CUSTOMER SERVICE

2014

What has happened so fare in

A customer is 4 times more likely to buy form a competitor after experiencing a service related issue, as opposed to a

price or product related issue  

X   4X  

Price or product related problems  

Competitors  

Service related problems  

)  

)   )  )   )   )   )  

)   )  )   )   )   )  

=  POSITIVE EXPERIENCE   NEGATIVE EXPERIENCE  

It takes 12 positive experiences to make up for one negative experience  

$  

7X  X   X   X   X  

X   X   X  

X is the cost to retain one customer  

NEW CUSTOMER   EXISTING CUSTOMERS  

It costs 7 times more to attract a new customer than to retain an existing customer  

REASONS FOR IMPROVING CUSTOMER SERVICE

87%

Customer demand better service

28%

Customer loyalty

71%

Competitive pressure

CUSTOMERS EXPECT MORE FROM YOUR COMPANY. BAIN & COMPANY FOUND THAT 80% OF COMPANIES BELIEVE THEIR FIRM OFFERS A SUPERIOR SERVICE. HOWEVER, ONLY 8% OF CUSTOMERS HELD THE SAME VIEW!  

ENHANCED SERVICE METRICS

TRADITIONAL CUSTOMER SERVICE METRICS

QUALITY CUSTOMER SERVICE METRICS

+ Waiting time  

Satisfaction ratings  

First time resolutions  

Average handling time  

Cost to serve customer  

Save / sales rates  

Net Promoter Score  

Customer Effort Score  

Customer journey consistency  

Likes, retweets etc.  

Cross sell / up sell rates  

Employee empathy  

LEADING ORGANIZATIONS ARE NOT ONLY MEASURING THE TIME AND COST IT TAKES TO SERVE A CUSTOMER, BUT ALSO THEIR CUSTOMER’S ENGAGEMENT WITH THEIR BRAND

THE FRONTLINE Those who handle incoming communication play a powerful role in providing superior customer service.

Engaged, knowledgeable employees deliver a better

customer service and close 33  %  more deals

Customers will return to a company with

excellent service and 56  %   would recommend it to

family and friends

Creating a consistent customer experience

56  %  

Workforce management and culture

13  %  

Metrics and performance

Data analytics

8  %  

5  %  

Cost reduction

3  %  

Customer Service top priorities 2014  

WHAT THE CUSTOMERS WANT

24 x 365 support  

Informed Customer Service reps.  

Calls answered quickly  

Issue solved first time  

Option for call back  

If on hold .. Provide an estimated waiting time  

AND  

Consistent and personalized omni-channel experience  

Thank you .. 100 bonus points are added to your account  

Omni-channel software enables reps to communicate and help across all channels and devices  

Still need the human touch  Contact Centers  

71% of customers were irritated when they couldn’t reach a human voice when calling. 67% of those hung up.  

71%  IRRITATED  

HUNG UP  

67%  

Press #1 .., press #2 .., press #3 ..  

IVR  

THE CUSTOMERS DON’T LIKE

55% of customers are willing to pay more for a better experience, but they ..

get frustrated when a rep does not have immediate access to their info  

do not like to be transferred more than once on a call  

think they are put on hold for too long  

think it takes too long to reach live reps  

84%  

94%  

69%  

72%  

WHEN THINGS GO WRONG

CUSTOMER SERVICE EXPERIENCE

+  BAD   GOOD  

10% WILL LEAVE YOU

+  BAD  GOOD  

14% WILL LEAVE YOU

+  BAD   BAD  

23% WILL LEAVE YOU

+  VERY BAD   VERY BAD  

31% WILL LEAVE YOU

78% OF BUSINESS COULD BE LOST DUE TO POOR

CUSTOMER EXPERIENCE

Resolve a complaint in the customer’s favour and they will do business with you again 70% of the time. Up to 95% of customers will give you a second chance if you handle their complaint successfully and in a timely manner.

70%   95%  

POORLY HANDLED CUSTOMER COMPLAINTS

the quickest way to destroy an otherwise perfect service reputation

DISSATISFIED CUSTOMERS

Watch the customers – they won’t always contact you.

(   (  

4% complaints  

96%  

don’

t com

plai

nt  

19  

A dissatisfied customer will tell 19 other people  

DIGITAL CHANNELS ARE BEGINNING TO BE JUST AS IMPORTAINT AS FACE-TO-FACE

62   57   53   39   27  

Store Personal meeting

Web Phone Social media

While digital channels increases, creating an omni-channel experience becomes a necessity to deliver a superior customer service. Customers want the opportunity to start an interaction in one channel and complete it in another, with consistent and personalized information provided

THE SOCIAL AREA Companies realized the importance of social media in the area of customer service

Companies using social media for responding to customer service inquiries  2014   2020  

27%   95%  

THESE COMPANIES DO MORE THAN MARKETING; THEY ARE ACTIVELY LISTENING, ENGAGING AND RESPONDING TO CUSTOMER QUESTIONS  

of Fortune 500’s 100 largest companies engage with their customers on Facebook  56 %

THESE COMPANIES DO MORE THAN MARKETING; THEY ARE ACTIVELY LISTENING, ENGAGING AND RESPONDING TO CUSTOMER QUESTIONS  

REFUSING TO COMMUNICATE WITH CUSTOMERS VIA SOCIAL MEDIA IN 2014 IS AS HARMFUL AS IGNORING EMAILS OR PHONE CALLS   40 % Social media grew

by more than  

FAILURE TO RESPOND VIA SOCIAL MEDIA

15% ì INCREASE  

Failure to respond via social media causes a 15% increase to the churn rate for existing customers, compared to other channels  Negative post or tweets

can explode if not answered within 2 hours in day and evening time!  

SKILLS FOR EXCELLENT Customer Service

Develop these skills to excel in any customer service, regardless of industry or type of customers  

1   Be a great listener  

Listen intensely, ask questions and summarize the answers of your customers. This shows that you care and want to offer the right solution  

2   Great communication skills  

Learn how to effectively communicate with your customers. Know when to listen, when to speak and how to speak  

3   Keep your promises  

Develop the ability to manage expectations. Stay up-to-date with company policies to ensure that any promise you make for a customer can be delivered  

4   Become an expert  

Learn everything about each product and services that you are selling. Spend time on studying the product as well as the various solutions you are offering for various circumstances  

5   Friendly and compassionate  

Your friendly and caring attitude will surely help in creating the right atmosphere for coming to the best solutions  

THE KEY ELEMENTS IN 2014

LISTENING TO THE

CUSTOMERS

OMNI-CHANNEL SUPPORT

PERSONALIZED CUSTOMER EXPERIENCE

INCREASED VISIBILITY WITH SOCIAL MEDIA

Thank you  Contact information: thorleif@hallund.com  

 Kevin  Gao  –  Comm100  IDC  Consumerreport  Gartner  Call  Center  Week  Survey  Customerthink  SAS  Mycustomer  Bajacallcenters  Bluewolf  AstutesoluDons  Helpscout  Robinhg  Customerserviceheroes        

Thanks to the following great companies for providing statistics