Digital Customer Service (DCS)

1. DIGITAL CUSTOMER SERVICE Toward a Seamless Customer Experience © Operational Excellence Consulting. All rights reserved.

2. NOTE: This is a PARTIAL PREVIEW. To download the complete presentation, please visit: https://www.oeconsulting.com.sg LEARNING OBJECTIVES Acquire knowledge and the key concepts of Digital Customer Service Describe the approach, practices and skills for delivering efficient and effective Digital Customer Service Highlight the pitfalls to avoid and success factors for Digital Customer Service 2 © Operational Excellence Consulting

3. CONTENTS 02 03 04 01 INTRODUCTION & KEY CONCEPTS OF DIGITAL CUSTOMER SERVICE APPROACHES & PRACTICES OF DIGITAL CUSTOMER SERVICE TECHNIQUES & SKILLS FOR HUMAN- SUPPORTED DIGITAL CHANNELS PITFALLS TO AVOID & FACTORS FOR SUCCESS 3 © Operational Excellence Consulting

4. DRIVEN BY TECHNOLOGY, DIGITAL IS THE NEW WAY OF THINKING AND DOING THINGS Companies now are increasingly inclined toward altering their business models to accommodate the changing customer demands. 4 © Operational Excellence Consulting

5. DIGITAL CUSTOMER SERVICE FORMS A CRUCIAL PART OF BUSINESS MODELS TODAY Surprisingly, this change is not driven by the business ecosystem. Instead, it is the customers changing behavior that forms the core of this shift towards digital customer service. 5 © Operational Excellence Consulting

6. EXAMPLES OF TOUCHPOINTS ALONG A DIGITAL CUSTOMER EXPERIENCE JOURNEY Viewing social media ads, e.g. Facebook Viewing a website on mobile Reading customer reviews Browsing through products online Testing out a promo code in the checkout Completing an online transaction Receiving an order confirmation email Logging in to their personal account Receiving a return/refund confirmation email Posting a product review on social media Messaging with an AI chatbot for assistance Processing a return/refund online 6 © Operational Excellence Consulting

7. 80% of customers now prefer to get a response in one hour or less, which makes it vital for you to cater to customer requests coming from all directions. 7 Source: Salesforce Research, 2021 © Operational Excellence Consulting

8. THE EVOLUTION OF COMMUNICATION –THE SLOW MARCH TOWARD SPEED PONY EXPRESS POSTAL SERVICE PHONES EMAILING INSTANT MESSAGING Increasing speed of communication 8 © Operational Excellence Consulting

9. SOME FACTS ABOUT DIGITAL CUSTOMER SERVICE 88% 58% 80% Of customers expect companies to accelerate digital initiatives due to COVID-19 Of customers expect to do more online shopping after the pandemic than before Of business buyers expect to conduct more business online 68% 54% 76% Of customers say they are online more often than not Of customers expect consistent interactions across departments Of customers say it generally feels like sales, service, and marketing don’t share information 9 Sources: Salesforce Research, 2021 © Operational Excellence Consulting

10. INCREASED DEMAND FOR DIGITAL CUSTOMER SERVICE Customer Preferences Competition Cost Scaling Live channels such as phone, chat, and email are much more costly than digital channels, and many companies are under pressure to reduce the cost to serve customers. Scaling resources to meet increased demand, especially from consumers that instinctively reach for their mobile device to engage with companies throughout their entire purchase. Customer service organizations are rapidly adopting digital channels and capabilities to meet customer needs and set them apart from their competition. Customers demand their channel of choice, whatever that channel may be, to engage with a company. 10 © Operational Excellence Consulting

11. WHAT IS DIGITAL CUSTOMER SERVICE? Digital customer service (DCS) is a company’s collective efforts to engage customers through digital means. This includes delivering support and marketing processes over digital channels, like live chat, email, video chat, chatbots, or text messaging. 11 © Operational Excellence Consulting

12. WHAT CHANNELS DOES DIGITAL CUSTOMER SERVICE INCLUDE? Messaging Voice Email Digital Customer Service Social AI & Chatbots Co- Video Browsing Self Service 12 © Operational Excellence Consulting

