Shep Hyken's Blog, page 35
October 9, 2023
What is Conversational AI and How is It Changing Customer Support?
Top Takeaways:
Conversational AI technology, powered by artificial intelligence, has revolutionized customer support by providing efficient and personalized assistance to customers. This technology can understand customers’ queries, provide relevant answers, and guide them toward a resolution.
Combining AI and human agents can create a seamless and effective customer experience. When AI detects that a customer is not getting the desired answer or experiencing difficulties, it can seamlessly transfer the conversation to a human agent who can provide further assistance. This collaboration between AI and humans can reduce customer frustration and lead to quicker problem resolution.
Conversational AI solutions can be beneficial in voice-led customer interactions. By recognizing ambient noise, heavy accents, or other challenges, AI can identify when a customer’s intentions may not be fully understood. In such cases, the conversation can be seamlessly transferred to a human agent, minimizing any disruption in the customer experience.
By automating routine inquiries and tasks, AI allows human agents to focus on more complex or specialized customer needs. This allows contact centers to handle more inquiries while maintaining service quality.
Conversational AI technology has the potential to improve customer satisfaction by reducing the number of interactions required to solve a problem. Studies show that customers often become frustrated after a few unsuccessful attempts to resolve an issue. Therefore, companies that can address customer concerns with fewer engagements will likely see higher customer satisfaction rates.
Plus, Shep and Peter answer the question: Will AI take away jobs? Tune in!
Quotes:
“Generative AI has brought about a mix of excitement, fear, and confusion since the beginning. When we emphasize the importance of involving humans, it helps us anchor ourselves as we move forward.”
“AI is going to make the birth of the Internet look quaint. That’s how large, distributed, and massive this shift in business and life is.”
“AI will take away some jobs faster and more dramatically than most are ready for or anticipate. We’ve got to get on our toes. We’ve got to be thinking about what the new world looks like. How can you take AI technology and maximize it for your benefit?”
“Within the next ten years, the number one predictor of enterprise recurring revenue will be customer success and satisfaction.”
Peter Mullen is the Chief Marketing Officer of Interactions, a company specializing in intelligent virtual assistants and conversational AI. He is a seasoned marketing executive with 20 years of experience. Before his role at Interactions, he also held prominent marketing and communications roles at VXI Global Solutions, Comcast, and Netflix.
Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio .
This episode of Amazing Business Radio with Shep Hyken answers the following questions and more:
How can conversational AI be used to improve customer support experiences?
How can AI-driven platforms help streamline customer service processes?
What are the benefits of having a human in the loop in AI-driven customer service?
How can AI technology help reduce customer frustration and increase resolution times?
What are the potential future developments and advancements in AI for customer service?
Conversational AI technology, powered by artificial intelligence, has revolutionized customer support by providing efficient and personalized assistance to customers. This technology can understand customers’ queries, provide relevant answers, and guide them toward a resolution.
Combining AI and human agents can create a seamless and effective customer experience. When AI detects that a customer is not getting the desired answer or experiencing difficulties, it can seamlessly transfer the conversation to a human agent who can provide further assistance. This collaboration between AI and humans can reduce customer frustration and lead to quicker problem resolution.
Conversational AI solutions can be beneficial in voice-led customer interactions. By recognizing ambient noise, heavy accents, or other challenges, AI can identify when a customer’s intentions may not be fully understood. In such cases, the conversation can be seamlessly transferred to a human agent, minimizing any disruption in the customer experience.
By automating routine inquiries and tasks, AI allows human agents to focus on more complex or specialized customer needs. This allows contact centers to handle more inquiries while maintaining service quality.
Conversational AI technology has the potential to improve customer satisfaction by reducing the number of interactions required to solve a problem. Studies show that customers often become frustrated after a few unsuccessful attempts to resolve an issue. Therefore, companies that can address customer concerns with fewer engagements will likely see higher customer satisfaction rates.
Plus, Shep and Peter answer the question: Will AI take away jobs? Tune in!
Quotes:
“Generative AI has brought about a mix of excitement, fear, and confusion since the beginning. When we emphasize the importance of involving humans, it helps us anchor ourselves as we move forward.”
“AI is going to make the birth of the Internet look quaint. That’s how large, distributed, and massive this shift in business and life is.”
“AI will take away some jobs faster and more dramatically than most are ready for or anticipate. We’ve got to get on our toes. We’ve got to be thinking about what the new world looks like. How can you take AI technology and maximize it for your benefit?”
“Within the next ten years, the number one predictor of enterprise recurring revenue will be customer success and satisfaction.”
About:
Peter Mullen is the Chief Marketing Officer of Interactions, a company specializing in intelligent virtual assistants and conversational AI. He is a seasoned marketing executive with 20 years of experience. Before his role at Interactions, he also held prominent marketing and communications roles at VXI Global Solutions, Comcast, and Netflix.
Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio .
This episode of Amazing Business Radio with Shep Hyken answers the following questions and more:
How can conversational AI be used to improve customer support experiences?
How can AI-driven platforms help streamline customer service processes?
What are the benefits of having a human in the loop in AI-driven customer service?
How can AI technology help reduce customer frustration and increase resolution times?
What are the potential future developments and advancements in AI for customer service?
Top 5 Customer Service & CX Articles for Week of October 9, 2023
Each week, I read many customer service and customer experience articles from various resources. Here are my top five picks from last week. I have added my comment about each article and would like to hear what you think too.
5 Elements to Maintaining Consumer Trust in Today’s Experience Economy by Barbara Holzapfel
(Fast Company) Earning customer trust does not require a complex strategy, but it needs a thorough understanding of the customer and a strong desire to deliver truly differentiated and empathetic experiences.
My Comment: As we head deeper into a digital world where customers interact with companies via AI, how can we create a relationship that establishes trust? The five ideas in this article are a great place to start. Pay attention to number four, which states, “Use technology to complement humans, not as a substitute.”
Customer Experience Strategy: The Theatre of Human Experience by Luke Soon
(CMSWire) In Joe Pine’s influential book, “The Experience Economy,” he introduces a captivating perspective: the idea that the customer experience is analogous to theatre. This analogy shines a spotlight on how businesses can create magical moments for their audiences by structuring their interactions into episodes, scenes and acts, complete with front stage and backstage actors.
My Comment: This is a fun article to read, starting off with this question: Is your customer experience strategy a Broadway hit? And then it mentions’ Joe Pine, the co-author of The Experience Economy, my all-time favorite business book. The examples used in the article come from Starbucks, Disney, Apple, and Ritz-Carlton. If any of those were Broadway plays, they would be blockbuster hits!
It’s Not All Negative: How Bad Customer Reviews Create Revenue Opportunities by Cynthia Sener
(Total Retail) Although negative reviews can raise a red flag for consumers, they also present a unique opportunity. When customers feel they’ve been wronged they want to be heard and understood. “Negative” reviews are an opportunity to listen and respond.
My Comment: Of course, nobody (or business) wants a negative review published on a social channel for the world to see. But it happens. I’ve written articles about handling reviews, especially negative reviews. I like this article because of its positive approach to negative reviews. Here’s some proof: the 2023 CX trends report by Chatmeter found that 28% of consumers want to read negative reviews!
20 Stats On Why Customer Service Has Never Mattered More by Blake Morgan
(Forbes) Customer Service Week runs from October 2-6 this year. In celebration of the people and practices that serve customers’ needs, 2023 has been a banner year for customer experience. Customer experience continues to climb its way up to the board room, as more senior leaders understand experience is the only way to differentiate your brand. Service is one piece of the entire customer experience pie, but it’s an important one.
My Comment: My friend and fellow CX expert, Blake Morgan, has assembled a list of 20 stats on customer service. If you are into these types of stats and findings, be sure to get a copy of the 2023 ACA (Achieving Customer Amazement) study on the State of Customer Service and CX.
