The Future of Customer Service

Friday, July 14, 2023

The job market shifts with the developments in tech. As Artificial Intelligence (AI) continues to make significant strides, it's natural for those in the customer service industry to wonder about the potential impact on their roles.

Will AI take over jobs currently held by humans? How will it alter the nature of customer service work?

In this article, we will explore the most relevant predictions regarding the future of customer service to help you plan and make wise decisions about your business or career.

Relevant customer service statistics

To better understand the importance of customer service in the modern business landscape, some context is necessary.

In a study conducted by Harvard Business Review Analytic Services, 95% of respondents believe that customer service is vital for delivering an exceptional customer experience.

Furthermore, 94% of those surveyed believe that customer service drives brand value, while 92% see it as a revenue driver. These numbers emphasize the central role that customer service plays in fostering customer loyalty and generating revenue for businesses.

In a separate report by First Insight and the Baker Retailing Center at the Wharton School of the University of Pennsylvania, 75% of consumers said they consider sustainability as a crucial factor in their purchase decisions.

This growing emphasis on ethical and sustainable practices signifies that businesses need to align their customer service strategies with the evolving values of their clientele.

Overall, customer service is still king. So what predictions are being foretold about the future of the industry?

Image by Adem AY on Unsplash

Omnichannel rather than multichannel service will become the norm

As the customer service landscape evolves, the shift towards omnichannel service is gaining momentum. Unlike traditional multichannel approaches, which offer various communication channels in isolation, omnichannel service seamlessly integrates these channels, providing customers with a consistent and unified experience across platforms.

For instance, a customer can initiate an inquiry via social media, continue the conversation through email, and finalize the resolution via live chat—all while experiencing a seamless transition between these channels. This approach enables businesses to meet customers wherever they are, making interactions more efficient and convenient, leading to higher customer satisfaction levels.

Bots and AI will change customer service work but won’t replace human workers

The rise of bots and AI in customer service is undeniable, but their role is more complementary than competitive. Bots can handle routine inquiries, providing quick responses and freeing up human agents to focus on more complex issues. AI-driven analytics can analyze customer data, predict trends, and suggest personalized solutions.

Yet, AI lacks the empathy and emotional intelligence that human agents possess and which is often at the core of what customer service is about. Empathy plays a vital role in understanding customer needs, resolving complex issues, and building genuine connections.

In the future, successful customer service teams will harness the power of AI while valuing the human touch to deliver exceptional experiences, customized and personalized services.

Image by Yan Krukau on Pexels

Blockchain will change the e-commerce landscape in the next 25 years

Blockchain technology will revolutionize the way e-commerce works. By providing a decentralized and transparent system, blockchain not only ensures secure transactions, reduces fraud, and boosts customer trust, but also takes the hassle out of online payment. To put it simply, blockchain's ability to create smart contracts will streamline supply chain operations, leading to faster and more efficient order fulfillment.

As blockchain gains wider adoption, businesses can then focus more on enhancing customer service by offering enhanced data security, seamless payment processes, and greater transparency throughout the customer journey.

A shift toward self-service

AI-powered tools will most likely boost the change towards self-service, empowering consumers to solve customer-related issues on their own instead of waiting for a bot or a human to respond to their needs.

This will not only boost customer satisfaction by helping them resolve their concerns in real time but also reduce the workload on customer service staff, which the majority of small businesses may not afford to have in the first place.

Customer service quality will become a competitive differentiator

In the future, customer service quality will be a critical factor setting businesses apart from their competitors. As revealed in a recent survey, 60% of customers are more likely to buy from businesses that treat them better.

Companies that can provide exceptional customer service will benefit from positive word-of-mouth, repeat business, and increased customer loyalty. If you’re looking to stay on top of the game as a business, prioritize customer satisfaction and gain a clear competitive advantage in a market that is increasingly becoming customer-centric.

Customer service decisions will be data-driven

The businesses of the future will base their decisions based on data. By analyzing customer data, feedback, and behavior, businesses can identify trends, pain points, and opportunities for improvement.

This data-driven approach will enable companies to make informed decisions, implement targeted improvements, and optimize their customer service strategies to better cater to customer needs and preferences.

Social media will be a critical point of contact with customers

Social media platforms will continue to play a pivotal role in customer service interactions. Customers now expect businesses to be accessible and responsive on social media, making it a crucial channel for communication.

Companies that actively engage with customers on these platforms can build brand loyalty and strengthen relationships. Monitoring social media sentiment will also allow businesses to promptly address customer concerns and resolve issues before they escalate.

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New technology will create new customer service jobs/positions

As technology continues to advance, new job opportunities in customer service will emerge. Roles like AI specialists, data analysts, and user experience experts will become more prevalent.

Moreover, the integration of AI will create a demand for human agents who possess strong interpersonal skills and emotional intelligence to handle complex and sensitive customer interactions. Businesses that invest in training their workforce to adapt to these new roles will be better prepared for the customer service landscape of the future.

Composable business trend - being able to adapt rapidly to new circumstances

In an ever-changing business environment, flexibility and adaptability are essential. The concept of composable business, which involves the integration of flexible and modular technology solutions, will empower businesses to respond swiftly to evolving customer demands.

By adopting composable architectures, companies can easily adapt their customer service processes to stay relevant and competitive in an unpredictable market.

Conclusion

The future of customer service promises exciting advancements and challenges, driven by technology and changing customer expectations. Businesses that embrace video communication, omnichannel service, and the potential of AI while prioritizing customer satisfaction will excel in this dynamic landscape. Leveraging blockchain for secure transactions and investing in self-service options will enhance customer experiences further. Data-driven decision-making, social media engagement, and readiness for new job roles will be crucial for staying ahead in the customer service domain. Ultimately, companies that adapt rapidly and embrace the composable business trend will be best positioned to thrive in the future of customer service.

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References

Ariscon, J. (2023, June 9). Top 7 trends shaping the future of customer service. Philippine Outsourcing & BPO Call Center Services | SuperStaff. https://www.superstaff.com/blog/customer-service-in-2023-and-beyond-top-7-emerging-trends-in-customer-care/
Hootsuite Inc. (n.d.). Customer Service Trends 2023. Customer Service Trends 2023. https://www.hootsuite.com/research/social-trends/customer-service
Redbord, M. (2021, June 9). 14 Ways Technology Will Affect the Future of Customer Service. Hubspot Blog. Retrieved July 12, 2023, from https://blog.hubspot.com/service/customer-service-technology
Tarvainen, K. (2022, December 13). Customer service trends 2023: From ashes of uncertainty, service rises. The Future of Commerce. https://www.the-future-of-commerce.com/2022/12/13/customer-service-trends-2023/
Scout, H. (n.d.). 7 Predictions for customer service and support trends in 2023 - Help scout. https://www.helpscout.com/blog/customer-service-trends-2023/
Sima, I. (2023). 10 customer service trends you can’t miss out on in 2023. Touchpoint. https://www.touchpoint.com/blog/customer-service-trends/