Customer Service Satisfaction Challenges Stereotypes

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Diane Clarkson

Data tells a story and sometimes it’s a story with an unexpected plot twist. Such is the case with online customer service data we have just published in my report called “Understanding Customer Service Satisfaction To Inform Your 2012 eBusiness Strategy.”

Online customer service channel usage has shifted dramatically from two years ago. There are also significant differences in satisfaction between channels, particularly among different generations.

“Understanding Customer Service Satisfaction To Inform Your 2012 eBusiness Strategy” challenges some long-held assumptions about online customer service and customer behavior including:

  • Not everyone prefers the telephone. I have been writing for some time that call deflection is win-win when it gives other options to consumers who prefer support channels other than the telephone. This is echoed in our data that shows Generations Z and X have higher satisfaction chatting with a live agent rather than speaking on the telephone with a live agent.
  •  Social support is not just for younger consumers. While community support and Twitter are most widely adopted among younger consumers, don't assume social support is the domain of younger consumers: online community support is also used by 30% of consumers between the ages of 32 to 45 and 20% of online consumers between the ages of 46 to 55. 
  • Don’t underestimate the high demand of the senior segment.While we may stereotypically associate impatience with youthful generations, there is a higher likelihood of impatience among Older Boomers and Seniors when it comes to wanting quick answers online and the likelihood to abandon if a website fails to deliver.  
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Selecting The Right Virtual Agent Vendor For Your eBusiness

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Diane Clarkson

What do Aetna, the US Army, L’Oreal, and the London 2012 Olympic Games have in common? Each of these diverse organizations has deployed a virtual agent.

Virtual agents are software services that provide automated assistance by simulating a two-way conversation with customers. And they have come a long way from Clippy the dancing paper clip. The technology has demonstrated its ability to achieve business benefits, including improving efficiencies by deflecting calls to the contact center, managing initial customer contact by collecting information to populate a service ticket, and heightening the efficiency of contact reps when a case is escalated to live help

Selecting the right virtual agent vendor can be a complex undertaking because it can have an impact on multiple functional areas, including eBusiness, business processes, IT, customer experience, and, potentially, legal and governance.

To help navigate this process, we have published a new report, Five Essential eBusiness Criteria For A Successful Virtual Agent Vendor Selection.

Unlike traditional keyword search, which focuses on words or word patterns, virtual agents use some form of natural language processing (NLP) that derives intent by utilizing complex algorithms. 

One of the questions that I am most commonly asked by eBusiness professionals is how to assess how well a virtual agent understands conversation. 

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Facebook Matters To Customer Service

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Diane Clarkson

A couple of years ago, most of my conversations with eBusiness leaders about the future role of Facebook and customer service concluded with cautious skepticism: “Why would customers go to our Facebook page for customer service when we have plenty of other channels for them?”   The most frequent verdict was that Facebook might become important to customer service but it wasn’t a priority.

The verdict is now coming in.

And Facebook is important.

The Facebook UK team ran a number of polls recently asking consumers about why they talk about brands and what they talk about.  They found that 23% of Facebook users want customer service and expert advice when they become a fan of a company’s page.

Savvy eBusiness leaders now understand: you need to go to where your customers are.

And if your customers are on Facebook, then Facebook needs to become a higher profile in your overall cusotmer service strategy.

Audio brand Shure recognized an opportunity to go to where its customers are: Facebook. With RightNow CX for Facebook, Shure extended  its customer service reach to Facebook. Customers can find answers directly from a customer support tab on the company’s Facebook page and pose questions privately to an agent via Facebook.

Live chat is beginning to appear Facebook. Nykredit,the largest provider of mortgage lending in Denmark, offers chat via their Facebook page through vendor Netop.

Earlier this year, virtual agent vendor NoHold launched a virtual agent on Facebook for consumer electronics company View Sonic.

