When it comes to integrating sales and service, I often think of the old saying, “no one cares how much you know until they know how much you care.” In short, transforming regular service interactions into revenue generating opportunities begins by building a relationship with your customers.

In a recent byline featured in Contact Professional, I outline three steps that will enhance the customer relationship and increase your company’s abililty to generate revenue through its contact center operations. Click here to read the full article.

Angela Crawford is a Director in Convergys’ Customer Management business. She has spent over 18 years in contact center operations and marketing, focused on helping turn contact centers into profit centers and improving the overall customer experience. 

The star rating system mandated by the Centers for Medicare and Medicaid Services’ (CMS) —and an evolving healthcare landscape in general—is bringing new challenges to the Medicare market. But those challenges are not insurmountable.

With the introduction of the star rating system, insurers are now being calibrated on a five-star scale based on a number of criteria—a key one being feedback surveys sent to Medicare beneficiaries  asking them about their service experience. Much like consumer satisfaction ratings for restaurants or hotels, this rating system for insurers is designed to offer a concise, easy-to-understand scale to help consumers make informed decisions.

Not only does the publication of these ratings at http://www.medicare.gov/ mean underperforming insurers could experience lower enrollments or churn through special five-star enrollment periods, but the ratings become the basis for a CMS bonus system affecting Medicare Advantage plans – a powerful incentive considering the government has reduced the amount of Medicare payments to insurers over the past several years. 

More than ever now, for you as an insurer, there is a direct link between the customer experience  and your bottom line.

A major challenge to earning a 5-star rating is current beneficiary perceptions about the quality of the customer experience delivered by the Medicare plan.  A recent study from Forrester Research found that the health insurance industry in general has the lowest customer experience ranking of more than a dozen industries.  

According to Convergys 2011 Scorecard Research into the customer experience, Medicare beneficiaries are looking for fast answers and accurate information without a lot of excess effort and frustration on their part.

The key to influencing a 5-star experience means getting out in front of those CMS surveys with a customer-centric focus—which in turn will help drive your star ratings results. To do this, insurers should consider the following:

•  Take Ownership of Customer Issues – All contact centers live by the mantra of first-call resolution, but the complex world of Medicare health plans and its related customer issues don’t always permit a one-and-done customer experience. In these instances the focus becomes assuming responsibility for the issue and seeing it through to resolution even if it takes a few steps and calls. An effective knowledgebase is critical to providing this level of service.  Ideally, the knowledgebase would integrate with an insurer’s other back office systems in order to create a comprehensive view of the customer based on beneficiary-related data such as health assessments, claims, eligibility information and so on. The knowledgebase should also be equipped with a decisioning engine that allows it to analyze customer information and history to suggest appropriate responses and personalized courses of action to help agents resolve issues in a timely manner. 
• Uncover Root Causes of Experience Problems – Analytics can be used to help identify processes and behaviors that contribute to customer satisfaction and frustration.  This information can be used to implement best practices and improve upon customer pain points. In addition, customer feedback can be used to discover problems beyond the call center. For example, customer feedback could give you insight into doctor office visits that you could report back to improve the experience there, which can further contribute to your star rating.
• Enable Multichannel Interactions – Phone support continues to be the most preferred method of interaction for customer service followed by self-service websites and email. Some interest does exist for newer technologies such as Web chat, social media and text messaging.   As younger caregivers assume responsibility for Medicare beneficiaries, use of these new channels is likely to grow, increasing the importance of multichannel support.
• Effectively Handling Appeals and Grievances – Medicare insurers are required to report patient complaints related to their claims and coverage to the CMS and therefore must track them accurately.  Appeals and grievances are typically tracked by agents, but as some insurers have found the use of speech analytics can add accuracy to the process. The analytics system listens for key words that indicate a problem and then sends an alert to the agent reminding them to log the problem. A decisioning engine can also be used to properly classify and track grievances. This process is particularly important as under- or over-classifying can cost an insurer significantly.

Consumers today are accustomed to having instant access to customer reviews on products, devices and experiences.  From books to computers to cars, before they pull out their wallets, consumers consult their laptops and smartphones to make sure they are getting the most for their money.

