The state of online customer service

"Social media has forever changed the way society communicates and this has dramatically reshaped the expectations of consumers with regards to engaging with brands. Whether it’s banking, shopping, price comparisons, booking a holiday or paying bills, these expectations have never been higher. Consumers want immediacy when using what are now day- to-day applications such as Facebook, Twitter, Wikipedia and Wikitude, and expect the same when interacting with, or seeking information from brands..

“But the increasing popularity of social media, coupled with growing consumer expectation that information, products and services should be available at the click of a mouse, poses a challenge for the traditional customer services function – particularly, for instance, in the highly competitive financial services sector” says Jean-Benoit Sorge, VP EMEA of Moxie Software.

Changing consumer expectations for customer service

Last year, a survey commissioned by Moxie Software uncovered the preferred customer service channels of over 2,000 British consumers. Email topped the list, followed by using web self-service, but less than five people said they would opt to call a customer services team. Interestingly, the popularity of new channels like chat also became apparent among the younger generation of 18-24 year olds. 

But is this growing consumer preference for online channels over traditional phone contact having an impact on customer service strategies within UK companies?  In the established digital age, companies could be running the risk of losing customer loyalty, and prospect attention, by ignoring consumer demands for online service. 

The widening gap between consumer expectations and service delivery

Further research by Moxie Software in 2010 set out to uncover whether some of the leading UK organisations were evolving their contact strategies to meet the requirements of the increasingly internet-savvy population. Looking at 20 banks and building societies from the financial services sector - plus a further 80 from local government, retail, utilities, and travel and leisure - the study assessed how the organisations are responding to changing customer behaviours and whether they are effectively adopting a multi-channel customer service through email, web self-service and chat.

Overall, the study revealed a widening gap between consumer preferences and the customer service experience actually offered by brands. The average score across all sectors for online customer experience was a disappointing 33%. The retail sector achieved the highest score at 39%, followed by travel and leisure (36%) and utilities (33%). 

Perhaps surprisingly, the extremely competitive financial services sector languished at the bottom of the league table, scoring just 28% - a point behind local government at 29%.

Admittedly, the overall scores were impacted by the fact that just 3% of the organisations offered online chat, but this figure is possibly surprising given the growing body of evidence to demonstrate the relatively low cost and high customer satisfaction ratings achieved by real-time communication. The results were still not encouraging however when looking at the average scores for email service and web self-service.

How the financial services sector stacks up

The average score across all sectors for online customer experience was a disappointing 33% and surprisingly, the extremely competitive financial services sector scored just 28%, a point behind local government at 29% and a long way behind retail (39%) and travel and leisure (36%).

While the financial services sector did achieve a respectable 81% in the web self-service category, improvements can still be achieved by making this information searchable, providing time-starved and impatient consumers with faster access to the information they want.  The ideal approach is a flexible, self-learning knowledge base, with powerful search and retrieval, to ensure customers receive rapid, accurate and consistent responses.

The financial services sector also failed to impress in the email category. While it's fair to say there are sensitivities about emailing personal financial data (although this is easily overcome via secure portals), the questions asked of financial services organisations were simple and they were approached as though the researchers were potential customers, so failure to offer email or respond to messages was disappointing as no account details needed to be shared.

Building an effective online customer service strategy

The internet plays a pivotal role in customer service in today's society.  Today's 'Social Consumers' are online not only to research and purchase products and services but also to share information with their peers.  Brands that can offer customers a rewarding online experience will reap the rewards in terms of increased sales and a higher return on investment from their online marketing spend.

By moving towards a multi-channel environment, financial services organisations can enjoy increased operational efficiency, reduced call handling costs and greater customer satisfaction while delivering a more consistent, timely and engaging customer experience. 

In such a competitive, price-driven environment, those financial organisations that make it easy for customers to get the information they want, when they need it, will differentiate their brand, improve customer satisfaction and increase sales.  Those that don't will sink into the morass of undifferentiated, commoditised providers, forced to compete on price and at the mercy of today's increasingly fickle consumers.

Download our Online Customer Service 2010 study for recommendations and insights into how to meet the challenges of today's demanding internet user, to engender brand loyalty, increase sales and deliver cost savings back to the business. 

The Top Five Benefits of the Right Online Customer Service Strategy

1. Increase website conversions (and avoid web defections) by generating a faster response to online customer enquiries - whether by email, web self-service or chat
2. Reduce average query handling time and increase first contact resolution because consumers who receive a positive timely response to their information requests ask fewer questions and are less likely to complain to a customer service representative
3. Improve efficiency by adopting new online channels. Agents can manage several online chats simultaneously and handle emails in between voice call peaks
4. Reduce operational costs. It is estimated there is a 10 to 1 cost saving in responding to customers via email or online chats, rather than through a voice call
5. Drive high levels of customer satisfaction by providing a seamless consistent experience and meeting  real-time information needs by delivering live help at the point of need