10 AI Customer Experience Statistics You Should Know About by Michelle Hawley
(CMSWire) In a world where personalization and instant gratification have become the norm, leveraging technology to enhance customer experience is more critical than ever. The intersection of artificial intelligence (AI) and customer experience (CX) is reshaping how businesses interact with customers, giving rise to a plethora of insightful AI customer experience statistics.
My Comment: And as long as we’re talking about stats and findings, here’s another article that shares information on what seems to be on everyone’s mind: AI. If you’re not paying attention to the benefits of using AI and the latest in ChatGPT-type solutions, you will be left in the dust.
BONUS
Last week was Customer Service Week, and last Tuesday was CX Day. In case you missed it, don’t worry. I have two things for you. First, the true meaning about Customer Service Week is about celebrating the people who provide the service – not just a week to appreciate customers. Check out this article on how Alaska Airlines “celebrated” the week: CLICK HERE.
Second, here’s a link to five videos that Brittany Hodak and I created to help promote these two very important “holidays.” Even though Customer Service Week is just a week, and CX Day is just one day, the concepts behind them should be practiced throughout the year. CLICK HERE to watch the videos.
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops. Connect with Shep on LinkedIn.
5 Elements to Maintaining Consumer Trust in Today’s Experience Economy by Barbara Holzapfel
(Fast Company) Earning customer trust does not require a complex strategy, but it needs a thorough understanding of the customer and a strong desire to deliver truly differentiated and empathetic experiences.
My Comment: As we head deeper into a digital world where customers interact with companies via AI, how can we create a relationship that establishes trust? The five ideas in this article are a great place to start. Pay attention to number four, which states, “Use technology to complement humans, not as a substitute.”
Customer Experience Strategy: The Theatre of Human Experience by Luke Soon
(CMSWire) In Joe Pine’s influential book, “The Experience Economy,” he introduces a captivating perspective: the idea that the customer experience is analogous to theatre. This analogy shines a spotlight on how businesses can create magical moments for their audiences by structuring their interactions into episodes, scenes and acts, complete with front stage and backstage actors.
My Comment: This is a fun article to read, starting off with this question: Is your customer experience strategy a Broadway hit? And then it mentions’ Joe Pine, the co-author of The Experience Economy, my all-time favorite business book. The examples used in the article come from Starbucks, Disney, Apple, and Ritz-Carlton. If any of those were Broadway plays, they would be blockbuster hits!
It’s Not All Negative: How Bad Customer Reviews Create Revenue Opportunities by Cynthia Sener
(Total Retail) Although negative reviews can raise a red flag for consumers, they also present a unique opportunity. When customers feel they’ve been wronged they want to be heard and understood. “Negative” reviews are an opportunity to listen and respond.
My Comment: Of course, nobody (or business) wants a negative review published on a social channel for the world to see. But it happens. I’ve written articles about handling reviews, especially negative reviews. I like this article because of its positive approach to negative reviews. Here’s some proof: the 2023 CX trends report by Chatmeter found that 28% of consumers want to read negative reviews!
20 Stats On Why Customer Service Has Never Mattered More by Blake Morgan
(Forbes) Customer Service Week runs from October 2-6 this year. In celebration of the people and practices that serve customers’ needs, 2023 has been a banner year for customer experience. Customer experience continues to climb its way up to the board room, as more senior leaders understand experience is the only way to differentiate your brand. Service is one piece of the entire customer experience pie, but it’s an important one.
My Comment: My friend and fellow CX expert, Blake Morgan, has assembled a list of 20 stats on customer service. If you are into these types of stats and findings, be sure to get a copy of the 2023 ACA (Achieving Customer Amazement) study on the State of Customer Service and CX.
10 AI Customer Experience Statistics You Should Know About by Michelle Hawley
(CMSWire) In a world where personalization and instant gratification have become the norm, leveraging technology to enhance customer experience is more critical than ever. The intersection of artificial intelligence (AI) and customer experience (CX) is reshaping how businesses interact with customers, giving rise to a plethora of insightful AI customer experience statistics.
My Comment: And as long as we’re talking about stats and findings, here’s another article that shares information on what seems to be on everyone’s mind: AI. If you’re not paying attention to the benefits of using AI and the latest in ChatGPT-type solutions, you will be left in the dust.
BONUS
Last week was Customer Service Week, and last Tuesday was CX Day. In case you missed it, don’t worry. I have two things for you. First, the true meaning about Customer Service Week is about celebrating the people who provide the service – not just a week to appreciate customers. Check out this article on how Alaska Airlines “celebrated” the week: CLICK HERE.
Second, here’s a link to five videos that Brittany Hodak and I created to help promote these two very important “holidays.” Even though Customer Service Week is just a week, and CX Day is just one day, the concepts behind them should be practiced throughout the year. CLICK HERE to watch the videos.
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops. Connect with Shep on LinkedIn.
October 6, 2023
Guest Post: Your Guide To Building Customer Loyalty in 2023 (With Tools)
This week, we feature an article by Claron Kinny, Content Specialist at Beaconstac, the one-stop solution for all things QR. He writes about the strategies and tools to build customer loyalty.
Building and maintaining customer loyalty is more critical than ever in today’s highly competitive business landscape. In 2023, businesses face unique challenges in understanding and retaining their customer base.
In this piece, we will help you navigate the intricacies of building customer loyalty and how to use unconventional tools and technology to achieve success.
How to Build Customer Loyalty In 2023 – 3 Must-know Strategies
A few strategies in your pocket can help you build customer loyalty better by keeping your customers engaged and loyal. So, here are 5 strategies you need for the same:
Creating exceptional experiences at every touchpoint of the customer journey is vital. This includes smoother interactions, personalized recommendations, and a proactive approach to customer needs. By going above and beyond to exceed expectations, businesses can foster a more profound sense of loyalty.
A loyalty program is one of the best tricks in the hat to improve customer experience and encourage repeat purchases. Customer loyalty programs include points-based systems, tiered rewards, and VIP treatment. Technology such as QR Codes and VR to enhance these programs can further improve customer engagement and retention.
Social media and online communities play a significant role in building customer loyalty. Businesses can create a loyal community of brand advocates by engaging with customers on social platforms, responding to feedback, and encouraging user-generated content.
Customer Loyalty Software and Tools to Check Out In 2023
Now, let’s explore some powerful customer loyalty tools and software that can ease your customer loyalty initiatives:
#1. Customer Relationship Management (CRM) Software
Imagine a business owner needing to stay on top of customer interactions, sales data, and marketing tasks. This is where CRM software comes in as your savior. Let’s look at some well-known CRM software out there in-depth.
Insightly serves as more than just a CRM platform. It is a comprehensive solution for organizing and overseeing customers, business leads, projects, and contacts. Its user-friendly interface can be easily tailored to your needs and even offers a free plan for up to two users. You can kickstart your experience with a free trial.
Some features include:
With an easy-to-adapt interface, Insightly suits your needs.
Centralized data hub to improve sales processes, profitability, and customer relationships.
Efficient lead handling, sales pipeline tracking, and customization of project stages.
Enable remote teams with mobile apps.
Ease customer journeys for accelerated growth.
Convert visitors, conduct scalable campaigns, and perform A/B testing with user-friendly email templates.
Pricing
Insightly offers a free plan accommodating up to two users. For broader functionalities, plans start at $29/month.
#2. Marketing Automation Platforms
Marketing automation platforms enable automated customer communication for personalized messages. With these tools, you can send tailored promotions to loyal customers, create segmented email lists, automate personalized email campaigns, and engage customers effectively.
Let’s look at some of these tools in depth:
Beaconstac’s QR Code Generator lets you create custom QR Codes that bridge the gap between the physical and digital worlds, offering unique interactive experiences. You can enhance your brand recognition by customizing the QR Code with a logo, brand colors, and unique patterns. You can also gain valuable insights from the built-in analytics. This is in addition to the Google Analytics integration they have, which will give you more in-depth analytics, including unique user insights like demographics, behaviors, and interests.
Features:
Advanced customizations with pre-designed QR Code templates, customizable forms, landing pages, and much more.
