tech developments point to critical need for customer service … · 2019-03-12 · tech...

Tech Developments Point to Critical Need for Customer Service Training

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8 of 10 businesses have already implemented or plan to adopt AI as a customer service solution by 2020.

Source: Oracle, 2016

Tech Developments Point to Critical Need for Customer Service Training 02

E X E C U T I V E S U M M A R Y :If you’re a business owner or C-suite executive,

adopting technological advances like artificial

intelligence (AI) often comes at a human cost.

Currently, this is most evident in the customer service

industry where AI chatbots are automating many tasks

previously done by human employees. Unfortunately

for many industries, employees have become

expendable and are terminated in cost-cutting moves.

Today’s consumers are demanding. Not only do they

want satisfactory solutions to their questions and

problems, but they want them immediately. As little

as seven years ago, studies showed that 60 percent of

consumers believed one minute was too long to be on

hold, and 33 percent believed customer service should

pick up the call immediately with no hold time. Since

then, customers have become more impatient and

even less forgiving.

The rise of automation, chatbots and AI in customer service

Customer attitude is a reason for the popularity of

chatbots. They’re available 24 hours a day, 365 days

a year and can handle many tasks, including account

inquiries, order statuses, bill payments and more.

But today, it’s not enough to answer uncomplicated

questions or carry out easy transactions.

As we cover in this report, customers still value

human interaction for many things. They want well-

trained representatives who can provide answers,

compassion and understanding at the speed of AI.

What they don’t want are ill-trained, uncertain and

unconfident customer service representatives without

sympathy for the customer’s problems.

Your company needs to take the next step toward the future of customer service

Successful companies realize that the next chapter

is being written in the customer service industry.

Instead of looking at their employees as unnecessary

overhead easily replaced by AI, organizations are

investing in employee training that reskills their

people to thrive today. Training engages employees,

and it boosts morale and company culture. Instead

of fighting technology, employees embrace it

as an invaluable tool and not as the enemy that

replaces them.

In return for your training investment, you’ll recover

it tenfold in customer satisfaction, loyalty and

powerfully positive word of mouth on social media.

Money can’t buy this level of satisfaction. When you

are a destination company for customers, it’s easy

to become a destination employer for top talent in

your industry.


AI is not the enemyIn 2017, the McKinsey Global Institute published

a landmark study1 projecting the effect that new

technology—specifically, AI—will have on the world’s

human workforce. Stopping just short of doomsday

prophesy for human labor, one of the most oft-quoted

statistics from the study is that by the year 2030, nearly

800 million jobs currently performed by humans will

be replaced by AI worldwide.

There are several layers to that statistic, however.

In many cases, the jobs AI will replace are menial,

situated in less developed third-world countries, and

displaced workers will be able to retrain themselves

for other work. Still, numbers that big throw a scare

into people who are already seeing technology take

over parts of their jobs—such as customer service and

call center employees.

For the last few years, customer service and call center

professionals have been fighting a two-front war. On

one side, it seemingly has always been fashionable

for people to consider one bad customer service

experience as a worldwide epidemic. Up until the

acceleration of the digital world 25 years ago, criticism

rarely went very far or lasted long unless the incident

was catastrophically bad.

However, with omnipresent camera phones and

social media, an influencer posting a criticism of your

company botching one customer service interaction

can go viral, reaching 500 million views and an online

half-life longer than radioactive uranium.

For many customer service professionals concerned

about job security, the encroaching presence of AI in

customer service may as well be the beginning of a

full-on takeover by machines, imagining millions of

foreboding cyborgs removing humans from customer

service positions.

Consumers, we’re told, embrace the rise of AI in

customer service in the form of chatbots—those

cheerful “voices” that help us when we phone, log in or

chat online with our favorite stores, utility services or

financial institutions. In fact, 40 percent of consumers

don’t care if a chatbot or human helps them if their

problem is solved—and chatbots can save companies

30 percent in customer support costs annually.2 As AI

proponents will gladly tell you, chatbots don’t take

vacations, sick days or breaks or come in late because

they work 24/7/365.3

7 out of 10 consumers will spend more money for great service.

Source: American Express Customer Service Barometer, 2017


Sharper human skills required in customer service About the same time as when the McKinsey Global

Institute published its 2017 report on the effect new

technology will have on the world’s human workforce,

American Express conducted a global customer

service survey that found 7 out of 10 U.S. consumers

spent more money to do business with companies

that delivered great service.4

Providing exceptional customer service reaps rewards

that go beyond dollars and cents. A key to providing

good customer service is to offer many contact

options. For example, more than 6 in 10 respondents

to the American Express survey said their first choice

for simple inquiries is a digital self-serve tool, such

as a Web site (24 percent), mobile app (14 percent),

voice response system (13 percent) or online chat

(12 percent).4 Among the most coveted younger

demographic of consumers, digital natives who are

18 to 35 years old, those numbers are even higher.

