Term Paper on "New Customer Service Application on Customers Assessing"

Term Paper 4 pages (1634 words) Sources: 3

[EXCERPT] . . . .

New Customer Service Application on Customers

Assessing the Impact of a New Online Customer Service Application on Customers

Introducing a New Online Customer Service Application to Customers

One of the most essential aspects of any new Customer Relationship Management (CRM) system is the ability to connect with customers and support them on a 24/7 basis. In addition to the cost advantages of customer service automation, customer satisfaction has also been shown to increase when the applications are based on a company's databases and knowledge management systems, and are designed to better serve customers (Liew, 2008). In addition, customer service automation is an essential component of any CRM system (Regan & O'Connor, 2002). As a result it is often deployed across all selling and service channels a company uses, including telephone through voice automation, online over the Web and also in-person in stores. The focus of this analysis is on the online Web channel. "Customer service automation focuses on serving the needs of customers after the sale and entails operations such as call centers, technical support, and customer service operations. Enterprises seek solutions that enable them to address customer questions, problems, or issues effectively and efficiently" (Regan & O'Connor, 2002). Introducing a new online customer service application need to take into account the technological, process-based and most importantly, human-based factors that will ensure its success and high level of adoption.

For any Information Technology (IT) initiative to succeed it must take into account change management considerations and create corresponding strategies to ensure adoption and use of systems (Regan & O'Connor, 2002). This is especially true in the case of moving customer service applications and processes online. Despite the prevailing assumption that people resist being directed to customer service applications online over speaking with a service agent, in fact research has shown the opposite when excellent change management strategies have been put into place. One study suggests that when a financial institution went through the necessary change management processes and strategies, they actually attracted an entirely new customer base that had specifically been looking for online banking functionality and had not been able to get it from their existing bank (Campbell, Frei, 2010). Studies indicate what differentiates successful introductions of self-service applications online is the ability of the marketing campaigns aimed at existing and new clients to take into account their unique needs, not assume everyone has the same problem (Berger, 2009). From a technology standpoint this translates into designing the Web or online self-service application to allow for greater role-based and preferences-based navigation of service options and the definition of service selections, in effect having the company's knowledgebase align to specific customer needs (Reychav & Weisberg, 2009). Web or online-based customer service applications that fail however do the opposite and assume that there will be no variation in roles, no difference in preferences, and no variation in the nuances and preferences of users. In these comparisons then best practices emerge of how best to introduce an online self-service application. The need for an electronic platform that is scalable and agile enough to allow for role-based definition and the selective use of knowledge by role is critical (Reychav & Weisberg, 2009) (Liew, 2008). Second, giving users control over how they define their preferences and workflows, instead of freezing this or even ignoring this functionality, is critical to the system attaining a high level of adoption. Third, a continual redefining of the system features, functionality and usability are also critical. All of these items together are critically important for any new Web or online based application to be adopted and used frequently by customers over time. From a purely strategic standpoint, taking all of these considerations into account is in itself an excellent CRM strategy as well. It says to the customers for whom the applications are developed that they matter enough and are important enough to design in flexibility and intelligent integration instead of assuming one-size-fits all when it comes to online customer service applications.

Proving the Added Value of Online Customer Service and CRM in Selling Relationships

There are immediately financial benefits of moving customer service applications online as the costs of running a call center drastically drop when the majority of customers go to the Web browsers, not to their telephones. At first glance online self-service applications are a great cost reduction strategy yet unproven in revenue generation. In fact many companies, from all major airlines globally to retailers and cable companies aggressively up-sell additional services on their waiting lines with voice-overs, netting a 35% or greater increase in sales (Campbell, Frei, 2010).

Proving the value of online customer service applications through cost reduction of per-call handling, increased revenues (Campbell, Frei, 2010) and customer satisfaction as measured using the SERVQUAL methodology (Mengi, 2009) together underscore why the majority of companies today are investing in this technology. The lessons learned with regard to successfully navigating change management challenges (Regan & O'Connor, 2002) however must be included in the valuation of these strategies as well. As customers begin to change their expectations for a service provider they are relying on, there is a corresponding greater level of anticipation and expectation of more innovation over time. This is because often early adopters of online self-service applications often will switch service providers in order to gain a new service with next-generation technology (Campbell, Frei, 2010). Taking all of these factors into account then, from cost reduction to revenue generation, measurement of customer satisfaction through SERVQUAL to the development of state-of-the-art services that attract entirely new segments of customers; all can be measured online through web analytics and a Return on Investment (ROI) calculated. The bottom line is that it is the ability to gain critical mass in terms of adoption that will make or break an online self-service application more than any other factor, and that measuring performance over time is assured through online analytics. It is then unequivocal if an online self-service application has been successful or not.

Support Plan for Customers

Of the many facets of a support plan for customers who are attempting to use any new online self-service application, there needs to be a highly graphical, very intuitive series of instructions created that continuously provide tips on how to get the most out of the new system. Many companies have relied on the use of videos and interaction help-driven navigation as well, with those that integrate human contact if needed the most effective. The support plan needs to take into account the skill level, language, proficiency in the chosen language, channels that the customer is using to learn about the new application (Web, in-store or on the phone) in addition to escalation paths for more comprehensive support. All of these factors also need to be measured according to the satisfaction customers experience using them, anchoring them in the SERVQUAL methodology for ease of analysis. Measuring the satisfaction with support is essential.

The Role of Partnerships in Enhancing the Customer Experience

Partnerships and alliances can in fact add much to the overall quality of service and resulting customer satisfaction that online self-service application users experience. Take for example the exceptional success of the Southwest Airlines Travel Service Center. Each of the partners, whether they are for hotels, car rentals or business services, typically sees a major revenue jump during their first month affiliated with the site. There are entirely new process workflows that must be taken into account in addition to system and transactions integrations to make their systems work together. Southwest has standardized these to make the on-boarding process (no pun intended) much more efficient for new partners who contribute their services as part of the service-based portals on Southwest.com. What the airline and its partners have found is that while there are many additional transactions completed, the… READ MORE

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