The Customer Service Experience
The CustomerService ExperienceTop trends, channels and behaviorsto watch in 2022 2021 Gartner, Inc. and/or its affiliates. All rights reserved. CM GBS 1449500
The Customer Service ExperienceIntroductionIn recent years, customer service and support (CSS) leaders have greatlyaccelerated investment in digital channels and capabilities, hoping to offer abetter service experience to customers at lower cost to the organization.Channels such as virtual customer assistants, chatbots and mobile-basedmessaging are actively deployed in, and projected to, deliver sizable returns oninvestment. However, as the channel offerings grow and evolve so do the waysin which customers use those channels — with their behavior and expectationsshaped in part by forces outside the control of service organizations.Third-party alternatives such as YouTube and Reddit are increasingly factoringinto customers’ upstream service journeys. New competitors are elevatingexpectations for what a good service experience looks like. And demographicscontinue to shift each year toward younger, more digitally native customers.We surveyed 4,000 customers around the world,1 asking them how theyinteract with, and feel about, customer service channels today. Our analysisof the results is striking: In at least five ways, CSS leaders are clinging tomisconceptions about what customers want and how they behave.Understanding these myths — and the corresponding realities — will alloworganizations to provide customers with great experiences, cementing theirlong-term loyalty.New CompetitorsResetting CXExpectationsShifting DemographicsToward theDigitally NativeProliferation ofAvailable DigitalService ChannelsRise of Third-PartyAlternatives forInformationCustomer BehaviorWith Service Channels1The Customer Service Experience research draws on data from the 2021 Gartner Customer Service and Support State ofthe Customer Survey; n 4,579 customers in Australia, Canada, New Zealand, Singapore, the U.K. and the U.S., polled inDecember 2020.2
The Customer Service Experience5 Myths and Realities About CustomerService JourneysMyths about customer behaviorsRealities about customer behaviors01Proactive service eliminates the need to contact customerservice, reducing call volume.Proactive service prompts additional engagement, often viaassisted channels.02Customers seek out and trust customer service channelsand information above all else.Customers want to resolve their own issues, increasinglythrough search and non-company-owned channels.03Customers will readily adopt digital channels if providedand promoted.Customers quickly revert to previously used channels, often atthe expense of speedy resolution.04Channel switching leads to poor CX and customerdisloyalty.Customers don’t mind switching channels as long as their issueis resolved in a single, continuous interaction.05Great service experiences make customers want todo more business with the organization in the future.Great service experiences may stem customer attrition, butonly “value enhancing” service experiences drive retentionand growth.3
01The Customer Service ExperienceMythProactive service eliminates the need to contactcustomer service, reducing call volume.Many service organizations adopt proactive service believing they areanticipating customer issues and so heading off unnecessary contacts tocostly service channels, like phone or live chat. Leaders also view proactiveservice as an opportunity to direct customers to self-service options,further reducing the cost to serve.RealityCustomer Behavior Following Proactive Service15%Did Not Contact Customer Service12%Used Self-ServiceChannels Only38%UsedDigital-AssistedProactive service prompts additional customer serviceengagement, often via assisted channels.On average, proactively contacted customers use more channels and havemore unique interactions with customer service than those who initiatecontact themselves. Customers do appreciate proactive outreach (it resultsin higher CX scores); however, it’s a strategy more effective at loyalty-buildingthan cost reduction.35%Used the Phonen 1,305Source: 2021 Gartner Customer Service and Support State of the Customer Survey4
