When it comes to developing business and showcasing robust growth in any organization, one should never forget the importance of providing quality service. Customer delight is what most companies aspire. However, customer acquisition may be an easier task but very few can successfully pull off great customer retention.
The present day customer seeks immediate response to their queries, whether it is through chat, email or social media. Interaction of call center agents with customers in new ways can seem costly but the hidden benefits of differentiated service are much more rewarding than conventional methods of approach. Customer service is the heart of any business as it helps differentiate a company from its competitors. However, what matters the most is the type of customer service that is being offered.
Proactive customer service approach has gained a lot of traction in recent times. Proactive customer service is an approach where businesses take initiatives to create customer experiences that yield results. Proactive approach should not just be considered as a mere strategy, rather organizations should implement it as their business goal. Studies also shows that – By 2020, customer experience will overtake price and product as the key brand differentiator.
Also, new age customers are capable of finding online answers to their queries before the service team can respond. This is likely to increase your chances of customers defecting to competition. Studies by Bain and Company show that – 5% reduction in customer defection rate can increase profits by 5 – 95%.
Therefore, the only way you can really stand out is by delivering superior proactive service. Here are few reasons why proactive customer service approach makes good business sense:
Greater Customer Loyalty: Organizations that aim towards better future growth are focusing on creating extraordinary experiences for improving their customer lifetime value ratio. Proactive service shows commitment of organizations towards improving their brand reputation in the market. Customers seek immediate redressal to their queries, they want service agents to preempt their issues and address them proactively. What sets a great company apart from the rest is how that company deals in an adverse situation. These situations help in winning customers’ trust and by providing customers great quality of what they are paying for is the best way to earn loyalty from customers.
Increased Customer Retention: Organizations of all sizes are formulating strategies to justify the recurring cost of a acquiring a customer. These customers are a set of new buyers for a brand who tend to move on to a competition after exploring the current capabilities of your organization. Studies also show that – 68% leave because they are unhappy with the service they receive. So, how will you ensure that a customer comes to your brand with a mindset to never leave?That’s right folks – with the help of proactive customer service, organizations can anticipate the appropriate resolution towards customers’ requirement. Thus, they can observe increased customer retention and greater brand advocacy.
Favourable Communication: By providing proactive customer service, organizations gain the capability to have better control over the communication process. The customer data and buying behaviour captured before can be analyzed by the organizations to have a better understanding of the ongoing requirement. Hence, brands are provided with an opportunity to proactively frame and design the conversation in their favour. At the same time, they have the capability of winning customers’ trust by providing quick resolutions.
Reduced Call Volumes: Organizations can reduce the incoming call volumes per agent. The obvious benefits are reduced cost and more time to coach agents. Less call volumes also result in improved service level with more happy customers. Agents interact with numerous customers on a daily basis. What they can do is to proactively reach out to customers seeking information on different subject matters. Informing customers in advance will provide them with convenience at their end, resulting to more positive customer experience with great loyalty.
Improved Organizational Productivity: Customer centric organizations aiming towards creating extraordinary experiences are using advanced technologies for humanizing customer experience. The new generation has access to different sources of communication and freely voice their opinion. However, with this advancement, organizations need to create personalized engagements at all levels. Proactive care agents provide useful information to customers in advance which helps them in making an informed decision. This kind of interaction exchange is a win-win situation in which both the parties remain satisfied. Thus, with proactive customer service approach, organizations can avoid customer replacement and agent burnout costs with greater organizational productivity.
Some steps that you can take towards adopting proactive customer service are:
Go for active listening: Listen to your customers on all channels of interactions to understand their needs and ongoing requirements.
Take regular feedbacks: Do a regular analysis of customer reactions to improve your level of service and develop ways to improve their interaction journey.
Track metrics: Start analyzing the customer’s interaction pattern and buying behaviour, captured through different sources. These metrics will help you improve on service level by providing insight for creating meaningful interactions.
Keep your customers informed: Let your customers know of upcoming changes in your product or service. Also, keep them informed about the loyalty and reward programs before they happen. This will help in taking the interaction to a better level by building a personalized touch.
How proactive is your customer service strategy? If you haven’t switched from reactive to proactive yet, tell us the reason behind it. Would love to hear from you.