Here's why the cost of customer service is about to go down
Written by: Max Riis Christensen
Customer service is a vital aspect of any business, but it often comes with significant costs.
However, with the advancements in technology and changing consumer behaviour, the cost of providing customer service is expected to decrease in the future.
Here we explore four key reasons why offering customer service will become more affordable going forward, followed by our tips on how businesses can optimise their strategies to benefit from these changes.
Increasing consumer and seller experience
As consumers and online sellers become more experienced, there is a noticeable reduction in the need for extensive customer service interactions. Our experience shows that across various industries, the ratio of customer conversations to orders has significantly decreased. This can be attributed to improved consumer knowledge, fewer mistakes in the buying process, and proactive communication from sellers. As a result, the decreased customer service load translates to lower costs for businesses.
One of the most effective ways to streamline customer service operations is by implementing quick responses. These pre-written answers to frequently asked questions can significantly improve efficiency.
Though they require some initial time investment for preparation and maintenance, quick responses allow customer service representatives to handle more inquiries per hour.
By optimising response times and increasing productivity, businesses can reduce the cost per customer interaction, leading to overall cost savings.
Auto-tagging of conversations
Advancements in artificial intelligence and machine learning have paved the way for automated tagging of customer conversations.
With this technology, businesses can instantly categorise and route inquiries to the appropriate department or employee. By eliminating the manual sorting process, valuable time and resources are saved.
Additionally, auto-tagging provides detailed insights into the reasons for contact, enabling businesses to address and resolve issues promptly. By fixing problems at their roots, future customer conversations can be avoided, resulting in reduced costs.
Automated customer service
Automation is revolutionising customer service by providing faster response times and lowering variable costs. The use of chatbots and other automated systems can handle a wide range of customer inquiries without human intervention. Simple tasks such as providing product information, guiding customers through processes, or addressing basic concerns can be efficiently handled by these intelligent systems. Automated customer service offers the advantage of 24/7 availability and swift responses, enhancing the overall customer experience while reducing costs associated with human resources.
What this means for businesses
The future of customer service holds great promise for businesses seeking to optimise their operations and reduce costs. With the increasing consumer and seller experience, the implementation of quick responses, auto-tagging of conversations, and automated customer service, the overall cost of providing customer support is set to decrease significantly.
By embracing these advancements in technology and aligning their strategies accordingly, businesses can unlock the financial benefits of streamlined customer service while simultaneously improving the customer experience.
Remember, adapting to these changes requires proactive planning and investment in the right tools and technologies. Reach out to industry experts and service providers who specialise in implementing AI-driven customer service solutions to accelerate your journey towards cost reduction. The future of customer service is within reach, and the time to optimise your approach is now.