However, the silver lining for customer service

departments is that technology is amazing for

the easy things. People are happy using self-serve

options when it’s quicker, but as the complexity of the

issue increases—such as with payment disputes or

complaints—customers are more likely to seek out a

face-to-face interaction (23 percent) or a real person

on the phone (40 percent). 4

of customers believe a pleasant representative is crucial to good customer service.

68%

cite the representative’s knowledge or resourcefulness as key.

62%

Source: American Express Customer Service Barometer, 2017


Humans can do what AI cannot—and may never—do In a 1954 speech at Northwestern University in

Evanston, Ill., former U.S. President Dwight Eisenhower

laid the groundwork for the Eisenhower Matrix. He

said: “I have two kinds of problems, the urgent and

the important. The urgent are not important, and

the important are never urgent.”5 This quote went on

to become the basis of the matrix, which has helped

people prioritize tasks by urgency and importance for

the last 60 years.

For our purposes in this paper, we will tweak

this matrix a little. Every single customer service

interaction sits somewhere in the intersection of two

things: Urgency and emotion. No matter how the

customer contacts you—face-to-face, phone, online

or through social media—it’s viewed from those

two axes.

New AI tools can address high-urgency situations

quickly, but when it comes to high-emotion scenarios,

no AI can replicate human empathy. That means

companies with a well-trained customer service

staff—including management—hold a huge advantage

over others by having a real person help a customer.

Whether it’s as significant as a viral airline fiasco or as

simple as your food delivery app driver showing up an

hour late with your now ice-cold dinner, some support

interactions require the human element.

A bot can recognize urgency when you’re checking

on alternatives for a flight that was just canceled due

to weather conditions. However, the emotional axis

is still, as of now, unprogrammable. The bot can’t

measure your emotions when that flight was going

to get you home for the weekend, to an important

business presentation or several states away to visit

an ill parent.

In the other example, your late food delivery may

have occurred when you had to leave the office and

now have missed the chance to eat. Or maybe you’ve

been home with a grouchy, sick toddler all day, and a

late food delivery means your other children are also

now irritated.

Instances like this, regardless of how small or large

the case is, create high-stress moments for the

customer. Only another human can comprehend the

difference—and only a well-trained customer service

rep is likely to solve the problem in a way that builds

customer satisfaction, gratitude and loyalty.

How your customer service personnel handle

these high-stress and emotional moments are the

ones that stick in a customer’s mind forever, so it’s

vitally important that you have a plan in place to

handle them.

Separate yourself from your competition by deciding

which customer service functions AI can handle on

its own and which cases need to be handled by a

human with AI assistance. This decision depends on a

company’s range of customer service interactions. In

general, the rule should be to use the speed of AI for

objective yes/no functions and outcomes that come

down to an algorithm. For example, perfect utilization

of AI includes instant queries that tell you if unfilled

first-class airline seats are available for an upgrade.

AI should be used anytime it minimizes your customer’s effort and meets his or her needs.


Make conversations easy for customers For interactions that are high on the emotion and

stress spectrums, or involve more complex problem-

solving ability, there isn’t a substitute for the human

touch. The airline passenger whose luggage has been

lost doesn’t seek out a bot to locate the bags. Instead,

a human airline employee is sought out, and ironically,

the employee will use AI to locate the luggage.

However, the emotional support for the customer’s

plight can only be supplied by another human.

What is the takeaway for customer service providers?

Allow your customers to interact in the way that

is easiest for them. AI should be used anytime it

minimizes your customer’s effort and meets his or

her needs. Simple inquiries, purchases and bill paying

are all transactions that most consumers want to

do online.

Consider how on-demand ride apps like Uber or Lyft

have revolutionized getting from one side of town

to the other. Previously, calling the cab company,

arranging a pickup point, directing the driver to a

desired location and having the right amount of cash

was a lot of work to get from one place to another.

Ride apps simplified those high-effort steps into a

couple of clicks on your phone.

The customer is still doing all the work, but the

technology makes it so easy that it feels like an

improvement. The lesson is obvious: Customers

choose low-effort interactions over high-effort ones.

Regarding customer service interactions, your

organization still needs to focus on using technology

to keep customer effort to a minimum. Customers

want to get their issue resolved with the least amount

of work on their part. AI can help with all the routine

parts of the interaction, but it’s not a shortcut around

human-to-human service—it’s a catalyst.

The conversation around AI now is too focused on the

question of how AI can replace agent interaction. The

aim of AI shouldn’t be to replace human interaction,

but to improve human interaction. Instead of cutting

the human out of the support process, AI can be used

to route calls to the right person as soon as possible.

Maintaining composure and calmly handling all customers—even the most emotional and negative ones—is what will turn an irate customer into your brand’s biggest advocate.


Companies that work to improve their customer experience see employee engagement rates increase by an average of 20%.

Source: McKinsey, 2017

Provide your customer service employees the skills they need through training While the best customer service employees are

strong in many skills, the following five are critical for

everyone to be efficient:

1. Communication: Verbal communication

is especially important if your employees

speak to customers on the phone, but written

communication skills are a must as well. The

employee must be able to articulate that he or

she understands the question or concern, as well

as convey to the customer exactly how he or she

will help.

