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Customer Service

This document provides a 5-step model from Deloitte for cutting customer service costs while maintaining excellent customer service. The steps are: 1. Eliminate - Reduce unnecessary customer contacts by eliminating causes for complaints and issues. 2. Deflect - Redirect customer queries to self-service options like FAQs to avoid live agent interactions. 3. Automate - Use technologies like chatbots and RPA to automate routine inquiries and tasks. 4. Steer - Guide customers to the most efficient service channels through proactive communication. 5. Empower - Give agents tools to resolve issues independently with less escalation. Following all five steps holistically can maximize cost savings while

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0% found this document useful (0 votes)
24 views23 pages

Customer Service

This document provides a 5-step model from Deloitte for cutting customer service costs while maintaining excellent customer service. The steps are: 1. Eliminate - Reduce unnecessary customer contacts by eliminating causes for complaints and issues. 2. Deflect - Redirect customer queries to self-service options like FAQs to avoid live agent interactions. 3. Automate - Use technologies like chatbots and RPA to automate routine inquiries and tasks. 4. Steer - Guide customers to the most efficient service channels through proactive communication. 5. Empower - Give agents tools to resolve issues independently with less escalation. Following all five steps holistically can maximize cost savings while

Uploaded by

John Philip
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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The fundamental guide for how to

provide excellent customer service in


a cost-effective manner
Guiding customer-facing organizations in how to boost
customer relations while cutting costs at the bottom line

April 2023 | Deloitte Digital


“A satisfied customer
is the best business
strategy of all.”
Michael LeBoeuf

2
Table of contents

The fundamental guide for how to provide excellent


customer service in a cost-effective manner 4

Costs in a Customer Service Context 5

The Deloitte Digital approach 6


Step 1: Eliminate 7

Step 2: Deflect 9

Case example: Eliminate & Deflect 10

Step 3: Automate 11

Step 4: Steer 12

Step 5: Empower 14

The three key enablers 17


Let’s make this shift a reality! 19

Appendix: Abbreviations

3
The fundamental guide for how to
provide excellent customer service in
a cost-effective manner

How can we provide our customers excellent


customer service while also showing a positive
bottom line? This Deloitte guide will help you to
navigate in what tactical changes to make in an
increasingly demanding business landscape.

That the business landscape has However, companies are lagging in


become a struggle comes as no news. their digital transformation where
Almost daily, reports and news are they over and over fail to meet key
published highlighting the fact that business goals as well as customer
businesses need to be equipped for expectations(2).
the challenges ahead.
On the other hand, the upcoming
Conflicting demands to handle recession will very likely impact most
parts of a company’s operations, by
On the one hand, customers and end- forcing them to cut costs wherever
consumers have higher demands possible and to minimize planned
than ever before, both on products investments. As companies need to
and services. Various reports(1) outline cater for a potential upcoming
the trend which is growing even damage on the bottom line, they
stronger by each year: Customers are need to focus more rigorously on
asking for that the range of products increased efficiency within all parts
and services they are faced with in the of the business. That or driving
ever-increasing array of contact growth to a much higher extent than
channels should be more currently. All in order to survive. This
personalized, efficient and adapted demand however usually calls for
to the specific needs of each more investments to truly become
customer. In essence, this means high customer centric in all parts of the
demands for seamless, easy to business to enable fully satisfied
grasp and efficient interfaces where customers that can contribute to a
customers only need to ask their positive impact upon business
question once and being supported profit.
immediately. If the customer wants to
change contact channel during an So, how do we provide our
interaction, it is expected that the customers excellence customer
company supports a warm handover service that meet their demands
between different channels, as well as while cutting costs at the bottom
between digital interfaces and a line?
skilled human.
It’s time to start utilizing
your Customer Service
organization to reach the
goals to cut costs while
keeping your customers
satisfied.
(1) See Deloitte’s Nordic Customer Service Excellence report
(2) See Gartner (2023) report Driving Growth, Profits and Resilience in a Downturn
4
Costs in a Customer Service context
First, let’s untangle the concept of cost in a customer service
context, which can be defined differently depending on how
business leaders view their customer service organization:

