Keeping the "Human Factor" Alive
With the explosion of digital customer experiences and interactions over the last ten years, we have seen a massive decline in human-to-human customer experiences. Sure, we can get answers from automated phone systems, email for all conversations, or "chat" on websites and mobile apps. But even when chatbots or other automated vehicles deliver the answers, technology tools can inhibit the development of an invaluable personal connection.
According to McKinsey, digitized customer interactions have jumped from just 36% before the COVID-19 pandemic to 58% in October 2020, meaning that digital customer interactions have become customers' predominant experience with businesses. Person-to-person human interactions are becoming extinct – only utilized when a customer absolutely needs to speak to someone.
While I am a leader in the digital evolution space, I am not blind to the value of the human factor. We humans have thoughts, feelings, and concerns, an inquisitive nature to ask follow-up questions, and an expectation to be heard and supported. When we take the time to contact customer service, we're doing it for a specific reason. Sometimes those reasons are emotional because, well, we humans are emotional. The best way to handle emotional needs is with an empathetic response. Saying something as simple as "Have a Nice Day" can be the personal touch that differentiates between a great and a terrible customer experience. The smartest technology can't do this the way another human can. And the more complex and emotionally charged a situation is, the more it requires a personal touch. There is no substitute for the genuine care and concern of a real human interaction – companies that still offer customer service with a real person are underscoring a powerful service experience.
Working in the property/casualty insurance industry, I've seen first-hand the importance of human interaction and the power of empathy in a customer's moment of need. When a customer has a claim, it is THE most critical interaction for that person at that time. Helping them put their life or business back together needs to be a priority – a human priority. When your life turns upside down, the last thing you want to do is pass from automated recording to a chatbot and back. You want to speak with someone who cares about you and your situation and provides immediate assistance.
It seems so intuitive to keep the human aspect of customer service alive. So why do so many organizations abandon it in favor of a solely digital customer experience? The answer may lie in the short-term financial bottom line.
Larry Alton, digital expert and contributor to the Huffington Post and Ad Week writes, “It’s estimated that 29% of customer service positions could be automated with chatbots and other technology, saving businesses $23 billion.” These numbers are large enough for many business leaders to pay attention. My opinion, however, is that this is a short-term fix that potentially comes at the cost of long-term value.
Over the long term, if digital customer interactions fail to meet customers' emotional needs, customer experience scores will decline. This will impact revenue, sales, and retention. According to Harvard Business Review, an organization's customer experience score correlates with their sales – a company with a perfect customer experience score could see 2.4 times the number of sales as a company that scores poorly.
With cutting-edge technology readily available to digitize every aspect of customer experience, deploying it is a natural desire. But be careful not to marginalize the human factor of customer experience. Balancing the value and impact of digital AND human interactions will pay off in the long term – ask your customers.
Jim McKeown
Vice President, Customer Experience & Mobility