OCTOBER 2023 | VOL. 15

"Loyalty cannot be blueprinted. It cannot be produced on an assembly line. In fact, it cannot be manufactured at all. It is a force which leaps into being only when conditions are exactly right for it — and it is a force very sensitive to betrayal."



~ Maurice Franks

It happens in most of our conversations with clients and prospective clients. When discussing whether or not a company understands their problems in delivering a great customer experience, most companies we talk to say, “Of course, we know our problems… and we’re addressing them."

And of course, they’re right… well, sort of… Most, if not all, companies clearly monitor the issues that surface from day-to-day operations. From contact center logs to emails to social monitoring and customer surveys, companies have a plethora of sources to identify which experiences are creating the most noise in the marketplace. Unfortunately, in most cases, it is simply that, NOISE.

For over 20 years, Verde Group has helped companies separate noise from signal by identifying the specific experiences that truly erode loyalty and betray the trust of customers. This approach has led companies to focus on the issues that matter to customer behavior and ultimately the financial performance of the business.

To prove this point, below are two examples from B2B and B2C clients. The red bars indicate the experiential problems most damaging to customer loyalty and behavior. Do you see a pattern?

B2C EXAMPLE

B2B EXAMPLE

In both examples above and in most cases we see with our clients, the most frequent problems are not the most damaging. This fact creates an eye-opening moment for our clients and helps them prioritize where precious resources should be applied.

So the question for you, our reader, to think about… are you unknowingly betraying your customers? Are you unaware of the experiences that truly matter to customer loyalty and business performance? If the answer to the questions is “yes”, then we’d like to talk. Learn more at VerdeGroup.com

September Poll Results

In the September 2023 poll, we asked, "How would you rate the transparency of your customer service?” And in transparent fashion, we have to say WOW! Nearly 60% of our readers courageously shared that their experience is less than transparent or that they simply don’t think about it as a priority.

What is driving this organizational philosophy? And how would you expect customers to react when experiencing an opaque moment in the customer journey where a hidden surprise is not delightful?

A word to the wise: Learn from others who have paid the price for a lack of transparency in their experience and be above board. Your customers will appreciate it and loyalty will follow.

At the Verde Group, understanding the specific problems that create market damage is what we do. To learn more, visit our approach page or contact us to learn more about how we can help you take action and drive revenues and profits.

October 2023 Poll

Does your organization effectively separate noise from signal by truly understanding the experiences that matter most to customer loyalty and business outcomes?

"In the world of Internet Customer Service, it's important to remember your competitor is only one mouse click away." ~ Doug Warner

In the ever-evolving landscape of business, companies are constantly seeking ways to optimize operations and cut costs. One prominent trend that has gained traction in recent years is the disinvestment in human labor within organizations. This strategy often involves automating various tasks and processes to reduce reliance on human employees. One manifestation of this trend is the widespread adoption of chatbots, which are now being touted as the next evolution of offshore call centers. But are they really living up to the expectations of cost savings and improved customer experiences, or are they falling short of their promises?

The Offshore Call Center Dilemma

Offshore call centers, once a prominent solution for reducing labor costs, have faced their fair share of challenges. These centers were primarily established with the goal of lowering human labor costs, often by outsourcing customer support and service tasks to countries with lower labor expenses. While some implementations were successful, many proved to be disastrous.

The problems with offshore call centers were manifold. Issues such as unreliable VoIP connections, inadequate staff training, delays in connecting with customers, and frequent disconnections led to customer frustration and backlash. These shortcomings not only damaged customer experiences but also tarnished the reputation of companies that relied on offshore call centers to reduce costs.

The Rise of Chatbots

As technology continues to advance, companies have begun to explore more efficient and cost-effective alternatives to offshore call centers. Enter chatbots, AI-powered virtual assistants designed to interact with customers and provide assistance in real-time. The premise behind chatbots is simple: automate customer interactions to reduce the need for human agents, thus cutting operational costs.

The Promise of Chatbots

On the surface, chatbots seem like a promising solution. They can provide instant responses to customer queries, operate 24/7 without breaks, and handle a high volume of interactions simultaneously. This potential for efficiency and cost savings has led many companies to adopt chatbots as a customer service solution. It is estimated that companies can decrease customer service costs by 30% by implementing conversational solutions using chatbots.

The Reality of Chatbot Implementation

While the idea of chatbots is appealing, the execution often leaves much to be desired. Many customers, after having positive experiences with human customer support agents, have found chatbots to be a disappointment. Instead of receiving personalized and helpful assistance, they are often greeted with generic responses that regurgitate information already available on the company’s website.

This approach can be incredibly frustrating for customers who are seeking clarification, guidance, or assistance with issues not covered in the readily available information. It leads to a sense of wasted time and a diminished customer experience. A recent UJET survey found that 78% of consumers have interacted with a chatbot in the past 12 months – but 80% said using chatbots increased their frustration level. In essence, poorly implemented chatbot systems can do more harm than good by alienating customers rather than providing the help they seek.

The Bottom Line About Chatbots

The continued disinvestment in human labor within companies, as exemplified by the rise of chatbots, raises important questions about the trade-off between cost savings and customer experience. That same UJET survey found that 72% of respondents felt that using a chatbot for customer service was a waste of time. While cost reduction is a legitimate goal for businesses, it should not come at the expense of customer satisfaction.

It’s essential for companies to recognize that customers value genuine interactions and meaningful support. Chatbots should complement human agents rather than replace them entirely. Companies should invest in robust training and technology to ensure that chatbots can handle complex queries effectively and provide real value to customers.

In conclusion, chatbots may have the potential to be the next form of offshore call centers, but their success hinges on their ability to enhance, rather than detract from, the customer experience. Businesses should strive for a balance between cost-saving measures and maintaining high standards of customer service, understanding that customers are not just looking for answers but also for a positive and engaging experience.

-Gord Ripley, Senior Vice President, The Verde Group

Originally published on September 27, 2023 at verdegroup.com

Want to find out how the Verde Group can help you, your business, and your investments? Let’s talk. For more insights, news, and CX trends, follow us on Linkedin.

October 2023's Question:

“My leadership is not aligned on the role CX insights should play in making strategic business decisions. How can I elevate the importance of our work in their strategic planning process?”

Answer:  The good news is that you’re not alone. Too many organizations struggle to capture the attention of the C-Suite with their CX measurement programs. The primary reason for this is that they are not grounding the data in the business by explicitly linking CX findings to customer behaviors.

The impact of this lack of connection oftentimes results in presentations that indicate a “rose-colored” view of the customer experience when business results are under pressure. The root cause of this challenge is in the measurement strategy and metrics being used and shared.

In the blog, "Why 'I love you' Metrics Won't Solve Your CX Problems", we cover the specific dangers of using attitudinal metrics to measure your CX. We specifically focus on understanding and prioritizing CX friction points for 3 key reasons:

1.  They are observable – either they happened or they didn’t – no scalar bias

2.  Experiences create attitudes and negative experiences are much more predictive of customer behavior than positive experiences.

3.  You can do something about them! By understanding specific discrete experiences that damage your business, you can invest resources to triage the issue.

The absence or presence of CX friction is also a key component of Verde Group’s Revenue@Risk® Index. This beacon metric has proven to be highly correlated to changes in revenue. You can learn more about it HERE.