ONLINE CUSTOMER SERVICE by Andrew Clegg

Managing Customer Service

Managing Online Customer Service

Managing Online Customer Service Aims •  To consider the changing character of the Internet environment, and how customers are now interac6ng with this virtual space and implica6ons for customer service •  To iden6fy the rela6ve advantages and disadvantages of online service and evaluate the implica6ons for customer service •  To evaluate the key elements of online customer service, making reference to WebQual as an analysis tool

Managing Customer Service

The Internet â&#x20AC;&#x201C; The Consumer Revolu2on

Managing Online Customer Service Internet: Facts and Figures •  In 2015, the Internet is contributed £180 billion (10% of GDP) to the UK economy (Boston Consul6ng, 2015) •  The UK currently leads the way for online sales in Western Europe along with Germany and France •  The UK’s digital economy as a proporJon of GDP is the largest among the G-20 countries

Managing Online Customer Service Internet: NSO Facts and Figures •  78% of adults (39.3 million) accessed the Internet everyday in Great Britain in 2015, compared with 35% (16.2 million) in 2006 •  96% of adults aged between 16 to 24 accessed the internet “on the go”, compared with only 29% of those aged 65 years and over •  In 2015, 76% of adults bought goods or services online, up from 53% in 2008 •  In 2015, 86% of households in Great Britain (22.5 million) had internet access, up from 57% in 2006

Managing Online Customer Service Internet: Facts and Figures

[NaJonal StaJsJcal OďŹ&#x192;ce, 2010]

Managing Online Customer Service Facebook: Facts and Figures •  More than 1.04bn daily acJve users •  4.5bn likes generated daily as of May 2013 (67% increase from August 2012) •  16m local business pages have been created as of May 2013 (100% increase from 8m in June 2012) •  4.75bn pieces of content shared daily as of May 2013 (94% increase from August 2012) •  Every 60 seconds 510 comments are posted, 293,000 statuses are updated, and 136,000 photos are uploaded.

Managing Online Customer Service Ebay: Facts and Figures •  Launched in the UK in October 1999, eBay.co.uk is the UK's largest online marketplace •  eBay.co.uk has over 162 million acJve users •  More than 800m items listed in e-Bay marketplaces

Managing Online Customer Service Internet: Facts and Figures

OďŹ&#x192;ce of Fair Trading, 2007

Managing Online Customer Service AcLvity 1: Customers •  What is the diﬀerence between service and eservice? •  Why and how do customers use the internet? •  How do these factors inﬂuence the delivery of customer service?

Managing Customer Service Service v E-Service •  Key Differences –  The Absence of Sales Staff – there is no service encounter between customers and sales staff as in the tradi6onal service –  The Absence of TradiLonal Tangible Elements – in e-service, the service process is almost completed in the virtual environment with some intangible elements –  Self-Service of Customers – in e-service, customers conduct self-service in purchasing and realise control in the business process

Managing Online Customer Service

OďŹ&#x192;ce of Fair Trading, 2009

Managing Online Customer Service

OďŹ&#x192;ce of Fair Trading, 2007

Managing Online Customer Service Customers and the Internet •  ‘Window shopping’/‘just looking thank you’ –  Visit the site, glance at the contents and then move onto another site –  Browse through the site as if they were looking at goods in a shop/product research •  On the Move/ Mobile Technologies •  ‘Wisely’ –  Lack of conﬁdence in the security aspects of the Internet

Managing Online Customer Service

OďŹ&#x192;ce of Fair Trading, 2007

Managing Online Customer Service

OďŹ&#x192;ce of Fair Trading, 2007

Managing Online Customer Service

OďŹ&#x192;ce of Fair Trading, 2007

OďŹ&#x192;ce of Fair Trading, 2009

Managing Online Customer Service

OďŹ&#x192;ce of Fair Trading, 2007

Managing Online Customer Service

OďŹ&#x192;ce of Fair Trading, 2009

Managing Online Customer Service Customers and the Internet •  ‘Window shopping’/‘just looking thank you’ –  Visit the site, glance at the contents and then move onto another site –  Browse through the site as if they were looking at goods in a shop/product research •  ‘Wisely’ –  Lack of conﬁdence in the security aspects of the Internet •  ‘Fun’, ‘Buzz’, ‘Ge^ng a Bargain’

Managing Online Customer Service Customers and the Internet

Managing Online Customer Service AcLvity 2: Cost-Beneﬁt Analysis •  What are the advantages and disadvantages of online service?

Managing Online Customer Service Benefits of Online Service •  Immediacy - the Internet allows you to make it easier for customers to do business with you because they can do it all right from their desktop any 6me of the day or night •  Cost efficiencies – basis for cost leadership •  Improved efficiencies due to the use of posted ordering instruc6ons and FAQ lists •  Increased rate of customer retenLon if you make online shopping easier and more convenient than real-world shopping

Managing Online Customer Service Shortcomings of Online Service •  Your relaJonship with customers will be less personalized just because of the nature of online shopping—and they may have greater expectaJons of you as a result •  There's a higher learning curve for support staﬀ as they learn the ins and outs of dealing with customers in the virtual realm •  Required investment in appropriate web-based technologies and sonware soluJons that aren't needed in the oﬄine world

Managing Customer Service

The Key Elements of Online Customer Service

Managing Online Customer Service AcLvity 3: Online Customer Service •  You have been asked to develop a online customer service strategy. •  What are the key elements of eﬀec6ve online customer service that you would include?

