How focusing on costs alone can jeopardize the customer experience

It’s no secret that organizations must rely on great customer experience (CX) as a competitive advantage to take their businesses to the next level. Adapting to rapidly-evolving customer demands creates sustainable customer loyalty — the recipe for long-lasting business success.

With the arrival of the coronavirus (COVID-19), business priorities have shifted to focus solely on the safety of employees and customers, deploying a work-from-home (WFH) and social distancing model on a global scale. This change has turned many businesses upside down as they could not continue their usual modus operandi. As such, cost-efficient strategies quickly became more relevant than CX to secure long-term survival.

Migrating to the cloud is an outstanding strategy for contact centers to reduce operational costs. Increased scalability and efficiency paired with virtually zero installation and maintenance costs means it’s more affordable than on-premises technology. Additionally, cloud solutions can also provide proactive ways to manage various aspects of contact center operations such as security and employee performance.

What does a cost-centered approach mean for CX? This approach usually involves changing or evolving existing technology and processes within an organization which can significantly affect the way you interact with your customers. Here are some pros and cons to consider.

The damage caused by losing a customer

Great customer experience means the customer was not only satisfied with your product or service, but that they are likely to repeat their business and recommend it to peers. As such, focusing solely on reducing costs without taking into consideration the potential impact to the customer experience, in the long run, can seriously damage the reputation of your brand. Meaning you could lose that customer and their influence to drive business.

Customization of every single interaction

Migrating to the cloud as a cost-cutting strategy also presents impactful opportunities to satisfy customer demand. Cloud solutions infused with powerful artificial intelligence (AI) capabilities can drive incredible efficiencies in your contact center, such as reducing manual agent work and proactively providing helpful information to customers looking for self-service. These experiences create a positive experience for both agents and customers. Keeping customers informed and engaged has shown to improve their experience.

An opportunity to engage call center agents

Transforming technologies and processes also means transforming how people work. This is a huge opportunity to rethink the way your employees manage their work and interact both with each other and with customers. If your focus remains on cost reduction while not fulfilling new ways of working by keeping the workforce engaged and efficient at all times, you’re putting yourself at risk by damaging the customer experience from the inside out.

Any change in business operations, especially that which currently aims to adapt to “the new normal”, should ideally empower the entire organization to create sustainable value. Unlocking a holistic approach that takes into consideration pillars such as cost-reduction, security and employee management is key to drive your business into a new model while maintaining superior CX.

Want to know more?

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