A study by Pitney Bowes Software shows that the lack of integration and the continuous increase in the number of channels stimulates multichannel communication and promotes disloyalty from customers: thus, 32% of customers’ departures are due to fragmented communications while 26% of these departures are due to mass marketing.
In our last blog, we had demonstrated the best methodology to establish the right service level and we had presented different statistics to enable you to maximize your customers’ satisfaction all the while meeting operational objectives.
Since companies are facing the need to constantly grow and provide services in an omnichannel market, the objective of this publication is to demonstrate the financial importance of integrating your omnichannel strategy effectively. This will allow you to ensure your customer is contacting you using the best means of communication, taking into consideration the reason for his interaction with your organization.
Did you know that according to a New Voice study, 75% of customers think that a call is the most efficient way to get an answer quickly? However, calls are the most expensive channel for an organization.
Here is a table that shows the average cost of a contact for a single customer interaction:
|Inbound Call (Call Center)||5.84$ / call|
|Outbound Call (Call Center)||6.34$ / call|
|Chat||5.00$ / contact|
|2.50$ to 5.00$|
|Social Media||1.00$ to 3.00$|
It’s easy to estimate the costs of your interaction! Contact us for more details!
To optimize the costs of its customer service and to offer its customers an effortless service experience, an organization must direct the customer to the most appropriate channel for the type of inquiry all the while ensuring it is the most profitable channel for the company.
Let’s look at an example: You are a telecommunications company and your client wants to change one of his TV channels. By offering a “self-serve” option, you avoid a call from the customer as he can now do it himself. Therefore, in addition to simplifying the work of your customer you avoid a call and you reduce your overall operating costs. Imagine if we apply this scenario to millions of subscribers who call once a year to change a single channel:
5.84$ (average cost of an inbound call) * 1,000,000 (subscribers) * 1 (one call per year)
= 5,840,000$ spent to change a single TV channel
Now imagine that you implement a “self-serve” application and that it reduces your total calls by 20%:
0.10$ (Average cost of Self-Serve) *(1,000,000 (subscribers) * 1 (one call per year))*20%
= 20,000$ spent to change one TV channel for 20% of your customers
(5.84$(Average cost for one inbound call) * 800,000 (phone contacts)) + 20,000$ (self-serve costs)
= 4,692,000$ new total cost attributed to the change of one TV channel
(Our example is magnified to demonstrate the impact of such a change for low-value transactions)
Your total cost for managing the TV channels is now $ 4,692,000 and you have just saved 1,148,000$! Obviously, during the call, you would have had opportunities to optimize the customer’s shopping cart and increase its value. However, you are also asking your customer to make some efforts which has an impact on your CES that measures the “Customer Effort Score”. To meet customer’s expectations, we need to get out of our comfort zone and find new ways to facilitate the customer experience.
Transpose the idea of this example to your organization and you will achieve significant savings.
Another example to demonstrate the importance of establishing an integrated omnichannel interaction strategy to adequately respond to your customers is to avoid this type of situation:
A customer sends an email for a non-urgent matter. Having not received a response 24h after sending his email, he decides to call you. Your call center agent helps the customer resolve the situation. Another employee responds to this customer’s email 6 hours later (because he was not notified that the customer had called). You have doubled your costs for a single question.
Managing an omnichannel environment is a must to meet the needs of customers. Establishing the right service levels in such an environment is essential, as beyond the establishment of an omnichannel strategy, we need to satisfy our customers all the while considering the costs associated with this strategy.
A 2015 study by the Aberdeen Group, which compared companies that offered chat vs those that do not offer chat, showed the following results:
- 34% annual improvement in customer satisfaction;
- 4x annual increase in cross-sell and up-sell revenue.
- 20% improvement in customer abandonment rates;
- 3x annual improvement in the use of agents in customer contacts;
- 6x more improvement in the allocation of costs for customer management.
All this can be achieved just by integrating chat in your omnichannel portfolio.
To summarize, think of the customer experience as a trip that your customers go on within your organization. Each of your contact points through a channel is a means of transport from one stage to another in the buying and repurchase journey. These moments of truth during which there may be a conflict between promises and the delivery of the service affect the customers’ likelihood to continue the journey with you! When your customers do business with you, think about it as a holiday and make sure that it will be hassle free.
By getting your customers to easily use the most appropriate point of contact for the reason of their interactions, you can avoid customer dissatisfaction, reduce your costs and increase the repurchase probability. The quality of the experience that you offer will allow you to ensure: Purchase, Retention and Recommendations!
Need to review your strategy and analyze the different avenues of your omnichannel journey? SSA Solutions has a team of customer experience and workforce management experts to help you with all your needs.