Create over 10+ types of QR Codes.
Use analytics data to connect with customers through their preferred channels.
Attract customers by offering rewards or discounts using QR Codes for loyalty programs.
Intuitive and user-friendly interface.
Integration with over 4000 applications, including CRMs like Salesforce, sales and automation tools like Zapier and Workato, and HR tools.
Pricing
Experience a 14-day trial period with Beaconstac’s static QR Codes. To unlock enhanced features and dynamic QR Codes, you can explore their starter plan, available for just $5/month.
#3. Social Media Monitoring and Management Tools
Monitoring customer sentiment and engagement on social media is crucial for understanding customer perceptions and feedback.
With social media monitoring and management tools, you can:
Monitor brand mention
Engage with followers
Identify influencers and advocates
Address negative feedback
Track competitors
Run contests and giveaways
Share User-Generated Content (UGC)
Let’s look at some of the best social media management tools.
Hootsuite is a simple and easy-to-use social media management platform. It allows businesses and individuals to manage, schedule, and analyze their content across various social media platforms from a single dashboard. Hootsuite is designed to streamline social media marketing efforts, enhance engagement, and monitor social media conversations.
Features:
Centralized dashboard where businesses can manage multiple social media accounts such as Facebook (Meta), Twitter, Instagram, LinkedIn, etc.) in one place.
Schedule posts in advance.
Monitor and engage with social media conversations in real time.
Monitoring tools enable you to track mentions of your brand, products, and industry keywords across social media platforms.
Pricing
Hootsuite offers a free trial period. Following this trial, you can select from its Professional plan ($23/month), Team plan ($90.7/month), Business plan ($739.7/month), or Enterprise plan (pricing available upon inquiry).
Closing Up
Building customer loyalty in 2023 requires a multifaceted approach that combines excellent customer experiences, personalized engagement, and using technology such as QR Code generators, VR, and IoT to its fullest potential.
By implementing effective loyalty programs and using the suggested tools, businesses can create a loyal customer base that drives revenue and acts as an advocate for the brand. As technology continues to evolve, staying up-to-date with emerging trends will be crucial for sustaining and growing customer loyalty in the future.
Claron is a Content Specialist at Beaconstac. He loves gathering customer insights on the use of simple tech like QR Codes and converting these insights into action-oriented steps to write off business problems.
Read Shep’s latest Forbes article: The Zero Consumer Revolution: Adapting Your Business For A New Generation
Building and maintaining customer loyalty is more critical than ever in today’s highly competitive business landscape. In 2023, businesses face unique challenges in understanding and retaining their customer base.
In this piece, we will help you navigate the intricacies of building customer loyalty and how to use unconventional tools and technology to achieve success.
How to Build Customer Loyalty In 2023 – 3 Must-know Strategies
A few strategies in your pocket can help you build customer loyalty better by keeping your customers engaged and loyal. So, here are 5 strategies you need for the same:
#1. Providing Exceptional Customer Experiences
Creating exceptional experiences at every touchpoint of the customer journey is vital. This includes smoother interactions, personalized recommendations, and a proactive approach to customer needs. By going above and beyond to exceed expectations, businesses can foster a more profound sense of loyalty.
#2. Implementing a Loyalty Program
A loyalty program is one of the best tricks in the hat to improve customer experience and encourage repeat purchases. Customer loyalty programs include points-based systems, tiered rewards, and VIP treatment. Technology such as QR Codes and VR to enhance these programs can further improve customer engagement and retention.
#3. Fostering Customer Engagement and Advocacy
Social media and online communities play a significant role in building customer loyalty. Businesses can create a loyal community of brand advocates by engaging with customers on social platforms, responding to feedback, and encouraging user-generated content.
Customer Loyalty Software and Tools to Check Out In 2023
Now, let’s explore some powerful customer loyalty tools and software that can ease your customer loyalty initiatives:
#1. Customer Relationship Management (CRM) Software
Imagine a business owner needing to stay on top of customer interactions, sales data, and marketing tasks. This is where CRM software comes in as your savior. Let’s look at some well-known CRM software out there in-depth.
Insightly
Insightly serves as more than just a CRM platform. It is a comprehensive solution for organizing and overseeing customers, business leads, projects, and contacts. Its user-friendly interface can be easily tailored to your needs and even offers a free plan for up to two users. You can kickstart your experience with a free trial.
Some features include:
With an easy-to-adapt interface, Insightly suits your needs.
Centralized data hub to improve sales processes, profitability, and customer relationships.
Efficient lead handling, sales pipeline tracking, and customization of project stages.
Enable remote teams with mobile apps.
Ease customer journeys for accelerated growth.
Convert visitors, conduct scalable campaigns, and perform A/B testing with user-friendly email templates.
Pricing
Insightly offers a free plan accommodating up to two users. For broader functionalities, plans start at $29/month.
#2. Marketing Automation Platforms
Marketing automation platforms enable automated customer communication for personalized messages. With these tools, you can send tailored promotions to loyal customers, create segmented email lists, automate personalized email campaigns, and engage customers effectively.
Let’s look at some of these tools in depth:
Beaconstac
Beaconstac’s QR Code Generator lets you create custom QR Codes that bridge the gap between the physical and digital worlds, offering unique interactive experiences. You can enhance your brand recognition by customizing the QR Code with a logo, brand colors, and unique patterns. You can also gain valuable insights from the built-in analytics. This is in addition to the Google Analytics integration they have, which will give you more in-depth analytics, including unique user insights like demographics, behaviors, and interests.
Features:
Advanced customizations with pre-designed QR Code templates, customizable forms, landing pages, and much more.
Create over 10+ types of QR Codes.
Use analytics data to connect with customers through their preferred channels.
Attract customers by offering rewards or discounts using QR Codes for loyalty programs.
Intuitive and user-friendly interface.
Integration with over 4000 applications, including CRMs like Salesforce, sales and automation tools like Zapier and Workato, and HR tools.
Pricing
Experience a 14-day trial period with Beaconstac’s static QR Codes. To unlock enhanced features and dynamic QR Codes, you can explore their starter plan, available for just $5/month.
#3. Social Media Monitoring and Management Tools
Monitoring customer sentiment and engagement on social media is crucial for understanding customer perceptions and feedback.
With social media monitoring and management tools, you can:
Monitor brand mention
Engage with followers
Identify influencers and advocates
Address negative feedback
Track competitors
Run contests and giveaways
Share User-Generated Content (UGC)
Let’s look at some of the best social media management tools.
Hootsuite
Hootsuite is a simple and easy-to-use social media management platform. It allows businesses and individuals to manage, schedule, and analyze their content across various social media platforms from a single dashboard. Hootsuite is designed to streamline social media marketing efforts, enhance engagement, and monitor social media conversations.
Features:
Centralized dashboard where businesses can manage multiple social media accounts such as Facebook (Meta), Twitter, Instagram, LinkedIn, etc.) in one place.
Schedule posts in advance.
Monitor and engage with social media conversations in real time.
Monitoring tools enable you to track mentions of your brand, products, and industry keywords across social media platforms.
Pricing
Hootsuite offers a free trial period. Following this trial, you can select from its Professional plan ($23/month), Team plan ($90.7/month), Business plan ($739.7/month), or Enterprise plan (pricing available upon inquiry).
Closing Up
Building customer loyalty in 2023 requires a multifaceted approach that combines excellent customer experiences, personalized engagement, and using technology such as QR Code generators, VR, and IoT to its fullest potential.
By implementing effective loyalty programs and using the suggested tools, businesses can create a loyal customer base that drives revenue and acts as an advocate for the brand. As technology continues to evolve, staying up-to-date with emerging trends will be crucial for sustaining and growing customer loyalty in the future.
Claron is a Content Specialist at Beaconstac. He loves gathering customer insights on the use of simple tech like QR Codes and converting these insights into action-oriented steps to write off business problems.
