Customer service expectations are on the rise. Every day on LinkedIn or X, some brand or other is trending because they are quirky, and creative. But how do they have room for creativity, when the sheer load of customer inquiries is overwhelming enough? That’s where customer service automation comes in. With basic service tasks like ticketing and FAQs automated, brands can create room for human ingenuity and creativity. But is it the magic pill that it promises to be? There are deep-set doubts about automated customer service. Some think it’s cold and soulless, while some fear that it will take away jobs. Before we get into those, let’s see what all the buzz is about.
The Big Promise
Customer service automation is considered a godsend for businesses handling large amounts of customer inquiries. High inbound queries and calls can easily overwhelm a business. But when routine and repetitive tasks are automated, your workflows become streamlined (shorter, simpler). You can also deliver faster and more reliable support without overwhelming your customer service team. We’ve chosen 3 examples that demonstrate that automation is possible at scale, for variable queries without compromising security.
Cost Reduction in Telecommunications and BPOs
When it comes to customer service and interaction, the telecommunications and BPO industry is the first that comes to mind. Companies under this category handle conversations for clients across other industries, they are customer service for hire. Telecom and BPO companies handle thousands of calls in a single day. A good number of these calls are about repetitive issues related to a service or product. Here, automation of customer service provides efficiency. With automation software, these companies can manage the same level of customer interactions with lower agent requirements. Technologies like Voice AI, AI IVRs, chatbots, and automated call distribution systems are some of the first inclusions for automation in telecom and BPO companies.
It’s estimated that by 2026, conversational artificial intelligence (AI) deployments within contact centers will reduce agent labor costs by $80 billion. (Source: Gartner)
Preventing Agent Burnout in E-Commerce
E-Commerce is primarily a B2C business type, where the stream of customer queries is endless. There’s an endless string of questions during the purchase process. These can be about fit, product quality, payment, and shipping. Even post-delivery, there are questions about returns and refunds. All these queries can overwhelm an e-commerce store. Smaller stores with a limited number of agents can find this neverending barrage of queries uneasy, often leading to burnout. In this case, automating customer tickets, and resolving them with FAQs and self-help sections can reduce the burden on agents.
Automating tickets significantly decreased the number of tickets per order. Self-serve tools enable customers to solve issues relating to discounts, subscription policies, and returns on their own. (Source: Gorgias)
Time Saved in Financial Services and Banks
Customer service agents and other bank employees often perform tasks in a strict workflow. These tasks are ripe for automation. Customers already have access to the bank’s ATM or app. Customers can serve themselves through these, they just need to have an option to do so. Customer service tasks like checking balances, moving funds and even certain loan disbursals can be automated. This saves time for both the bank employees and customers. The best part? Trends suggest that customers actually prefer this teller-less experience.
87% of customers in the U.S. say that they enjoy self-service kiosks, and 66% of them would prefer them to human tellers. (Source: NCR/PYMNTS)
Concerns Around Customer Service Automation
We just saw 3 examples where automation saved time, money, and effort in customer interactions. These benefits can be a game changer for businesses across the world. However, the challenges and concerns around customer service automation are not insignificant either. Here are some of the top concerns that businesses across the world have.
Losing the Human Touch
When you automate customer service, your primary goal is to reduce human interaction with the customer. After all, salaries are one of the biggest expenses for any business. However, many leaders feel that removing a human being from an interaction will make them appear cold and distant. They worry that customers might feel neglected when machines or AI handle their issues, rather than human beings. Especially within industries like healthcare and financial services where empathy and reassurance are required. Even in the tech space, troubleshooting can require multiple steps, which are best dealt with patience and repetition.
A survey by Bain & Company supports this by showing that during the pandemic, U.S. consumers relied heavily on digital tools for even complex issues. However, many still expect the option of speaking with a human when dealing with disputes or emotionally sensitive matters. (Source: Bain)
Job Reductions and Employee Concerns
There’s no way to sugarcoat this, but implementing automation will lead to job loss. With basic queries automated many roles will become obsolete. So the concerns are valid. But it’s not all bad news. Research suggests that there will be a need to shift occupational categories. Agents will require retraining and upskilling to complement their customer service skills. Automation will do the heavy lifting of handling volumes, but there will be jobs within data analysis and customer service strategy. Jobs that require a skillset that overlaps with customer service experience. There will be a skill gap, but it can be bridged.
According to McKinsey, about 14% of the global workforce will need to shift occupational categories as automation and AI advance, but retraining and upskilling will play a crucial role in managing this transition. 82% of executives believe retraining is a key solution to address the skills gap created by automation. (Source: McKinsey)
Quality Control and Security Concerns
Many automated interactions over chat and phone rely on AI to understand and generate solutions to user queries. Business leaders fear that automating interactions will open them and their users to security risks and data bias. Bias and AI hallucinations are a real concern, that we have probed into ourselves. However, studies show that AI-powered interactions can improve customer experiences, as 68% of businesses using sentiment analysis report higher customer satisfaction.l.
CallMiner found that 45% of contact center leaders are concerned about AI security risks and data biases, while 43% fear AI might spread misinformation during customer interactions. Their 2023 CX Landscape Report also revealed that 68% of businesses using sentiment analysis (customer sentiment in calls) have seen improvements in overall customer satisfaction.
