A few ideas on reducing churn and improving customer experience.
According to research conducted by our team at Fifth Quadrant, nearly half of customers think that their chances are poor of them reaching a ‘good’ customer service representative, basically one that will resolve their problem or answer their query. The reason isn’t as clear cut as one might think – many large companies are off-shoring their contact centre representatives to 'low-cost destinations' like India, Philippines and Fiji to name a few, where the agents are often viewed as inexperienced or lacking communication skills.
Although, this isn’t always the case, the goal for organisations is to reduce costs, which in turn are passed onto customers. But choosing the wrong offshore contact centre can have dire consequences. On the other hand smaller companies don’t necessarily have the money to outsource their customer care, or even do it themselves. Ultimately, it is the customer who suffers.
Acquiring a new customer is five times more expensive then retaining one.
It has also been discovered that 67% of all satisfied customers are likely to repeat their business with you. Yet reaching a level of dissatisfaction which will lead to churn is a bit trickier to navigate. The pathway that leads to dissatisfaction with a company’s service, is often making your customers try more than two channels for support. In fact, 55% of customers routinely seek support through two or more channels. Those channels range from web, phone, email, and/or chat to name a just a few of the more common channels. Analysis also confirms that for 77% of all your existing customers, one bad experience is all it takes to stop them from doing business with you.
The numbers all point out to the fact that customer satisfaction as vital for customer retention, which in turn leads to greater sales and more profits; as opposed to acquiring new customers. Not only is the latter more expensive, it also proves to be a poor return on your investment when your profits aren’t as high as they can be, with your existing customer base.
How to improve customer service experience
Today, more customers are accessing the internet through their mobile devices. The vertical layout of a mobile device is different from the horizontal one of a PC, and hence delivers a different experience.
Because more and more people are logging in through their mobile devices- the number of mobile-only Internet users have exceeded that of PC-only Internet users – it now thus makes sense not to neglect this vital channel. Again, studies conducted by our team at Fifth Quadrant show that only a third of all companies consider mobile to be important to their channel strategy.
The concept is very clear today; you want to enjoy greater return of investment by retaining your existing customers you must create mobile-friendly experience. Having a website optimized for mobile devices is the first step in the process. Integrating self-help into your website, so that you don’t have to spend money on live agents, comes next. Even if your customers require assistance, there is also the availability of chat-bots, which are capable of dealing with voice queries. In short, you could avoid losing your existing customers by embracing the mobile revolution.
Finally, if having live support is important to your brand and business, there are still excellent options available. Sitel, for example, have been working to revolutionise the call centre industry by encouraging clients and new businesses to embrace work-at-home as a better more cost-effective option to call centres or even off-shoring. The results for many clients have been very promising.