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A Cost-Analysis Of Competing Channels

Is cost-effective service a mirage?

Companies across different industries struggle to meet twin objectives that often seem at odds with each other. Customers want better service, while management dictates cost control. Are the two impossible to reconcile?

Comparing the cost of different channels

A Giga Group research* on the cost of customer service using different channels threw up the following results. Phone calls were the most expensive option and were pegged as a 100% measure. When compared with this standard:

  1. Chat was the next expensive, at 50% of the phone standard
  2. E-mail followed, at 30% of the phone standard
  3. Self-help was the lease expensive, at only 10% of the phone standard

So, should everyone move to self-help?

Clearly, that doesn’t address all problems. There will always be customers whose queries can’t be resolved so easily. A 100% self-help system will not be of use to them.

The solution lies in using a combination of methods: self-help/automated support for those whose queries are not exceptional, while others receive more personalized support. This is precisely the approach favored by smart query technology systems.

*More details at http://www.crm2day.com/highlights/EpyEVVAyZFuVTSlcjp.php

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