Worldwide, the telecom industry has seen exponential growth in its customer base in the last few years. Though this seems to be a dramatically positive trend, it has been accompanied by a persistent decline in average revenue per user (ARPU) and use of services by customers, driving down revenues of providers. With the rapidly growing customer base and complexity of products, customer servicing costs are becoming unaffordable and companies are looking at various options to streamline costs. Specifically, companies are looking to reduce dependence on human interface through contact centers. There has also been a shift in the way services are provisioned and an increased focus on migrating interaction traffic from assisted voice channel to non-voice channels, both assisted and self-service. Our research indicates the following interaction traffic trend across various channels:



This strategic shift is primarily due to changing customer profiles and expectations complemented by technological advancements and market dynamism. All this has led to a sudden pressure on service providers to think through unique ways to connect with customers. According to a SupportIndustry survey, companies are expecting significant increase in interaction traffic across web channels - self service and webchat followed by emails and phone self service (IVR).

Web self service is the most efficient and cost-effective way of reaching customers. While this requires up-front investment, the cost of any additional transaction is minimal.  Providing answers to customer queries through the web is possibly the ultimate intent of all service providers; however it is difficult to drive customers to web self-service channels after a decade-old habit of providing service through human interface channels. With the increasing adoption of the internet by customers, it is an attractive channel and companies need to consider at this option seriously.

 

A first step in driving customers to a self-service channel is using the power of social media. According to a recent Nielsen survey, social media networks not only claim more users than e-mail but are growing at a faster rate (31 percent for social media versus 21 percent for email) in markets such as the US, Australia, Europe and Brazil. The impact of these social customers can be assessed by the rule of thumb that says while only 10 percent of social media users regularly post, their content reaches 90-95 percent of lurkers. Though companies have begun using the medium for branding, marketing and product testing, it is expected to emerge as an essential medium for providing services and customer support. It is accepted wisdom that one sufficiently critical posting can negatively impact a brand significantly due to the powerful viral effect of social media.

 

Some American companies that have been early adopters in the space have witnessed measurable benefits. One such case is Frank Eliason's turnaround at Comcast (News - Alert). Another example is at the end of FY 2009-2010, Dell's 'chief blogger' Lionel Menchaca announced that Dell is not only servicing customers through social media but made revenues of the tune of $6.5 million, double the preceding year. While it is a scant contributor to overall company revenue, it is a significant development for a medium still in its relative infancy. At Firstsource, we currently manage a social media forum for one of our clients and see this forum emerging as the preferred medium for certain customers.

 

Web-chat sales and service is another rapidly emerging channel catching the attention of many companies. There are multiple reasons for rapid adoption of this channel - it is cheaper than voice channel, it has the capability to handle multiple queries at a time, it can be used to instantly resolve complaints as voice channel can and, most importantly, it can help in 'hand holding' customers and graduating them from assisted channels to self-service channels. Also attracting service providers to adopt this channel is its ability to enhance sales. According to Jupiter Research, online chat features can increase online sales conversion rates by as much as 20 percent. Forrester (News - Alert) research also shows that using web chat shortens the sales cycle and increases transaction size per sale. 

 

The continuing surge in demand for web chat has propelled a lot of software and platform providers to offer web chat solutions. There are platforms available that can help identify a prospective customer by using factors such as time spent on the web site and offer assistance for a chat proactively.

 

While e-mail is not a new channel for servicing customers, it is gaining momentum due to the penetration of the internet. Accessing e-mail via smartphones affords nearly instant resolution of customer's queries. Though it is a delayed response channel for servicing customers, unlike voice or web-chat, this is the only channel which provides the flexibility to write responses in detail and reach customers anytime, multiple times and conveniently. E-mail can also be used to preview different products and new offerings. According to a Corizon (News - Alert) survey late last year, e-mails are the second most preferred mode of communication for UK customers after voice. However, since many customers archive their email exchanges with a provider, e-mail solutions require a trustworthy and efficient service partner to ensure persistent, smooth connectivity.

 

Though there are many channels emerging as options for service providers, it is essential to choose the right mix, bearing in mind which elements fit a company's larger strategic plans. This is even more important in light of the fact that carriers today are trying to do more with fewer resources. Though most service providers are currently looking at harnessing the benefits of alternate channels, a blend of interaction tools spanning multiple channels will ensure the greatest benefits. Getting their multi-channel servicing strategy 'right' is one of the most important requisites of service providers today. Partnering with an experienced, well-established service partner and creating a robust customer migration strategy are central to this endeavor.