• Cost as investments. These


investments can either be The market situation can be
• Costs in terms of cost
(1) investments to replace old managed through different
avoidance, which is a general
technology, such as in legacy focus areas within the business:
term utilized by many companies
or CRM systems that are (1) cut costs while maintaining
to legitimize current investments
moving into end of life, or/and high customer satisfaction, or
with the benefit of higher cost (2) more heavily focusing upon
(2) investments in new
savings in the future. These are company growth (cross-/upsell).
technology/capabilities (e.g.
often linked to a more or less This article focuses on how to
chatbots, AI, analytical tools,
clear business case. In a succeed with cost cuts.
engagement layers etc.).
customer service context, this
type of cost for example
represent the costs for
redundant agents to cater for an
• Cost in terms of redundant ineffective operating and service
costs. These costs represent model. A typical example is
organizational inefficiencies, employing or contracting agents
such as multiple teams or to handle an increasing flow of
employees having unclear unexpected or unplanned
boundaries of responsibilities, incoming enquiries, especially
or/and tools that are utilized through telephone and other
to solve similar problems but manually managed channels.
are not integrated – all
leading to suboptimal and
ineffective processes and
performance.

So, how can we reduce costs through a customer


service setting? In this article, the focus is upon
managing redundant costs and strategies for cost
avoidance.

5
The Deloitte Digital approach: How to
provide excellent customer service in a
cost-effective manner
Deloitte is using a well-developed 5-step model for
businesses to undertake for tactically cutting costs while
enabling excellent customer service.

Manage Demand Manage Operational handling of interactions

Step 1 Step 2 Step 3 Step 4 Step 5


Eliminate Deflect Automate Steer Empower

In the upcoming pages, we will deep-dive in each of these five steps, what capabilities and tools
that can support throughout, and highlighting main benefits from each step including the
overall benefits of following through the entire model. From a holistic point of view, the steps
are based on two major improvement areas when utilizing a company’s customer service
organization to succeed with cost cuts while maintaining high customer satisfaction:

1. Manage Demand: 2. Manage Operational handling of


The two first steps reflect the strategies and interactions:
processes that companies need to rethink in The final three steps reflect the strategies
terms of how to handle customers’ need for covering the process when a customer has
support in various ways, primarily before an reached out for support through the channels
enquiry even has been initiated. that the company offer and operates
through, to having a solved enquiry.

Each of these five steps will help your business to work in a much more tactical and
streamlined manner. This will have an impact both on the bottom line and
customers’ satisfaction levels when utilized as intended.

Based on our experience, businesses harness


the most out of this change when undertaking
all five steps of the model.
This model can be utilized as a continuous and tactical cost-cut plan. As progress is
being made and as goals and ambition levels might be refined over time, the
learnings and progress from each step should generate what actions to make when
initiating a new loop of this model.

6
Manage Demand Manage Operational handling of interactions

Step 1 Step 2 Step 3 Step 4 Step 5


Eliminate Deflect Automate Steer Empower

What is it?
Step 1: Eliminate Prevent interactions in the first
place by eliminating the reasons
First step in managing your demand for customers contacting
Customer Service

Why needed? enable streamlined customer service


This first step is critical for cutting redundant operations.
costs. During this step, the goal is to minimize
In addition, by utilizing structured processes
the actual inflow of customer enquiries by
and the right tools for preventing interactions,
removing the main reasons (i.e. root cases) of
also pain points and problems in other parts of
customers’ need for making contact as far as
the business can be surfaced, understood, and
possible. As personnel is one of the key cost
solved together. Insights should therefore be
drivers in the customer service context,
shared within the company (e.g. with Product
preventing incoming enquiries can have a
Development, Customer Experience team) to
substantial impact of the costs of personnel. In
enable improvements in the product or service
other words, through the eliminate step,
and thus preventing issues from arising again.
companies can reduce the number of FTEs in
Through this step, customer service can be
the customer service organization as a whole.
utilized to enable a more strategic and future-
This is especially true for those companies that
focused perspective for the entire company as
utilize an inefficient operating model for their
well.
customer service organization which is not
adapted to fit current needs. Eliminate is then a
tactical move enabling better prerequisites to