Given the recent research and capabilities of automation tools, we know that customer service is not an exact science. Yes, some tasks are repetitive and must be automated to stay competent, but that does not directly affect customer experience. In fact, the opposite seems to be true. When you use the right customer service software and deploy it mindfully, your users find quick resolutions to their concerns and you gain operational efficiency. It’s not a simple switch that will either make or break a business, but a resource that balances business goals with customer experience.
Deploying Automation Solutions, The Right Way
What does automation done right look like? Done right means seamless integration of tools that improve customer experience without compromising security or compliance in the process. Here’s how to deploy these tools.
Have a Transition Timeline
Once you zero down on a CX automation tool, share your calling requirements and customer service workflows with them. A support team from their end will advise you on what processes can be automated and how long will it take for the transition to complete. Depending on the solutions required, they might have a plug-and-play solution or something that requires custom development. For calling workflow automation, we can help you build a timeline that works for your business. Once you have a tool and timeline in place, make sure that the following steps are followed.
Seamless Integration of Automation with Existing Systems
The first step of ten involves connecting your automation tools to existing systems and infrastructures. This will likely include CRM systems, billing systems, and customer management platforms. When interacting with customers, these systems must be interconnected and work flawlessly. Poor integration can lead to service disruption, which can frustrate both customers and employees.
Most enterprise plans come with a developer or a team of developers to help you smooth this transition. Make sure that there is a vetted and qualified team behind the product you buy.
Balancing Automation with Agent Development
Automation is a big step for many businesses, and at the beginning, it is resource-intensive. Even then, you must not lose sight of the bigger picture. You also need a team of rockstar agents to handle complex issues. Especially in industries like banking and healthcare. See how you can nurture top talent. Teach them how to work with automation tools and monitor their effectiveness. Most customer service automation tools provide your team with resources like onboarding modules, and quick start guides to get started. Training sessions can also be scheduled for hands-on learning.
Ensuring Data Security in Automated Systems
When picking out automation software, there’s one thing you can’t overlook, and that’s data security. These systems handle customer data which includes payment information, personal information, and other forms of user data. This data needs to be protected at every step of the way. Failure to ensure security can lead to data breaches that not only damage a company’s reputation but also result in legal penalties. Any good automation system will have strong security protocols, including data encryption, and access controls, along with regular audits for vulnerabilities. Without security, any automation efforts are rendered moot. Speed and greater responsiveness should never come at the cost of security.
4. Meeting Regulatory Compliance for Data Protection
Data security is also a prerequisite for operations. Compliance laws like GDPR (General Data Protection Regulation) in Europe and CCPA (California Consumer Privacy Act) in the US are some examples of region-based compliance. Each US state will also have its compliance laws, which can impact you based on the region of operations. Some other examples include MENA Laws in Northern Africa and the Middle East. There’s also industry-specific compliance like HIPAA compliance in the medical industry. When picking automation software, make sure that it’s compliant with the market and industry that you wish to serve.
Measuring the ROI of Customer Service Automation
It’s time to reap and maximize the benefits of automated customer service tools. You’ve picked the right automation e and have made the customer journey more efficient. Now it’s time to measure the results and see what can be improved, both in the short and long term.
Cost vs. Benefits
Early on you should be seeing a reduction in the cost of agents. With simple queries automated, you should be able to operate with fewer agents. This should also lower your staffing and training expenses, as you only need to train fewer agents in complex issue resolutions. Additionally, chatbots should provide basic customer support and self-help options. So even if a call/query makes it to an agent, their average handle time should be reduced. At the same time, the first contact resolution rate must go up. With more queries handled by automation, your average response time should also go up. Due to the combination of these factors, the customer satisfaction score (CSAT) should also be improving.
If there is a negative trend in any of these numbers, see how to identify the bottlenecks within your service. Incorporate customer feedback about automation, and see how you can strike a perfect balance.
Key Metrics to Monitor in the Short Term:
- Average Handle Time (AHT)
- First Contact Resolution (FCR)
- Customer Satisfaction Score (CSAT)
- Labor Costs
Long-Term Strategic Value
Lowered costs are great in the short term, but with more funds, you can now look into scaling your business operations. You should have more working capital, which will enable you to handle more customer queries without significantly increasing headcount. You can start active customer outreach to proactively address service issues and collect feedback. This can improve customer retention and loyalty. There’s also a possibility to divert these funds into more customer service activities like real-time service requests, outage reports, onboarding, and technical support. The possibilities are endless.
After a few months of usage and fixing bottlenecks, you should be able to get data insights that help you spot trends and adjust support strategies. This feedback will help you improve overall service quality. The long-term impact of automation should be monitored using Net Promoter Score (NPS) and customer retention rates.
Key Metrics to Monitor in the Long Term:
- Customer Retention Rate
- Net Promoter Score (NPS)
- Cost per Interaction
- Scalability (Customer-to-Agent Ratio)
Conclusion
Yes, there is no doubt, that automating customer service is worth the effort. It’s the only way to grow in this competitive marketplace. But it’s not a silver bullet for all your customer service needs. Human involvement and skill development are equally important. Highly trained human agents are still the best and final solution for complex issues. During deployment, make sure that you seamlessly integrate automation software with all your current tools. Prioritize data protection and compliance when you automate processes. The most important part, find an customer service automation software that values your goals and works tirelessly to make them a reality.