The CMS star rating program for insurers is a sign of the B2C shift my colleague, Christine Kowalczyk, discussed in her recent blog. As the health care market evolves and the star rating program takes on more significance to consumers, Medicare insurers will be challenged to evolve themselves.

Cory White is the Health Care Vertical Leader for Convergys an industry leader in providing agent-assisted, self-service, and proactive care solutions that support its client customers worldwide.

While the future of healthcare reform is uncertain, the prospect of servicing millions of new individual plan members has many insurers feeling the pressure to shift from a business-to-business (B2B) to a business-to-consumer (B2C) model.

Healthcare executives have already begun to embrace customer service as a competitive differentiator. With pricing and medical loss ratios fairly consistent across health plans, the ability to serve customers quickly, accurately, and consistently has become critical to future success.

However, the current state of health insurance customer service presents a challenge. In a recent Forrester Research study, the health insurance industry had the lowest customer experience ranking of more than a dozen industries.  As a result of this poor customer satisfaction, the study found that 29% percent of healthcare insurance customers are at risk for attrition, and of the 70% who are unlikely to switch, 21% feel trapped with their current providers. For companies that successfully bridge the transition to B2C, these figures represent a unique opportunity to improve market share and position.

Consumer expectations when interacting with health insurance companies are the same as those for other industries. They want their issues to be resolved on first contact, knowledgeable customer service employees, and rapid access to member information. As a health insurance provider, how can you prepare to meet these heightened needs and expectations? You can begin by:

• Integrating customer data from various systems – Health plans have multiple systems where customer data resides. Having to access each of them individually slows down the service process and contributes to customer frustration. By taking advantage of today’s advanced analytics solutions you can compile all of your customers’ information from these various systems into one convenient access point without the expensive point-to-point integration or wholesale replacement of existing systems putting you in a position to provide consistent, accurate data across channels and speed up problem resolution.
• Adopting a proactive approach to customer care – Data integration gives you a holistic view of the customer that allows them to be more personalized and proactive when reaching out to members. Armed with this 360 degree view, outbound communications can be built around management of chronic conditions, prescription compliance or utilization of generic brands and mail order to drive cost control and revenue generation in a subtle way.
• Taking analytics to the next level – In addition to data integration and segmentation, analytics can help support your day-to-day operations. Analytics can be used to evaluate customer conversations to identify processes and agent behaviors that drive customer satisfaction, dissect survey and voice of the customer data, shape customer experiences in real time by giving agents quick access to customer information, and even help provide seamless and personalized interactions via the Web, IVR, or other automated channels. 
• Making sure agents are also aligned with the B2C shift – Shifting to a B2C model means providing service to individuals that typically do not possess the level of knowledge shared by insurance professionals or large employer groups. To handle this change, you should consider additional empathy and service training to help agents adjust to the new service approach. You will also want to consider establishing sophisticated workforce management processes to handle increased workloads during enrollment periods, as well as rethink how the contact center performance is measured by taking into account both HIPAA requirements and the customer experience.

Shifting to a B2C model requires a fundamental change throughout a company. I recommend starting small and learning as you grow. Identify a subset of customers with whom you can pilot new systems and processes and roll out best practices to the wider customer base over time.

The nature of healthcare reform is yet to be determined, but it is clear that future success will depend on the ability to provide a superior service experience. Those companies that take steps now to prepare for the B2C shift will be better positioned to take advantage of the new opportunities that arise when healthcare reform becomes a reality.

To find out more about how your company can stay ahead of the healthcare industry’s B2C shift, click here.

Christine Kowalczyk is Vice President/General Manager of Global Operations for Convergys servicing the healthcare and government sectors. In her position, she oversees the delivery of services to over 20 different healthcare and government clients.

For retailers, a growing array of customer service interaction channels is opening up new opportunities to shape the customer experience, but it also comes with a new set of challenges.

According to Convergys 2011 Customer Scorecard Research, 1 in 4 retail customers has obtained customer care with a company in the past six months using at least one form of new technology, such as social media, mobile app, text messaging or video support. These customers enjoy having the freedom to interact with a company when, where and how it best fits their needs. However, when new channels fail to meet service expectations, many customers utilize them to voice their dissatisfaction as well.

The Convergys research found that 84% of retail customers who have had a bad experience told friends and colleagues using a variety of channels, from word-of-mouth, to phone, e-mail, texting and social media, which is particularly concerning considering the multiplier effect social media channels can have.  Nearly 6 out of 10 social media users say they have avoided or stopped doing business with a company as a result of reading a negative social media post – a statistic that takes on considerably more significance when you consider that multichannel customers typically spend anywhere from three to ten times as much as single-channel shoppers, according to Forrester Research. 

With customer experience gaining strength as one of the most important strategic differentiators in the retail industry, companies must be able to provide a consistently satisfying experience regardless of channel. This can be achieved by following these four strategies:

1. Focus on channel integration – Today’s customers use several channels to research and make purchases. Integration is crucial to enabling those customers to move seamlessly from automated system to contact center to store.  It’s also key to providing a consistently satisfying experience across channels.  With each channel being supported by the same contact center processes, the company can more efficiently serve the customer.
2. Use analytics to shape service interactions – Analytics help retailers to understand consumer behaviors and preferences and identify drivers of satisfaction.  Analytics can also be used to provide real-time decision support on the sales frontline. Some retailers are using analytics to provide customer service representatives with recommendations for issue resolution, promotions and upsell opportunities that are based on the customer’s history and value to the company. Analytics can also be used to create proactive communications, personalized to the customer’s interests through the contact channels they prefer.
3. Take a systematic approach to social media – Social media is often thought of as a communication tool favored by the younger generations, but it has rapidly become a channel used across all age groups.  According to Pew Internet research, the adoption rate has grown 150% among users over 65, increasing from 13% in 2009 to 33% in 2011 and doubled among users aged 50-64, increasing from 25% in 2009 to 51% in 2011. Overall, 61% of retail consumers surveyed by Convergys said they have a Twitter account, Facebook page or blog of their own. With so much conversation going on via social media, companies need to enable their social media strategies by leveraging “listening” technologies that make it possible to monitor these networks. Comprehensive analytics can then be applied to identify critical trends and issues and determine which topics warrant an action from the retailer, which might be a response to a customer concern, or an improvement to a product or service.
4. Strengthen the retail frontline – Whether in stores or in the contact center, employees play a central role in shaping the retail customer experience. In addition to providing the tools to deliver the right customer experience, companies should also enhance frontline employee training, including not only the basics of selling and service, but also soft skills such as communication and empathy. A capable employee who clearly displays a desire to help the customer can make all the difference.

By following the above four strategies, you can enhance the multichannel service experience for your customers, provide a consistently satisfying service experience regardless of channel,  and  build a formidable barrier to customer defection.   

Bridget Trask is General Manager/Vice President of Retail Operations at Convergys Corporation, a global leader in the delivery of customer management solutions through agent-assisted services, automated self-service, and intelligent customer interaction technologies.

In my last blog entry, I debunked the myth about the difficulties in recruiting and hiring home agents.  Now, I will move on to address another common myth — that one-size fits all when training either a virtual workforce or a traditional brick and mortar workforce. 

Simply put, training a virtual workforce is not the same as training a brick and mortar workforce.

Traditional call centers have developed well-designed environments, tools and processes to move a person quickly down the path from job applicant to new-hire to a trained and functioning agent.  Then through close monitoring and continuing education these employees broaden their skill and increase their productivity and value to the organization.  Having well trained front-line employees is directly related to customer satisfaction and controlling costs.  Agents that are well trained and empowered are not only able to provide a superior customer experience but also have a higher level of job satisfaction resulting in lower agent attrition. 

Training Home Agents is Different

In 2004, Convergys purchased the leading eLearning company DigitalThink, and began incorporating advanced learning techniques into all its educational activities.  This investment, however, truly positioned Convergys to lead its expansion into the virtual call center arena. 

We realized that the difference in training home agents begins right at the start.  One could say that successful home agent training actually begins by identifying and hiring staff that have an affinity to succeed in the virtual education process.  

Here is why.  First, educating employees on the composition of their home network is required, including their ISP modem and a router, which is a topic not necessarily covered in the brick and mortar center.  Agents need to know what each is used for, and how to manage them and the ISP connectivity in their homes.  Second, they must be able to trouble shoot issues on their own, and know how to avoid common issues that can interrupt connectivity, like smart phone wireless interference and password protection of their internet connectivity.  In the end, it is very difficult for companies to take responsibility for an agent’s equipment or connection.  In a customer care environment when dealing with hundreds or even thousands of home agents, we view this as an agent’s transportation to the workplace, much like any other employee’s car transportation. 

A New Approach to Virtual Classroom Training is Required

Through our experience and expertise in developing and managing a  skilled and effective home agent workforce, Convergys created a new approach to virtual classroom training that incorporates a multiple modality ‘blended’ learning approach for our home agents.  This approach incorporates live, facilitated virtual classroom training with e-learning and simulation methods.   The appropriate blend is achieved through an analysis and design process that targets the right performance objectives and matching skills.  This home agent training approach is a departure from traditional classroom training processes and curriculum methodologies employed by others in the home agent space.  

Our approach balances home agent learning needs with business needs in terms of development, delivery, and maintenance requirements, in a manner that single modality approaches do not provide.  For example, some companies employ either a 100% virtual classroom to mirror brick and mortar classroom training, or just a 100% e-learning approach in order to avoid training delivery costs and neither on its own delivers the results of a multiple modality approach.

We integrate a combination of technologies to provide real-time (live) collaboration and delivery of instruction among persons not physically in the same location.  Our virtual classroom has been designed to function just as a physical classroom but in a virtual environment. We do this by allowing instructors to interact with students via telephone or chat media.  Agent learning is also enhanced by our instructors being able to answer questions, work with individual learners, and facilitate demonstrations through our advanced desktop sharing applications.

Our instructors are able to arrange students into breakout groups, providing them with hands-on lab time within the virtual training environments.  We assess individual performance based on the use of call modeling exercises and role playing simulations which provide authentic practice, accurate assessment of learner competency, and detailed feedback to the learner about their strengths and opportunities.

It is important to develop training processes that eliminate the gaps that commonly arise from working remotely.  When training a remote workforce, we recommend the following:

• The use of performance-based curriculum and assessment strategy to better meet the adult learner needs and to drive agent performance.  Performance-based learning has proven more successful than knowledge-based techniques.
• Flexible blended learning approach utilizing virtual classroom and E-Learning delivered real-time, self-paced, and online. 
• Flexible design approach should be leveraged to deploy a single content to all geographies, in call centers, and at home.
• Learning Management Technology to monitor and evaluate new-hire progress throughout training.
• Certified virtual professional trainers who receive ongoing continuing education.
• The use of industry proven training performance measurement, which includes proficiency and graduation rates.

At Convergys, we are continuously evolving our various training processes, and our employees at every level are encouraged to contribute to building the education libraries by actively providing their input on material and to make suggestions for improvement.   Many of our line management build their own movies, describing changes to process, programs and environments.  These become part of our ever changing library, becoming bookmarked and indexed for others to “find” as they probe for information to educate themselves or to incorporate into their training curriculum. 

There is obviously more to developing a home agent workforce than sending brick and mortar agents home to work or recruiting people who want to work from home but may not have the skills or discipline to do so.  Home agents require a uniquely virtual training experience.   That is why outsourcing a home agent program could be the best way for some companies to take advantage of this growing sector of the workforce and leave the training and management of these agents to those with the experience and expertise to do so efficiently, effectively, and at a reasonable cost. 

Rick Owens is the Senior Director of Convergys’ Home Agent Solutions. In this role, Rick is responsible for establishing and implementing the product strategy for Convergys’ Home Agent Solutions as well as business development and operations.

In my first blog “Why Aren’t More Companies Using Home Agents,” I discussed common concerns or myths that often cloud a company’s consideration of incorporating home agents into their care strategy. My next blog, “Debunking the Home Agent Data Security Myth” set out to bust the most common myth many companies have when considering home agents: data security. Now it is time to focus on another common myth, and that is that the recruitment and hiring of a virtual workforce over the Internet is not as efficient and effective at finding qualified and reliable agents as is the process for a traditional brick and mortar workforce.

In 2006, when Convergys started to consider adding agent-assisted services provided from the home, a number of complexities became apparent. Some of the complexities related to federal and state employment laws, regulations, and taxes, as well as additional complicating factors associated with a geographically dispersed applicant pool. It was also apparent that home agents needed to be not only PC and Internet proficient, but also capable of keeping their Internet connection and their PC functioning properly. Even now, nearly six years later, it is not surprising that many companies ask today what we asked ourselves in 2006: how do you find and hire the right, qualified applicant from such a geographically dispersed applicant pool — without ever engaging with the applicant face to face?

Well, the answer is you can and we have, and it is not a myth, with the use of technology! In fact, the home agent recruitment and hiring process is as concise, efficient, and effective as the process used in a typical brick and mortar facility. Let me explain further.

Recruitment

As with our brick and mortar agents, we must attract the best qualified candidates for our home agent programs.

Typically, sourcing applicants for brick and mortar operations includes contacting the local media and distributing local hiring news releases, as well as contacting local employment organizations, universities, PTA’s, etc. We recruit locally to the site since a typical brick and mortar center’s effective hiring radius is generally determined by the driving distance the local population will endure.

For sourcing Home Agent applicants, it is different. We can leverage the Internet and social media channels as they provide an opportunity to target across a large geographical footprint the skills and demographics we are looking for in a home agent. We engage with online communities and consortiums, and with other specialty group employment programs that leverage the Internet as a communication medium. The sourcing reach is quite large, and is in a continual state of evolution and refreshment, as people move in and around the Internet.

While a different approach, the end result is the same: we attract many interested applicants that must then go through our hiring process.

Hiring

At Convergys, we view the home agent’s Internet Service Provider (ISP) and computer as the agent’s “transportation” to the work environment. We utilize VoIP technology for delivering our customer care services, thus validating an agent’s environment is critical in our recruitment and hiring process. Many other Home Agent providers still use traditional landlines for voice connectivity, but that is hard to police and agents often are found using unprotected VoIP or even cell phones. In addition almost 20% of homes no longer have a landline and that number is increasing.

Therefore, rather than begin with considering an applicant’s personal qualifications, we first verify ISP and PC qualifications. We do this through an automated ISP and computer testing application on our recruitment Web site at www.ConvergysWorkAtHome.com. We describe carefully the minimum standards that we require for employment and then automatically test an applicant’s Internet connectivity speed and computer hardware to make sure these meet our standards. If an applicant’s equipment doesn’t pass, we tell him or her why so necessary upgrades can be made to reapply.

It is important to consider that the home agent is the first line of support to keep his or her Internet connection and PC functioning properly, thus we educate throughout the hiring process so applicants  are equipped to maintain their operational status. We also verify an applicant’s general understanding of the Internet and what a browser is as well as their ability to perform such PC functions as how to “cut and paste” and other editing functions of a PC. We also check to determine how well an applicant can control the “noise” on his or her home network, including the many toys, DVD players, movies-on-demand services and even smart phones that automatically connect now to the home network.

Once we have determined that an applicant is technically qualified, we then validate personal qualifications. Obviously we can’t meet an applicant face to face like we would a brick and mortar applicant. Instead, the screening of an applicant’s personal skill-set is also enabled by Internet technology. Some of this is accomplished through the application process itself. By design, we incorporate e-mail communications with links and URL’s that an applicant has to be able to manipulate so not to fall out of our hiring process. By incorporating technology into the hiring process, we are able to get a picture of an applicant’s technical capabilities and his or her level of perseverance and discipline, along with the traditional résumé information. In addition, an applicant’s ability to follow instructions via this technology-driven process reveals to us that applicant’s ability to learn and follow remote guidance.

The final step for applicants that make it through this part of the hiring process is a personal, but remote, direct interview with a trained recruiting expert via a phone conversation. This professional will validate all the criteria described above, judge the applicant’s voice quality and communication skill, and determine if we have a good fit.

Statistically, we hire less than 2% of the applicants that get to the virtual front door– the threshold being technology verification. That is because working from home requires meeting basic qualifications, but also unique characteristics to work successfully in a home environment.

Industry analysts have predicted annual growth of Home Agents by 10-15% over the past few years, but we’ve seen a little above that at roughly 20% within our own operations. We believe, in part, that our growth can be attributed to the fact that we have mastered the recruitment and hiring process that is particular to building a home-based agent program.

After reading this you may think to yourself, ok, it is not a myth that you can actually attract, qualify, and hire home agents without meeting them face to face, but it does require an investment in technology and process change. That is true, and that is why many companies choose to work with an outsourcer to provide them with a home agent solution.

In my next blog, I will tackle the myth that you can’t effectively train a virtual workforce.

Rick Owens is the Senior Director of Convergys’ Home Agent Solutions. In this role, Rick is responsible for establishing and implementing the product strategy for Convergys’ Home Agent Solutions as well as business development and operations.

Your customer service agents hear these pleas for help all the time. An exasperated father is calling to upgrade his son’s or daughter’s phone to stay current with their friends, who have gotten their parents to do the same. This time it is for a smartphone and the father knows that there is a year left in the current phone’s contract. What can he do, other than pay full retail price for a new smartphone?

Not much? Think again.

U.S. consumers have become used to rapid innovation in the mobile space, driven by mobile providers need to stay competitive. Mobile consumers also have come to expect discounts, free phones, and minimal contract commitments to win and keep their loyalty. They don’t like to hear: “I’m sorry, sir or miss, but there isn’t much that we can do for you.” That’s a bad service experience from their perspective. Not good for them – and certainly not good for you.

According to Convergys’ 2011 U.S. Customer Scorecard Research, 37% of U.S. customers who had a bad experience with their mobile provider said they stopped doing business with the company; another 22% wanted to stop doing business but were stuck in a contract. While this 22% may still be with you, they are not happy about it.

What can you do? Believe it or not, quite a bit.

To keep your customers and increase wallet share from them at the same time, mobile operators can apply a little intelligence into their customer service equation.

Every mobile subscriber today has a variety of features associated with their account, such as length of contract, number of voice minutes per month, number of texts per month, data plan, and usage, as well as information about their payment history, average monthly spend, and how long they’ve had their current phone. All of these factors, plus many more, should be taken into account when determining what can be done to help a customer upgrade a handset.

With the help of intelligent technology, operators can centralize this valuable customer information from across all systems and create a comprehensive, 360-degree view of the customer that will enable their agents to determine an appropriate course of action to meet the customer’s needs while meeting the company’s business objectives.

Up until now, it’s been nearly impossible for a customer service agent to easily and quickly gather the information necessary to figure out what combination of parameters would need to be changed in order to say to the caller “Sure, we can upgrade your handset, let’s talk about your options.” But, with intelligent technology guiding the agent, a personalized solution can be created that meets the customer’s needs. This may require some negotiation with the customer about such details as adding a year to their contract, or increasing the size of their data plan, or even switching to the provider’s cable or Internet offering. But giving customers options places them in the decision seat and they feel much better about the agreed-upon outcome.

Imagine that father hearing the following conversation with your customer service agent:

“My daughter would like to upgrade her handset to a smartphone. What do we need to do?”

“Certainly, sir, we can help you with that. Your daughter can have the new version for only $129.95 if she also upgrades her data plan from 200 MB per month to 2 GB per month and we add six months onto the contract for your family plan.”

Quickly getting to a resolution that the customer is happy with is also part of reducing the “effort factor” in customer service. Our 2011 Scorecard Research shows that customers tend to be dissatisfied with  high-effort customer service interactions and place a great deal of importance on getting resolution on the first contact with minimal effort.

Being able to say “yes” to helping customers upgrade their handsets with minimal effort through the use of intelligent technology solutions makes them happier, keeps them loyal, and helps your revenue growth.

Jeff Epstein is responsible for marketing programs in the Communications vertical at Convergys, an industry leader in providing agent-assisted, self-service, and proactive care solutions that support its client customers worldwide.

by Igor Sarenac

As you read these lines, a small but powerful body of individuals is becoming more vocal about their dissatisfaction with corporate America. I don’t mean the “Occupy Wall Street” movement, but rather, another group with significant long range influence over the future of U.S. business: consumers upset over the high effort and frustration of interacting with customer service.

Although in the minority of American consumers, those who see dealing with customer service as less than satisfying wield power far beyond their own numbers. By airing their grievances on Twitter and Facebook, their messages have the potential of going viral, damaging the reputations of the companies they hold responsible for their bad service experiences. Before these companies realize it, they could experience a drop in consumer purchases, reduced customer advocacy, and new customer avoidance.

Dissatisfied customers don’t feel their demands are excessive. The main thing they want is “first call resolution”– prompt, accurate handling of their issue or problem the first time they contact customer service. Make the service experience hard and you might find your company the subject of tomorrow’s hottest Twitter chat.

For businesses, the cost of unfavorable social media exposure is high. Convergys’ 2011 U.S. Customer Scorecard Research shows that more than 70% of consumers who read negative social media posts about a company either avoid doing business or pick up and leave. Just as damaging to the bottom line, the additional burden of handling multiple customer contacts fuels higher contact center operating costs. Every extra communications channel, every instance of non-resolution, and every 30-second hold time endured by a customer drives incremental costs to an organization.

How can companies reduce customer effort?

First, be flexible. Provide multi-channel options that let customers select their contact preferences, and include self-service options for more queries.

Second, train agents in the skills needed to reduce customer effort. With the right training, highly rated and strongly performing agents can significantly reduce the effort that leads to customer attrition. To ensure that each interaction is productive and satisfying to the customer, teach agents what we call the “Seven Commandments of Reducing Customer Effort”:

1. Ask questions to make sure the customer’s issue is clear
2. Restate the problem so that the customer knows you understand
3. If a transfer is necessary, do it quickly
4. Avoid technical jargon and always be easy to understand
5. Communicate while you work and tell the customer what you’re doing
6. Use “headline concepts” to explain all options
7. Recap the interaction and provide a timeline for problem resolution

Companies are well aware that they can and should be doing more to attack the “effort factor” in customer interactions. Recent statistics from the Customer Contact Council reveal that 77% of organizations understand the importance of customer effort and the impact it can have on attrition, but only 27% are working to limit customer effort.

Minimizing customer effort is a no-brainer with obvious benefits. It safeguards long-term customer loyalty through improved resolution statistics, drives significant cost savings out of support operations and, as importantly, transforms customer relationship management from a cost center to a revenue generator. You don’t have to spend money to increase customer satisfaction. Just focus on solving customer issues on the first contact with the least effort, for you and your customers.

Igor Sarenac is a vice president in Convergys’ customer management business, which provides agent-assisted, self-service, and proactive care solutions that support client customers worldwide.

Today, consumers have at their fingertips a wide variety of ways to interact with the companies with which they are customers.  They can pick up a phone and call a help line; log on to the Internet and access a company Web site; write an email or send a tweet; or use their smartphones to send a text message or access a mobile app.

Clearly, advancements in technology have dramatically changed the customer service landscape by expanding the number of ways consumers are able to engage with companies. But, as new service channels grow in use and acceptance, the challenge for companies to provide a consistent multichannel experience becomes even greater.

For technology companies, customer expectations are especially high.

Tech consumers, who tend to be the early adopters of new devices, are the most likely to embrace new customer service channels, such as social media, texting, video support or a mobile app. According to Convergys 2011 US Customer Scorecard Research, 85% of technology customers have a social media account, a smartphone or a tablet. With these devices conveniently at their disposal, 45% reported they had used one of the newer channels – social media, texting, video support or a mobile app – for customer care in the last six months. That’s nearly double the percentage for customers across all industries.

Although the majority (65%) of technology customers today still choose live phone support as one of their top two most preferred service options, as younger consumers become more dominant in the market, channel preference will further grow in variety.  Among tech consumers, only 52% of Millennials listed phone support as one of their top two preferred channels compared to 70% of Gen Xers and 82% of Baby Boomers.

New channel use can also be seen among those customers who contacted a tech company more than once.  Our research shows these customers used a more diverse mix of channels on their first attempt at contact, but often resorted to using phone support to resolve their issue on the second contact.

These failed first attempts are where we can see the importance of a consistent multichannel experience.  While technology customers are generally positive about customer service, more than one-third of tech customers reported having a bad experience with a technology company.  And when their experience goes sour, the same technologies that have empowered tech customers to interact with technology companies at their convenience quickly become conduits for airing their grievances. Social media can have a considerable impact.  Nearly half of technology consumers said they had read a social media post about someone else’s bad experience in the past six months; of them, 84% said that they avoided or stopped doing business with a company as a result.

Providing multichannel customer care comes down to what you know about your customers and how you use that information. In order to deliver a consistent multichannel experience, technology companies can:

• Leverage analytics-driven systems to capture and integrate information from multiple sources to deliver a holistic view of the customer regardless of channel and help shape interactions to the individual’s preference.
• Enhance channel integration to enable smooth transitions for customers moving from one channel to the next reducing the time and effort associated with the interaction.
• Apply social media listening technologies to identify and proactively engage with customers through social networks.

The customer service bar is set a little higher for technology companies.  Because many of their innovations helped make possible the new channels that exist, and because their customers are quick to adopt new channels, tech companies have to know how to best leverage them for service.  For the most part, technology companies have risen to the occasion, but there’s always room for improvement.

Mike Serpan is a vice president in Convergys’ customer management business, which provides agent-assisted, self-service, and proactive care solutions that support client customers worldwide.

Many people  would be surprised to learn that web chat has become the second most preferred customer service channel, and that Baby Boomers now prefer Web chat almost as much as their Millennial and Gen X kids.

New research from Convergys on the customer experience is revealing new insights about chat. Convergys’ 2011 U.S. Customer Scorecard Research shows that 31% of consumers from all age groups view chat as one of their top two service channels, along with phone support. Email and online self-service trail chat in customer preference.

With more and more consumers turning to the Web for a variety of business needs and heightened competition for sales, companies are also embracing chat as a new approach to enhance their online experience. According to a Forrester Research Inc. report on selecting online customer service channels¹, one in four U.S. retailers currently offer chat, and another 26 percent say that chat is planned. (Referenced Forrester Report: “Selecting Online Customer Service Channels To Satisfy Customers And Reduce Costs”, Forrester Research Inc., June 25, 2010.”)

What ‘s noteworthy is that 28% of Baby Boomers in the Convergys research study said that chat is one of their two favorite channels, just 6% below the younger segments’ preference for chat at 34%. But it makes sense. In recent months, media focus and the maturation and adoption of chat best practices by companies launching or enhancing their solution have accelerated dramatically in all markets. As a result, even our parents are hearing about the service and having a good experience when they try it.

Chat fills the service gap between live phone support and a company’s Web-based self-service help sections, frequently asked questions (FAQs), and site searches. Chat requires less effort than self-service, is more responsive than email, and provides the “human touch” that consumers enjoy with phone support.

Yet, three misconceptions about chat could still slow adoption by companies. Here’s the truth behind those misconceptions.

• Misconception #1: Chat generates lower satisfaction.

In Fact: Forrester² reports that 63% of customers who have used chat found it satisfying, which is a higher percentage than reported for other self-serve channels. In addition, in an e.marketer.com survey 63% of customers said they were more likely to return to a Web site after experiencing web chat. (Referenced Forrester Report:  “Selecting Online Customer Service Channels To Satisfy Customers And Reduce Costs”, Forrester Research Inc., June 25, 2010.”)

• Misconception #2: Chat still has low usage.

In Fact: Usage is steadily increasing. Over the past three years, Convergys’ annual U.S. Customer Scorecard Research has shown a rise from 20% of customers trying web chat in 2009 to one in three consumers in the 2011 Convergys research saying they have used web chat in the last 6 months.

• Misconception #3: Chat takes longer than a call.

In Fact: Some chats can take as long as, or longer than, a call. However, contacts can be streamlined with effective use of analytics, links to an online knowledgebase, cobrowse, and agent cross-training on related products and issues. One company realized a 30% reduction in chat length and improved customer satisfaction with these methods. Cost savings can also be significant, especially when multitasking and conducting the work offshore.

The quality of Web service will only continue to grow in importance as more and more business takes place on the Internet. When Forrester³ asked a group of customer experience professionals to state their main service objective for 2011, 76% replied “improving the online customer experience.” (Referenced Forrester Report: “The State Of Customer Experience, 2011”, Forrester Research Inc., February 17, 2011.”)

Clearly, providing chat is becoming a key to meeting more and more customers’ expectations. Combined with the financial benefits it offers, chat warrants inclusion or expansion in a company’s multichannel strategy.

Julie Maier is a senior manager in Customer Management marketing at Convergys Corporation, a global leader focused on turning contact centers into profit centers and improving the customer experience for the Retail, Healthcare, Financial Services, Communications, Technology, and Government markets.