2. Listening: Just as critical as communication

skills is listening, but how often do organizations

train their employees on active listening? This is,

perhaps, one of the most overlooked business

skills that exists today.

3. Self-control: Maintaining composure and

calmly handling all customers—even the most

emotional and negative ones—is what will turn

an irate customer into your brand’s biggest

advocate, if your staff handles their situation

satisfactorily. U.S. consumers tell an average of

15 people about a poor service experience and

11 people when they have a good experience.4

A wise company constantly trains its frontline

customer service employees to maintain their

cool, no matter how difficult the situation is

before them.

4. Assertiveness: Assertiveness training allows

your employees to take control over every

situation with confidence. When the customer

is faced with a confident representative of the

organization—instead of someone who is either

milquetoast or super-aggressive—the effect is

positive and startling.

5. Conflict resolution: All customer service

providers need consistent, annual training on

conflict resolution because many interactions

will involve resolving a problem to keep the

customer happy. Generally, this is relatively

simple, but when it’s not, it can blow completely

out of proportion.


Training can be used to provide a solid foundation

of critical skills when an employee starts working

in customer service, and later, it refreshes skills or

bolsters an area where improvement is needed.

Modular or microtraining is especially effective for

this purpose, and augmented or virtual reality allows

employees to role-play dozens of customer service

scenarios at their own pace.

Finally, connecting this training regimen through an

effective learning management system (LMS) allows

the management and learning and development

teams to monitor the effectiveness of the training and

track how well employees retain the information.

For employees, the obvious investment that the

company is providing for a less stressful work

environment strengthens employee engagement.

Happy employees will work with all customers

better—especially with the help of AI.

An increase in customer retention by as little as

5%can boost profits by as much as

95%Source: Harvard Business Review, 2014


Empathy from trained employees and AI efficiency makes an unbeatable team What would be a perfect scenario for your

organization to allay the fears of your employees

while using AI to its fullest potential? Let’s look back

on the airline example.

Imagine what your customers will think when the

moment a flight is canceled, the airline uses AI to

empower human agents to help all travelers whose

plans were disrupted. The AI contacts customers to

let them know about the cancellation, suggesting

alternative flights to get them to their destination.

For many customers, this is a great scenario, and

they book a new flight. However, for a handful of

fliers, these notifications aren’t satisfactory to their

emotional urgency. That’s when the human agents

take over.

Customers who respond to that high-stress moment

by contacting the airline directly should be handled

intelligently. AI can detect that an incoming call, chat

or email from one of those customers is likely to be

regarding the cancellation and immediately give it to

a human agent who responds directly by suggesting

new travel options.

The human touch of an AI-empowered agent will not

only help rebook the flights faster; it will also make

the experience much more positive for the affected

customers. It saves them time and effort, and it

might even get them a first-class seat. That sounds like an outcome that would build loyalty.


About the AuthorDaniel Rose creates content, articles, white papers and case studies for the Thought

Leadership department at SkillPath, using his 25 years of experience in adult education

and training to inform, enlighten and engage his readers. He is an expert in management,

leadership and communication, and his writings about compliance, human resources

and workplace issues have appeared on Forbes.com, Inc.com, Entrepreneur.com and

ReadersDigest.com, as well as the Los Angeles Times and the Orange County Register. He

recently co-authored Top Career Tips (2018 SkillPath Publications).

To learn more about this topic or other workplace challenges, download additional free resources at skillpath.com/resources.

About SkillPathA leader in learning and development since 1989, SkillPath provides professionals worldwide with strategic and innovative training solutions.

Our mission is to provide the highest-quality

training for companies and businesspeople around

the world, so they can benefit personally and

professionally from the experience.

As a 501(c)(3) nonprofit organization, our revenue

funds scholarships for students at Graceland

University. We have a long history of partnering

with programs that develop individuals’ leadership

and innovation skills, and our mission aligns with

companies that share a goal to invest in mentoring

and scholarship opportunities for students and

young professionals.


References1 – “Jobs lost, jobs gained: What the future of work will mean for jobs, skills, and wages.” (November 2017).

McKinsey Global Institute. https://www.mckinsey.com/featured-insights/future-of-work/jobs-lost-jobs-gained-

what-the-future-of-work-will-mean-for-jobs-skills-and-wages

2 – Shukairy, Ayat. (2018). “Chatbots In Customer Service – Statistics and Trends.” Invesp. https://www.invespcro.

com/blog/chatbots-customer-service/

3 – Exastax. (September 2017). “Top 7 Benefits of Chatbots.” Medium. https://medium.com/@exastax/top-7-

benefits-of-chatbots-725f924f3cab

4 – “#WellActually, Americans Say Customer Service is Better Than Ever.” (December 2017). https://about.

americanexpress.com/press-release/wellactually-americans-say-customer-service-better-ever

5 – “What Is Important Is Seldom Urgent and What Is Urgent Is Seldom Important.” (2014). Quote Investigator.

http://quoteinvestigator.com/2014/05/09/urgent

tech developments point to critical need for customer service … · 2019-03-12 · tech...

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