The Biden-Harris administration, which has prioritized CX improvements in federal agencies since as early as December 2021, has now set its sights on the private sector. The “Time Is Money” initiative, launched just last week, represents a notable expansion in efforts to address subpar corporate CX practices.
As CX technology and service providers, we’ve long championed the importance of delivering exceptional customer experiences. Our work centers on helping organizations survey their users, analyze feedback, and implement strategic improvements. While the value of superior CX may seem self-evident to many of us insiders, as consumers, we all have countless examples and personal experiences of dealing with businesses that have failed to live up to expectations as they relate to quality of service.
The new, sweeping set of directives targets several pain points in consumer interactions:
- Cracking down on customer service “doom loops”
- Ensuring accountability for companies that provide bad service
- Taking on the limitations and shortcomings of customer service chatbots
- Making it easier to cancel subscriptions and memberships
- Ending airline runarounds by requiring automatic cash refunds
- Allowing you to submit health claims online
- Helping streamline parent communication with schools
These measures aim to alleviate common frustrations and empower consumers. Tackling “doom loops” and chatbot limitations speaks to the widespread dissatisfaction with automated support systems that often fail to resolve issues efficiently and point to the need for organizations to understand where and how interactions break down. By reducing friction in consumer interactions with brands for cancellations and refunds, the initiative protects consumers from predatory practices. Mandating online health claim submissions acknowledges the growing expectation for digital convenience.
While these regulations promise tangible benefits for consumers, they also present potential challenges for businesses. Companies may now have to reevaluate their CX and conversation intelligence infrastructure, from front-line staff training to backend processes to ensure compliance with new directives. This necessitates a comprehensive understanding of customer interactions across all touchpoints, rigorous compliance standards, and improved frontline coaching and enablement.
Following this new White House initiative, we wanted to gauge consumer attitudes about this topic to see how it might resonate and guide brands on how to get ahead of upcoming requirements, and according to our “Market Pulse” survey of 1,005 consumers conducted between August 19 – August 21*, we think the administration may be onto something.
Key findings of the survey include:
- Accessibility to Live Support: 70 percent of customers struggle to reach a live representative, with 39.6 percent experiencing this frustration frequently. One in four customers expressed dissatisfaction with long hold times and repeated transfers. This inefficiency drives customers away, leading to increased churn.
- Automated Systems: Nearly 68.5 percent of customers are dissatisfied with automated customer service, feeling trapped in systems that don’t resolve their issues. A significant one in three customers highlighted the need for smarter, more responsive automation.
- Omnichannel Communication: Customers demand seamless transitions across communication channels, with 94.2 percent valuing the ability to reach companies through their preferred method. However, nearly one in five customers are frustrated by having to repeat their issues when switching channels.
- Accountability and Transparency: Trust is eroded when promises are broken. One in four customers cited poor follow-up and lack of communication as key frustrations, leading to higher churn rates.
These findings reflect a clear preference for human interaction in customer service, coupled with significant frustration towards current automated systems. There is also a strong consensus on the need for accountability and diverse communication options to enhance customer experiences.
Identifying and rectifying broken processes will be crucial. Organizations may need to invest in advanced analytics tools like natural language understanding and conversational AI to gain deeper insights into customer pain points and areas of friction for both customer service agents and consumers. Additionally, they’ll likely need to enhance their quality assurance measures to ensure consistent, high-quality interactions that meet or exceed the new regulatory standards.
Despite these challenges, this regulatory push may ultimately prove beneficial for both businesses and consumers. By encouraging companies to prioritize CX, the initiative could drive innovation in service delivery, leading to more efficient operations and increased customer loyalty. Businesses that embrace this change and view it as an opportunity for improvement rather than a burden may find themselves with a significant competitive advantage.
“Time Is Money” initiative serves as a clear signal for CX laggards in the private sector. While compliance may initially seem daunting, forward-thinking organizations will recognize this as a chance to differentiate themselves through superior customer experiences. Because “time is money” for brands too. By investing in the right tools, processes, and training, businesses can not only meet these new standards but exceed them, not only fostering stronger customer relationships but minimizing cost to serve with more streamlined, efficient interactions.
*Survey Methodology
InMoment conducted a Market Pulse survey between Monday, August 19 – Wednesday, August 21, 2024 using a panel-based sample targeting general population consumers. There were 1,005 completed survey responses.
For more information about the survey findings, please visit https://inmoment.com/blog/time-is-money-customer-experience-mandate/.