01The Customer Service ExperienceCase in pointCommonwealth Bank of Australia IntegratesProactive Messaging Into CX JourneysCBA integrates proactive messaging into preplanned customer experiencejourneys across channels. The bank designed over 2,000 next-best-actionconversations tailored to individual customers’ needs based on historicalcustomer data and customer service agent feedback.A customer engagement engine (CEE) predicts and recommends the rightnext-best conversation based on each customer’s context and behavior. Toget started implementing a proactive strategy like CBA: Identify. Assess customer behaviors through historical data and interviewswith customer-facing representatives. Design. Create ideal customer journeys with next-best actions thataccount for customer needs and alleviate common problems identified inthe service journey.Example Customer JourneysAnticipate Customers’Needs — External IssueCustomer engagementengine recognizes arecurring fee hasincreased in price.An alert is sent tothe customer.“Huh, I shouldreevaluate.”Help Customers Achievea Goal (Financial Well-Being)Anticipate Customers’Needs — Internal IssueCustomer updatespersonal information.Customer completes aloan application but hasn’tsigned it.Customer engagementengine recognizes thiscustomer is eligiblefor an energy rebate.“Hmm, I’m not sure whatto do here .”Enrollment messageis pushed to customervia app.“Oh neat. I should enrollin this.” Test. Pilot automation with a small set of next-best-action use cases tounderstand impact on the customer experience and financial returns.Customer engagementengine recognizes partsare incomplete.Real-time digital messageis sent out to customerwith an explanation ofremaining steps and alink to complete.If the customer doesn’ttake action, an email issent out the next day,and CBA calls the customerthree days later. Expand. After pilot next-best actions achieve desired CX and financial goals,expand automation to new use cases.“Oh OK, I’ll finish it.”Source: Adapted from the Commonwealth Bank of Australia5
02The Customer Service ExperienceMythCustomers seek out and trust customer servicechannels and information above all else.Frequency of Trying to Resolve Issues With Third-Party Guidanceby GenerationService leaders’ channel strategy is grounded in the assumption thatcustomers know their organization’s channels are best and that customersinstinctively reach out to customer service when a problem arises —believing the company-owned channels offer the most trustworthy andeasiest path to 43%Reality40%Customers want to resolve their own issues,increasingly through search and non-company-ownedchannels.A majority of customers see customer service contact as the last resort.This is especially true for millennials and Gen-Z customers (soon to be thelargest group of customers), who increasingly turn to third-party sites tofind the answer to their issue. A majority of these customers say third-partyinformation is as trustworthy as company-provided information.34%31%19%30%23%19%9%0%Baby BoomersGen XMillennials6%Gen Zn 4,300Source: 2021 Gartner Customer Service and Support State of the Customer Survey54% of millennials and Gen Z customers believethird-party customer service information is as trustworthyas company-provided information.Source: 2021 Gartner Customer Service and Support State of the Customer Survey6
02The Customer Service ExperienceKey actionFactor in How Customers UseExternal SolutionsTo ensure your organization’s channel strategy factors in upstream customerbehavior, you’ll need to understand how customers interact with externalsearch sites and non-company-owned service channels.Customer Service Journey From External Search to ResolutionThree key steps:1 Research. Audit upstream customer service journeys by analyzing the topsearch engine results and third-party recommendations associated withcommon issue types. Contain. Ensure company-owned self-service pages dominate the first pageof search engine results by investing in search engine optimization (SEO). Monitor. Review information and conversations on third-party sites todetermine if your organization should or should not intervene.2External Search3Site NavigationStart lution1Third-PartyInformationSourcesChannel strategy must accountfor upstream customer behaviorprior to engaging with companyowned channelsSource: Gartner7
03The Customer Service ExperienceMythCustomers will readily adopt digital channels ifprovided and promoted.Service leaders know that self-service frequently offers the quickest pathto resolution and assume that customers will consistently choose that optionif it's available to them.RealityPercentage of Customers Actively Engaging With a Channel for MoreThan 10 Minutes40%32%20%18%Customers quickly revert to previously used channels,often at the expense of speedy resolution.Customers are creatures of habit, and demonstrate a strong bias towardthe channels they’ve used in the past. While it is true that they prioritizespeed-to-resolution when selecting among channels, customers consistentlyunderestimate the length of time required to resolve issues via assistedchannels. This helps to explain why so many customers avoid orabandon self-service.0%PhoneSelf-Servicen 907Source: 2021 Gartner Customer Service and Support State of the Customer Survey75% of customers who use the phone report the interaction takinglonger than expected.n 2,420Source: 2021 Gartner Customer Service and Support State of the Customer Survey8