Read Shep’s latest Forbes article: The Zero Consumer Revolution: Adapting Your Business For A New Generation
October 3, 2023
The Customer Is NOT Always Right – Again!
Whoever said “the customer is always right” didn’t hear this about this story. Fox News just posted an update to a 2021 story about a man arrested for pointing an AK-47 at an employee at a pizza shop in Knoxville, Tennessee. The short version of the story is this. A customer walked into a Little Caesars restaurant and became angry when he was told he would have to wait a few minutes for a pizza. He left the store and came back with a rifle. According to an employee, “It wasn’t even a 10-minute wait when he came in with his gun. If he would have not come in with the gun and waited another two, maybe three minutes, it would have been boxed and in his hands.”
The customer admitted to pointing the rifle at an employee, has pleaded guilty to four counts of aggravated assault, and will have been sentenced by the time this is posted.
The customer is NOT always right.
I’ve said it before – I don’t agree with the saying that the customer is always right. Actually, I believe in the opposite, and it’s one of the concepts we teach in our customer service training workshops. It is this:
The customer is NOT always right. … But, they are always the customer, so let them be wrong with dignity and respect.
After reading the Fox News article, I’ll add that this is a great concept to practice in almost every case, with the exception being behavior that is not worthy of “dignity and respect,” which includes putting others in danger and/or breaking the law.
Even an angry customer who yells or curses at an employee should be treated in such a way that the response doesn’t escalate the problem. While it may appear you’re giving that “bad customer” respect, you’re actually respecting the situation.
By the way, our annual customer experience research found that 32% of American customers have yelled at a customer service agent, and 24% admit to cursing. The best people working with customers on the “front line” know how to de-escalate anger and can even turn an angry customer into a fan when managed correctly.
Yes, there are some customers who aren’t worth doing business with, so let them go. Fire them as a customer. As they leave, keep the metaphorical door cracked open ever so slightly, giving them a chance to return under the right circumstances – unless they are breaking the law or putting others in danger.
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops at www.Hyken.com. Connect with Shep on LinkedIn.
October 2, 2023
Turning Customer Support from a Cost Center into a Revenue Generator
Top Takeaways:
Outsourcing customer service and support functions can be an effective strategy for businesses, especially startups, to offload non-core tasks and focus on their core competencies. It can be beneficial as it allows companies to provide 24/7 support and access to properly trained professionals, even if they are not direct employees of the company.
Customer service should not be viewed solely as a cost center but as an opportunity to enhance customer experience, generate revenue, and improve customer retention.
Customer service can contribute to revenue growth by resolving customer issues and upselling, cross-selling, and retaining customers who may have been on the verge of leaving.
In today’s competitive landscape, smart companies focus on designing differentiated customer experiences and leveraging customer support and CX as a competitive advantage.
Creating a positive and supportive work environment for customer service employees is crucial for employee retention in an industry known for high turnover rates.
Plus, Alex shares what they are doing at Hire Horatio to attract, nurture, and keep the best people and create the best customer service and experience. Tune in!
Quotes:
“Around 2019 and 2020, everybody just wanted to see top-line growth. It was all about numbers and revenue. Now, investors are looking at retention and customer lifetime value, which all start with customer experience.”
“Paying above the market is certainly something that we do. But that doesn’t get the job done entirely. We ensure our employees do fulfilling work, provide great growth opportunities, and build a community.”
“At the end of the day, people want to be a part of something. They want to be a part of a mission. They want to be part of a goal. You make it a community when you can facilitate the right environment and office structure. All of that together, you start to make it more than just work.”
“Be about value, not just dollars. In today’s world, an amazing customer experience makes you competitive. Price is important, but an amazing customer experience can differentiate a brand from its competitors.”
“People at your company, other than leadership, should have a seat ‘at the table.’ They are critical to designing products, how things should flow, and determining what’s working for customers and what’s not. And too often, they’re excluded from conversations.”
Alex Ross is the co-founder and chief operating officer of Hire Horatio. He works with startups, providing them with invaluable customer support and back-office functions.
Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio .
This episode of Amazing Business Radio with Shep Hyken answers the following questions and more:
How do outsourcing customer service and support benefit businesses?
What are some common challenges companies face when scaling their customer service organization?
How can companies turn customer support into a competitive advantage?
How can a customer support team contribute to a company’s bottom line?
What are some strategies for retaining talent in the customer support industry?
Outsourcing customer service and support functions can be an effective strategy for businesses, especially startups, to offload non-core tasks and focus on their core competencies. It can be beneficial as it allows companies to provide 24/7 support and access to properly trained professionals, even if they are not direct employees of the company.
Customer service should not be viewed solely as a cost center but as an opportunity to enhance customer experience, generate revenue, and improve customer retention.
Customer service can contribute to revenue growth by resolving customer issues and upselling, cross-selling, and retaining customers who may have been on the verge of leaving.
In today’s competitive landscape, smart companies focus on designing differentiated customer experiences and leveraging customer support and CX as a competitive advantage.
Creating a positive and supportive work environment for customer service employees is crucial for employee retention in an industry known for high turnover rates.
Plus, Alex shares what they are doing at Hire Horatio to attract, nurture, and keep the best people and create the best customer service and experience. Tune in!
Quotes:
“Around 2019 and 2020, everybody just wanted to see top-line growth. It was all about numbers and revenue. Now, investors are looking at retention and customer lifetime value, which all start with customer experience.”
“Paying above the market is certainly something that we do. But that doesn’t get the job done entirely. We ensure our employees do fulfilling work, provide great growth opportunities, and build a community.”
“At the end of the day, people want to be a part of something. They want to be a part of a mission. They want to be part of a goal. You make it a community when you can facilitate the right environment and office structure. All of that together, you start to make it more than just work.”
“Be about value, not just dollars. In today’s world, an amazing customer experience makes you competitive. Price is important, but an amazing customer experience can differentiate a brand from its competitors.”
“People at your company, other than leadership, should have a seat ‘at the table.’ They are critical to designing products, how things should flow, and determining what’s working for customers and what’s not. And too often, they’re excluded from conversations.”
About:
Alex Ross is the co-founder and chief operating officer of Hire Horatio. He works with startups, providing them with invaluable customer support and back-office functions.
Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio .
This episode of Amazing Business Radio with Shep Hyken answers the following questions and more:
How do outsourcing customer service and support benefit businesses?
What are some common challenges companies face when scaling their customer service organization?
How can companies turn customer support into a competitive advantage?
How can a customer support team contribute to a company’s bottom line?
What are some strategies for retaining talent in the customer support industry?
October 1, 2023
Top 5 Customer Service & CX Articles for Week of October 2, 2023
Each week, I read many customer service and customer experience articles from various resources. Here are my top five picks from last week. I have added my comment about each article and would like to hear what you think too.
Speed Doesn’t Equal Success: The Limitations of AHT as a KPI by Othmar Mueller Von Blumencron
(VIPdesk Connect) While top-notch products and services remain vital, the spotlight in recent years has undeniably shifted to the customer experience as a pivotal factor distinguishing one brand from another. In an age where products and services are often similar, it’s the memorable and positive interactions that truly distinguish one brand from another.
My Comment: For those in the customer support world, this article is for you. AHT, as in average handle time, is a metric used to measure the average length of time for a customer support call. Some companies look for low AHTs, hoping to manage more calls per hour or shift with a lower time. Two areas not typically considered in this metric, should be. The first is from the customer’s experience. How long did they have to wait to get through? The customer’s AHT includes hold time and time on the phone with the agent. Then, from the agent’s perspective, what notes and other tasks happen after the call? So, if you look at the total AHT, it includes wait time, phone time, and task time.
Total experience transformation: Five strategies for a seamless customer and employee experience by Ron Shamah
(Fast Company) Employee and customer experiences have an inherent overlap—one does not exist without the other.
My Comment: The opening line of this article grabbed me: “It’s no secret that customer experience (CX) and employee experience (EX) are inextricably connected.” And then there’s the second sentence: “According to a Harvard Business Review article, employee experience is the key driver of customer experience…” Then, don’t miss the fifth tip on how technology can waste a massive amount of your employees’ time.
