The paradox of the smartphone generation is that as new products and services hit the market quickly, valuable brand loyalty continues to decline.
Consumers have more choice than ever as to which bank or energy company they use, where they buy things, or how they get home from a night out. Competition for consumer attention (and money) continues to shift power from institutions to individuals.
As a result, loyalty is increasingly something that can only be earned through excellent customer service on any platform at any given time. Here are 14 facts and statistics that frame the reasons why customer service is an urgent business need.
Consumers increasingly have a digital perspective
1. Having a smartphone strategy has long been a stakes for companies facing customers. The management consulting company McKinsey, surveyed consumers across a range of verticals. In telecommunications, for example, they found that the 90% of customer service travel started digitally, and that the 76% of telecom customers were satisfied with an all-digital service journey, compared to the 57% of satisfaction with interactions through traditional channels such as call centers.
24/7 customer service
2. A recent consumer study by West UC found that the 70% of respondents want more affordable customer service options to support 24/7 lifestyles, while the 74% agrees it's frustrating when customer service is only available. during working hours. An additional 47% would like to see more customer service options tailored to smartphones.
3. The same study by UC West found that consumer expectations regarding the company's responsiveness were high. Most want most requests to be dealt with instantly, giving the least benefit to voice calls.
4. BI Intelligence reports that customer service interactions via legacy methods have declined by 7% in the US over the past 2 years as consumers move away from traditional customer service channels like voice and email for automated alternatives like messaging.
5. BI Intelligence reports that customer service interactions via legacy methods have declined in the US by 7% over the past 2 years as consumers move away from traditional customer service channels like voice and email for automated alternatives like messaging.
The impact of poor customer service
6. Accenture estimates that the cost of customers switching due to poor customer service is $ 1.6 trillion.
7. The Digital Disconnect In Customer Engagement report goes further. It found that 52% of customers changed service over the past year due to poor customer service, with banks, resellers, and cable and satellite television providers the worst offenders.
8. Nearly half of the respondents in the same Digital Disconnect study (45%) said they would be willing to pay a higher price for products if they guaranteed a better level of service.
9. A consumer-business survey by video calling provider Sinch found that the 23% of respondents would switch to a bank that provided video calling as a customer service point of contact.
Businesses are responding
10. The use of A2P SMS continues to grow. In a recent report by analyst Ovum, A2P SMS messages were projected to rise to 1.28 tons, up from 1.16 tons in 2016.
11. The Ovum report itself indicated that the use of SMS as a channel for communicating with customers continues to grow and that usable SMS is becoming increasingly important to businesses, with the 23% of respondents stating that their use of Two-way SMS has increased over the past 12 months. Chatbots have quickly become part of the customer service mix, with most chat apps providing businesses with access to their chatbot platforms, to enable fully or partially automated interactions with customers. However, chatbots aren't limited to apps; in fact, most two-way SMS services are also powered by chatbots, such as SMS-based services that allow a bank customer to select a transaction or retrieve their account balance.
12. Organizations that have already launched chatbots have seen a reduction of up to 70% in call, chat and email requests. They also report increased customer satisfaction and 33% savings for voice engagement, according to Gartner.
13. According to Gartner, the 25% of customer service and support activities will integrate a chatbot by 2020, compared to less than the 2% in 2017. As enterprises realize the benefits of automated self-service, combined with the ability to move to a human being acting in complex situations.
14. However, trust is a determining factor for consumers when it comes to chatbots and voice assistants. Most people in a recent Institute of Customer Service study said they believe companies should make this completely transparent if and when they aren't dealing with real people.
Check out our latest A2P Messaging e-book - The Business of Communication for more insights into how SMS is shaking customer engagement.
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