We recommend the following capabilities and What are the benefits from this
tools for this step: step?
• Proactive communication (e.g. proactive e-mails • Less incoming enquiries enables
and sms) in line with customer profiles and need more streamlined customer
for information to inform customers about service operations, and reduced
known issues before they feel the urge to seek number of FTEs when having a
help stabilized setup and structure
• Keep good track of your data and insights: • Better use of existing channels
Gather and analyze customer and contact reason when being adapted to optimal
data in a structured way company processes
• Frequent utilization of analytical tools to generate • Based on client projects, we
data-driven insights and to keep track of expect potential cost savings of
upcoming and potential reasons for customers to 5% - 10% volume reduction by
contact. Example, perform root cause analysis for solving root causes, and 5% -
solving pain points in products or/and services 10% volume reduction through
that are the primary reasons for customer utilizing proactive
contact. The root cause might be a hidden pain communication
point or problem in another part of the business,
so utilize your breadth of knowledge to crate a
win-win situation.

7
Aiming for zero contacts? Reports differ on what a customer
facing company’s optimal aim should be when it comes to what
enquiries that should be handled through customer service. Our
experience from projects with companies of various sizes, across
industries tell us that the 80/20 rule is a more viable goal:
• Aim for an 80% cut of incoming enquiries through preventing
and deflecting (step 1 and 2) as they mainly represent
repetitive questions and require limited knowledge and
experience to solve
• The remaining 20% incoming enquiries should be reflected by
true value-adding interactions that lead to customer loyalty
Value-creating
and higher employee and customer satisfaction. Throughout
interactions
these enquiries, customer service agents’ skills, knowledge and
experience are used as its best.

8
Manage Demand Manage Operational handling of interactions

Step 1 Step 2 Step 3 Step 4 Step 5


Eliminate Deflect Automate Steer Empower

Step 2: Deflect What is it?


If the customer has a need for interaction
(that cannot be eliminated), ensure that
Second step in managing your demand there are digital means for the customer to
handle their inquiry without any manual
assistance

Why needed? To support deflection of incoming customer’s enquiry or part of an


The more manual assistance contacts, there are multiple enquiry without any manual
companies offer customers and channels and solutions for support, with the same or even
where the operating model is preventing redundant interactions higher satisfaction than being
targeting “manual first” rather than which in addition are continuously handled manually by agents.
“digital first”, this strategy will most developing. The market for Deploying any self-service solution
often generate a higher staffing developing tools aimed for spurring from the market that is not
demand. Based on our deflection are constantly evolving anchored in a company’s specific
experiences, manual interactions (see examples of capabilities and processes and strategy is not the
carried out through a customer tools below). way to carry out successful
service are most often redundant deflection. Instead, implementing
as there are many other, more In line with this market growth, self-service tools require clear
effective ways to structure a expectations from customers tactics and process optimization to
company’s service model that is regarding self-service are very high, enable them to function as
more time– and cost effective. This where self-service solutions (1) intended.
step is therefore critical for cutting need to be offered, and (2) need to
redundant costs as it ties back to function smoothly(3). Self-service is
the costs of personnel. in this context aimed at solving any

