YOU desperately need to speak to someone to check on a credit card transaction. So you call a 24-hour toll-free line shown on your bill. An automated voice at the end of the telephone line prompts you to key in the right buttons to get to the bottom of things. Just when you think that you are finally getting to speak to a 'live' voice (after having answered correctly the first five questions), you accidentally press a wrong button. Before you know it, you are back to square one, and going through the same routine again. After the fourth try, you just want to slam down the phone down or take your frustration out on the poor unsuspecting customer service officer who comes on the line.
Companies who think they can get away with a self-help automated answering system to deal with customers had better think again. A worldwide survey of over 42,000 customers commissioned by Genesys in 2007 revealed some hard truths. Almost 66 per cent of customers surveyed say they react negatively when they feel they are being pushed to use self-service systems. As a result, 75 per cent of them feel less loyal to the company and have no qualms about taking their business elsewhere.
Although phone support remains the most dominant communication channel, the survey also revealed that customers today - and they are definitely more demanding and IT savvy than their parents were before - increasingly want new channels to communicate with companies. No prizes for guessing what their favourite mode of communication - the Internet. A whopping 86 per cent of those surveyed preferred to talk to companies via e-mail in comparison to 74 per cent who prefer the phone.
Customers' preference for using the e-mail versus the phone is not surprising. Convenience is a key factor as most of us are glued to the computer for the larger part of the day, either for work or just for fun. Many also feel that they can articulate themselves better and clearer through written messages, especially those who are shy or not confident in speaking to another person.
Patience is a virtue customers today seem to have little of. Brought up in the sonic age of Internet, mobile phones and other high-speed gadgets, when they want something, they want it Now! (or sooner - if that's possible). Many companies are still not up to speed on changing customer expectations and are grappling on just how to deal with this issue. So while it is tempting for companies to view e-mail as a pure cost-cutting measure, be very aware (and very afraid) that customer expectations on speed of e-mail response is increasing.
The survey showed that 21 per cent of consumers expect a response to their e-mail in one hour, while a slightly more patient 47 per cent expect a response in four hours. Typically too, when a customer is made to wait for an e-mail that is long in coming, he or she is likely to pick up the phone to contact the company, which results in increased cost, not to mention reduced loyalty.
With increasing e-mail usage, managing this channel effectively is key to customer growth. And it is not just about speed of response that makes or breaks it for the company with its customers. A gap exists between customer expectation of response from the company and the delivery of the promise. Slightly more than 30 per cent of customers who had sent e-mail queries before said that their problems were not satisfactorily resolved or was resolved via other means than the e-mail. This indicates that a substantial number of companies are not effectively handling e-mail enquiries and, therefore, putting themselves at risk of frustrating customers and possible customer defection.
Customer support can be further strengthened by providing a faster, more effective, and personalised experience though SMS. Offering the advantage of speed, precision, and low cost, text-messaging as a form of interaction provides companies with an opportunity for differentiation in what is a tough and challenging business environment. Asia-Pacific-based companies should plan to implement this practice as the current generation of teenagers enter their prime consuming years.
Leading banks and credit card providers now send outbound alerts to their customers notifying them of deposits and withdrawals via SMS. Close to 20 per cent of consumers in the Asia-Pacific would like to use SMS to communicate with a contact centre, while 21 per cent of consumers would like to receive information about products and services via SMS.
Growing closely behind SMS is the rise of web-chat as a communication channel. An estimated 18 per cent of consumers in Asia-Pacific would like to have the option of using web-chat (instant messaging) to communicate with companies instead of talking over the phone. A key advantage of this interaction method is that it offers immediate resolution to consumer inquiries while surfing the Web.
By offering customers the option of web-chat sessions with agents, companies are able to increase the conversion rate of Web browsers into buyers. Over 60 per cent of organisations using proactive web-chat say it has increased sales revenue, and almost 50 per cent note a drop in Web abandonment rates. Preference and usage for web-chat looks set to increase in the coming years as communication via the Internet becomes second nature to many customers.
A well-designed and intelligent customer service represents an inviting, flexible and innovative approach where consistent and timely service support can be expected. Consumers are able to switch from one communication channel to another with ease according to their preference and comfort level. Remember that a happy customer is a customer for keeps.
Asia-Pacific businesses should integrate these new technologies to better serve their customers. The challenge is how to integrate multiple modes of communication with their existing contact centres, which until recently was their primary point of contact.
Giving customers choices and offering customers multiple communications platforms is no longer a good-to-have but an essential 'must-have'. And if done right, it becomes a powerful tool for differentiation between you and other players in a crowded field. Companies that effectively blend channel into a single interaction stream, prioritise accordingly and deliver great customer experience wins.
The writer is senior vice-president, Asia-Pacific, Genesys Telecommunications Laboratories.
This story was first published in The Business Times on 18 August 2008.
