Customer service: Why it matters - and how to do it right
Why is it so difficult to deliver good and cost-effective customer service experiences?
Published 17:00, 14 January 13
- Good customer service experiences are good for business. Customer satisfaction correlates to customer loyalty — and loyalty has economic benefits. Forrester calculates that a 10 percent improvement in a company’s customer experience score can translate into more than $1 billion in increased revenue and other benefits.
- Poor customer service experiences are expensive.The cost of failing to meet customer expectations is high: 75 percent of consumers move to another channel when online service fails, which can cost millions of dollars.
- Poor customer service experiences causes customers to leave your brand. For example, if a company has 4 million customers, each of whom spends $100 per year, the total projected revenue for a year would be $400 million. Forrester survey data shows that about 30 percent of a company’s customers have poor experiences and could defect.
- Discover: This is where you’ll identify the trends that you should be keeping an eye on, understand the very complex technology landscape, and justify the business case for your proposed investments.
- Plan: These reports help you assess the maturity of your current operations in order to pinpoint your strengths and areas of opportunity. They help you build a bulletproof strategic plan for improvements, and will lay out a technology adoption road map that will help you provide differentiated service experiences and at the same time contain costs.
- Act: With your planning in place, it’s now time to implement the right skills, staff, policies, and procedures. It’s also time to choose whether to build, buy, or outsource technology investments.
- Optimise: To continually improve, the optimise phase of our playbook will help you manage your performance, develop meaningful metrics, and communicate and train stakeholders.