Anyone involved with the customer service group within an organization is trying to provide the best level of support to customers while working within the financial and operational constraints of the organization. These diametrically opposed forces can sometimes leave us feeling hopeless. However, by examining some of the assumptions that are in most of our heads and forcing ourselves to question these assumptions, we may be able to find a balance that results in happier customers and contented executives. 

1.) Better Customer Service is…. Cheaper??

What you probably knew:
We all know the importance of first call resolution. It is one of the key metrics when evaluating customer satisfaction. With new technology and increased demand from customers to be able to self -manage their routine account inquiries, automation has increased our ability to provide first call resolution. The obvious result of this is higher customer satisfaction and improved organizational efficiency. 

But did you know?
First call resolution is also a HUGE cost savings. According to a May 2011 study by the Aberdeen Group, companies with 75 percent first touch resolution had an average cost of $10.60 per customer service call whereas for companies that have only 33 percent first touch resolution calls average $112.75 per call!

2.) What’s Most Important to your Customers?

What you probably knew:
Knowing what customers prefer is part of the magic elixir to maintaining a healthy organization. The other part is being able to provide what they want within budget constraints. With the unfortunate proliferation of customer avoidance lines, most of us dream of having a budget big enough to provide a live answer to every call that comes into our call centers. 

But did you know?
Overwhelmingly, 66 percent of customers across all industries agreed that the most important thing to them regarding customer support is that their needs are addressed on first contact. (Convergys’ US Customer Scorecard Research, 2011) Add to that some research by the McKinsey & Company, which found that 60 percent of customers favor an automated option for many types of simple interactions. The rest said they didn't mind being presented with an automated option as long as they could connect with a live agent if they needed one.

This tells us to implement useful self-service via automation on the front end coupled with a knowledgeable support staff for more intricate questions.

3.) The True Cost of Customer Service

What you probably knew:
There’s no question that automated IVR services can offer companies myriad ways to reduce costs. Since customer service is one of the biggest influencers on customer loyalty, an organization should aim to improve satisfaction and increase lifetime value in every customer interaction. Typically, when thinking about the cost of customer service, we consider the cost of live agents as the biggest expense.

But did you know?
A poorly designed IVR that tries to contain costs by forcing customers to use automation in lieu of live support when they need it will result in dissatisfied customers. After too many of these interactions, dissatisfied customers turn into former customers.

To keep a business stable, every lost customer must be replaced by a new customer. Considering the acquisition cost for most small to medium-sized businesses is well above $200 per new customer, a short-term savings in customer service can lead to a much higher spend in marketing. The situation only gets worse with larger customers, in which case it’s not unusual to have acquisition costs approaching $10,000 per customer.