Share this article
Key Takeaways
- Customer service is becoming a commodity in itself
- Customers have increasingly higher expectations
- Rising labour costs make customer service models that are manpower intensive unfeasible
- Omnichannel customer service
- AI is becoming an integral part of every industry
1. Customer service is becoming a commodity in itself
Globally renowned hotpot brand Haidilao is at the forefront of its industry not by chance. While they serve largely regular hotpot ingredients just like any other hotpot franchise, they are widely known for their customer service. It is the only hotpot chain where you are able to watch waiters and waitresses perform while you dine. This is on top of the myriad of complementary amenities, such as aprons, lens wipes, ziplock bags for your phones etc and the top-notch service from the beginning till the end of your dining experience. Not only is Haidilao selling hotpot just like every other hotpot franchise, they are also selling their customer service. This has allowed them to rise above their competition and become such a dominant market player. Selling customer service as a commodity is an effective way to build good rapport with customers and strong brand loyalty. This allows companies to lock in their customers and disincentivise customers to switch over to their competitors. Hence, selling customer service becomes another way to differentiate a brand besides the actual products a company sells. Companies who leverage this and execute this strategy well, create a strong differentiating factor for their brand and a steady source of revenue.
2. Customers have increasingly higher expectations
Customers are becoming increasingly harder to please. Two-thirds of millennials expect real-time customer service and three-quarters of all customers expect consistent cross-channel service experience. (McKinsey) Accenture also found that 91% of consumers say they are more likely to shop with brands that provide offers and recommendations that are relevant to them. (Forbes) In essence, what they want can be broken down into these three things:
- Convenience
- As our society becomes more and more fast paced, customers want things to be done quickly and efficiently without putting a dent in their schedule. Hence, being able to resolve an issue they have remotely and at any time they want is a core requirement for customers. This makes 24/7 support and digital platforms the go-to choice of channels for customers.
- Consistency
- Customers want brands that they can trust and relate to. Consistency in customer service will build trust and confidence in customers as regardless of how they seek assistance, the same level of assistance is rendered.
- Personalisation
- Customers in our society today have a very strong sense of identity and have very clear tastes and preferences. What makes Netflix so popular and successful is their ability to recommend shows based on the viewer’s likes and dislikes.
3. Rising labour costs make customer service models that are manpower intensive unfeasible
Rising manpower costs due to labour shortages has been a recurring trend post-pandemic. Customer service systems that make use of a large number of concierges require a large amount of manpower from customer service ambassadors to supervisors to ensure that such a system can run smoothly. This results in high cost for the company, reducing the sustainability of their business. Hence, this gives companies a pressing need to shift to a model that is less reliant on manpower, to models that revolve around technology, self-service and automation.
4. Omnichannel customer service
Omnichannel customer service is a form of customer service that provides assistance to customers across an array of platforms, all of which are integrated into the same system, allowing for centralisation of data and information. Fifteen years ago, the average consumer typically used only a couple of digital touchpoints when purchasing a product, and only 7% used more than four. Today customers use an average of almost six touchpoints, with 50% regularly using more than four. (Hubtype) Hence, to engage customers at a larger scale, it is vital that customer service spans across multiple platforms. In addition, 89% of customers feel annoyed when they have to explain their problems to multiple customer service representatives. (Sprinklr) Thus, having to go through multiple channels and speaking to different people to resolve an issue will significantly decrease customer satisfaction. Omnichannel customer service provides consistency across channels, allowing customers to receive the same high quality assistance regardless of the channel of their choice. Diving further into choice, customers increasingly desire autonomy on how they would like their problem to be solved. How they would like to solve their problem would vary from problem to problem. Customers tend to prefer face-to-face interactions for complex queries, whereas, automated chatbots or messengers are preferred for simple issues that they wish to resolve from the comfort of their homes. Therefore, having omnichannel customer service also satisfies customers’ desire for choice. Click here to find out more about why omnichannel customer service is important.
5. AI is becoming an integral part of many industries
35% of businesses have adopted AI and it is predicted that AI will contribute $15.7 trillion to the global economy by 2030. (AuthorityHacker) As with every industry, the customer service industry will also soon be revolutionised by the AI wave. There are several uses of AI in the customer service industry. Natural language processing features in chatbots
- Natural language processing features in chatbots
- Used to understand verbal or textual instructions given by the customer and provide assistance in response to these instructions.
- Machine learning
- Used in algorithms that generate personalised predictions based on past data collected on customer behaviour.
- Sentiment analysis from text
- Analyse tone and intent of the customer based on the textual instructions given by the customer.
- Generative AI
- Able to generate desired content for the customer in response to their request.