13. WHAT DIGITAL CUSTOMER SERVICE IS NOT Adding a dumb chatbot or other digital silos For millennials and Gen Z who demand online experiences Only for e-commerce companies Creating a support ticket Bouncing customers from channel to channel Automation or buying a new CS system Doing away with personalization Replacing human support with AI 13 © Operational Excellence Consulting

14. WHY IS DIGITAL CUSTOMER SERVICE IMPORTANT? Differentiation from the competition Increased customer engagement Improved customer journey Improved operational effectiveness Reduced agent attrition Higher customer satisfaction Increased revenue Lower cost to serve 14 © Operational Excellence Consulting

15. THE IDEAL CUSTOMER SERVICE –BALANCING THE HUMAN TOUCH OF TRADITIONAL CHANNELS AND THE EFFICIENCY OF DIGITAL TRADITIONAL CHANNELS DIGITAL CHANNELS VS Examples: phone and face-to-face Examples: social media and live chat Labor intensive Require less manpower Talk to one person at a time Serve multiple customers at a time Low efficiency High efficiency Require human support Require less/no human support Higher cost to serve Lower cost to serve 15 © Operational Excellence Consulting

16. CONSUMERS EMBRACE DIGITAL BUT STILL CALL FOR SUPPORT In a survey, 82% of consumers in a sample from advanced economies use a web self-service channel. However, the survey also found that 82% of consumers still call contact centers to speak with agents. Self-serve Human assisted 82 82 60 46 46 30 28 Interactive voice response Mobile app Web Community forums Voice agent Live chat Social media The continued dependence on human assistance indicates that companies and their customers are not fully capturing the benefits of digital customer service. 16 Source: BCG-NICE Consumer Survey, 2016 © Operational Excellence Consulting

17. WHY DOES DIGITAL CUSTOMER SERVICE FAIL? By adding new digital silos, many companies have created disjointed islands of context, knowledge bases, and automation. 17 © Operational Excellence Consulting

18. EXCELLENT DIGITAL CUSTOMER SERVICE ENTAILS PERSONLIZATION AND EMPATHY “ Customers demand digital-first convenience and are leaning on brands to innovate like never before. They’re seeking not just more personalized experiences, but empathetic ones. ” Simon Mulcahy Salesforce Chief Innovation Officer 18 Source: Adapted from Salesforce Research © Operational Excellence Consulting

19. OMNICHANNEL IS A PREREQUISITE FOR A GREAT CUSTOMER EXPERIENCE Kiosk Omnichannel support allows customers the ability to reach out on a variety of channels such as email, live chat, social media, mobile app messages and voice ● Call Center e-Commerce OMNI- CHANNEL Social Web Portal An omnichannel support system enables customers to contact you on their preferred channel, and the conversation continues between channels, ensuring all the relevant information stays in one place ● Retailer Mobile Web Chat 19 © Operational Excellence Consulting

20. BENEFITS OF BUILDING AN OMNICHANNEL EXPERIENCE Customer satisfaction Saves time and money A stronger brand Better employee experiences A better view of the customer journey Dealing with a company across multiple channels is smoother, simpler, and more intuitive. There are fewer hoops to jump through, and the business does the work for them. Over time, a powerful and lasting benefit develops from omnichannel commerce – a stronger brand. Happy customers are more likely to develop brand loyalty and recommend the business to others. Employees have better experiences at work and feel more empowered in their jobs, because they’re working within a system based on multiple channels that are robust, flexible, and effective. This improves retention and engagement. An omnichannel experience strategy gives you a bird’s-eye view of your customer’s journey, however they choose to interact with you. Insights can be gathered from the data and improvements can be made. For businesses, the smooth efficiency of an omnichannel strategy immediately delivers a return on investment by saving money and cutting down on time and resources associated with organizational silos. 20 © Operational Excellence Consulting

21. “ that, you’ll do things differently.” It takes 20 years to build a reputation and 5 minutes to ruin it. If you think about WARREN BUFFET 21 © Operational Excellence Consulting

