Why Most Call Center Customer Service is So Bad?
By: Colin Taylor
We have all had the experience, we phone our cable company, wireless provider or our utility and Bang! The pain and suffering begins: “Your call is important us, Please hold”. Well if my call was really important I would have thought you would have answered it. Of course some hold messages can be even more frightening: “We are experiencing higher call volumes and you should expect a longer than average hold time”. No I don’t make it a habit to phone my wireless provider often enough to know what their average hold time is, but I am scared nonetheless. Perhaps the standard greeting announcement should be replaced by “Abandon All Hope Yea Who Enter”, a little dramatic, but perhaps more accurate.
Then when I finally reach an agent can they help me? Am I able to get done what I want to get done? The answers to these questions often depend upon the organization and the complexity of the question I asked. In some cases the center is quite helpful and able to provide me with the information I seek quickly, effectively, completely and professionally, with other centers it is more like phoning the call center in those old Capital One ads that featured David Spade. None the less research has repeatedly shown that while the quality of mercy is not strained the quality of customer service call center often is strained. The expectation of poor service has become engrained in our society. Comedians quip, television ads for Capital One and CarMax entertain us with bad service experiences and the twitterverse is alive with hundreds of thousands of people complaining about their call center or customer service experiences- hashtags #custserv, #callcenter and #cctr. Why do so many organizations deliver poor service?
Research Proves Service is Bad
I would like to propose some highly intelligent and provocative explanation, but unfortunately I feel the truth is much simpler. Companies and organizations don’t care. It’s not that they necessarily want to not care it is just that they don’t. There are too many other priorities and ‘more important fish to fry’. The research on this topic backs me up: 86% of consumers quit doing business with a company because of a bad customer experience, according to Harris Interactive. That figure is closer to 73% said Gartner. American Express found that Customer Service Experiences generally….’
•Exceed Expectations – 2%
•Meet Expectations – 62%
•Miss Expectations – 32%
•4% weren’t sure!
In fact 90% of executives see Customer Service as crucial to their future business success. In the same study more than 70% of senior call center executives revealed that their companies fail to meet their customers’ expectations, according to Bain.
So we have a strange dichotomy. Organizations know that good customer service is essential to their future success; they understand that there is a real tangible cost and risk of dissatisfied customers defecting and yet these same organizations seem incapable of affecting change.
They say that the first step to dealing with a problem is to first to admit you have a problem. Well we as the customers of these organizations we may see the problem, as call center and customer professionals we may recognize the problem, but the organizations in question do not seem to recognize this. Why is that, businesses are full of bright, knowledgeable and skilled professionals.
Is it as Dave Farrell suggests in his recent article Why Do Companies Give Bad Customer Service? “We have a Contrary Point of view. A point of view is simply how you view, judge or appraise things. How you see things determines how you act. How you act determines your results. In the world of Customer Service it would look something like this; a customer calls in and has an issue. Let’s say that I see customers as people who will lie through their teeth to get what they want. My point of view of the customer will determine how I act toward them. I am much more likely to be defensive and argumentative. The customer then will deal with me however they deal with defensive argumentative people. The result won’t be pretty.”
Or perhaps as Grant Nieddu pointed out in a Linked In post “Companies give bad customer service because they see that it is far cheaper to pay for a corporate rally and “mission review” teams than to over-haul their tactical processes. Rewording personnel reviews, restructuring the training process, and, gasp, revisiting incentive programs is far more costly and takes more time. You can learn, execute and train a culture of quality customer relationships, as long as you are willing to invest the time and money to do so. Companies that give bad customer service simply do not believe in the investment.”
Both of these experts raise good points, we can certainly project our feelings and perception to others and define the service process from this perspective and as Grant said we certainly can’t discount the fact that some organizations are just cheap, but I think that the single biggest factor contributing to bad customer service or as my kids would say Customer Service that Sucks, is… drum roll please…..wait for it… neglect.