Why you need an exceptional customer service strategy (and how to develop one) by Ronnie Gomez
(Sprout Social) In this article, we’ll go over a step-by-step breakdown of how to develop a customer service strategy that’s both memorable and efficient. Plus, we gathered two examples from brands that are creating stellar customer experiences at scale.
My Comment: Sometimes it’s important to get back to basics, which is why I included this excellent article that includes, stats, tips, and more about creating a customer service strategy. And if you haven’t gone through the formal strategy process, the five-step “framework” provided is an excellent place to start.
How to improve Customer Loyalty and win over shoppers by Patrick Overall
(The Retail Bulletin) We know it might seem a bit too early to be thinking about it, but, Black Friday, Cyber Monday, and the holiday season is just around the corner. So, what better time to cultivate some customer loyalty so you can supercharge your sales towards the end of the year?
My Comment: What I’m about to write may lead you to believe I don’t like this article. I do like it, but I think it is more about creating a customer loyalty program focused more on repeat business than true loyalty. There is nothing wrong with that! If you want loyal customers, you have to get them to experience you more than once, and giving them an incentive to come back (in the form of points, perks, rewards, etc.) is an excellent way to do so. As you read this article, keep that in mind.
How to Manage Big Changes Well in the Contact Centre by Dr. M. Dave Salisbury
(Call Centre Helper) Here are 17 top tips for managing big changes well in the contact center.
My Comment: Are you making changes in your contact center (or plan to)? If so, read this article. Several customer service experts, including myself, were called upon to comment on how to introduce change to your employees in a contact center.
BONUS
Top 5 Customer Experience Keynote Speakers to Book in 2024 by Chalmers Brown
(CustomerThink) In this curated list of can’t-miss speakers, we spotlight CX trailblazers who have captivated audiences worldwide. From memorable anecdotes to actionable insights, these speakers are reshaping the contemporary CX landscape. Consider one of these five CX thought leaders for your next event if your priorities include up-leveling your organization’s customer engagement, retention, and advocacy.
My Comment: I’m honored to make this list: Top Five Customer Experience Keynotes Speakers to Book in 2024! What an honor. Thank you, Chalmers Brown, for including me. And what a great group to be a part of!
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops. Connect with Shep on LinkedIn.
Speed Doesn’t Equal Success: The Limitations of AHT as a KPI by Othmar Mueller Von Blumencron
(VIPdesk Connect) While top-notch products and services remain vital, the spotlight in recent years has undeniably shifted to the customer experience as a pivotal factor distinguishing one brand from another. In an age where products and services are often similar, it’s the memorable and positive interactions that truly distinguish one brand from another.
My Comment: For those in the customer support world, this article is for you. AHT, as in average handle time, is a metric used to measure the average length of time for a customer support call. Some companies look for low AHTs, hoping to manage more calls per hour or shift with a lower time. Two areas not typically considered in this metric, should be. The first is from the customer’s experience. How long did they have to wait to get through? The customer’s AHT includes hold time and time on the phone with the agent. Then, from the agent’s perspective, what notes and other tasks happen after the call? So, if you look at the total AHT, it includes wait time, phone time, and task time.
Total experience transformation: Five strategies for a seamless customer and employee experience by Ron Shamah
(Fast Company) Employee and customer experiences have an inherent overlap—one does not exist without the other.
My Comment: The opening line of this article grabbed me: “It’s no secret that customer experience (CX) and employee experience (EX) are inextricably connected.” And then there’s the second sentence: “According to a Harvard Business Review article, employee experience is the key driver of customer experience…” Then, don’t miss the fifth tip on how technology can waste a massive amount of your employees’ time.
Why you need an exceptional customer service strategy (and how to develop one) by Ronnie Gomez
(Sprout Social) In this article, we’ll go over a step-by-step breakdown of how to develop a customer service strategy that’s both memorable and efficient. Plus, we gathered two examples from brands that are creating stellar customer experiences at scale.
My Comment: Sometimes it’s important to get back to basics, which is why I included this excellent article that includes, stats, tips, and more about creating a customer service strategy. And if you haven’t gone through the formal strategy process, the five-step “framework” provided is an excellent place to start.
How to improve Customer Loyalty and win over shoppers by Patrick Overall
(The Retail Bulletin) We know it might seem a bit too early to be thinking about it, but, Black Friday, Cyber Monday, and the holiday season is just around the corner. So, what better time to cultivate some customer loyalty so you can supercharge your sales towards the end of the year?
My Comment: What I’m about to write may lead you to believe I don’t like this article. I do like it, but I think it is more about creating a customer loyalty program focused more on repeat business than true loyalty. There is nothing wrong with that! If you want loyal customers, you have to get them to experience you more than once, and giving them an incentive to come back (in the form of points, perks, rewards, etc.) is an excellent way to do so. As you read this article, keep that in mind.
How to Manage Big Changes Well in the Contact Centre by Dr. M. Dave Salisbury
(Call Centre Helper) Here are 17 top tips for managing big changes well in the contact center.
My Comment: Are you making changes in your contact center (or plan to)? If so, read this article. Several customer service experts, including myself, were called upon to comment on how to introduce change to your employees in a contact center.
BONUS
Top 5 Customer Experience Keynote Speakers to Book in 2024 by Chalmers Brown
(CustomerThink) In this curated list of can’t-miss speakers, we spotlight CX trailblazers who have captivated audiences worldwide. From memorable anecdotes to actionable insights, these speakers are reshaping the contemporary CX landscape. Consider one of these five CX thought leaders for your next event if your priorities include up-leveling your organization’s customer engagement, retention, and advocacy.
My Comment: I’m honored to make this list: Top Five Customer Experience Keynotes Speakers to Book in 2024! What an honor. Thank you, Chalmers Brown, for including me. And what a great group to be a part of!
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops. Connect with Shep on LinkedIn.
September 29, 2023
Guest Post: Employee Engagement and CX: 5 Strategies to Build Synergy
This week, we feature an article by Tarek Kamil, CEO and Founder of Cerkl, an internal communication software that helps teams connect. He writes about how employee engagement and customer experience can enhance business performance.
Achieving success in business goes beyond offering quality products and services. Both employee engagement and customer experience are vital elements, and with some effort, it isn’t difficult for companies to build meaningful synergy between them.
A telling study by Dimension Data reported that 84% of companies that improved their customer experience saw an uplift in revenue. The reality is that the connection (or lack thereof) between employee engagement and customer experience can seriously impact business performance. When organizations recognize the significance of nurturing a positive employee experience (EX) to enhance the customer experience (CX), it creates a powerful synergy that propels the company toward unprecedented success.
The Interplay of Employee Engagement and Customer Experience
It’s important to identify the difference between customer experience and employee engagement. Only then can you relate to how the two affect each other.
Employee engagement refers to the emotional commitment and dedication that employees have towards their company or organization. On the other hand, customer experience encompasses all interactions and touchpoints a customer has with the company, primarily shaping their perceptions and loyalty. Customer experience demands that companies offer convenience, consistency, a demonstration of caring, customization of customers’ needs, and an ability to develop lasting connections with their customers.
The concept of employee engagement and customer experience working in tandem might seem abstract at first glance, but the connection is logical and evident. Harvard Business Review (HBR) shows there is a link between employee engagement and customer satisfaction.
When employees are engaged and motivated, they are more likely to deliver exceptional customer service. Engaged employees are not only productive, but they also exhibit enthusiasm and a genuine desire to create positive interactions with customers. These interactions almost always translate into improved customer experiences, fostering loyalty and advocacy.
Customers can sense when an employee (or company) is genuinely invested in their needs, leading to stronger relationships and higher customer satisfaction rates. In their 2009 meta-analysis presented by Gallup, Harter et al. found that business units scoring in the top 25% of engagement had customer ratings/loyalty 10% higher than business units scoring in the bottom 25% of engagement.
