The 21st century has brought with it a communications revolution. Since the beginning of the century, the use of multiple communication channels and online media has accelerated significantly. Traditional boundaries have been broken down, and the growing use of digital media and social networks is influencing major developments around the world. This transformation has also had a significant impact on the way organizations deliver service and sales experiences to their customers.
Today’s customers spend many hours each day online, particularly on forums and social networks. 61% do so primarily through a mobile device (TIM Survey, May 2010), which, beyond its basic functions, has become a “mobile office” and an easily accessible platform for browsing the internet and using dedicated applications. These online conversations often extend to commercial and consumer-related topics, including customers sharing their opinions about the service provided by different organizations.
In the past, every inquiry or complaint would reach a company representative directly and privately. Today, however, the dialogue between customers and companies often takes place in public. Questions, complaints, and opinions about the service customers have experienced are visible to everyone on consumer forums, social networks, or anonymous online comment sections.
Almost every organization has a presence in online and social media, whether it chooses to or not.
This new reality presents significant risks alongside considerable opportunities. Online conversations have the potential to influence both existing and prospective customers. On the one hand, every customer complaint can gain significant exposure and potentially create an online “storm,” damaging the company’s service reputation.
On the other hand, when a question or inquiry posted on a forum or social network receives a fast, high-quality response from the organization, it can significantly strengthen the organization’s reputation and create an excellent service experience.
Organizations that successfully adapt to this new reality can establish a competitive advantage in customer service.
In an increasingly competitive market, creating a sustainable competitive advantage depends largely on focusing on the customer, particularly at the points of interaction between the organization and its customers. These touchpoints provide opportunities for the organization to create customer experiences that strengthen long-term retention. (Gentile, C., Spiller, N., and Noci, G., 2007)
How Do We Address This New Reality?
How do we monitor relevant online conversations? How do we decide whom to respond to, how to respond, and when it is better not to respond at all? Which channels should be used to provide service? Should different service channels be designed for different customer segments or different stages of the customer lifecycle?
How do we synchronize all customer service channels so that the service experience remains seamless and consistent, allowing customers to move from one platform to another? Do service policies and processes need to be adapted? When is it appropriate to proactively contact customers without making them feel that “Big Brother” is watching them? And how do we manage a service crisis in online media while leveraging the advantages of information sharing for the benefit of both the organization and the customer?
First, it is important to distinguish between service across multiple channels and multichannel service (Figure 1).
Service across multiple channels allows customers to contact the organization in a variety of ways regarding different issues. Multichannel service, on the other hand, allows customers to interact with the organization through multiple interconnected channels. Customers can move from one channel to another if they choose, while the handling of their inquiry remains seamless, continuous, and consistent – in terms of branding, marketing language, and the information provided.
The multichannel service approach encompasses the full range of service channels available today, including traditional channels such as branch visits, call centers, SMS, fax, websites, and email, as well as newer channels such as mobile applications, social networks, chat, and forums.
From the customer’s perspective, each of these channels is a legitimate way to interact with the organization, and the service they receive should be consistent and responsive regardless of the channel they choose.
Based on the three characteristics described above, an organization that allows customers to choose when, where, and how they receive service, while ensuring that the information they receive remains synchronized, consistent, and continuous across channels, can provide an optimal service experience.
Successful implementation of this approach depends on several key factors:
- An organizational shift in mindset – from reactive service to proactive service
- Mapping customer needs and identifying the relevant service platforms
- Cross-functional collaboration led by the marketing and service functions
- Adapting service policies, work processes, monitoring, and documentation
- Training the appropriate team
Today, customers use a wide range of channels for service requests, complaints, and purchases. Managing customer interactions in the multichannel era introduces a new set of concepts that affects both how performance is measured and how service operations are managed.
Organizations that successfully adapt to changes that are already taking place, whether they have prepared for them or not, can overcome the associated risks and capitalize on the opportunities they create. By doing so, they can improve both business and service performance, increase customer satisfaction, and ultimately strengthen long-term customer loyalty.
By Liraz Zohar and Shimi Ezer, Multichannel Service Experts.