 

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Oracle Purchases RightNow Technologies

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Diane Clarkson

Less than a week after purchasing Endeca, Oracle extended its acquisition run with the announcement that it was purchasing Montana-based RightNow Technologies for $1.5 billion.

This deal is particularly interesting because, as the Wall St Journal notes, it marks the first time Oracle has bought a company  that sells application programs accessed primarily over the Internet as software as a service. This is being widely interpreted as a shot across Salesforce’s bow.

RightNow has a lot to offer Oracle. We rate RightNow as a leader in our WAVE for CRM customer service suites.  Along with salesforce.com, we called out RightNow as a SaaS solution that was faster to deploy and easier to change than traditional on-premise offerings. RightNow is well positioned to give Oracle a customer service offering for the mid market.

Like all M&A, there will be growing pains.  The companies have different strengths, sizes, and cultures.

Success will very much rely upon how effectively Oracle can differentiate between their many customer service products to ensure their portfolio targeting is optimized. With this acquisition and previous ones - such as ATG and InQuira -  there is overlapping customer service technology. It will be critical to differentiate between products such as knowledge management and chat. This will not be an easy task in this complex and ever-changing customer service technology landscape.

Reducing The Call Center Cost of Login Recovery Should Be A Top eBusiness Priority

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Diane Clarkson

Several weeks ago, I blogged asking for insight into the contact center costs of login recovery to help inform a project I was working on. Many companies responded — for which I thank you  — and I wanted to share some of the insights that were provided.

In the words of one eBusiness executive, “Helping customers resolve login issues is by far the largest call driver to our contact center. The costs are high — probably higher than we fully realize. But we look at it as the cost of doing business.”

Among the companies surveyed, the percentage of login issues among B2C contact center contacts ranged from  3% to 40%. Only one company was on that lower end and, while their 3% may seem small at first glance, their call center receives more than 10 million calls per year so 3% represents a hefty number of contacts. The higher end  of 30 to 40% of call center volume related to login was more common. Overall, among the companies who responded to my request for information, the operational cost of login issues ranged from $250,000/year to well over $1,000,000 per year.

These high dollar figures do not have to be the cost of doing business. Instead, eBusiness leaders should:

  • Ensure their login recover adheres to best practices. My document called “Mastering Login Issues” will hopefully provide helpful insight.
  • Consider social login, which lets users log in to your site with their social identities from Facebook, Twitter, and other social sites. This may be particularly useful for news, retail, media, entertainment.
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The Value of Live Video Chat

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Diane Clarkson

I have to confess, I was skeptical when I first encountered the idea of live video chat. I didn’t see how the value of seeing the person I was chatting with; after all, not seeing the person I’m speaking to on the telephone has never been an impediment to my ability to trust my bank, insurance company, or favorite retailers.

But when deployed in the right circumstances – specifically, when it leverages the value of a visual element into the chat interaction – live video chat has some potentially compelling use cases:

  • Retailer Lands’ End offers live video chat with a personal shopping assistant who can show products. In my interaction, I was able to see the size of a handbag more meaningfully than just reading its measurements.
  • Live video chat can offer a private in-person consultation. For example, specialty pharmacy ITSRx.com implemented a webcam-based video chat program that allows customers to have demonstrations on topics such as how to inject medication properly.
  • Live video can help develop relationships. For example, a hotel offering could offer live video chat between its most frequent guests and the concierge at hotels they visit frequently; or a financial institution could use video chat between preferred customers and their financial advisors.
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The Metamorphosis To Agile Customer Service

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Diane Clarkson

There is growing urgency among eBusiness leaders to consider the impact of agile commerce on customer service. In the weeks since my colleague Brian Walker’s “Welcome To The Era Of Agile Commerce” was published, I have had many conversations with eBusiness executives and leading customer service vendors to discuss on agile commerce’s implications to customer service.  The result of these conversations is my recently published document called “The Metamorphosis To Agile Customer Service."