The Relationship Between CX and EX
The relationship between employee experience and customer experience can be encapsulated in the term “CX EX synergy.” This concept recognizes that the level of employee engagement and satisfaction directly influences the quality of interactions between employees and customers. When employees feel valued, supported, and empowered within their roles, they are more likely to deliver personalized and empathetic service.
Research shows that people who report having a positive employee experience have 16 times the engagement level of employees with a negative experience. It also shows that they are eight times more likely to want to stay with a company.
Ultimately, a positive employee experience translates into customer experience. Firstly, engaged employees are more likely to have a deep understanding of the company’s products and services. It allows them to provide accurate information and valuable insights to customers. Secondly, when employees feel a sense of ownership and pride in their work, they are more inclined to go the extra mile to resolve customer issues and exceed expectations.
This proactive attitude can create memorable moments for customers, enhancing their perception of the brand. After a positive customer service experience, 89% of consumers report they are more likely to return and make another purchase.
Creating the Employee Engagement and Customer Experience Strategies
Building a successful synergy between employee engagement and customer experience requires a holistic approach. Here are five strategies worth considering.
Provide training and growth opportunities that align with both individual career aspirations and the organization’s goals. When employees see a clear path for growth, they are more likely to stay committed and engaged.
Prioritize a workplace culture that encourages open communication, collaboration, and recognition. When employees feel heard and valued, they are more likely to extend the same respect and consideration to customers.
Give employees the autonomy to make decisions that benefit customers. Empowered employees feel a greater sense of responsibility and are better equipped to address unique customer needs effectively.
Regularly gather feedback from both employees and customers to identify areas for improvement. Addressing concerns and making necessary changes demonstrates a commitment to enhancing both experiences.
Ensure that employee objectives are aligned with delivering outstanding customer experiences. When employees understand how their contributions impact customers, they are more motivated to excel.
The Importance of Building Employee-Customer Synergy
The interdependence of employee engagement and customer experience cannot be understated. By nurturing a positive employee experience, businesses lay the foundation for better job performance and exceptional customer experiences. The CX EX synergy that emerges from this approach creates a virtuous cycle where engaged employees drive improved customer interactions that lead to enhanced loyalty, brand advocacy, and, ultimately, business success. Recognizing and embracing this synergy is not just a strategy; it’s a necessity in today’s competitive marketplace.
FAQs
How do we define customer experience?
We can define customer experience with five Cs: clarity, consistency, convenience, caring, and customization. By embracing clarity in communication, upholding consistency, offering convenience, demonstrating caring, and providing thoughtful customization, businesses can cultivate lasting connections and elevate the customer experience to exceptional levels.
What is the relationship between customer and employee engagement?
Customer and employee engagement are interconnected aspects of business success. Engaged employees who are committed, motivated, and satisfied deliver better customer experiences. Satisfied customers, in turn, positively impact employee morale by validating their efforts. This symbiotic relationship between CX and EX fosters a virtuous cycle, enhancing overall organizational performance and promoting loyalty both internally and externally.
How does employee engagement affect customer experience?
Employee engagement significantly influences the customer experience. Engaged employees are more motivated, productive, and committed to providing excellent service. Their positive attitude and dedication translate into better interactions with customers, leading to improved satisfaction, loyalty, and, ultimately, a more positive brand image.
Tarek Kamil is a tech enthusiast and entrepreneur striving to create innovative solutions that positively impact the digital world. With a passion for blending technology and creativity, he aims to inspire and make a difference through his ventures.
Read Shep’s latest Forbes article: Nine Out Of 10 Companies Will Require Employees To Return To The Office
Achieving success in business goes beyond offering quality products and services. Both employee engagement and customer experience are vital elements, and with some effort, it isn’t difficult for companies to build meaningful synergy between them.
A telling study by Dimension Data reported that 84% of companies that improved their customer experience saw an uplift in revenue. The reality is that the connection (or lack thereof) between employee engagement and customer experience can seriously impact business performance. When organizations recognize the significance of nurturing a positive employee experience (EX) to enhance the customer experience (CX), it creates a powerful synergy that propels the company toward unprecedented success.
The Interplay of Employee Engagement and Customer Experience
It’s important to identify the difference between customer experience and employee engagement. Only then can you relate to how the two affect each other.
Employee engagement refers to the emotional commitment and dedication that employees have towards their company or organization. On the other hand, customer experience encompasses all interactions and touchpoints a customer has with the company, primarily shaping their perceptions and loyalty. Customer experience demands that companies offer convenience, consistency, a demonstration of caring, customization of customers’ needs, and an ability to develop lasting connections with their customers.
The concept of employee engagement and customer experience working in tandem might seem abstract at first glance, but the connection is logical and evident. Harvard Business Review (HBR) shows there is a link between employee engagement and customer satisfaction.
When employees are engaged and motivated, they are more likely to deliver exceptional customer service. Engaged employees are not only productive, but they also exhibit enthusiasm and a genuine desire to create positive interactions with customers. These interactions almost always translate into improved customer experiences, fostering loyalty and advocacy.
Customers can sense when an employee (or company) is genuinely invested in their needs, leading to stronger relationships and higher customer satisfaction rates. In their 2009 meta-analysis presented by Gallup, Harter et al. found that business units scoring in the top 25% of engagement had customer ratings/loyalty 10% higher than business units scoring in the bottom 25% of engagement.
The Relationship Between CX and EX
The relationship between employee experience and customer experience can be encapsulated in the term “CX EX synergy.” This concept recognizes that the level of employee engagement and satisfaction directly influences the quality of interactions between employees and customers. When employees feel valued, supported, and empowered within their roles, they are more likely to deliver personalized and empathetic service.
Research shows that people who report having a positive employee experience have 16 times the engagement level of employees with a negative experience. It also shows that they are eight times more likely to want to stay with a company.
Ultimately, a positive employee experience translates into customer experience. Firstly, engaged employees are more likely to have a deep understanding of the company’s products and services. It allows them to provide accurate information and valuable insights to customers. Secondly, when employees feel a sense of ownership and pride in their work, they are more inclined to go the extra mile to resolve customer issues and exceed expectations.
This proactive attitude can create memorable moments for customers, enhancing their perception of the brand. After a positive customer service experience, 89% of consumers report they are more likely to return and make another purchase.
Creating the Employee Engagement and Customer Experience Strategies
Building a successful synergy between employee engagement and customer experience requires a holistic approach. Here are five strategies worth considering.
#1 Invest in Employee Development
Provide training and growth opportunities that align with both individual career aspirations and the organization’s goals. When employees see a clear path for growth, they are more likely to stay committed and engaged.
#2 Foster a Positive Work Environment
Prioritize a workplace culture that encourages open communication, collaboration, and recognition. When employees feel heard and valued, they are more likely to extend the same respect and consideration to customers.
#3 Empower Employees
Give employees the autonomy to make decisions that benefit customers. Empowered employees feel a greater sense of responsibility and are better equipped to address unique customer needs effectively.
#4 Collect and Act on Feedback
Regularly gather feedback from both employees and customers to identify areas for improvement. Addressing concerns and making necessary changes demonstrates a commitment to enhancing both experiences.
#5 Align Goals
Ensure that employee objectives are aligned with delivering outstanding customer experiences. When employees understand how their contributions impact customers, they are more motivated to excel.
The Importance of Building Employee-Customer Synergy
The interdependence of employee engagement and customer experience cannot be understated. By nurturing a positive employee experience, businesses lay the foundation for better job performance and exceptional customer experiences. The CX EX synergy that emerges from this approach creates a virtuous cycle where engaged employees drive improved customer interactions that lead to enhanced loyalty, brand advocacy, and, ultimately, business success. Recognizing and embracing this synergy is not just a strategy; it’s a necessity in today’s competitive marketplace.
FAQs
How do we define customer experience?