We recommend the following capabilities What are the benefits from this step?
and tools for this step:
• Minimizing throughput time for agents due to better use
• Use a digital first strategy by offering your of digital tools to cover parts of or entire enquiries, which
customers digital means and tools to seek impacts current and forecasted number of FTEs required
and find answers to any questions on to solve enquiries. Cost per enquiry will reduce as an
their own based on their needs, and to effect of reduced costs for staff and from shorter time
enable them updating their own data. spent per enquiry. Potential cost savings from 10% - 20%
Examples: web portals, apps, for shorter Average Handling Time (AHT).
manuals, downloads and FAQs, etc. It’s • If enabling seamless flow of information, where
critical that the content is well-developed information and data flows between channels, these
and adapted in a knowledge base for the capabilities will have additional multiple benefits
customers to be able to solve their throughout this step:
enquiries by themselves.
• Reduced number of redundant and repetitive
• Steer customers to digital channels such questions with a potential cost savings from 15% - 25%
as self-service by reducing opening hours for repeat call reduction, and 30% - 50% for waste calls
for assisted channels (i.e. phone or even
• Improved customer satisfaction from adapted and
chat)
useful self-service channels that fit customer needs for
• Employ a structured way of using digital when and in what channels they need support through
analytics • Improved employee satisfaction from;
− Satisfied customers, as there is a clear link between
(3) In the 2022 years’ Deloitte Customer Excellence report, it
was highlighted that only 60% of the participating client- customer and agent satisfaction in the customer
facing companies in Europe offered self-service to their service context(4)
customers.
(4) The Deloitte Customer Service Excellence report showed a − Better usage of agent skills and knowledge as the
9clear positive ink between Customer Satisfaction and actions of this step aims at using agents’ time for
Employee Satisfaction in the customer service context. actual value-adding tasks
DEEP-DIVE

Case examples for Eliminate and Deflect

CLIENT 1 Deloitte was asked to carry out a cost-cutting ✓ A reduction of incoming enquiries as self-
initiative for a company which operates their service channels were further elevated
Distribution/ customer relations mainly through their and adapted to the client’s goals
Logistics customer service organization. Despite having
✓ Reduced time spent per enquiry (shorter
invested in a new mobile app and in self-
AHT) as data was leveraged upon further
service capabilities, the client faced high costs
by utilizing current tools better while
per enquiry and with forecasts showing
educating agents in data handling.
increasing costs over time.
By following these 2 steps (Eliminate and
When analyzing the cost base, it was evident
Deflect), a double effect on costs was
that even though the cost per enquiry would
enabled. After a few months, the client had
remain stable over time, the company still
secured a more streamlined cost base. This
faced increasing costs for their customer
strategy was not only utilized for the short-
service as a result of that the forecasted need
term but also for securing a more future-
for FTEs and FTCs increased over time. As the
proof customer handling´, leading to more
predominant strategy was to increase the
efficient business operations overall.
number of FTEs/FTEs for covering a heavy
increase of incoming enquiries, the costs for This case shows large cost savings potential
customer service operations would also just by streamlining customer service
increase over time. operations through these 2 steps.
By focusing on solving root causes, using
proactive communication and a digital first
strategy throughout the company’s contact Typical savings from step 1
channel strategy, this enabled multiple (Eliminate) and step 2 (Deflect):
benefits:
5% -10% cost
savings

CLIENT 2
Deloitte supported a large retail client with a By instead utilizing the actions from the
Retail Customer Service Transformation where the first two steps of this model (Eliminate
client experienced challenges with a high and Deflect), this client would not have
inflow of customer enquiries. To stop the suffered from decreased customer and
large inflow, the company utilised a typical employee satisfaction. Instead these
reactive strategy of moving the contact steps would have provided them with a
details to customer service so that they were plan on how to diminish the need for
challenging to find. However this strategy taking short-sighted actions and instead
created more harm than good, since utilized a proactive and structured tactics
customers in general were even more around the challenges with large inflow of
frustrated when actually finding the contact enquiries.
details and got hold of customer service.

10
Manage Demand Manage Operational handling of interactions

Step 1 Step 2 Step 3 Step 4 Step 5


Eliminate Deflect Automate Steer Empower

Step 3: Automate What is it?