22. STRATEGIES FOR BUILDING AN EFFECTIVE DIGITAL CUSTOMER SERVICE Make sure customers can always reach a human being Understand which channels your customers use Give customers self- service options Train agents so they can deliver the best digital customer service possible Give agents the resources they need for success Monitor analytics 22 © Operational Excellence Consulting

23. HOW CAN YOU DEVELOP AN OMNICHANNEL APPROACH? 1 1 4 4 Identify and break up organizational silos Standardize measurements 2 2 5 5 Design for users, not channels Take a journey-level approach 3 3 6 6 Integrate around a centralized system Apply analytics to the entire dataset 23 © Operational Excellence Consulting

24. DIGITAL CUSTOMER SERVICE CHANNELS Chatbot Email Live Chat Mobile Messaging Social Media Video Chat “Contact Us” Form Knowledge Base Phone Support Social Groups & Online Communities 24 © Operational Excellence Consulting

25. COMMON MISTAKES TO AVOID IN SOCIAL MEDIA SUPPORT Sending out over- abbreviated tweets and too many #hashtags Sounding like a robot and forgetting to be human Criticizing the customer or making a confrontational reply Not managing negative feedback Not providing a reply or taking too long to respond to customer feedback Not apologizing for mistakes or providing an explanation Not providing personalized customer service Lack of empathy with customer issues 25 © Operational Excellence Consulting

26. DIGITAL CUSTOMER SERVICE –DO’S Resolve the customer problem in the first touchpoint Promptly respond to social media comments and posts Offer multiple support channels Provide self-service options, e.g. FAQs Simplify automated phone systems Provide personalized customer service Develop support team capacity and skills Practice good messaging etiquette Thank the customer for their time and feedback Collect and analyze customer feedback Be empathetic to customer’s challenges Provide human support 26 © Operational Excellence Consulting

27. ONBOARDING SERVICE AGENTS TO DIGITAL CUSTOMER SERVICE Provide knowledge and resources Create a feedback mechanism Implement a training program Teach digital media etiquette Give agents a chance to familiarize themselves with new tools and technology. If possible, consider a shadowing program where new agents can observe someone who has already been trained. Digital channels, especially social media, have their own rules. Help your agents learn the nuances, such as the meaning and usage of popular emojis. Provide a knowledge base where information is consolidated and readily accessible, and make sure agents know who to talk to if an issue arises. Provide regular feedback from the start, taking advantage of customer feedback to provide specific examples and opportunities for improvement. 27 © Operational Excellence Consulting

28. TOP FIVE SKILLS TO IMPROVE YOUR DIGITAL CUSTOMER SERVICE Attentiveness Good written communication Responsiveness Social skills Empathy Pay attention to detail when juggling multiple chats or emails at the same time. Agents need to read carefully, so they can fully understand the customer’s issue and identify how to help. Customers expect companies to respond in an hour or less. Digital customer service agents need to have a sense of urgency in everything they do. On digital channels, it takes more effort for your personality to shine through. Add emojis, gifs, or friendly banter to elevate your digital customer experience and make it more enjoyable for the customer. Agents need to actively listen to understand what’s going on with the customer. Emotions, both good and bad, can be harder to identify in written communication. Agents should always assume good intent, and show empathy for the customer. Great email support requires strong writing skills. You need to be able to summarize issues clearly and concisely without including unnecessary information that could confuse the customer. 28 © Operational Excellence Consulting

29. FOUR IMPERATIVES TO PROMOTE SUCCESS IN DIGITAL CUSTOMER SERVICE Co-opt the contact center to support digital services Reduce failure points by analyzing human and digital contacts Understand customer behavior by analyzing data across all channels Integrate digital self- serve and human support 29 Source: BCG, 2017 © Operational Excellence Consulting

30. ABOUT OPERATIONAL EXCELLENCE CONSULTING Operational Excellence Consulting is a management training and consulting firm that assists organizations in improving business performance and effectiveness. Based in Singapore, the firm’s mission is to create business value for organizations through innovative design and operational excellence management training and consulting solutions. For more information, please visit www.oeconsulting.com.sg © Operational Excellence Consulting