Eight Reasons For Better Online Self-Service
Is 2012 the year that virtual assistant technology and other forms of next-generation online self-service dominate the customer service landscape? In this article, we'll explore the topic of online self-service and provide you with eight compelling reasons for why we think it's time for online self-service to shine.
Online Self-Service Primer
Before we dive into the eight reasons, let's first ensure we have a solid understanding of online self-service. Online self-service is about ensuring your customers can get the answers to their questions directly from a company's website or other online destination. But it's more than that. Also commonly referred to as "virtual agent software," "virtual assistant software," and "Web self-service," online self-service tools often leverage an interactive question-and-answer platform that addresses customer questions expressed in natural language, with a single, accurate, consistent and approved answer, regardless of the channel the customer asked the question in.
1. Your customers PREFER to self-serve, despite what you might think.
In their February, 2012, article for Forbes.com, Harvard Business Review Press authors Frances Frei and Anne Morriss said it best: "Excellence is being great at the things your customers value most." When it comes to online customer service, what customers value most is the ability to self-serve online for quick answers to their questions and move on. This preference for self-reliance is strong, and proven. Corporate Executive Board says 60.4% of surveyed customers attempt to use a company's Web self-service as the first method for resolving their customer service issue.
2. You can seriously differentiate your brand with great online self-service.
A published Forrester Research, Inc. report reveals that 86% of customer service decision-makers say that a good customer experience is one of their top strategic priorities. Yet, only 30% of these companies have dedicated budget to customer experience initiatives. This huge disparity between what companies say versus what they actually do to provide a positive customer experience is significant. Consequently, this represents a tremendous opportunity for companies to leverage online self-service as a differentiation play.
3. The status quo fails miserably: Most online self-service features just don't cut it.
In her report, "Understanding Customer Service Satisfaction to Inform Your 2012 eBusiness Strategy" (January 23, 2012), Diane Clarkson, analyst e-business and channel strategy at Forrester Research, finds that consumers' preferences for online customer service channels are evolving and that more consumers have adopted online self-service in the past two years. However, some types of tools have also disappointed consumers. A case in point is the traditional website FAQ and help pages. The findings in this same report indicate that just 51% of consumers are ultimately satisfied when using these tools.
4. Other service channels are just plain expensive.
Corporate Executive Board's position is that there are huge cost savings in building out Web self-service. It's a position that's impossible to argue against, given the generally accepted numbers. On average, a Web self-service transaction costs 10 cents per transaction, while a live call can cost more than $7.50. In addition to the direct costs, however, is the opportunity cost of lost revenue when your online self-service lets a customer down.
5. Poor online experiences cause customers to defect-and take revenue dollars with them.
On the Internet, where alternatives and competitors are always just one click away, a poor self-service experience also impacts top-line revenue. A significant portion of customers—as much as 45% of US online adults, according to Forrester—will simply abandon a website or find another solution if they can't find what they are looking for.
6. Thanks to social media, customers can publicly expose your online service shortcomings in seconds.
With social media, it's now easy, tempting and increasingly common for customers to publicly flame organizations that let them down. A survey conducted in 2011 by NM Incite (a Neilson/McKinsey company) found that 51% of social media users post negative feedback.
Interestingly, social media expert Jay Baer points out that public gripes tend to be about the experience with the particular customer service channel. "In almost every case, the people complaining on Twitter are doing so because your company already failed to satisfy them in one or more traditional customer service channels," Baer explains.
7. A satisfied customer is more likely to be a loyal customer-so it's time to get online self-service right.
Kate Leggett, a senior analyst for business process at Forrester, describes customer loyalty as having economic benefits which can be measured over three dimensions: willingness to consider another purchase; likelihood to switch business to a competitor; and likelihood to recommend to a friend or colleague. And the data behind Forrester's research speaks for itself showing that a 10% increase in a company's customer experience score can translate into $1 billion in a revenue.
8. The rise of mobile devices means online self-service is more important than ever to consumers.
Consumer desire to stay connected has reached epic proportions. More than three quarters of the world's population are now mobile subscribers. Non-Internet enabled phones have all but disappeared in developed countries, and the surging popularity of mobile devices are predicted to outpace PC sales by 2016.
All eight of these reasons point to one truth: your company's success in terms of the customer experience will be largely won or lost online. Effective online self-service is the cornerstone of these online service interactions.
How does your website measure up? Learn more about a new online self-service assessment tool that helps companies evaluate website effectiveness by sending an email to eval@intelliresponse.com.
For more information about IntelliResponse, visit www.IntelliResponse.com.