Sorry to let you down after the big build up but let me explain. There are a number of types and forms of neglect that can lead to poor service.
Neglect Equals Bad Service
The first one I will deal with is complete neglect. This is most common in SMB’s with small call centers where the center is not really considered as a major part of the enterprise. They are neglected, their costs and budgets roll up into other much larger budgets like Operations, IT or Sales and senior managers and executives do not any visibility into what is really going on in the call center nor, likely do they really care. It is neglected. Of course this can change dramatically once the call center reaches that special threshold, whose level varies by organization, but it is when the call center actually appears as a line item on the monthly P&L. The first time this happens you can almost hear the screams of astonishment from the executive suite, “We are spending what on the call center!” In centers receiving this form of neglect they will generally be underfunded- trying to do more with less, significantly lack appropriate technologies to serve customers and be struggling to meet their service performance and targets. The operation of the center is usually in a vacuum, they are disconnected from the organization and only dimly aware of the company’s goals and aspirations. With insufficient staff, poor processes and technology and no vision these centers struggle day in and day out not to deliver lousy service, but they do not often succeed. This is not good service.
The second form of neglect is neglecting to understand that a call center is a primary communications channel between the organization and its customers. In fact for many organizations it is the primary communications channel and the only meaningful one that facilitates a two way discussion, a dialogue. Failing to recognize this fact leads organizations to undervalue the contribution the call center and broader customer service and technical support plays in sustaining the business. Not only can a call center generate revenue through orders, up-sell and extensions, but the call center also protects revenue already promised through solving issues and fixing problems, many of which were not caused or created by the call center. As my colleague John Cockerill is wont to say “There are only two kinds of calls; Value, where we gain revenue and Fault, where we fix a problem someone else created”. By neglecting to understand the role played by the call center in maximizing lifetime value and customer retention these organizations treat the call center as an after- thought. The call center discovers new campaigns and initiatives only after they launch are criticized for failing to meet patently unattainable goals which they had no part in creating and generally receiving all of the perks and privileges bestowed upon it by ‘mushroom management’. It is in these centers where senior executives will ask if we really need all of those people or even if we really need to answer the phones at all. For the record I have heard that exact statement on two occasions in my consulting career. In centers suffering from this form of neglect they will be generally underfunded-trying to do more with less than none, they will often invest in technologies to reduce costs or create efficiencies regardless of the suitability to the purpose of the center or its potential impact on customers. The operation of the center can be characterized as a cost center, in a way that informs you that this is a very bad thing to be. There will be calls to transform the center to a profit center, to reduce costs and to increase productivity. Of course all of these activities can be positive however they are all but doomed to failure if they are not connected to the desired customer experience and the service quality the organization wishes to deliver. With insufficient staff, poor processes and technology focused on reducing volumes and/or reducing transaction times these centers make it difficult for their customers and when they get an answer they rush them off the phone. This is not good service.
The third form of neglect is complicity in these organizations the call center is acknowledged to exist, its role appreciated and generally understood and there is an agreement on the value the center delivers to the organization. Senior executives look at their weekly dashboard reports and might comment on the change in service level or abandon rate. All may appear to be happy in ‘mudville’, but that is not necessarily so. The company having invested in people and technology to equip the center to do its job and recognizing its value reviews and scrutinizes the weekly reporting can feel that its job is done. You can almost hear them saying, “There now the call center is completed and we won’t have to worry about that again”. In the call center itself this stage can be the most frustrating as it begins with such promise; spending on headcount to match the demand, acquiring new technologies etc., but it soon grinds to halt coming face to face with the perception that ‘we did this (the call center) and now we are done’. The conversations go along the lines of “why do you need more people, you just hired 6 last quarter”, or “Last year we spent X million on your techno-goodies so you will have to make do”. All of the hallmarks are there of a professional call center engaged and integrated into the business, but it is not really so. The center likely struggles with scheduling and a disinterested and high turnover workforce, adequate technologies give them a fighting chance, but the absence of integration to the company vision and low level of agent experience condemns it to deliver inferior service.