Automated manual assistance: If the customer still
First step in managing the needs further information or requires some kind of
operational handling of transactional process, help the customer to resolve
service requests by automating touchpoints and
interactions processes

Why needed?
As numerous of processes and enquiries carried In addition, investing in modernizing digital tools
out through customer service operations are has also a positive impact upon attaining key
repetitive or partly repetitive, automating these talents, capturing additional value from new and
flows should be a basic capability within the existing customers, and to remain competitive in a
Customer Service context. Automation can provide technologically rapidly changing market(5). The
a customer with well suited information and to opportunities for companies when carrying out this
process the full service request without human step are large, there are still numerous of
assistance. For example, a company-trained companies that yet have not succeeded with
chatbot can be utilized in combination with RPA to managing this shift.
change address details or to request a follow-up
order and thereby sole the request without human
assistance.
What are the benefits from this step?
There are several ways and tools to use for
• Potential cost savings from automation in the
automatization purposes (see examples below).
customer service context:
What tools that are prioritized and best suited for
Customer Service departments depend on • Approx. 25% - 35% of low complexity calls
customers’ actual needs and the industry the reflected to cognitive channels
company operates within. This again highlights the
• Decreased AHT of 10% - 20%
critical need of gathering and using structured data
and insights to enable a good understanding of • Decreased time spent on case management
your customer specific to ensure the right efforts, approx. 15%
investments to minimize costs over time (i.e. cost
• Abandonment rate reductions
avoidance).
• Additional benefits such as cost reductions for IT as
These tools naturally require some form of
a spin-off effect, in addition to added value
investment (based on the intended need) but as
capturing such as key talent, differentiation against
they have proven to enable minimizing of manual
competitors
handling, these investments could be regarded as
cost avoiding tactics for handling current and
future customer needs.

We recommend the following capabilities and tools for this step:


• Various tools can be leveraged to automate service processes and to reduce repetitive
work, such as RPA, Chatbot, Voicebot, Digital Human, workflow automation, speech
analysis, intelligent chatbots, intelligent IVRs, Next Best Action
• Make sure to capture all critical inquiry details automatically, such as contact reasons, to
utilize the data in upcoming interactions. Single view of the customer/360 view of the
customer is almost a necessity to obtain all benefits.
• Seamless flow and journey between various tools, both for customers and for employees to
avoid repetitive handling and processes
• Insights and analysis based on actual data is required to optimize operational management
11

(5) See Gartner (2023) report Driving Growth, Profits and Resilience in a Downturn
Manage Demand Manage Operational handling of interactions

Step 1 Step 2 Step 3 Step 4 Step 5


Eliminate Deflect Automate Steer Empower

Step 4: Steer
Second step in managing the operational What is it?
handling of interactions Proactively steering customers to the
right channel and experience by
human support through digital
channels
Why needed?
The second step in managing operational Also, to succeed with enabling excellent
handling of interactions concerns further customer service concerns further developing
refining the contact channel strategy. If other more cost-effective channels to
customers still require human intervention enhance customer satisfaction equally high or
for solving their enquiry, they need to be even better than telephony traditionally have
steered to channels that are both cost- and done. As noted in the graph, clear plans for
customer effective, such as digital investing in chat can enable a good balance
conversational channels. between costs and customer satisfaction.
However, to truly steer customers to more
The goal of steering is to involve human cost-effective channels, securing a seamless
agents only for handling complex inquiries. transfer between digital channels and the
There are many companies where agent human chat agent (i.e. warm handover) is
knowledge and skills are not fully optimized. critical. To ensure that the enquiry is resolved
Also, many companies lack digitally mature at the first contact (FCR) requires a seamless
channels that can be adapted to company channel transition where important details
and industry needs. For example, it is evident are captured from one channel and
that telephone is still widely used within transferred to another. The inquiry details
customer service (see graph below) that are captured in prior steps will enable
compared to digital channels. As long as the human agent to focus more effort and
telephony is offered and utilized widely, that time on the customer, in addition to creating
channel will continue to drive further costs better prerequisites for a change of customer
for your company if not shifting those behavior to utilize digital channels for all
enquiries over to more cost-effective and upcoming support needs.
digital channels.