03The Customer Service ExperienceKey actionUse a Chatbot to Guide Customersto Self-Service ResolutionA well-built chatbot can be an effective means of interfacing withcustomers, limiting assisted-service contacts and guiding customersto self-service resolution.Initial Website TouchpointsGlobalHomepageCustomerServiceLanding PageFAQ orKnowledgeArticle LinksMultiple website pathways shouldlead to the chatbot.Effective solutions do the following: Guide. Funnel customer journeys to the chatbot across the organization’swebsite, including the homepage, main customer service landing pageand throughout other website links within FAQs and knowledge articles. Anticipate. Prepopulate the chatbot with common self-service issuetypes to draw customer attention and to encourage customers to engagein self-service resolution. Collect. Use the chatbot to gather key information about customer issuesbefore routing customers to assisted service if the chatbot is unable toresolve the issue or customers are determined to speak with a service rep.Chatbot should resolve, ordiagnose and triage, the customerissue to determine next steps.ChatbotChatbot routes customer basedon gathered information.ResolveWithinChatbotRoute toService RepRoute to OtherSelf-ServiceResourcePotential Resolution PathsSource: Gartner9
04The Customer Service ExperienceMythChannel switching leads to poor CX andcustomer disloyalty.Impact of Number of Channels Used on CX OutcomesService leaders strive to provide seamless service experiences, withthe best experience resulting from resolution via the first channel used.The belief is that with every channel switch, customers must invest moretime and effort, which will ultimately result in frustration, lower retentionand negative word of mouth.7RealityCSATCustomer Effort Score6.35.95.35.35.34.95.05.04.74.13.5Customers don’t mind switching channels as longas their issue is resolved in a single, continuousinteraction.It’s true that it’s best to resolve the customer’s issue in the first channelused, but today’s customers are comfortable using and toggling betweennumerous service channels. In fact, as long as they achieve resolutionduring that initial interaction, customers report a favorable experience.Customers suffer more when their journey is disrupted — and they haveto start over later. With each additional service interaction, customersbecome increasingly frustrated and dissatisfied.011 ChannelChannel2 ChannelsChannel3 ChannelsChannel44 ChannelChannels55 ChannelChannelsn 2,224Source: 2021 Gartner Customer Service and Support State of the Customer Survey10
04The Customer Service ExperienceKey actionDeliver Intelligent, Frictionless,Consistent Customer ExperienceDynamic Customer Engagement FrameworkndCX aitsE PceReduTechnologyL xEeli zna en tosP er ontCde ct eConunrney dsJocessuet i n u ou sC onversationsC onDCEowpe - Er ie or tn ces Process. Participate in collaborative cross-functional efforts focused ondelivering customer-centric solutions to achieve organizational goals.e People. Retrain or hire staff who will maintain the analytics infrastructureand monitor outcomes to ensure proofs of concept and secure funding.op lPe Technology. Develop data capabilities to store and analyze customerdata from across the enterprise in order to deliver insights to customersacross channels.InnveReTo leverage DCE, service operating models must evolve in three key areas:C oneti vtAc texta c em enti o u aor agnsgintMarodeeOpngllExpensesapDCE C abilitiesseeacrDynamic customer engagement (DCE) is an approach that uses data andanalytics to deliver intelligent, frictionless and consistent experiences acrosschannels. The resulting improvement in customer experience increasesrevenue and reduces costs.Business BeneP roCustomers are quite happy to switch channels to obtain information or resolveissues, but service channels typically aren’t connected enough to allow it.When customers have to start over to switch channels, their effort andfrustration increase.Im peroveencCustomer ExperiSource: Gartner11
05The Customer Service ExperienceMythGreat service experiences make customerswant to do more business with the organizationin the future.Most service organizations try to increase customer loyalty by improving thequality of the service experience itself. The assumption is that if a customer ishighly satisfied by the service they receive and their journey was easy, theywill want to remain a customer, share their positive experience with others,and choose to do more business with the organization in the future.Customer Service Organizations View Loyalty DriversDifferently Than Customers ThemselvesWhen CSS emphasizes the value of theservice interaction itselfServiceInteractionRealityGreat service experiences may stem attrition, butonly “value enhancing” service experiences driveretention and growth.A good service experience may prevent customers from leaving,but is not enough to make them stay. This is