Has customer service improved over the last 20 years? The question is still relevant today. Of course, new technology makes the customer feel important, but the demands and expectations of service are growing every day. What are customers, who have experienced economic changes due to the pandemic, willing to pay for, what are their main needs, and what are the business benefits?
The formula for good service
Imagine: you go to a café or shop for the first time, having previously only seen an advertisement or a sign. If your expectations are higher than reality, you get terrible service: a sticky loose table, cash only or a narrow range. The consequences are obvious: complaints, disappointment, and you won't visit the cafe again. If reality exceeds expectations, however, it's WOW service (compliments, extras, etc.). Such service brings recommendations, a higher check and a loyal customer.
You don't have to wait for a miracle in a service case. Even an equal sign between expectation and reality is a good sign for business. To keep every customer happy, meet their basic expectations. The only catch is that expectations need to be known.
Two ways to learn expectations
How do you research customer expectations?
The first way is research. Qualitative and quantitative, broken down by industry, geography and customer profile. For example, a series of in-depth interviews can produce a list of service attributes by asking, "What does service consist of for you?"
The most popular answers from consumers are cleanliness, speed, courtesy, wide range, convenient location, availability of discounts and promotions, delivery and return services, etc. By knowing customer expectations, management can improve service in a focussed way.
The second way to study expectations is to know the trends, forecasts and opinions of industry leaders. After a challenging 2020, every business is trying to look to the future.
So what's in store for customer service in the coming years? Not much is new. What used to be outlined on the dotted line is now written in bold.
Some of the trends come not only from the West, but also from China. Against the backdrop of the crisis in many economies, leaders are making decisions to replace human labour with technology. The best employee of 2021 will be a chatbot. On the other hand, hybrid forms of work are becoming particularly relevant: home and office are coming together, everyone is looking for a balance between the interests of customers, employees and business.
Trend 1. Social e-commerce. The shop has moved to the phone
It used to be believed that if you found a successful location, it was 20% (or more) of the business's success. A shop on a thoroughfare or a kiosk by the metro makes a high profit in a day.
In 2021, the best location is... social networking and e-commerce, particularly TikTok and Instagram. Of course, don't discount giants like Amazon, Alibaba, and online shopping resources like Shopify.
Shopify is moving to the phone. It is on powerful social media platforms that the largest number of potential customers, and especially the younger audience, can be found. Experiments with lightning-fast, intuitive shopping are beginning, and the best example is Walmart and TikTok's collaboration in 2020.
In 2020, the world's largest retailer Walmart announced its intention to acquire a stake in the social network. Walmart CEO Doug McMillon cited the argument as an opportunity to gain a younger audience, as well as developing a promising trade area. "If you're watching a TikTok video and someone has an item that you really like, why not buy it immediately?" - says a top network executive.
In December 2020, the two giants held their first shopify shows. During the live show, TikTok stars filmed their videos wearing clothes from Walmart's collection and viewers bought them in one click.
It seems that in 2021, social networking as a marketplace and unthinkable collaborations will no longer be a trend, but a basic requirement.
Trend 2. Personalisation. Every customer is a segment
In 2021, businesses know everything about the customer: fingerprints, face, heart rate, blood pressure, social media behaviour, typical purchases. But the data collected is lying on the shelves, the analytics are weak and do not allow for an accurate personalised offer.
IT experts expect that in 2025, technology will finally be able to process massive amounts of data and give each of us an offer that hits the bullseye.
But there are some companies that are wowing with their personalisation today. Below are a few examples.
Amazon got 30% additional revenue back in 2015 thanks to its "Products you might like" section. The personalised offering of additional accessories has proved so successful that the technology is now copied on every other website.
Spotify is the world's largest provider of music content. One striking example is New Year's Eve analytics. You can see everything: which hits you've listened to, how many times, for how long, night or day. The ability to take a look back at your personal music year appeals to both 16-year-olds and venerable music lovers alike.
Netflix takes care of you, even without your permission. Its recommendations of similar content, open finales, themed selections and more are widely known.
Online personalisation is popular, rapidly adopting and becoming the standard. But real-world personalisation is a challenge. But here too, there are shining examples:
A classic: Coca-cola put the most popular names on bottle labels for 7 years. Customers were happy to buy bottles named Mike and Tanya. The project was implemented all over the world, from Australia to Vietnam. This significantly increased the brand's presence in international markets and halted an 11-year decline in consumption in the US.
Striking modernity: BMW cars are so focused on driver safety and comfort that they can manage their stress levels. If the car "realises" that the driver is tired, the temperature, lights and even the music in the cabin change. The driver's attention and concentration improves and avoids accidents or rule violations.
A new level of Starbucks. Everyone knows that coffee shop baristas write their guests' names on the cup. It's a long-standing standard that some guests even abuse, asking them to write "My little princess" or "Mickey Mouse". And recently, one Starbucks barista learned sign language to serve his hearing-impaired guest!
