gathering data, analyzing sentiment, and identifying patterns and trends in how customers interact with a company.
But, don’t fully digitalize the customer service just yet.
While AI-enhanced self-service can handle simple, repetitive tasks, human agents are still essential for more complex issues. Human agents understand compassion and can show empathy in resolving problems and handling complaints. According to aPwC study, 59 % of all consumers believe businesses have lost touch with the human element of Customer Experience.
In addition to modernizing tools, organizations can successfully humanize engagement by demonstrating flexibility and understanding. We are witnessing a reshaping of customer service practices in companies with high customer satisfaction rates. They are adopting a more adaptable approach in the way they assist their customers.According to Salesforce, 83% of agents at these high-performing companies have received training on how to be empathetic with customers, tossing aside the dated, unengaging, scripted approach. 88% say they have clear guidelines for changing their approach with customers, and 86% say management encourages them to be flexible – numbers nearly double that of agents from underperforming companies.
Although customer satisfaction is still THE most important KPI tracked by leading companies, a relatively new success metric — customer effort — is now climbing the list. It measures the amount of time and number of steps customers take to find an answer or solution.
Reduced customer effort leads to higher customer satisfaction. According to statistics, measuring the ease of use of a business’s product or service is a better criterion for measuring customer loyalty than directly measuring theCustomer Satisfaction Score (CSAT).
As discussed in the Next-Gen Customer Service blog post , modern contact centers support a variety of digital channels. Yet, most of them lack the ability to provide a non-siloed, seamless journey over multiple digital touchpoints. A unified omnichannel experience reduces customer effort, increasing customer satisfaction, and loyalty.
6 simple yet powerful strategies to improve customer retention
Can you remember the last time you re-engaged with your customers and tried to win them back?
Reshape next-gen CX by providing a truly omnichannel experience. Offer AI-enhanced self-service combined with human agents’ flexibility and empathy can reduce customer effort and lead to higher customer satisfaction and loyalty. FrontLogix is committed to being a thought leader in this space and delivering relevant, personalized solutions so our clients can implement the next-gen customer experience they deserve.Get in touch.
