The Northridge Group's State of CX Report 2023 Part II

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Part II: Business Investments vs. Customer Preferences

The State of

Customer Service

Experience

2 0 2 3

PART TWO OF A TWO-PART SERIES

Providing excellent Customer Experiences is

essential to the survival of all businesses, but it can

be difficult to understand the nuances of how

interactions with a company impact customers both

positively and negatively.

Equally important are the customer service and experience actions and

investments made by a company's leadership, proactively and in response

to consumer sentiment and/or feedback.

Customers look at their experiences with a company as a combination of

all the contacts they make across channels to resolve their issues.

Companies that learn to deliver a seamless, personalized experience

across all channels will have a competitive advantage.

To find out what customers really think about the experiences they have

interacting with companies and to determine whether their impressions

are in sync with what the leaders of those businesses perceive about the

level of service they provide, we conducted parallel surveys with

customers and business leaders.

Executive Summary

Section l: Investments in People and Processes

Does where we work impact how we work?

Contact center associates want to work from home; Customers say ok, but

many business leaders don’t.

The Experience Gap: Businesses score themselves higher than consumers do!

Training is a high priority for business leaders and customers alike.

Part Il: Business Investments vs. Customer Preferences

Section II: Investments in Technology

Smart investments in the right contact center technologies prove critical for

maintaining and improving the Customer Experience.

Live agent chat is making inroads with customers; It should be considered an

investment priority.

IVR & Automatic Callback: Contact center technologies with great potential

when done right.

This is the seventh time The Northridge Group has

conducted a “State of Customer Service Experience”

study and the fourth time we have surveyed business

leaders. Our report provides insights that business

leaders can use to improve the Customer Experience at

their organizations.

Does Where We Work Impact How We Work?

Before the COVID-19 pandemic, almost all contact center associates

worked strictly in contact center offices. When the pandemic hit, most

associates were sent home to work remotely. This arrangement worked

out better than anyone expected.

Today it is exceedingly difficult to get associates to go to a contact

center five days a week because they simply don’t have to anymore.

Companies that required associates to return to the office full-time

have experienced notable attrition.

Workers have had the upper hand in the current job market, so

discontinuing remote work for contact center associates may be a

costly decision for employers. Offering permanent hybrid or remote

positions may be the smart way for employers to attract high-

performing associates and offers the greatest defense against attrition.

The State of Customer Service Experience

Investments in People

and Processes

One of the most important elements to this whole

dynamic is understanding how to measure and

monitor productivity and quality in remote,

hybrid, and on-site environments.

Optimized training, Quality Monitoring, and Workforce

Management (WFM) are all vital to delivering excellent

customer service experiences. A contact center assessment

that focuses on all of these can help improve the live-agent

experience for customers.

We recently helped a leading consumer retailer improve its

contact center performance with an operations redesign.

Our recommendations resulted in a 20%-point improvement

in their Net Promoter Score (NPS), as well as long-term WFM

investment strategies for staffing, training, and metrics.

Contact center associates want to work from

home? Customers say "No problem!“

Now that working remotely has become commonplace, it’s no

surprise that customers don’t object to customer service

associates working from home.

Northridge’s Quality Monitoring specialists have also observed that some customers

respond positively to associates working from home and may even engage in

personal conversation around it. As long as contact center associates are able to

resolve a customer's issue to their satisfaction and do so in a timely manner, the

location seems to be less important in the eyes of the customer.

NORTHRIDGE SUCCESS STORY

47%

of customers knowingly

spoke with a contact

center associate

working from home

72%

said this did not

impact the agent's

ability to resolve

their issue

34%

of businesses

plan to go back

to on-site work

Business leaders not aligned with customers or

their associates when it comes to work from

home policies.

Offering contact center associates the option to work from

home or to work on a hybrid basis increases the chances of

recruiting and retaining top talent, yet many companies are

planning to bring contact center associates back to the office

full-time.

While 37% of businesses offer permanent remote work for contact center

associates, our research indicates that more than one-third of businesses plan to go

back to working full-time on-site.

These employers may have trouble recruiting and retaining good talent. Employee

attrition is costly so companies should carefully evaluate the pros and cons of

mandating full-time onsite work. It may be a mistake in some cases.

Surprisingly, they expressed less concern about recruiting and attrition. Only 29% of

business leaders reported that recruiting was a big concern and only 25% of

business leaders reported that attrition is a big concern. That may change if/when

they return to full-time onsite work models.

37%

of businesses offer

remote work

The Experience Gap: Businesses are not scoring

as well as they think with customers when it

comes to Customer Experience.

93% of business leaders surveyed believe their companies make it easy for customers

to resolve their issues, only 66% of customers felt this way in return.