USAGE AND INVESTMENT PLANS IN DIFFERENT CHANNELS

Using Using & Investing Investing

100%
13%

9%

80%
49%
25%
7% 5%

60%
11% 14%

Mobile Application
11%
35%

40%
29%

16% 3% 16%
23% 1% 6%
Contact form

Social Media
Self- Service

Video call

20%
14%9%
E-mail

Chat

SMS
80%

82%

53%

23%

38%

35%
Call

Graph on the usage and


0% investment plans for
various channel, from
Deloitte’s Customer
Service Excellence report,
12 2022.
Manage Demand Manage Operational handling of interactions

Step 1 Step 2 Step 3 Step 4 Step 5


Eliminate Deflect Automate Steer Empower

We recommend the following capabilities and tools for this


step:
• Even though demands for type of service varies depending on
products, service, context and industry vertical the service
request is based within, there is a need to develop capabilities
within digital conversational channels, such as chat, social
media, and assisted self-service
• Engage in developing Customer Journeys to optimize each
customer journey throughout your various touchpoints
• Utilise channel analytics and act upon key insights
• Focus on continuous improvements- mindset shift throughout
the business

What are the benefits of this step?


• Potential costs savings from 20% - 40% of incoming enquiries on
phone migrated to digital channels
• Increased First Contact Resolution (FCR) as focus is on maximizing
first time right (ensuring customer enquiries are solved at the first
contact), with a minimum of 5% increase (depending on current
setup)
• Continuous improvements through this step can lead to cost
savings of further decreased AHT by 10% - 20%
• Continuously improved employee satisfaction through better
utilization of skills and knowledge for value-adding purposes
rather than for transactional ones (even further enhanced during
next step)

13
Manage Demand Manage Operational handling of interactions

Step 1 Step 2 Step 3 Step 4 Step 5


Eliminate Deflect Automate Steer Empower

Step 5: Empower What is it?


Optimizing customer experience
Last step in managing the operational by empowering agents to deliver
handling of interactions great experiences during
customer interactions

Why needed?
The last step in this 5-step model concerns social competences that are empowered to act upon
empowering customer service agents to deliver triggers that allow for creating additional value for
excellent service by supporting them with both customers and the business (e.g. cross- and
optimized tools and capabilities to succeed. upsell). It also require clear career opportunities and
a company culture that spurs a proactive behavior to
By following the prior steps efficiently, the continuously look for process improvements as a
actions throughout this specific step will focus basic part of the agent's job. In addition, these
to enhance agents’ abilities and motivation to capabilities need to be supported by a technical
be efficient during the customer interactions. infrastructure of tools, systems and structured data
When there is an actual interaction initiated processes that are optimized to ensure efficiency
between an agent and a customer with the aim and customer centricity.
of solving an actual problem that could not have
been deflected or automatically handled, this So, customer service agents are key for enabling and
human intervention requires fully customer- keeping good customer relations, but also for
centered and personalized service. This is how securing cost-effective customer service operations
customer service agents’ skills and competences on the long-term perspective. Their input will feed
should be utilized to the most: as value-adders. the continuous loop of this 5-step model, as it leads
As highlighted in various reports, personalized us back to improving possibilities to eliminate
service is key for enabling high customer incoming contacts. Then make sure that the agents
satisfaction (see graph below). are supported well enough to harness on those
benefits!
However, being able to leverage upon those
interactions require motivated talents with

WHAT CUSTOMERS CARE ABOUT?


