The best service is no service
Empower customers, reduce support, save costs
Description
Customers want to enjoy the products and services they buy in order to achieve their goals. They do not seek relationships with service departments, as these interactions typically only occur when something goes wrong. Instead of measuring the effectiveness of customer service departments in resolving issues, the focus should be on eliminating the need for service help altogether.
To achieve this, it is necessary to change the metrics. Rather than tallying service interactions, the goal should be to identify and address any issues that prevent customers from being satisfied without requiring assistance. The mantra to adopt is that the best customer service is none at all, achieved by ensuring that products function properly and meet expectations.
We have been frustrated by poor service as both consumers and practitioners for years. Therefore, we propose a new approach for companies: ensuring that everything works so well that customers do not need to contact customer service. This is what we define as the Best Service. By adding a blank line after each paragraph, the text becomes more visually appealing and easier to read. The concise nature of the text is maintained while all the original information is retained.
Table of contents
01Principle #1 – refocus efforts to add value
Customer service operations typically encounter three main types of customer contacts:
- Dumb contacts arising from company confusion or failure to meet promises that generate the need to call. - Repeat contacts when issues weren't resolved properly the first time and customers must call back again. - Simple questions about account status or upcoming payments.
Rather than gearing up to handle more of these inbound requests, companies should focus efforts on eliminating the root causes that drive demand for service contacts in the first place. Not only does resolving underlying issues lead to happier customers, but company operations also become more streamlined and efficient.
The process of challenging demand involves four key steps. First, thoroughly understand all the reasons customers currently reach out by accurately tracking call drivers, which usually fall into 20-30 buckets. Next, build closed-loop systems between customer service and departments creating the demand by: - Generating reports on the top 10 contact reasons and associated trends. - Assigning ownership to dig into root causes and suggest fixes for each top reason. - Setting targets for reducing contacts. - Meeting weekly to review progress and strategize new solutions. - Creating rewards and consequences tied to lowering call volumes.
02Principle #2 – enable self-service capabilities
Empowering customers to resolve their issues independently through self-service not only reduces support costs but also increases customer satisfaction. Research shows that a significant majority of customers, approximately 70%, prefer self-service to contacting live support, and it is also more cost-effective, with self-service resolutions being substantially cheaper than interactions with live support. For self-service to be truly effective, companies must focus on three critical areas: convenience, control, and integration. Convenience involves providing support that customers can access at their convenience, using tools like help centers and chatbots. Control gives customers the freedom to choose how they interact, including setting their callback preferences. Integration ensures that self-service systems and human support agents work together seamlessly, providing a smooth experience for the customer.
03Principle #3 – surprise and delight when appropriate.
Transitioning to a proactive customer engagement strategy offers tangible benefits. By delivering unexpected yet valuable information and anticipating customer needs, satisfaction and loyalty are likely to increase, fostering positive word-of-mouth. To begin this shift, companies must build an internal case for proactivity, assessing potential cost savings and revenue opportunities. Considerations include the reduction of expenses by preventing issues, the creation of new products or services from understanding emerging needs, and the necessary investments in personnel, processes, and technology. Even rough estimates can be more persuasive in garnering organizational support than vague arguments. Identifying when customers would value unsolicited contact is crucial. This may involve sending notifications about unforeseen issues, updates on processes, reminders for tasks, renewal alerts for contracts, informative insights for future decisions, or warnings about usage limits, all based on opt-in data and expressed preferences to determine the right moments for engagement.
04Principle #4 – invite feedback to drive improvement
Accessible customer support is crucial for gathering insights and improving service. By simplifying the contact process, companies can collect important feedback to identify and address the underlying causes of customer dissatisfaction, enhancing the overall experience. If customers struggle to reach out, they cannot communicate their opinions, experiences, or what might drive their future purchases. Without direct feedback, companies risk succumbing to "groupthink," making assumptions about customer preferences rather than obtaining actual insights. Customer feedback is invaluable for understanding product performance, staff interactions, and competitive challenges.
To improve customer contact, companies should first establish an efficient inquiry management system. This involves deciding how to handle contacts, directing inquiries to appropriate personnel, and providing multilingual support. Setting clear expectations for response times and potential resolutions is also important for managing customer expectations.
05Principle #5 – take ownership and set things right
Effective customer service is rooted at the top levels of an organization. It's a mistake to blame frontline staff for customer dissatisfaction, as the real problems often originate from within the company's deeper processes. To improve customer satisfaction, it's crucial to identify and address these root issues.
The first step is to break down internal barriers to uncover the sources of difficulties. While customer service representatives may monitor call volumes and resolution times, these metrics don't explain the reasons for customer calls. A comprehensive analysis involves consistently asking "why" to trace the issue back to its source.
For example, questioning why a customer received a confusing letter or why the company's systems don't accept various payment methods is essential. These issues should be traced back to the departments and leaders responsible for customer interactions, who should then take ownership and strive for enhancement.
06Principle #6 – uncover innovation opportunities
Customer service encounters are more than mere inconveniences; they are precious moments to glean insights from customers. Each interaction is an opportunity to understand customer needs, perspectives, and suggestions for enhancements. By attentively listening to feedback, customer service representatives are essentially conducting market research without incurring additional costs. Smart businesses prioritize the organization and analysis of the information they gather daily from various channels such as calls, emails, surveys, and more, rather than spending on formal surveys.
Customers who contact support are often willing to share their thoughts on a company's products, policies, and other aspects, offering a wealth of information. When this data is systematically collected and analyzed, it can highlight areas that require attention and inspire new concepts for development. The effectiveness of this strategy depends on a structured process for gathering, examining, and implementing customer feedback. To execute this successfully, there are three key elements. Firstly, customer service agents must be trained in active listening to fully understand customer issues, distinguish between systemic and isolated incidents, and spot trends. Regular meetings for the team can act as a forum for agents to share recurring themes from customer interactions and collaborate on resolutions. A unified database or feedback management system can streamline the compilation of insights, facilitating the identification of widespread trends and persistent problems.
07Principle #7 – align metrics to the customer perspective
In today's competitive landscape, businesses must prioritize exceptional customer service to differentiate themselves. Positive customer interactions are essential for building loyalty and attracting new patrons. Continual refinement of customer service strategies is necessary to stay ahead of the competition. By addressing customer frustrations and honing the fundamentals of service, companies can ensure their customer service metrics translate to favorable outcomes. Delivering consistently excellent customer experiences offers manifold benefits. Content customers tend to increase their spending and recommend the business to others, which can lead to higher revenue and lower customer support expenses. A satisfied clientele also promotes a positive workplace atmosphere, enhancing employee morale. Furthermore, a reputation for superior customer service can augment brand value and pave the way for new business opportunities, while also diminishing legal costs and the number of complaints.
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