We can define customer experience with five Cs: clarity, consistency, convenience, caring, and customization. By embracing clarity in communication, upholding consistency, offering convenience, demonstrating caring, and providing thoughtful customization, businesses can cultivate lasting connections and elevate the customer experience to exceptional levels.
What is the relationship between customer and employee engagement?
Customer and employee engagement are interconnected aspects of business success. Engaged employees who are committed, motivated, and satisfied deliver better customer experiences. Satisfied customers, in turn, positively impact employee morale by validating their efforts. This symbiotic relationship between CX and EX fosters a virtuous cycle, enhancing overall organizational performance and promoting loyalty both internally and externally.
How does employee engagement affect customer experience?
Employee engagement significantly influences the customer experience. Engaged employees are more motivated, productive, and committed to providing excellent service. Their positive attitude and dedication translate into better interactions with customers, leading to improved satisfaction, loyalty, and, ultimately, a more positive brand image.
Tarek Kamil is a tech enthusiast and entrepreneur striving to create innovative solutions that positively impact the digital world. With a passion for blending technology and creativity, he aims to inspire and make a difference through his ventures.
Read Shep’s latest Forbes article: Nine Out Of 10 Companies Will Require Employees To Return To The Office
September 26, 2023
Why You Shouldn’t Yell at Customer Service Agents – And More
Someone asked me a question: Sometimes I’m so frustrated when I call a company’s customer service number. I try to be nice, but that doesn’t always work. What do you think if I yell at them?Here is my answer: A couple of old expressions come to mind. First, “The squeaky wheel gets the oil,” which means if you make enough noise, you might get some action. On the other hand, another expression might be more appropriate for these situations: “You catch more flies with honey than you do with vinegar.” So, be friendly but stern. At the beginning of the conversation, note the agent’s name and try to build a rapport. This also gives you a name to reference if you aren’t getting your problem resolved. Be direct about the problem, but don’t lose your temper. If you feel you’re getting angry, stop and pause. You can ask for a supervisor. And if you really think you are 100% right and the customer support agent is wrong, consider ending the call and calling back to speak with a different agent who may respond differently. I’m amazed at how often I call a company and talk to two or more people, getting a different answer each time.
So that’s my advice for the customer.
Now, let’s switch to the business on the receiving end of the customer’s disappointment and anger and discuss the problem.
I’ve covered how to handle angry customers many times, so let’s not go there again. If you go to www.CustomerServiceArticles.com, you will find many articles covering that topic. Instead, I want to emphasize the last part of my response to the question: sometimes, customer service agents – and other employees – have different answers to the same questions. The problem is a training issue.
My comment about not being surprised about getting different answers comes from my experience that companies don’t often focus on answers to common sense questions. The reason is that the answers should be common sense. But that doesn’t guarantee a consistent response from one employee to the next.
Create a database of customer questions and answers and train employees to use it. The goal is to respond with the same answer every time. When a customer doubts the answer and calls back only to get a different answer from a different employee, it erodes the customer’s confidence, not to mention the frustration the customer experiences by not getting the right answer the first time. In short, consistency creates confidence.
By the way, if you have any questions about customer service or customer experience, reach out to me on any social media channel – I’m pretty much everywhere. I’ll answer your question on social media, in my weekly customer service newsletter, on my Amazing Business Radio podcast, or on my Be Amazing or Go Home TV show. And be sure to use the hashtag #AskShep.
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops at www.Hyken.com. Connect with Shep on LinkedIn.
September 25, 2023
The Impact of Tipping and “Tipflation” on Customer Satisfaction
Top Takeaways:
The frequency of tipping, or “tipflation,” has increased across industries. Businesses should consider tipping practices’ impact on customer satisfaction and carefully evaluate when and how tipping should be implemented.
Rising prices and increased pressure to tip can create a sense of guilt for consumers. This may lead some individuals to avoid experiences where they feel obligated to over-tip. Businesses should be mindful of these factors and strive to find a balance that doesn’t cause customer discomfort.
High customer satisfaction ratings contribute to the success of brands and can be indicators of financial performance. Companies that excel in simplicity, convenience, and NPS scores tend to outperform the market collectively.
Positive experiences in one industry can shape customer expectations in others. For example, exceptional customer service at an Apple store can set the bar for expectations in restaurants and other industries.
While technology can enhance service delivery, it should be working well and dependable before implementation. Reliability is crucial to maintaining positive customer experiences and satisfaction.
Plus, Shep and Forrest discuss ways to increase your customer satisfaction scores. Tune in!
Quotes:
“When tipping becomes a common expectation in service interactions, consumers will mentally factor it into the price and value perceptions.”
“Customer satisfaction is the aggregate of all our experiences with the company over time. If we feel that tipping, in some industries, is now part of a business practice that we didn’t sign up for, it will inflate the perceived price, which may negatively impact the consumer.”
“There are brands out there that strongly impact our expectations, and we use our experiences with them as a benchmark when forming expectations for other brands, even those that are not in the same industry.”
“Be customer-centric. Think about what your customers will be going through throughout their experience. If you can maintain that focus, you can improve customer satisfaction.”
Forrest Morgeson is the Director of Research at the American Customer Satisfaction Index. He is an Associate Professor of Marketing at Michigan State University, where he teaches marketing management, marketing strategy, and marketing research courses to EMBA and MSMR students.
Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio .
This episode of Amazing Business Radio with Shep Hyken answers the following questions and more:
What is the impact of tipping on customer satisfaction scores?
How can businesses improve customer satisfaction?
How can businesses ensure that technology improves customer satisfaction?
What is the negative impact of “tipflation” on consumer perception and value?
How does increased tipping impact consumer behavior?
The frequency of tipping, or “tipflation,” has increased across industries. Businesses should consider tipping practices’ impact on customer satisfaction and carefully evaluate when and how tipping should be implemented.
Rising prices and increased pressure to tip can create a sense of guilt for consumers. This may lead some individuals to avoid experiences where they feel obligated to over-tip. Businesses should be mindful of these factors and strive to find a balance that doesn’t cause customer discomfort.
High customer satisfaction ratings contribute to the success of brands and can be indicators of financial performance. Companies that excel in simplicity, convenience, and NPS scores tend to outperform the market collectively.
Positive experiences in one industry can shape customer expectations in others. For example, exceptional customer service at an Apple store can set the bar for expectations in restaurants and other industries.
While technology can enhance service delivery, it should be working well and dependable before implementation. Reliability is crucial to maintaining positive customer experiences and satisfaction.
Plus, Shep and Forrest discuss ways to increase your customer satisfaction scores. Tune in!
Quotes:
“When tipping becomes a common expectation in service interactions, consumers will mentally factor it into the price and value perceptions.”
“Customer satisfaction is the aggregate of all our experiences with the company over time. If we feel that tipping, in some industries, is now part of a business practice that we didn’t sign up for, it will inflate the perceived price, which may negatively impact the consumer.”
“There are brands out there that strongly impact our expectations, and we use our experiences with them as a benchmark when forming expectations for other brands, even those that are not in the same industry.”
“Be customer-centric. Think about what your customers will be going through throughout their experience. If you can maintain that focus, you can improve customer satisfaction.”
About:
Forrest Morgeson is the Director of Research at the American Customer Satisfaction Index. He is an Associate Professor of Marketing at Michigan State University, where he teaches marketing management, marketing strategy, and marketing research courses to EMBA and MSMR students.
Shep Hyken is a customer service and experience expert, New York Times bestselling author, award-winning keynote speaker, and host of Amazing Business Radio .
This episode of Amazing Business Radio with Shep Hyken answers the following questions and more:
What is the impact of tipping on customer satisfaction scores?
How can businesses improve customer satisfaction?
How can businesses ensure that technology improves customer satisfaction?
What is the negative impact of “tipflation” on consumer perception and value?
How does increased tipping impact consumer behavior?
September 24, 2023
Top 5 Customer Service & CX Articles for Week of September 25, 2023
Each week, I read many customer service and customer experience articles from various resources. Here are my top five picks from last week. I have added my comment about each article and would like to hear what you think too.