Customer
Satisfaction
35% 3,9
3,85
30% 3,9
25% 3,79
3,77 3,8
20% 3,77
3,8
15% 3,69
3,7
10%

5% 3,7
30%

22%

28%

20%

0% 3,6
Individual, Time required Possibility to
personalized to resolve an solve one’s own
service from your issue problems
agents

Graph on what factors that drives customer satisfaction - from Deloitte’s


14 Customer Service Excellence report, 2022.
Manage Demand Manage Operational handling of interactions

Step 1 Step 2 Step 3 Step 4 Step 5


Eliminate Deflect Automate Steer Empower

We recommend the following capabilities and tools for this


step:
• Fundamentally rethink the way your company leverages
humans (outsourcing vs inhouse, FTEs vs FTCs, full-time vs.
part-time, locations) to allow for full flexibility for the business,
for your teams and customer service agents
• Utilize the employees’ skills and interest in developing new
roles aimed for continuous improvement through the process
(all 5 steps) and on focused responsibilities (e.g.
Chatbot/Voicebot trainers etc.)
• Upgrade agent profiles to meet market needs and business
goals, incl. skill training for generalist and specialized
knowledge based on what skills to be considered as hygiene
ones in a modern customer service context (e.g. handling
multiple chat conversations, efficient use of customer data and
sentiment, proactive targeting, securing customer data gaps,
handle and act upon customer data etc.)
• Further develop and leverage upon AI, analytical tools (e.g.
voice analytics), knowledge base, and your 360 view of the
customer
• Implementing a culture of high performing teams

What are the benefits of this step?


• Increased First Contact Resolution (FCR) from improved skills, data
usage and adapted tools for the human interaction: 5% increase
• Continuous improvements through this step can lead to cost savings
of further decreased AHT by 5% - 10%
• Further improved employee satisfaction by utilizing skills and
knowledge for value-adding purposes (rather than for solving
transactional ones) with additional career developments outlined for
agents and team leaders

15
Shift your mindset into
start utilizing your
Customer Service
organization to enable
actual value! It’s time to
start thinking and acting
tactical.

16
So, what is the most pragmatic way forward to
provide excellent customer service in a
cost-effective manner?
The three key enablers
Based on our experiences, there are three key enablers to succeed with
navigating in this seemingly tricky landscape:

Enabler 1: Go through all steps in the 5-step model

Manage Demand Manage Operational handling of interactions

Step 1 Step 2 Step 3 Step 4 Step 5


Eliminate Deflect Automate Steer Empower

10% - 20% cost savings


15% - 25% cost savings

Based on our experiences, there are great cost It should be noted that undertaking each of
savings potentials from carrying out the these 5 steps will have greater impact
tactical moves outlined, especially through the compared to prioritizing only specific steps.
last three steps of the model (with moderate That is, the benefits of each step will together
numbers of 10% - 20% cost savings). However, be greater than each step per se, as the
typical transformation savings of going combination of efforts will enable better
through all 5 steps, based on our experience prerequisites for cost savings and abilities to
from various client projects, are 15% - 25% in enable excellent customer service.
actual cost savings.
With that in mind, this 5-step model could be
The actions through each of these 5 steps will utilized as a catapult to start structuring your
depend on how digitally mature a business is customer service operations, as the goals
and the current ability to drive through (cutting costs while keeping high customer
changes of processes, mindset and existing satisfaction) have been outlined. Use the
patterns. This will in turn also imply varying model to create a common goal to strive for!
efforts and timing of when actual impact can
be realized, which will differ between
companies.

17
Enabler 2: Fully utilize your Customer
Service organization and transform it
into becoming a value driver

As noted, utilizing a company’s Customer


Service organization is a golden tactical move
to reduce costs while enabling better
customer and employee satisfaction. So,
even when focusing mainly upon cutting
costs, there are also possibilities to add real
value when realizing that change. This,
however, is a tactical move that many Enabler 3: Make key decisions asap as the
companies still have not realized. This more time passes for making key actions,
includes making the full use of customer
service operations, data, processes, people
the longer time before viewing actual
and supportive technologies and systems to outcomes on the business and customers
enable more value while reducing the costs
for those operations. Based on learnings from prior recessions and impact
There are naturally multiple ways of carrying from disruptive elements during recent years (e.g.
out this transformation. The pace and scope Covid-19), a customer-facing company needs to be
needs to be grounded in ambition levels and prepared. A successful tactics has throughout been
the maturity of the organization to make that to get to know your customers, be proactive, and by
shift successfully. Only with minor changes, a that being prepared to make key changes to remain
company can make a large impact upon how successful. If your company already now is lagging in
they run their business, which will have a the digital agenda and fails to meet market needs,
positive effect upon customer and employee the shift of becoming a truly customer centric
satisfaction. business will probably require more time and effort
than a company undergoing digital transformations
on a more frequent basis. In other words:

The time to act proactively


and tactically is now!

