November 2003

By Curt Champion, Convergys Corporation

Companies today are facing three challenges that seemingly are at odds. Almost universally, companies need to cut costs. At the same time, however, they need to provide better service to their customers and improve their marketing capabilities.

This is particularly so with telecommunications companies, which are fighting a harsh economic environment, and cable and broadband companies, which are battling a fierce competitive environment in which customer service is becoming a major differentiating factor.

Web self-care is quickly becoming a means to meeting the three challenges equally. Not only is Web self-care less expensive than live agent support, it also helps companies improve agent productivity. It's also an ideal forum for marketing.

In a recent survey, Forrester Research showed Web self-service technology as the area in which companies are most likely to increase technology spending for customer-facing processes. Nearly 30 percent of large North American companies surveyed said they plan to increase spending in Web self-care this year. Moreover, about 66 percent of surveyed firms said they have either implemented a Web self-care program, are rolling one out or are running one in the pilot stage.

Consumers also seem to prefer the Web for their own reasons, including convenience, which makes a perfect marriage between buyer and supplier. A Yankee Group report shows fully 25 percent of companies surveyed expect to receive more than 20 percent of their customer care requests through Web self-care within two years. Looking even further ahead, Forrester estimates that more than half of all Web buyers will use chat-for-service by 2006 (see Table 1). Factoring in the expected growth in Internet use, that will mean more than 55 million people using Web chat by 2006.

Web self-service allows companies to give consumers greater flexibility in how they interact with them, using a channel of communication consumers prefer at an increasing rate. In the meantime, savvy companies are also using self-service as a means to differentiate themselves from their competition.

In implementing a Web self-care program, companies need to be aware that no single self-care channel is the be-all and end-all. Offering self-care through multiple channels is where companies really win. Not everyone is comfortable with each channel, and if you don't provide multiple channels, you could be limiting your potential users. Some people don't have Internet access, for example, so one channel cannot be considered the savior. A comprehensive strategy should include various channels to get the most efficiencies out of a customer care program.

Depending on the type of information, one channel or another might work best. For example, complex information is best provided through Web self-care. It's a cheaper and easier way to guide a customer through a process such as self-installing a product, including allowing the customers to schedule their own installations. The Web also features the advantage of having other content wrapped around it. Enhanced content, for example, might be made available at the same Web site as the customer care site, or it can be linked.

On the other hand, simpler tasks can be efficiently handled over the telephone through interactive voice response (IVR) or advanced speech recognition (ASR). Common requests such as simple service upgrades or completing third-party verification for a customer changing long-distance carriers rank among the tasks that can best be served through speech solutions.

For complex tasks requiring interaction, Web collaboration might be the answer. This is where online chat fits in. A consumer can ask questions directly of customer service representatives (CSRs). CSRs can even take control of the consumer's Web browser or push enhanced content to complete a customer's request. The service level provided is high, but the cost to the company is still much less than servicing the customer one-on-one over the telephone.

It's also vitally important that companies be certain they are providing the same feedback or information to consumers through each of the available channels. If a consumer gets inconsistent information from one channel to another, he or she will immediately pick up the phone to talk to a live agent. As a result, your cost savings just flew out the window with that call.

Worse, customers who have a bad experience through self-care will likely stick to calling a live agent in the future. Once people find they can't get an answer through a Web site, that thought will stick with them the next time they have a question, and they probably won't go back to the Web site for care.

Let's consider a real-life example of a Web self-care experience. A provider's existing customer buys a high-speed data modem at a local retail outlet. The customer brings the modem home, sets it up and hooks it up to the computer. He then inserts the install diskette that came with the modem, and this walks him through the set-up process.

The inserted disk performs some basic network set-up tasks that are needed for self-provisioning and leads the customer to the service provider's Web page. The customer then finishes the set-up, installation and registration of his new modem through the service provider's Web self-care application. No phone calls to costly live agents are needed, because the self-care program is easy to use, answers anticipated questions and quickly and smoothly guides the customer through the process.

The next time the customer wants to change service or has a question about it, he's very likely to go back to the Web site because he had such a good experience the previous time. As long as the company offers management of its entire product and service array on the Web self-care program and provides a means for the customer to get answers to his questions, the company is able to continue servicing the customer on his terms while saving the company costs.

Another good reason for implementing a Web self-care program is that it enables a company to expand its capacity for customer service relatively easily.

Let's assume, for an example, a company is launching a new product, embarking on a special campaign or even dealing with an unexpected event. Without Web self-care or other self service channels, the company would need to hire additional people to handle the increased phone activity. If it's a sudden event, the initial overload would mean numerous customers would go without service or could result in a negative experience for the customer as a result of busy signals or long hold times.

Consider the recent series of viruses that infiltrated so many computers. Many software companies and Internet providers had Web self-care available, with updated answers to the common questions regarding how to get rid of the virus. Without self-care, those companies would have been fielding countless phone calls, while frustrated consumers waited interminably on hold.

Consider a service outage at a cable TV company. Self-care channels can alert consumers what the problem is, and then let them know when it has cleared up. Both functions save the company a barrage of phone calls while soothing customer anger.

The key to making your Web self-care program a success is to market it as you would a product. The more reasons consumers have to experience a provider's Web self-care offering, the more they'll come back. Consumers are always wondering if they can complete a certain transaction online. Once they find out they can perform one thing on the Web, they'll keep coming back to perform other tasks.

One way to get your customers comfortable is by having them buy your services over the Web. Offering special Web-only prices is one way to do that. Airlines have done a good job in that area. Consumers can generally find the lowest prices on a particular airline's Web site. That drives customers to the site more effectively than any marketing campaign alone and often prompts them to use the carrier's Web site for their other requests.

Another way is to make sure all of a company's products and services are covered on the Web site. Few things will drive a consumer away faster than discovering that certain services are available on the Web site, while others are not. Consumers get confused if a phone company, for example, makes local phone service available through the Web site, while DSL is not.

The most important thing to keep in mind is that the first time a consumer goes into a company's Web site for self-care will determine whether he or she will ever go back. That means companies must make their Web self-care systems easy to use, understandable and focused on the user experience.

One strategy many companies employ is to make a high-value transaction the first phase of their Web self-care program and expand from there. Another option is to start with allowing consumers to view and pay their bills online. Once those consumers have made their first foray to the Web site, providers can start encouraging them to use other Web self-service based functions.

Some consumers, particularly those first starting out with Web self-care, might have concerns about privacy and security. Notifying them via e-mail when a change or order is made through Web self-care is one way to address this. Consumers will feel better knowing their order went through. If an unauthorized order was made, perhaps by a child in the household, for example, the consumer will be alerted and able to take immediate action the next time he or she opens e-mail.

Finally, Web self-care is a way to reduce customer care costs while improving the level of customer service. You've no doubt heard the claims and statistics. A Web self-care transaction costs on average $1.17 per transaction, while e-mail costs $9.99, chat costs $7.80 and a message board runs $4.57, according to Forrester Research. Keeping costs low is the key driver of any self-service option, and that's a particular advantage for Web self-care.

Companies do need to remember, however, that a Web self-care program only saves money if people use it. Giving consumers a reason to visit the Web site gets the program off the ground and sends a company on its way to providing better customer care at a lower cost.

Curt Champion is senior director of product and industry marketing for cable and broadband at Convergys Corporation (www.convergys.com). Convergys is a provider of integrated billing, employee care and customer care services provided through outsourcing or licensing.

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