Trend 3. Zero thinking experience. Zero effort
Remember when the world's most successful online retailer, Amazon, revolutionised the world by inventing the 'buy one click' button? It was simple and convenient! And already - obsolete.
It's time for click-free shopping, with no effort at all. Many technologies and services are targeting this trend: contactless payment, pre-packaged order templates, delivery services and other options. More and more industries have begun to join this trend.
For example, the American bakery chain Panera sells a subscription to coffee. The first 3 months are free, then at $9 a month for unlimited access to premium coffee. You walk by → go in → take it → move on. Not a second of effort to pay, wait, choose.
Another example is buying season tickets for music in Austria. You buy a season ticket for a year to the Philharmonic, put 5 dates on your calendar and do not worry that you will miss a wonderful concert. The price is also 40% lower for such a service.
Trend 4. Proactive Service Model. Proactive or reactive service?
According to a number of US agencies, up to 80% of support managers are increasing their budgets for proactive service technologies. Why? Most say: "Our operators simply do not have enough time to respond to everyone in 48 hours, and more and more requests". It's a race that can't be won, operators burn out, customers wait on lines, and money goes nowhere.
Proactive service means anticipating the problems the customer will encounter along the way. All channels should be proactive: anticipate a need, a question, anticipate a problem at the moment of service. For example, you forget your password - and you have the reset button at hand, you want to give a gift - here's the gift card and packaging.
An example of a UK water supply company, Anglian Water, the company notifies customers in advance of service failures, which is vital for a service such as water. This proactive strategy reduces the number of calls to the support centre.
Telecommunications company AT&T in the US, helps subscribers avoid the shock of receiving bills. When a customer receives their first bill, they are confused and this is a typical reason for contacting the call centre. Instead of such a bill, the customer receives a link to a personalised video explaining how the bill is generated. This practice reduces referrals and promotes paperless billing.
Trend 5. Humanless or self-service and personalised bots
According to research agency Gartner, by 2030 customer-owned bots will automatically collect a billion service requests. Their research director, Anthony Mullen, says that "the burden of self-service is being removed from today's support staff and put into the hands of customers. This level of delegation, from do-it-yourself to customer-centric AI, will be an important force shaping customer self-service."
Let's not wait for the distant year 2030. Already last year, at least 13% of customers clearly stated their desire for self-service, without people. All they want is a quick fix, with no extra effort. But if problems arise, a person and live communication (phone, chat) will be required immediately. The diagram below shows that when there is an urgent issue, the need to discuss the situation immediately with a live person on the phone increases by 39%!
Trend 6. Augmented reality.
Everyone is fed up with the new reality without tourism, hugs and cultural events. But market futurologists are already loudly predicting the next reality - augmented reality.
Augmented reality is the ability to try anything you want without buying it. This applies directly to sectors such as fashion, real estate, hotels, leisure and tourism.
For example, you can try on a new dress, jewellery or cosmetics right in front of your mirror or on your computer. The technology will help retailers avoid wasting money on shipping and returns. Just imagine how actively this industry will promote such technology. Of course, soon it will be possible to walk around a flat that is not yet built, visit a hotel or take a tour. All from the comfort of your own home, thanks to VR technology.
Very soon, we will be able to combine the virtual and the real in everyday life. For example, modern electric cars no longer have side mirrors (they are built into panels as screens), and the grey roadway is painted with virtual road markings, signs and speed limit warnings right in the air.
A striking example is the Gucci brand, selling digital clothes and offering to try on new models in a special app. By pointing the smartphone camera down, users can choose a digital overlay from 19 different trainers on their feet by swiping left or right to select another pair. The app also allows users to take photos that can then be shared on social media. There are already many examples of how augmented reality technology can be used.
Trend 7. Word of Mouth is getting weaker. Influencers instead of word of mouth radio
Unbelievable, but the power of word of mouth is losing its power. For a large proportion of Europeans and Americans, personal communication is limited and the social circle has narrowed. The word of a neighbour or a colleague is no longer important because everyone is at home and communicating less.
Internet communication and trust to public people becomes actual: bloggers, Influencers. Have you decided to buy a phone? Perhaps you will watch 2-3 reviews by famous techno-bloggers, read a dozen reviews and make a decision to buy.
Bloggers in front of hundreds of users create confidence in the product, raising the rating of the product. Now you don't have to go to the shop to ask a salesperson for advice. We have become experts in online shopping ourselves, saving money and time for shopping.
A testament to the growing popularity of influencers are the networks where they can be found. Upfluence is one of the biggest influencer search sites, with more than 4 million influencers. Everything from shoe brands to infoproducts are using armies of influencers for soft sales, advertising, growing visibility and reach. The site works both ways, anyone can try their hand at being an Influencer too.