Customer Service Functions Safe from Cost Cuts

DESPITE the economic pressures, a questionnaire answered by finance leaders revealed that not only are they leaving customer support funding alone, but they also intend to increase spending on them.

It may seem counter-intuitive as companies are tightening their belts in response to economic pressures. But those in the know KNOW that prioritizing funding for customer service is the better move. In a July 2022 survey conducted by Gartner, 21% of the 234 finance leaders who participated declared that they plan to increase funding for their customer service organizations over the next year. This figure is three times more than the 7% who said that they expect to cut down. Almost three-fourths (or 72%) of those surveyed said they plan to keep current spending.

This information shows that customer service isn’t being eyed for cost-cutting compared to facilities management, real estate, and finance.

Post-pandemic, the top three factors for cost-cutting are supply chain disruptions, a tight labor market, and inflation. A decade ago this would have meant a mass layoff or cutting on labor costs and technology. But now many chief financial officers are prioritizing digital investments over traditional spending categories such as sales, and research and development. The goal is to focus on technologies that boost current revenue streams as well as new digital products and services.

Over the years, digital investments have been reducing costs. For instance, omnichannels such as digital self-service feature an enormous cost savings opportunity for many companies. This option costs a mere $ 0.09 per contact compared to $14 per contact on assisted service.

Another area that reduces customer service costs is conversational artificial intelligence (AI). Conversational AI is expected to lower contact center expenses by around $ 80 billion in 2026.

This doesn’t delete the need for contact centers in the future.

What this means for businesses is a more efficient use of the human factor in customer service. We let AI do what it does best, but we reserve the more sophisticated functions (live agents) for when it is needed the most. Companies may no longer need to engage several partner contact centers to service the most crucial areas of customer care.

In a March 2022 report by Forrester Research, it was revealed that companies are leveraging conversation AI to anticipate customer service agents’ needs while, at the same time, providing relevant suggestions based on the agent’s preferred communication style.

This is a huge breakthrough in the customer experience perspective. Agent workspaces are poised to become more personalized and flexible. But of course, the caveat is that AI is never a “standalone”. Systems like these require close collaboration between design and data science teams to come up with an effective and intuitive user experience.

Another area that is becoming crucial is hiring and compensation. CFOs are now prioritizing human resources while keeping an eagle’s watch on facilities, contractors, and consultants, according to Gartner. There have been instances when a contact center in a pricey geographical location had to be shut down or shifted to remote work. This is where regions such as the Philippines have been very helpful.

At any rate, companies have to partner with contact centers that have their client’s best interests in mind. It is no longer a matter of size and numbers. Quality over quantity.  Customers’ preferences are changing. They want help in a snap (which is where self-service options such as FAQs, chatbots, forums, and AI come into play) but at the same time, they want quick, personalized service when they feel they need it.

See what a future-forward contact center can do for your business and your business’s bottom line.

Talk to us.  

NEARSOL is a US-based BPO and service company that offers clients custom-design solutions.  With major hubs in Manila and Iloilo, it began operations in 2006 and has since gained a strong presence in the Latin American regions, the Caribbean, and the Asia Pacific, winning many awards for quality and service along the way. Most recent of which is its Great Place to Work-Certified™ Recognition, a global accreditation that tells stakeholders what employees think of the company culture. 

Visit our LinkedIn to learn more about our company and our global footprint./PN