It is clear from the above that neglect can take many forms and that these various forms of neglect can handicap a call center and ensure that they deliver bad service…service that sucks. Success in delivering Good Customer Service lies in not neglecting your center but rather to paying attention to the center. Organizations have found success by elevating the call centers role within the organization and openly discussing the role the center plays in attracting and retaining customers. By defining the strategic plan for the call center and linking the call center plan to the company goals, mission and values brings everyone onto the same team and speaking from a perspective of alignment. By equipping the center with the appropriate tools to do the job the organization can begin to reap the rewards of this stewardship. Of course this should not be construed to suggest that the call center should be given a blank check. Quite the contrary each desired investment in people, or process or technology should be modeled, justified and be confirmed to be in line with the call center strategy and the broader goals and objectives of the business. Any requested investment that doesn’t make economic sense and/or fails to align and support the business goals must be discarded until a more suitable and appropriate solution can be found.
There is no excuse for an organization to have poor service the cause can includes neglect, lack of funding or perhaps even projection. But if there is no excuse for bad service why hasn’t somebody done something about it?
There are likely a million reasons that have been cited by other authors, experts and pundits, but I would suggest that the simplest reason is that companies don’t have too improve service. We expect poor or at least difficulty in resolving customer service issues Forrester Research found in some verticals such as computers and health insurance only 30% of consumers expected customer service to be easy. We often expect to have a fight on our hands. If this is the view of the customer, then is it any surprise that organizations steel themselves for the conflict with restrictive policies and penalties for changes.
The Way Forward
Of course at the same time this expectation of poor customer service creates an opportunity for those organizations able to rise above the din and actually deliver superior service. They could be motivated by a sincere and genuine wish to deliver better customer service to their customers or they may simply realize that happier customers stay customers longer and spend more money with you.
But this can on the surface appear to be a risky strategy, to spend more money to improve the quality of service, staff, technology and processes and then to wait and hope it pays off. But maybe it is not so risky. Research from American Express found that 61% of Americans report that quality customer service is more important to them in today’s economic environment, and will spend an average of 9 percent more when they believe a company provides excellent service.
A few organizations are bravely marching forward carrying the ‘Superior Customer Service’ banner. Some of these organizations have achieved fame and success others are just quietly reaping the financial benefits. Zappos has defined itself as a Customer Service organization that just happens to sell shoes and has created a cult of believers. F&C has been recognized as the best call center in the UK by exceeding all service parameters. And American Express, well it is their research cited above that tells us that customers will pay more for better service, it appears that they are walking the talk. American express derives their customer satisfaction scores directly from their customers and this CSAT score has replaced the internally generated quality score that they used to rely on. Satisfaction is in the eye of the customer, it is as simple as that.
So we are not forever doomed to suffer through endless IVR call trees, hours on hold only to speak with an ill-tempered and poorly trained agent. We needn’t abandon all hope when we enter the customer service queue. We must simply choose to patronize organizations that deliver superior service. Voting with our feet and our wallets is the best way to encourage lagging organizations to cease their policies of neglect and embrace the new maxim of better service equals more and happier customers.
Hopefully and not to far in the future companies will no longer be able to provide poor customer service because they can get away with it, customer service laggards are going to be punished by the market and forced to change their ways. At least that’s what my crystal ball says.
Thank you for bringing this to the light, Colin. It is a shame that call centers get a bad reputation for having poor customer service, but we can do better! If companies take the time to improve the customer experience over the phone, I think it will do wonders for their business and maybe even entice other companies to follow suit. One tool that can help improve customer service over the phone is using call center training software. This can help set a company-wide standard on what great customer service looks like, streamline training, and improve the customer experience over time. Again, great points here, I will share this with my network!
