New data from The Northridge Group provides a clear message to businesses. Today’s consumers are shopping online more now than ever but find the overall service experience inadequate. According to The Northridge Group’s State of Customer Service Experience 2020 report, as a result of COVID-19, 68% of consumers have increased their online shopping and plan to continue at this increased rate post-pandemic. However, consumers are increasingly frustrated at the level of effort required to reach companies to get the help they need.
The COVID-19 pandemic intensified the need for companies to make the customer experience as effortless as possible. Online shopping and digital tools have become the” new normal,” and the need for self-service options enabling faster, easier ways to contact companies for service issues and inquiries has never been greater. The challenges this digital transformation presents for companies will continue post-pandemic, yet most companies are not prepared. The global pandemic has forever altered customer behavior. A significant opportunity now exists for businesses to expand digital offerings, improve the digital channel experience, and reduce customer effort. Highlights from the report include:
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Online shopping is the new normal – 68% of customers increased their online shopping during the pandemic, and 68% plan to shop at the same rate or more post-pandemic.
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Preference for and use of self-service apps and digital tools increased due to COVID-19, and customers will continue to favor them post-pandemic. 63% of customers were motivated to try/use digital apps and devices, and 75% will continue to prefer digital apps post-pandemic.
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During COVID-19, many customers increased their use of customer service channels to contact companies about service issues. At the same time, the first contact resolution declined from 53% to 42%, increasing effort for customers and businesses’ costs.
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Low customer effort drives brand loyalty and reduces cost. However, the number of businesses measuring customer effort is low and has increased slightly from 25% to 29%.
The past year has been difficult for contact centers. Wait times have become extended due to high call volumes and lack of staffing, and consumers found almost every channel they interacted with to be more difficult than before. We believe there are several things business owners can do to improve the situation:
1. Invest in digital technologies and use customer data to confirm your clients’ issues or inquiries are getting resolved within those channels. (At least 70% of customers go to digital channels first because they prefer self-service.)
2. Understand that inquiries that come into the voice channel will be more complex, more urgent, and more time-sensitive, increasing the need to ensure you are hiring individuals with the right skill sets.
3. Create a more engaging learning environment by providing modularized training.
4. Focus on leadership. Prepare your contact center leaders, managers, frontline supervisors, and directors to manage in a virtual environment.
As The Northridge Group’s report indicates, there’s no downside to prioritizing the customer experience.
Pam Plyler has over 20 years of experience in developing and implementing strategies to improve customer experience, specifically focused on the effectiveness and efficiency of Inside Sales and Contact Center operations. As the Customer Experience Practice Lead for The Northridge Group, Pam provides leadership, expertise, and insights to clients looking to transform their contact centers. She is a long-time CCNG member and contributor.
To access the full 2020 State of Customer Service Experience report, please click here.
