Monthly Archives: December 2011

The impact of customer service in social media is a rounding error, Customer Response Summit 3

I attended CRS3 (Scottsdale, AZ) last month as a sponsor and speaker, and was impressed by the very open way in which delegates discussed their drive to improve their understanding of customer service in social media, and the ways they’re establishing and improving their existing activities.

For me, There were two standout presentations. I’ve added a few sentences to summarise the highpoints:

Jeff Russakow of Yahoo started proceedings. “Looking ahead,” he says, “the current is not sustainable in the future. The proliferation of devices with all the associated interoperability and configuration issues, and the much narrower margins achieved by companies, are a good indicator that the cost of supporting a customer has to change.” Clearly Jeff says this from his own perspective, however, the writing is on the wall for all businesses as consumer expectations shift and cost pressures build. So what does the future look like? Most likely customers will be given much better self-help and peer-help options such as online knowledge and community forums. Additionally, companies must do more to prevent the customer from needing help. Jeff called this “Tier -1”.

By building more features into products, companies increase their complexity. This increases the gap between what a product can do and the user’s ability. Much complexity needs to be hidden away and, as pioneered by Apple, the user interface will be simpler with individual applications designed around a task rather than a range of tasks. Similarly, the shift towards the cloud (and (applications installed there) will result in fewer installation help calls (because installation is replaced with configuration). As this type of call accounts for around 25% of help requests the impact is significant. I’m indebted to Jeff for his insights.

Carol Borghesi of Telus followed with a challenge to the claimed importance of social media, stating that “the impact of social media on customer service costs is so far a ’rounding error”. Additonally, “the future must be established by companies delivering against expectations they set with customers”.

 Carol also shared the following phrase “customer service is the drip tray of the organisation”. This resonated with me. The vast majority of customer interactions are necessitated by something that happened outside of the customer’s expectation. Whether this be a software installation that failed, or a credit card statement showing items you didn’t buy, or an abnormally high mobile telephone bill, the customer’s need to interact is not always as they wish.

Then, of course, it can get worse when the customer calls to make a change to an arrangement and has to get in touch again because the transaction was not carried out as agreed. Imagine the impact if a company always did what it said it would – the cost of customer support would reduce dramatically, customers would be happier, and margins would be healthier and customers happier.

Customer preference is important in the choice of communication channel, and this is where social media has a part to play. Before social networks, Twitter, community forums and chat came along the customer was able only to have a conversation or correspond by telephone or e-mail or in writing. The proliferation of online channels has opened up wonderful possibilities for the consumer but created a nightmare for the organisation. The best companies are those that are thoughtful about the customer’s preference and manage and meet customer expectations. These are the companies that will succeed!

There were a number of other thought-provoking what helpful presentations made. Full details will be available on the CRS three website. I met a lot of very good people this week and wish them all success on their journey in social media and improving the customer experience. The conference was held at the Western Kiel and resort and spa in Scottsdale which is a lovely location, and provided the perfect atmosphere is delegates sought to learn and contribute and improve.