After almost two years of adapting, transforming, and responding to unprecedented change, businesses are looking ahead with an eye for growth. But what are the key pitfalls organisations must avoid if they're going to build a stronger, more successful business in 2022?
#1 Delivering sub-par customer service
Research shows that customers are increasingly reluctant to give a second chance if their expectations aren’t met – 61% of customers report that they would defect to a competitor after a single bad experience – which is why it’s never been more important for businesses to deliver great customer service.
Recent research from Zendesk suggests that there is a gap in perception when it comes to customer service quality, Whilst 60% of businesses surveyed gave themselves high marks for customer service, 54% of customers report that customer service feels like an afterthought for most of the businesses they buy from.
Now is not the time to settle for mediocre – customer expectations have changed rapidly in recent years, and the quality of customer service can earn a business repeat customers, or be the reason you lose out to competitors.
Whilst companies have given themselves a high grade overall, they acknowledge that there are several areas that present a particular challenge.
82% aren’t completely satisfied with the number of channels they’re offering customers, whilst less than 20% rate their resolution speeds as extremely strong. 79% have concerns around the ease with which customers can interact with their business. With customers looking for always-on support and streamlined conversational experiences, it’s never been more important for businesses to offer customer service that delivers the “wow factor”.
#2 No active involvement from company leadership
40% of business leaders say customer service is not owned by a C-suite executive at their organisation, despite acknowledging that customer service is a critical business priority. Without clear commitment from the top, businesses risk missing growth opportunities by failing to embed customer inquiries into their strategic framework.
Just 40% of company leaders view customer service data once a month or even less frequently, despite 73% saying that there is a direct link between their customer service and business performance. If leaders aren’t actively involved in reviewing, disseminating, and acting on insights to ensure the overarching strategy aligns with customer wants and needs, there is a real risk of falling behind.
When taken together, customer inquiries serve as a vital feedback tool for highlighting what’s working or not working with products or services – in real time. Using customer service to reveal critical problem areas or spotlight areas for growth will help business leaders to develop a robust growth strategy.
#3 Lack of investment in service teams
According to Zendesk’s latest CX Trends Report for 2022, current customer service investments can’t keep up with rising ticket volumes. Support requests – everything from technical questions to help finding a particular product – are up 14% compared to last year.
In the next two years, just over a third of companies predict that they’ll see a 25% increase in customer engagement. While budgets on the whole are on the rise, budget forecasts for customer service are largely missing the mark. For the 34% of companies that predict a 25% increase in investment, just 14% plan to raise their budgets by a similar margin.
While ticket and budget increases shouldn’t be thought of as a simple 1:1 ratio, it’s clear many teams are going to how to figure out how to do more with less. Just 27% of business respondents surveyed strongly agree that their organisation is adequately investing in support initiatives.
Despite 64% of business leaders saying that customer service has a positive impact on growth, many companies still view customer service as a cost centre instead of a revenue generating engine. Organisations unwilling to invest in their customer service will need to become more efficient to keep pace.
#4 Overworked, undervalued agents
78% of senior leaders agree that service agents play a vital role in customer retention. Agents say that their work has only become more important and strategic; increasingly they are stepping in across the entire customer journey – from product discovery to purchase and beyond.
With heavier workloads, more responsibility, inadequate training (68% of customers say that it feels like most businesses need to improve the training of their customer service agents), many agents report feeling overwhelmed and underappreciated. Just 15% of agents are extremely satisfied with their workloads, and less than 30% feel empowered to do their job well, citing concerns around their ability to make suggestions for change, the way their team is perceived by the broader company, and the metrics used to measure their performance, among others.
Luckily, it’s a top priority for 2022, with 53% of company leaders expecting an increase in training offered to agents and 28% planning to undertake major changes to their program. Investments in customer service agents are investments in the business – studies have shown a company’s fortunes are increasingly tied to the success of its agents. Key areas of focus for the next 12 months include training on upselling and cross-selling, boosting flexibility to solve specialised problems, and servicing multiple channels.
#5 Disjointed, siloed systems
It’s no secret that disjointed systems confuse customers and halt growth.
When 71% of customers say they expect a company to share information so they don’t have to repeat themselves, and 68% say they expect all experiences to be personalised, there’s a real risk that siloed systems can create more frustration for customers.
Without a streamlined workflow operating behind the scenes, it’s hard to meet the demanding expectations of today’s modern customer, and when it comes to optimising on the backend, companies certainly have some catching up to do.
Optimising internal operations have largely taken a back seat to more visible, customer-facing priorities, such as revamping the website or increasing the number of support channels. However, these backend inefficiencies directly affect customers too, and the cracks are beginning to show.
Agents and admins juggling multiple tools are struggling to get the right information, collaborate across teams, or even capture a single view of the customer. With seamless, conversational experiences a key priority for 2022 connecting the dots has never been more important. Organisations need to invest in delivering personalised service, anticipating customer needs, collaborating with other departments and ensuring agents are able to surface information easily.
When over 90% of customers are likely to spend more money with companies that can offer the personalisation and streamlined experiences they’re looking for, those who are serious about change will see a significant return on investment.
Customer service teams face increased pressure to deliver—both from customers and company leadership. Impressing customers can help businesses stand out or even kickstart growth, but inefficient workflows and burned-out agents are just a few of the things that can undermine long-term success. Much needed changes, however difficult, must start now.
You can read the full 2022 CX Trends Report here.
If you’d like to discuss your priorities for customer service in 2022 and beyond, or you're interested in learning how Route 101 could help your organisation to cut operational costs, drive revenue and boost efficiency, contact us to book a consultation call.