The response speed associated with live agent chat offers businesses the opportunity

to shift volume to a channel that provides them with higher productivity at a lower

service cost. However, this channel will only be popular with customers if it allows them

to quickly and effectively solve their problems. Many companies aren’t there yet. More

must be done to provide customers with quick and easy paths to issue resolution.

93%

66%

6%

21%

1%

13%

Business

Leaders

Customers

Easy or Very Easy

Neither Easy nor Difficult

Difficult or Very Difficult

How easy is it for customers to get their

customer service inquiries or issues handled efficiently?

A Fortune 25 healthcare insurer partnered with The

Northridge Group to conduct an end-to-end assessment of

their Capacity Planning and Workforce Management (WFM)

processes, with the goals of lowering operating costs, improving

customer service, and enhancing employee satisfaction.

We identified opportunities for increasing visibility to true

staffing requirements, improving accuracy of Full-Time Employee

(FTE) “net lines”, consolidating queues, maximizing resource

utilization effectiveness, and implementing call handling metric

outcomes.

Our recommendations resulted in an estimated 20% reduction

in overtime and 25% reduction in new hires; a 6% increase in

agent utilization for call handling; and the identification of $52M-

to-$74M in cost reduction opportunities.

NORTHRIDGE SUCCESS STORY

Customer service training – a high priority for

customers and business leaders.

Customers and business leaders agree that training for customer

service representatives should be a high priority.

When asked about their customer service investment priorities, more business leaders chose

training than any other customer service investment (except for 24/7 customer service

availability). Interestingly, customers ranked these same two areas--24/7 availability and better

training--as the top investments they believe businesses should make, but in reverse order.

Providing training to supervisors as well as associates can drastically

impact the Customer Experience in situations where a live associate

is interacting with a customer. We partnered with a Fortune 100

telecom company to provide a coaching development program for

contact center supervisors to quickly drive transformational results.

Within six weeks of coaching, Voice of the Customer Representative

Satisfaction improved by more than 4% overall, and by more than

10% for a supervisory team targeted for improvement; the

company's First Contact Resolution (FCR) percentage also increased

by 40 basis points.

NORTHRIDGE SUCCESS STORY

While business leaders believe their company already has appropriate training and

learning management systems in place, 92% of business leaders would like to provide

additional training to their customer service representatives, with soft-skills training

being the top area of investment and/or improvement at 29%.

BUSINESSES

CUSTOMERS

24/7 customer

service availability

Better training for

customer service

representatives

01

02

01

02

24/7 customer

service availability

Better training for

customer service

representatives

Service Availability and Training Rank as the

Top Two Investment Areas for Performance and Experience

There are a myriad of connection points between your

business and the end customer, and while your contact

center associates may not be the first point of contact, there

is no doubt they are the most important.

In my experience working with large contact center

operations, we see that managers often lack the time and

resources needed to properly evaluate associate

performance--it's why they bring in outside Quality

Monitoring experts who can objectively assess the

situation and offer honest, practical insights and

recommendations for improvement.

Lisa Butler

Managing Principal,

Service Delivery

The Quality Monitoring process involves both the collection and mining of data

from a company’s customer calls, emails, chat, and social media – ideally

combining it with other company data to derive insights from deeper in the

organization. While this process varies slightly by industry sector and company

size, I’ve found the most complex and nuanced Quality Monitoring programs are

often tied to the healthcare industry.

Health insurance providers handle calls from both members and providers and

are required to meet specific compliance standards and contend with extensive

regulations to maintain state contracts. Third-party Quality Monitoring teams that

are trained in the complexities of the specific regulations are best suited to help

insurance providers monitor the performance of associates.

It is critical to pinpoint the areas that contact center associates need to improve

on so they can be rectified. When data is collected across multiple channels and

deciphered, the story it tells can be used to improve associate performance and

enhance the Customer Experience.

Smart investments in the right contact center

technologies prove critical for maintaining and

improving the Customer Experience.

Our research indicates that customers are quite willing to embrace contact

center chat technologies as long as the process can quickly, efficiently, and

consistently solve their issues.

Interactive Voice Response (IVR) technology is a solution that presents

infinite possibility for improving the overall Customer Experience, routing

calls efficiently, reducing hold times, and connecting customers to the right

contact center associates the first time around. The key to making this all

work--and where we almost always see it go awry--is in its initial set up and

configuration. Put simply, poor IVR implementation can wreak havoc on the

Customer Experience.

Automatic Callback is another technology that has been highly touted for its

potential to improve contact center wait times and provide a better

Customer Experience. Its success hinges on its reliability and that your

customers trust that it works.

The State of Customer Service Experience

Investments in Technology

These foundational technology systems should be

complimented by a host of new and emerging

contact center technologies, including AI and

machine learning, chatbots, virtual assistants and

voice, among others.

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