This report looks at how companies, using the right software, can gain ROI from Customer Service and Customer Experience. Customer Care as a cost center is an unfounded paradigm. In fact, executives have long thought of customer service or customer care as a cost center. However, this paradigm is and has always been false. Executives and managers know their businesses thrive on happy, satisfied customers and they understand the value of great customer service and customer experiences. This paper looks at the paradigm of “customer care as a cost center” and shows that it is false. It also focuses on the areas of a business that can not only help the business reduce costs, but can generate more revenue when agile customer care solutions are used. This research is based on in-depth customer interviews and field research.
There are a number of ways in which poor customer care can cost the organization. Unfortunately, executives who believe customer service is a cost center fail to understand the increase in expenses that arises from poorly implemented and costly customer service solutions. Some of the implications of poorly implemented customer care are:
- Deficiencies in achieving First Contact Resolution (FCR)
- Increases in Average Handle Time (AHT) for phone, email, chat and social media
- Inefficiencies in self-service, call deflection, agent-assisted related support costs and knowledge base capabilities
- Requirements to add staff to handle more customer calls or call spikes
- Insufficiencies in shopping cart or in-game customer service capabilities
- Failures in using customer feedback to improve processes or products.
Agile Customer Care Delivers High Return on Investment
If companies deploy customer care systems that are agile, then will receive many benefits. These include:
Companies looking to reduce their customer service costs should look to agile customer care solutions. Savings can be found from increasing FCR and self-service as well as decreasing average handle time. In addition, if the solution is used proactively by the organization, it can help with process improvements, product improvements and even lead to revenue generation. Companies contemplating an agile customer care solution should consider the following three steps: Review current costs of running the contact and customer care center. Look at critical metrics like FCR, AHT, as well as the opportunity to generate revenue, improve marketing and enhance employee engagement.
Build a business case and a return on the investment model to show the value of switching to an agile customer care solution. As you interview vendors, make sure that they answer all your questions and you understand how the software will solve your business issues.