Too late for this, but I’ve worked in call center for several years. All of your most trusted companies outsource your services to Guatemala, El Salvador, India and Costa Rica…why? cheap workers. While in the US some people can make $11-14 an hour, in Guatemala (my country) we get paid around $3 an hour. We have abusive bosses and get get treated like street dogs. But why do you work there, then? necessity, of course!
I’ve worked for several companies…in the end, they really don’t care, no matter how terrible the service is, they still have customers. Customers on the other hand have a hard time figuring out that on the other end of the line there is a human being doing everything they can to please their selfish bosses and earn their keep. Customers tend to incredibly believe that by yelling to a stranger they will get exactly what they want ASAP…doesn’t work that way, cavemen.
Call Center work environment its a jungle, you are as expendable as toilet paper…and trust me, we do everything we can to help customers, even those that invent that are dying in a hospital and that’s why they can’t pay their bill but want free service in the meantime, because the CEO of the cellphone company is mother Teresa.
It’s because people that work in call centres are treated like dogs by companies. Lousy pay with little or no benefits.
Great post. I enjoyed reading about your analysis of why call centers provide such awful customer service. Your crystal ball should keep giving you ideas for blog posts! But just as there are pitfalls to a service, there are advantages as well. When a call center provides unparalleled customer service, a company realizes true succeed with an increase in sales and profits not to mention enhanced customer retention and loyalty. This leads to positive word of mouth marketing, which is absolutely crucial in today’s day and age where the internet is the go-to source for company reviews.
Interesting analysis of why companies provide such bad customer service. Perhaps you’ll appreciate our take on bad customer service in our short film, Please Hold. You can watch it at pleaseholdfilm.com
Nice Article !!
Like every coin has two sides similarly call center has advantages & its opposite, You explain another part which is probably not posted by others.
Keep sharing your thoughts…
This is so true. And now with social media your company’s bad service is no longer a secret. In the past we only needed to worry about our customers telling 10-20 of their friends about a bad Customer Service experience now they can and will share it with 500-1000 of their closest friends. A very good friend of mine did just that last week about the less than stellar service she was receiving from her Cable TV provider. As her friends commented about similar instances that cable providers name had been viewed negatively by at least 5,000 customers and potential customers.
The same thing holds true with providing good service. Because it is human nature that we are more likely to share a negative experience than we are to share a positive one. The goal of all Customer Care providers should be to, “Provide Service That Customers Will Brag About.”
It is true that many companys consider customer service to be a priority, but most follow that by saying they don’t have the time or money to make it a reality. When I am brought in to evaluate a customer service department or call center, I am usually told the number of people taking customer calls and hours of operation are not based on the customer needs. It is based on budget and when people feel like working. So, 10 minute hold times don’t alarm them. Nor do calls at 5:01 because they are gone. I enjoyed your article!
The reason behind this is the lack of training for agents, this is our main goal in our company. To give a very satisfying service to our clients that is why we train our agents very well we want them to achieve the 100% grade.
Coming from the service industry I definitely agree that companies should spend more on services, not just from a department point of view, but to drive outward in approach to everything they do. World class customer service is not done just by investing in the service department. In needs to be a apart of the fabric of your company culture.
With that being said companies always need to make tradeoffs when determing their strategy. It is difficult to do everything GREAT. If a comapny targets the low cost segment of a market, they will not invest as heavily in service. They are differentiating based on price. I think the article is relevant most for mature industries without much disruptive technologies, where service is one of the main areas to differentiate yourself from the competition.
A great article. Well stated.
We get more products because we buy poor products. We get deceptive advertising because we are suckers for that kind of deceptive advertising – a part of us wants to believe that this sports car is going to get us that attractive young lady. We end up eating food with lots of sugar and salt because that is what we crave. We pay more for insurance than we need to because we can’t be bothered to look around and get quotes at renewal time.
We get poor service because we accept poor service. We also get poor service because the table on which the game of capitalism is played is tilted towards companies, the powerful – they have the money to lobby, to hire lawyers, to shut out competition by buying the politicians…..