Mitch Lieberman

The Evolution of Customer Service

Customer expectations are evolving and customers are more vocal and willing to share both when something is good and something is bad. Customer service is also evolving, frankly, in order to keep pace with customers; but is the pace fast enough? The pace of the change; driven by customers, is accelerating because the social web (commerce and network) has enabled and empowered customers. Try and think back 10-15 years ago; did you make purchases online? Other than ask friends, did you read online reviews? What levels of service were tolerable, did you accept?  When you needed to contact a company did you consider sending a text? You might have sent an email, but when something really needed to happen, you picked up the phone. You might have even sent a letter, you know, the kind requiring a stamp.

In the chart below, I worked to encapsulate and share my view of the top-level changes within customer service. I intentionally did not assign dates to the past, nor the future; the past could be yesterday or last year, the future tomorrow or 2015. This is a not an all or nothing phenomenon, your organization may have certain elements well within the futures bucket and others stuck in the past.  The chart is a refinement of my Evolution of CRM chart, published about a month ago. I am looking forward to sharing these thoughts and more at the Contact Center Expo next week in London.

Element One – People

The people involved in customer service, historically, had been the people with customer service somewhere in their title, yes that simple. Organizations need to change this, if they want to grow and prosper (survive?). Products and services are becoming more complex, other parts of the organization absolutely need to become part of the customer engagement process. I am not simply talking about transferring phone calls; it is much bigger than that. I am talking about collaboration and knowledge sharing. You might even call it social business, but I do not want to get ahead of myself.

Element Two – Process

Gone are the days of a paper manual with defined processes for as many scenarios as management can think up. Actually, for some those days are not actually gone. Customers are no longer interested in listening to the script, following the guided path nor being pushed towards the efficient route. If the ‘people’ part of the progression is accurate, then organizations will also need a way to coordinate activities with other parts of the organization. Yelling over the cubicle does not count as collaboration and sticky notes do not count as knowledge management.

Element Three – Technology

A technical discussion could be approached from many different directions. With respect to this conversation, the more interesting technical element has to do with the channel match which needs to occur between the desire of the organization and the needs of the customer; i.e. the channels of communication used by each. Not only do organizations need to adapt to the changing channel usage by their customers, they need to realize that customer ‘channel hop’ – changing their mode of communication even mid-stream within an interaction happens. Organizations need to consider active pull, versus push to optimize their channel strategy. Active pull means that the value offered on channels you would like people to use is valuable to them, not just you. Real-time, synchronous channels are more expensive, but studies show that satisfaction rates are also higher on these channels.

Element Four – Duration

Historically, the length of time spent by either side of an interaction was limited to the specific activity performed, or issue discussed. Customer Service metrics are often tied to duration, like average handle time. While not every interaction will take on a life of its own, interactions will create a string of communications and form the basis of an ongoing relationship between customer and organization. Enhanced, more sophisticated activities like co-creation and ideation will now take place as well, during product use when it can be most beneficial. This is not about creating life-long friendships, your customer does not want to be your BFF either, this is about working together to mutual benefit. Take the time required to solve the problem, and make sure the customer’s concerns are heard.

Element Four – Centricity

As noted above, metrics and KPIs have been driving Contact Centers since the beginning of time <hyperbole>. The truth is handle time and concepts such as first call resolution will continue to be used, but they will not be the only driving force. As a matter of fact, these metrics will move further down, possibly even to tertiary consideration. As opposed to simply figuring out how quickly they are able to get the customer off of the phone, customer service professionals will consider more than just the current case and will be given latitude to do the right thing and stay on the phone to help the customer. Insights towards customer need by the agent will be augmented by business intelligence both real-time and in aggregate.

Element Five – Approach

Few people appreciate being caught off-guard, unprepared or surprised. Customer issues are more often than not identified first by the customer. What if the customer service teams could identify potential issues and do something about them before the small issues become very large issues? This can be accomplished simply with operational metrics made available to agents (insights). Spending a few more minutes on the phone with a customer, to really understand the root cause of an issue is worth the time and effort.  Or, how about proactive notifications of outages, or product issues (positive call deflections)? Further, taking the time to collaborate with the internal organization, providing superior value to customers, will also reap rewards in the form of loyalty and future business.

Is it possible to put it all together?

Yes it is. It is going to take work? Yes it will.  I do not believe you can accomplish it all at once, nor should you try. That said, understanding how all the of the elements are interrelated is an imperative. Some of the elements are within the control of the IT department; some are in Sales and Marketing, while you can control some as well. In the end, it not really about control; Customer Service is about doing what is best for the customer. What do you think? Am I way off base?

Mitch Lieberman

Evolution of CRM – Where Interactions Matter

evolution – a process in which something passes by degrees to a different stage, often to a more complex form. (various sources)

I recently revisited my own research completed a little over a year ago. I considered then the evolution of CRM to Social CRM. I was convinced at the time that CRM needed to become Social CRM in order for companies to succeed. My updated conclusion, depicted to the left, is that CRM does not need to evolve to Social CRM; CRM simply needs to evolve.

Customers are still customers but they are more social in an electronic and media kind of way. While some buying patterns and preferences have changed, that is only part of the story. The real changes are the way customers interact with you (before, during and after a purchase), your organization and their expectations regarding those interactions.

‘Where’ is about the Location and Context of Interactions

I thought it would be a good idea to highlight the Interaction portion of the diagram:

Interactions, how and where customers communicate with a business, are clearly more complex than they have been (and they will continue to become even more complex). Interactions have evolved in both the number of channels (where), as well as the expectations by customers that your organization knows when they have changed channels and what ‘happened’ on the other channel, they are not interested in repeating themselves. This is called channel shift, and increases the complexity on the systems side, tremendously.

Customers can and will communicate with you any which way they can, it all depends upon their context; where they are, what they are doing, what they need and when they need it. Customers were taught to use the phone, instructed on the finer points of an IVR and coerced into using email and web forms.  Now it is their turn. They not only want to add more channels to the mix, they expect you to be aware of all the other channels and are quite tired of typing in their 14 digit code on a touch tone phone, only to repeat to the agent!

Customers will use multiple channels during a single ‘transaction’ – for example, they might receive an email about a new telcom package, research the package online, along with a new mobile phone, read reviews (online) before purchasing in store (in-person) then use help forums to discover new features. Finally, if there is a problem or issue, they will want to talk to someone – and bypass the IVR. Notice that while some of the examples and thoughts could be considered ‘social’ it is not about social, it is about customer needs and an organizations capability to meet and exceed the needs of the customer.