because customers areultimately loyal to the company’s product or service offering. As a result,organizations should focus less on the marginal improvements to thequality of the customer service experience itself and more on howservice interactions can help customers derive more value from theproduct or service offering.ProductWhen CSS uses service interactions toreinforce the value of the product offeringServiceInteractionWhat a greatservice interaction!ProductSo glad I’m a customerof this company!Source: GartnerThe impact on loyalty behaviors is massive when customers experience avalue-enhancing service experience:82% probability of being retained86% probability of spending more money97% probability of sharing positive word of mouthn 2,196Source: Gartner Loyalty Through Customer Service and Support Survey12
05The Customer Service ExperienceCase in pointAudible Dedicates Specialized Teamto Value EnhancementAudible, an Amazon company, identifies key customer segments most inneed of value enhancement and routes those segments to a newly createdspecialized team. Audible’s approach shows how customer service andsupport leaders can build a routing structure and talent managementstrategy centered on value enhancement.Audible’s Approach to Identifying Customers in Need ofValue EnhancementChampion ActionHealthy AccountThree steps enable service organizations to drive value-enhanced interactionsin this way: Reimagine. Reexamine the talent management strategy to determinehow best to support value enhancement efforts. Measure. Start measuring the impact of value enhancement interactionson the customer experience and loyalty outcomes.Customer Health LineCustomer Usage Identify. Find the strongest opportunities (issue types, customersegments, individual customers) to deliver value enhancement toachieve the quickest wins.1 Year61 Daysto 1 YearUnder60 DaysDemonstrate the individualized benefitof membership to each customer.Potential Conversation Topic: How canAudible integrate deeper into your life?Potential Conversation Topics: Whereshould you listen to Audible?When should you listen to Audible?Introduce and habituate the customerto product and membership value.Unhealthy AccountPotential Conversation Topics: What isAudible? Why should you use it?Customer TenureSource: Adapted from Audible13
The Customer Service ExperienceActionable,objective insightExplore these additionalcomplimentary resources and tools:Already a client?Get access to even more resourcesin your client portal. Log InRoadmapArticleBuild a Competitive Advantage With DynamicCustomer EngagementHow Proactive Customer Service WillTransform Customer ExperienceDownload RoadmapRead ArticleWebinarResearchReprioritize Investments to MaximizeSelf-Service ContainmentPivot Toward a Customer ValueEnhancement StrategyWatch WebinarDownload Research14
The Customer Service ExperienceGet More.Get actionable, objective insight to deliver on your most criticalpriorities. Our expert guidance and tools enable faster, smarterdecisions and stronger performance. Contact us to become a client:U.S.: 855 811 7593International: 44 (0) 3330 607 044Become A ClientLearn more about Gartner for Customer Service & Supportgartner.com/en/customer-service-supportStay connected to the latest insights 2021 Gartner, Inc. All rights reserved. CM GBS 144950015
A customer engagement engine (CEE) predicts and recommends the right next-best conversation based on each customer's context and behavior. To get started implementing a proactive strategy like CBA: . Source: 2021 Gartner Customer Service and Support State of the Customer Survey Source: 2021 Gartner Customer Service and Support State of the .
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Dr. Sunita Bharatwal** Dr. Pawan Garga*** Abstract Customer satisfaction is derived from thè functionalities and values, a product or Service can provide. The current study aims to segregate thè dimensions of ordine Service quality and gather insights on its impact on web shopping. The trends of purchases have
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̶The leading indicator of employee engagement is based on the quality of the relationship between employee and supervisor Empower your managers! ̶Help them understand the impact on the organization ̶Share important changes, plan options, tasks, and deadlines ̶Provide key messages and talking points ̶Prepare them to answer employee questions
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Food outlets which focused on food quality, Service quality, environment and price factors, are thè valuable factors for food outlets to increase thè satisfaction level of customers and it will create a positive impact through word ofmouth. Keyword : Customer satisfaction, food quality, Service quality, physical environment off ood outlets .
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