Decoding CSAT: What It is and How to Calculate Your Score by Dorcas Adisa
(Sprout Social) In this article, we answer everything you need to know about customer satisfaction score (CSAT). We’ll discuss its importance and how to calculate it. Further, we’ll also share strategies to help you improve your CSAT score.
My Comment: The CSAT score, or “Customer Satisfaction” score, is a popular assessment that many companies use. Simply put, this survey tool helps measure the customer’s “satisfaction” with the company’s product or service. This comprehensive article covers the advantages of the survey and how to calculate the score correctly. Just when you think you understand CSAT, think again. You may learn something new from this article.
One Big Reason Costco Has Better Customer Service Than Other Stores by Dana George
(The Motley Fool Ascent) If you’re a Costco member who has dealt with the store’s customer service, chances are you’ve experienced a positive exchange. And that may be because Costco employees are happier overall. Of course, there’s no way to know for sure how another person feels, but everything — from providing customer service to helping members find what they’re looking for — seems to come easier to Costco employees. Is it possible that the primary reason Costco customer service enjoys such a strong reputation lies in its ability to bounce back from pandemic-related job losses?
My Comment: Costco is a big box retailer that is recognized for delivering an excellent customer experience that consistently garners high ratings and reviews from its customers (members). How do they do it? This article shares some of their methods, with an emphasis on how they staff their stores. Here’s a chance to learn from a customer service icon.
Do Your Customers Feel Honored? by Chip Bell
(Forbes) Honoring comes in countless forms. We honor with ceremony, ritual, and eloquent elocution. Awards, plaques, and decorations publicize our expressions. But honoring is bottom line about how a person is treated. In the words of Eliza Doolittle in the hit musical My Fair Lady, “The difference between a lady and a flower girl is not how she behaves, but how she is treated.”
My Comment: Chip Bell is no stranger to this weekly roundup. He just released another article in Forbes about making your customers feel honored to do business with you. The first question that came to my mind is, “Shouldn’t we be the ones who are honored to do business with a customer?” Chip flips this around and suggests that if you are delivering a high enough level of customer experience, your customers will feel honored to be doing business with you.
How to Overcome Cross-Functional Collaboration Obstacles in CX by Kelechi Okeke
(CXService360) In the field of Customer Experience (CX) management, one of the most significant challenges that organizations face is ensuring that their CX initiatives run smoothly across various departments and teams. While cross-functional collaboration is essential for delivering exceptional customer experiences, it can also become a hindrance if not managed effectively.
My Comment: Even with the best intentions to deliver great CX, some companies fail to get everyone (and every department) in alignment. It takes cross-functional collaboration. Several years ago, I met the author, Kelechi Okeke, when I was at a speaking engagement in Nigeria. In addition to his writing and consulting in the CX space, Kelechi works for a company, so he’s speaking and writing from experience. His take on this problem is worth reading. He calls upon several other industry experts, myself included, to share their thoughts on how to get everyone on board without any cross-functional breakdowns.
Is the Customer Service Recession Ending? By John Dijulius
(The DiJulius Group) Since the middle of the pandemic, customer experience in nearly all industries has dropped to a two-decade low. Customers, patients, clients, tenants, guests, or whatever you may call the person buying your services and products have been frustrated during these tough times. Due to an unprecedented booming economy, leaders started taking shortcuts, solely focusing on sales and profit, reducing their hiring standards to fill positions, and expecting and demanding more of their employees including their customer service representatives, yet not investing in the employee culture and customer experience. All of this has caused employee burnout, low employee morale, high turnover, inconsistency including bad experiences along the customer journey, and customer attrition.
My Comment: Since the pandemic, many organizations have struggled to deliver a better customer service experience. I’ve never referred to this problem as a customer service recession, but it makes sense. In this article, customer service expert John DiJulius shares his take on why he believes a turn-around is coming soon.
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops at www.Hyken.com. Connect with Shep on LinkedIn.
Decoding CSAT: What It is and How to Calculate Your Score by Dorcas Adisa
(Sprout Social) In this article, we answer everything you need to know about customer satisfaction score (CSAT). We’ll discuss its importance and how to calculate it. Further, we’ll also share strategies to help you improve your CSAT score.
My Comment: The CSAT score, or “Customer Satisfaction” score, is a popular assessment that many companies use. Simply put, this survey tool helps measure the customer’s “satisfaction” with the company’s product or service. This comprehensive article covers the advantages of the survey and how to calculate the score correctly. Just when you think you understand CSAT, think again. You may learn something new from this article.
One Big Reason Costco Has Better Customer Service Than Other Stores by Dana George
(The Motley Fool Ascent) If you’re a Costco member who has dealt with the store’s customer service, chances are you’ve experienced a positive exchange. And that may be because Costco employees are happier overall. Of course, there’s no way to know for sure how another person feels, but everything — from providing customer service to helping members find what they’re looking for — seems to come easier to Costco employees. Is it possible that the primary reason Costco customer service enjoys such a strong reputation lies in its ability to bounce back from pandemic-related job losses?
My Comment: Costco is a big box retailer that is recognized for delivering an excellent customer experience that consistently garners high ratings and reviews from its customers (members). How do they do it? This article shares some of their methods, with an emphasis on how they staff their stores. Here’s a chance to learn from a customer service icon.
Do Your Customers Feel Honored? by Chip Bell
(Forbes) Honoring comes in countless forms. We honor with ceremony, ritual, and eloquent elocution. Awards, plaques, and decorations publicize our expressions. But honoring is bottom line about how a person is treated. In the words of Eliza Doolittle in the hit musical My Fair Lady, “The difference between a lady and a flower girl is not how she behaves, but how she is treated.”
My Comment: Chip Bell is no stranger to this weekly roundup. He just released another article in Forbes about making your customers feel honored to do business with you. The first question that came to my mind is, “Shouldn’t we be the ones who are honored to do business with a customer?” Chip flips this around and suggests that if you are delivering a high enough level of customer experience, your customers will feel honored to be doing business with you.
How to Overcome Cross-Functional Collaboration Obstacles in CX by Kelechi Okeke
(CXService360) In the field of Customer Experience (CX) management, one of the most significant challenges that organizations face is ensuring that their CX initiatives run smoothly across various departments and teams. While cross-functional collaboration is essential for delivering exceptional customer experiences, it can also become a hindrance if not managed effectively.
My Comment: Even with the best intentions to deliver great CX, some companies fail to get everyone (and every department) in alignment. It takes cross-functional collaboration. Several years ago, I met the author, Kelechi Okeke, when I was at a speaking engagement in Nigeria. In addition to his writing and consulting in the CX space, Kelechi works for a company, so he’s speaking and writing from experience. His take on this problem is worth reading. He calls upon several other industry experts, myself included, to share their thoughts on how to get everyone on board without any cross-functional breakdowns.
Is the Customer Service Recession Ending? By John Dijulius
(The DiJulius Group) Since the middle of the pandemic, customer experience in nearly all industries has dropped to a two-decade low. Customers, patients, clients, tenants, guests, or whatever you may call the person buying your services and products have been frustrated during these tough times. Due to an unprecedented booming economy, leaders started taking shortcuts, solely focusing on sales and profit, reducing their hiring standards to fill positions, and expecting and demanding more of their employees including their customer service representatives, yet not investing in the employee culture and customer experience. All of this has caused employee burnout, low employee morale, high turnover, inconsistency including bad experiences along the customer journey, and customer attrition.
My Comment: Since the pandemic, many organizations have struggled to deliver a better customer service experience. I’ve never referred to this problem as a customer service recession, but it makes sense. In this article, customer service expert John DiJulius shares his take on why he believes a turn-around is coming soon.
Shep Hyken is a customer service/CX expert, award-winning keynote speaker, and New York Times bestselling author. Learn more about Shep’s customer service and customer experience keynote speeches and his customer service training workshops at www.Hyken.com. Connect with Shep on LinkedIn.
