08 May The Importance of Live Customer Service in Improving Customer Retention and Satisfaction
I was having a discussion yesterday with our founder and Chairman Mike Biedronski. The two of us were talking crazy about how we believe in the not-too-distant future AI will be replaced by humans. I know we are crazy, and most would say out of touch. Are we crazy? As technology continues to advance, companies are increasingly looking for ways to automate their customer service processes. While self-service options such as chatbots and automated phone systems can be useful in certain situations, the importance of live customer service should not be overlooked. In fact, being able to speak to a live person in customer service can play a crucial role in improving customer retention and satisfaction.
I recall the days when IVR technology was starting out and everyone thought that was the future of customer service. No need for humans to answer the phone if you have an IVR to handle the customer issues. The truth is that IVRs did handle the basic calls and reduced the need for a live agent. However, in the process, too many companies went too far and would force customers into IVR hell. Sending
customers on endless complicated loops. Short term this did reduce call volume but, in the long term it created huge customer dissatisfaction. Over time most companies that valued the customer pulled back dramatically from the use of an IVR. Some companies even eliminated the IVR altogether.
In recent years the push has been around the use of chatbots to support customers. Again, a chatbot can be a valuable tool in the arsenal but it cannot be at the detriment of the customer experience. I for one prefer not to speak to a live agent when I have an issue. I much prefer to utilize technology. More insanity, right? A CEO of a BPO does not like to use a live agent. However, my preference for technology over a live agent is not because I prefer dealing with tech. Unfortunately, most customer service is so bad it is better to deal with the tech versus a live agent. I could write an entire book on bad customer experiences.
Customer satisfaction is a critical factor in the success of any business. According to a study by PwC, 73% of customers say that customer experience is an important factor in their purchasing decisions. Another study by Microsoft found that 96% of consumers say that customer service is an important factor in their loyalty to a brand.
One of the primary benefits of live customer service is that it allows customers to receive immediate assistance when they encounter an issue. A study by Accenture found that 83% of customers prefer dealing with human beings over digital channels when it comes to solving customer service issues. When customers are able to connect with a live person, they can receive prompt feedback and support which can lead to a faster resolution of their issue.
In addition to faster resolution times, live customer service can also provide a human touch to the interaction. This can help build trust between the customer and the company and make the customer feel like their concerns are being heard and taken seriously. A survey by Zendesk found that 92% of customers feel more positive about a company that offers live customer service. This can lead to increased customer satisfaction and loyalty.
Live customer service can also play an important role in reducing customer churn. According to a study by Salesforce, 52% of customers say that they will switch to a competitor if a company doesn’t offer personalized customer service. By providing live customer service, companies can demonstrate that they value their customers and are committed to providing a positive customer experience. This can lead to increased customer loyalty and a reduced risk of losing customers to competitors.
While self-service options have become more prevalent in customer service, the importance of live customer service should not be overlooked. By providing customers with the opportunity to connect with a live person, companies can improve customer retention and satisfaction, build trust, and reduce customer churn. In a world where customer experience is becoming increasingly important, live customer service can be a key differentiator for businesses that are looking to stand out from their competitors.
At Center Source, understanding the balance between using technology and human intervention is our area of expertise. At Center Source we have multilingual team members who are skilled at navigating complex conversations and have extensive experience. If you would like to learn more about improving your customer experience and how Center Source can support your customers, please reach out to us for a free consultation.
Center Source provides Omni Channel BPO solutions for small to large organizations in the area of Customer Service, VIP, Help Desk, Global Desk Top Support, and outbound campaigns. Frank Royal is the CEO of Center Source and has nearly 30 years ‘experience in Customer Support.
References:
- PwC. (2018). Experience is Everything: Here’s How to Get it Right.
- Microsoft. (2017). State of Global Customer Service Report.
- Accenture. (2019). Global Consumer Pulse Research.
- Zendesk. (2019). Customer Experience Trends Report.
- Salesforce. (2018). State of the Connected Customer Report.
Frank Royal, CEO of Center Source
May 8, 2023