Technology has had a dramatic impact on when, where, and how consumers want customer service:

  • The number of connected devices is increasing. Today 59% of US online adults have more than one device that is connected to the Internet. One in five US online adults — or 37 million people — own five or more devices that are connected to the Internet. (For more insight into this, see our January 25, 2011m "Welcome To The Multichannel Multi-Connection World" report.)
  • Consumers are connected everywhere. Mobile phones are nearly ubiquitous: According to Forrester's US Mobile Technographics®, 88% of US adults own mobile phones, and 21% of US adults are Superconnecteds who use their phones for information, research, and commerce.
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Meeting The eBusiness Challenge Of Online Customer Service Measurement

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Diane Clarkson

In a perfect world, there would be a single metric that would measure the success of online customer service. Instead, eBusiness leaders must sift through huge amounts of data to get the right information to the right people at the right time.

There are metrics that will provide insight into customer satisfaction, efficiency, effectiveness, and — in some industries — compliance. At the same time, managing cost is an important goal to eBusiness leaders: In Forrester’s November 2010 Global eBusiness And Channel Strategy Professional Online Survey, 54% say that a reduction in the cost to serve customers is an important or extremely important goal to the success of their web channel.

Kate Leggett recently published a document called “How To Implement Effective Customer Service Metrics” that defines nearly 30 operational metrics for tracking contact center and self-service customer service activities and describes how to link these metrics to business KPIs to focus on the ones that will move the needle.

Getting to the right customer service metric means identifying why it is needed and by whom, understanding the differences between efficiency and effectiveness metrics, and recognizing where metrics are connected. If this is a challenge in your eBusiness organization, I encourage you to read “Meeting The eBusiness Challenge Of Online Customer Service Measurement.”

What Is The Contact Center Cost Of Login Issues?

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Diane Clarkson

The cost of login issues can be staggering.

According to research released by Janrain, a vendor providing user management solutions for the social Web, 45% of US adults admit to leaving a website instead of resetting their passwords or answering security questions when they have forgotten their passwords.

Failed logins also can have a huge impact on contact center costs. I’ve spoken with eBusiness executives who have told me that login issues represent as much as 50% of their contact center volume.

I’m working on a project and trying to get some deeper knowledge into the impact customers or clients telephoning due to login difficulties (i.e., lost password, user name, etc.) have on contact center costs.

And I’m hoping you might be able to help me.

I’d be grateful for insight into:

  • The number of telephone calls your call center receives (weekly, monthly, annually, or whatever time frame you break it into).
  • The percentage of contacts to your call center that are due to log-in difficulties.
  • The cost per contact for login difficulties.
  • Alternatively, perhaps you could provide the annual cost -- or approximate cost -- of assisting clients or customers who are having trouble logging in.
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eBusiness Customer Service Conversations From The CXP Forum

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Diane Clarkson

This year’s Forrester CXP Forum was two days filled with provocative speakers, interesting conversations, tough questions, and inspiring ideas.

I enjoyed spending most of the two days doing analyst One-on-One sessions. For those of you who haven’t attended a Forrester forum, forum participants sign up to speak with analysts to discuss topics of their choice in 20-minute sessions. From an analyst perspective, these conversations can be rich with insight into today’s business challenges and opportunities. Here are some of the common themes that emerged in my conversations with eBusiness leaders about online customer service:

  • Shifting CSRs from the phone to chat. I had many conversations with forum attendees who share a common question: The percentage of customer contacts going to chat is growing, so should they shift customer service reps from the phone to chat? Many companies have done this successfully. The challenge is that there are different skills required by chat compared with the phone. Chat reps will need typing speed and impeccable grammar. These are skills that can be tested. They will also need to be comfortable with chat. I’ve spoken with customer care people who said they found the transition to be challenging because they were not accustomed to an interaction that resulted in customers having an instant transcript. eBusiness leaders should also consider guidance around tone and engagement as part of their chat training program.
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