So, make use of these challenging demands to


create your roadmap for how to enable excellent
customer service in a cost-effective way. But also,
start acting on your roadmap right away. Our
experience tells us that the more time a business
spends on generating the perfect roadmap, the less
customer impact they are likely to generate within
the upcoming year.

These 3 key enablers will support you in your


upcoming journey to reach your goals with your
customer service. It’s time to take an active
tactical decision to get started on your journey!
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Let’s make this shift a reality!

Start with fixing your customer insights


and processes, then technology.

We at Deloitte Digital can support you in kick-starting and leading


you through your journey to become cost effective while increasing
your customer and employee satisfaction through your customer
service organization.

Why Deloitte? We at Deloitte Digital have the What is the Deloitte way? We work with our
skills, experience and interest in supporting clients, not for our clients. We believe that co-
your business to go through this change in a creation is as it’s best when utilizing the full
pragmatic, tactical and cohesive way, that fits breadth and depth of knowledge to create and
with your business vision, strategy and goals. It execute on a plan together that our clients feel
needs to be successful for your company, your ownership of. Our experiences from market
customers but also for your employees. We insights and our global Deloitte network enable
know how to succeed with that change. us to really understand our clients’ businesses
and their customers while being able to nudge
their ways of working to succeed. Good
relationships is everything.

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Get in touch!

Nathalie Ramsbjer Lina Gustafsson Kristina Thelander Svensson


Senior Manager Deloitte Digital Manager Deloitte Digital Sweden Partner Deloitte Digital Sweden
Head of Nordic Service Excellence [email protected] [email protected]
PhD in Customer Service + 46 70 080 32 88 +46 76 82 712 98
[email protected]
+ 46 70 080 39 26

DELOITTE DIGITAL FULLY SUPPORTS YOUR LEAD TO LOYALTY JOURNEY


Deloitte Digital delivers end to end capabilities – strategy, implementation and managed services -
across the “lead to loyalty” customer journey to help brands achieve strategic growth.

Generate Win Drive Repeat Engage Earn Loyalty


Demand Customers Sales & Cost cuts Customers & Trust

20 | © 2022 For more information, contact Deloitte AB


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This is our Deloitte family
We use our expertise in our global network to ensure that we
have the most viable and up-to-date skills, knowledge, methods
and frameworks, which are built upon and refined through client
projects in multiple industries worldwide.

AMERICAS EMEA ASIA PACIFIC


139,488 102,614 69,926

Audit & Assurance Consulting Tax & Legal Risk Advisory Financial Advisory

Enterprise
Strategy, Analytics & Deloitte Digital Core Business
Human Capital Technology &
M&A (Customer & Marketing) Operations
Performance

Alliances

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Appendix:
Customer Service
abbreviations
Agents Customer Service
employees which role is to
handle customer enquiries and be
the company representative in
customer calls
AHT Average Handling Time, also
referred to as throughput time
AI Artificial Intelligence
Digital Human An elevated digital assistant,
building upon chatbot
functionalities
FCR First Contact Resolution
FTE Full Time Equivalent
FTC Contractors/hired customer service
agents
RPA Robotic Process Automation, also
referred to as a Digital assistant
Warm handover That the information shared within
a digital communication between a
customer and the company
(questions, responses, sentiment
etc.) is transferred in real-
time/gathered in company systems
into a new channel/with a human if
the customer prefers to change,
without a need to repeat
him/herself.

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© 2023 For more information, contact Deloitte AB.


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