Managing Online Customer Service EssenLal Components of Online Customer Service •  Detailed Product Pages –  Providing accurate and detailed informaJon on product pages can avoid the need for customers to call or email –  Provide detailed informaJon of delivery costs and Jmes, as well as general informaJon about the product on oﬀer

Managing Online Customer Service EssenLal Components of Online Customer Service •  Web Design and Layout –  Web-based facets such as simple navigaJon and design, fast image download Jmes, and fast access to informaJon –  Ensuring that your website is DDA compliant –  Inclusion of video

Managing Online Customer Service EssenLal Components of Online Customer Service

Managing Online Customer Service EssenLal Components of Online Customer Service •  Live Chat –  Real Jme customer support –  Staff need access to chat uJlity –  Define live chat hours and sJck to them •  Fulfilment and Order Tracking –  Many shopping cart programs offer integrated order tracking, which can dramaJcally reduce the amount of email you receive from customers who are looking for their merchandise

Managing Online Customer Service EssenLal Components of Online Customer Service •  Returns Policy –  Making your returns policy as simple and ﬂexible as possible, by allowing customers to return product bought online to a store, for instance, will avoid unnecessary hassle, and may give customers more conﬁdence to buy

Managing Online Customer Service EssenLal Components of Online Customer Service

Managing Online Customer Service EssenLal Components of Online Customer Service •  Provide Comprehensive FAQs –  This can help customers quickly find the answers to their queries about shipping, returns policies etc –  A searchable FAQs secJon that covers every conceivable quesJon will enable customers to get answers more quickly and take the pressure off customer service staff

Managing Online Customer Service EssenLal Components of Online Customer Service

Managing Online Customer Service EssenLal Components of Online Customer Service •  Allow Customers to Email –  Customers may have a query that isn’t covered by the informaJon available on the site –  Customers may dislike having to call customer service departments, so provide them with an email alternaJve •  Acknowledge the Receipt of a Customer Email –  This will eliminate needless customer frustraJon by ensuring that their quesJons are being dealt with

Managing Online Customer Service EssenLal Components of Online Customer Service •  Ensure a Speedy Response to Emails –  Customers onen have to wait 2-3 days before their emails are answered –  Not answering emails quickly enough will also increase pressure on call centres •  PersonalisaLon –  Personalise email responses to customers – this will reassure people that someone is directly answering their quesJons

Managing Online Customer Service EssenLal Components of Online Customer Service •  Increase Staffing Levels –  Online customer service departments may be dealing with five Jmes the volume of emails, as well as extra customer calls, at different Jmes of the year (e.g. Christmas) so ensure that you have enough staff to deal with the rush

Managing Online Customer Service EssenLal Components of Online Customer Service •  Adding Value –  Offer online subscripJon to an electronic newsleser (or hard copy)/link to RSS feed –  Create a resource network on your site that directs the customer to other companies and sites which are complimentary to your own –  Offer an on-going chat or discussion on a specific topic related to your company that would be of interest and value to customers –  Use online blogs, diaries or discussion boards

Managing Online Customer Service EssenLal Components of Online Customer Service

Managing Online Customer Service EssenLal Components of Online Customer Service •  Customer Feedback –  Include mechanisms to allow customers to give you direct feedback

Managing Online Customer Service EssenLal Components of Online Customer Service

Managing Online Customer Service EssenLal Components of Online Customer Service •  Invest in Online Customer Service Technology –  The market for online customer service soluJons is growing at 50% –  The cost of the average customer interacJon by telephone is esJmated to be between 20 and 40 Jmes more expensive that a web self-service interacJon

Managing Online Customer Service EssenLal Components of Online Customer Service

Managing Customer Service

Frameworks for Measuring E-Service Quality

Managing Customer Service Zeithamal (1990): Elements of Servqual •  Tangibles: The appearance of physical facili6es; equipment and personnel •  Reliability: Ability to perform the promised service dependably and accurately •  Responsiveness: Willingness to help customers and provide prompt service •  Assurance: Knowledge and courtesy of employees and their ability to convey trust and conﬁdence •  Empathy: Caring, individualised aWen6on the provides its customers

Managing Customer Service Suomi (2009) â&#x20AC;&#x201C; E-Service Quality Scale Website Design

Reliability

Responsiveness

Security

Fulfilment

Personalisation

Information

Empathy

Managing Customer Service Suomi (2009) – E-Service Quality Scale

Website Design

Reliability

• Appealing and well organised site • Consistent and standardised navigation • Well-organised appearance of the user interface • Quickly downloading • Easy use of online transaction

• Adequate information and performance • Prompt response to customers • Quickly solve problems

Managing Customer Service Suomi (2009) – E-Service Quality Scale

Responsiveness

• Adequate contact information and performance • Prompt responses to customers • Adequate response time • Quickly solve problems

Managing Customer Service Suomi (2009) – E-Service Quality Scale

Security

Fulfilment

• Protect the financial data of customers • Protect the personal data of customers • Terms on payment & delivery

• Information on products and services available when purchasing • System runs smoothly in the transaction process • Accurate promises about delivery service in purchasing process • Available to modify and/or defer the purchasing process at any time without commitment

Managing Customer Service Suomi (2009) – E-Service Quality Scale

Personalisation

Information

• Personalised • Personalised • Personalised • Personalised

products and services payment terms delivery terms design

• Updated information • Information current and timely • Information accurate and relevant • