In an era where consumers expect lightning-fast shipping, immediate product availability and rapid support response times, meeting these high standards can be challenging for brands. It's crucial to find a balance between efficiency, cost-effectiveness and an exceptional customer experience. AI and automation have become indispensable tools for many businesses, alleviating manual labor and providing solutions when budgets are constrained. Yet, there are moments when relying solely on automation can have unintended consequences.
Most consumers have encountered automated customer service through chatbots, interactive voice response systems or automated email replies. While these technologies can significantly reduce the costs of using live customer engagement and support services, they sometimes lack the personal touch that customers crave and result in lost sales and loyalty. That’s because there are instances when speaking with a human agent is essential – whether for more accurate answers, clearer advice, to solve complex issues or simply for a reassuring human interaction. This makes it essential to understand your customers' needs and pain points and learn to create an effective customer service strategy that provides an exceptional experience.
A recent study featured in Retail Touchpoints highlighted the adverse effects of automated voice agents. The study found:
Although it seems automation doesn’t bode well for customer retention, using it can be beneficial for brands. According to Gartner, conversational AI deployments in contact centers will lower agent labor costs by $80 billion by 2026. However, that doesn’t factor in the cost of lost loyalty or sales.
Automated vs live customer service poses a challenge: When is automation okay to use, and when is a live agent critical to the customer experience and brand success?
The good news is that customers don’t always despise customer service automations – and there are effective strategies that allow brands to create a hybrid approach to customer support. The key is knowing when and how to use automation versus live agents. A customer service strategy that uses both requires leveraging the strengths of automated tools and humans. Smooth transitions between automated responses and human interaction are also crucial. When you can create a balanced approach, you not only optimize efficiency and reduce costs but also ensure a personalized, high-quality customer experience. To develop your strategy, take these steps:
Developing effective workflows involves analyzing past customer interactions to identify common queries and issues. By understanding the patterns and frequency of these interactions, you can strategically assign tasks to either automated systems or live agents. Routine and repetitive tasks, such as tracking order status or answering frequently asked questions, can be managed by automation, freeing up live agents to handle more complex and nuanced issues. This approach not only improves efficiency but also ensures that customers receive timely and accurate responses tailored to their needs.
While automation can handle many routine tasks, complex and nuanced issues often require the empathy and expertise of a live agent. Customers facing intricate problems or those needing personalized advice benefit greatly from human interaction. Live agents can provide more accurate answers, understand context better and offer tailored solutions that automated systems might miss. By reserving live agents for these high-value interactions, you ensure that customers receive the necessary attention and care, enhancing overall satisfaction and loyalty.
When asked about the most common issue his team received calls about, Sergio Martinez, Customer Engagement Director of Cart.com, quickly said, “returns.” His solution: clear and straightforward policies, particularly for returns and exchanges, can significantly enhance the customer experience and reduce the number of customer support calls.
In addition, automated systems can provide instant information and guidance on these policies, reducing confusion and minimizing the need for human intervention. Clear policies that are easily accessible through automated responses help customers quickly resolve their issues, leading to higher satisfaction and fewer follow-up inquiries. Well-defined policies also ensure consistency in responses, building trust and reliability with your brand.
Proactively sending notifications about order status, delivery updates and other key information can significantly reduce the volume of inbound customer inquiries. Automated notifications keep customers informed and reassured, eliminating the need for them to reach out for updates. This not only enhances the customer experience by providing timely information but also reduces the workload on both automated systems and live agents. By keeping customers in the loop through regular notifications, you can prevent many common queries and ensure a smoother, more efficient service experience.
Live customer service doesn’t come without complaints. Wait times are often a deterrent for customers, and agents aren’t typically available 24/7. Another common issue is poor training and high turnover, which results in a lack of knowledge and, in turn, customer frustration.
Martinez, who runs a highly successful customer service team for Cart.com brands, believes in the power of training. “We spend a lot of time on the onboarding process and orientation and making sure that our team has the necessary tools and information to be successful,” he said. “We have specialized trainers on each one of the programs that we have, and they are part of the frontline. So, they are up to date on what's going on and taking the pulse of the brand.”
Customer service agents are critical in gathering knowledge and helping brands use it to improve operations and the customer experience. They can also swiftly catch issues: for example, if a promotion code is not applying, customer support is often the first to know and can pass the information along to the team that can fix it.
Selecting the right customer engagement or support service for your retail brand is crucial for delivering exceptional customer experiences and maintaining trust. When evaluating options, prioritize transparency and access to call recordings, transcripts and data. This transparency ensures you can monitor interactions for quality assurance and compliance, helping you understand how your customers are being served. Access to detailed call recordings and transcripts allows you to review specific cases, providing insights into customer concerns and agent performance.
Look for a service that offers robust data analytics, enabling you to track key performance indicators such as response times, resolution rates and customer satisfaction scores. This data is invaluable for identifying trends, training needs and areas for improvement. Additionally, consider services that integrate seamlessly with your existing CRM and support systems, ensuring a smooth flow of information and a comprehensive view of customer interactions across all channels.
Lastly, choose a service that aligns with your brand’s values and goals, offering flexibility and scalability to grow with your business. By selecting a transparent, data-driven customer support service, you can enhance the overall customer experience and drive long-term loyalty. If cost-effectiveness is a necessity, look at how they develop an effective hybrid approach.
In the end, it’s all about balance. Martinez says, “It's all about understanding your customer preferences, and the strengths and limitations of each approach. We recommend a blended approach and route the most simple, straightforward tasks to an AI agent and then the most complex ones, or the ones that need emotional connection, to a real agent.”
Cart.com combines powerful digital tools and tech-enabled logistics to enable seamless B2C communication, excelling in all aspects of customer engagement across phone, email, chat and SMS. Our bilingual agents work across channels to drive customer satisfaction and loyalty, ensuring seamless experiences for your customers. Our omnichannel customer support maximizes the value of each interaction, turning one-time shoppers into lifelong fans. Our call center transformation goes beyond basic service, focusing on delighting and retaining customers while increasing upsell and cross-sell potential. Contact our team today to elevate your customer support and drive brand loyalty today!