A disconnect between customer service and other departments can increase costs to a business. Higher costs are an effect of limiting customer service agents to providing temporary solutions and increasing the volume of similar customer issues. Businesses should consider introducing software for customer management to mitigate costs associated with inefficient or ineffective service.
Disconnected Customer Service
Customer service is an indispensable aspect of operation as it is responsible for providing quick responses to customer problems. However, it often works in isolation. It is left to operate on its own and without support from other departments in an organization. This means that the root causes of problems reported by customers go unaddressed and problems continue to create strains on the business.
Where customer service does not work in cooperation with the rest of a business, the friendliness and professionalism of service agents will not be able to greatly influence the overall customer experience. Business costs will mount over time, regardless of whether they are readily apparent, immediate, or have long-term consequences. Further, the volume of similar customer contact can be eliminated if this disconnect can be remedied.
Effect on Customer Service
Customer service agents are often only able to provide customers with workarounds and not permanent solutions to problems. The volume of customer contact increases as the same problems continue to occur, forcing business expenditures to rise. Over time, redundant questions and concerns from calls, emails, and chats mean more customers waiting for answers, a build in contact volume, and an increase in overall hold and wait times.
The inability to resolve the same concerns can make customer service agents feel frustrated and helpless. Agents are unable to tell customers that the raised issue is a recurring probem and will have to resort to providing the same non-solution answers each time.
Impact on Company
A business will likely incur financial costs beyond customer service expenses if the disconnect is not improved. A problem with a damaged or defective product order, for instance, will include replacement and shipping costs, as well as the staff effort required to correct the situation. This involves customer service response, placing a replacement order, and warehouse processing.
Most companies have a cost margin to accommodate these issues. Still, if the customer service department is more connected to the rest of the organization, the different teams can work together to identify solutions to eliminate the root problems of customer concerns. In turn, this will increase a company’s profitability per product sold. Companies would be able to lower cost margins and, if they elect, reduce the cost of their products to put pressure on their competitors.
Customers are enjoying more control and choice when it comes to deciding on a product or service. Companies need to remember that providing customer service is considered a cost of doing business and doing well in this department improves their standing in the industry.
A cooperative organization cannot address customer service problems like poor customer service stemming from poor agent attitude and training. Rather, cooperation works to eliminate the volume of contact and create better opportunities for companies to address and provide solutions for customer issues.
Connecting customer service with the rest of the organization is a way for businesses to drive improvements to the customer’s overall experiences, save costs by reducing redundant customer issues, and encourage greater profits with high customer loyalty and positive referrals.