New data from The Northridge Group provides a clear message to businesses. Today’s consumers are shopping online more now than ever but find the overall service experience inadequate. According to The Northridge Group’s State of Customer Service Experience 2020 report, as a result of COVID-19, 68% of consumers have increased their online shopping and plan to continue at this increased rate post-pandemic. However, consumers are increasingly frustrated at the level of effort required to reach companies to get the help they need.
Reducing Customer Effort Drives Loyalty
"As the number of consumers doing business online increases, so too, does the need for self-service options that deliver fast and easy ways to contact brands," says Pam Plyler, Executive Practice Lead, Customer Experience and Contact Center Management at The Northridge Group. "But with only 42% of consumers reporting first contact resolution, brands are clearly missing the mark," says Plyler.
The study finds consumers are having to work too hard to resolve their issues, with 73% experiencing long wait times to reach a live agent, 69% reporting difficulty finding answers on the company’s website and 60% having to repeat information over and over again. While business leaders report investing in top service improvements, like reducing wait times, only 29% of businesses surveyed currently measure customer effort. "If you don’t measure it, you can’t improve it. Implementing the right customer service effectiveness metrics, including first contact resolution and customer effort, can increase brand loyalty, streamline processes and reduce costs," says Plyler.
As the data shows, the stakes are high. Despite the global pandemic, consumers continue to be unforgiving when it comes to poor customer experience. An alarming 73% of consumers report they are likely to switch to a competitive brand after just one negative experience.
Demand for Digital Customer Service Channels is on the Rise
According to the 2020 Northridge Group survey, the phone remains consumers’ preferred contact channel because it is currently the most effective and fastest channel for issue resolution. However, over the past five years, consumers’ preference for phone and email has declined while their preference for digital channels has increased. "As businesses invest in creating a seamless and integrated experience across channels, consumers’ preference for and use of digital channels is expected to accelerate given the impacts of COVID-19," says Bryan Gillis, Executive Practice Lead, Quality Solutions & Customer Analytics at The Northridge Group. "The speed and accessibility of online chat, for example, offers the ability to shift more transactional inquiries to channels that provide businesses with higher productivity and a lower cost to serve."
Fast, Easy Service Must Become a Priority
The Northridge Group has published this report annually since 2015 and began including survey responses from business leaders in 2018. The combined 2020 study of more than 1,000 U.S. consumers and more than 250 business leaders continues to shed light on the discrepancy between how business leaders and consumers view investment priorities. While businesses continue to prioritize investments in channel consistency, consumers would prefer they focus on fast and easy service including:
- Increasing speed of issue resolution
- Improving accessibility of service
- Developing knowledgeable service teams
As this year’s report shows, there's no downside in the long run when companies prioritize the customer experience.
Posted by Veronica Silva Cusi, news correspondent
About The Northridge Group:
The Northridge Group is a management consulting firm specializing in Business Transformation Initiatives, Customer Experience, Contact Center Effectiveness, and Quality Monitoring Services. We lead with advanced data analytics and utilize business process redesign to deliver measurable outcomes for our clients. Founded in 1999, the firm serves Fortune 200 and mid-market enterprises in the healthcare, telecom, financial services, travel and transportation industries, as well as key government agencies.
Published: Wednesday, January 27, 2021
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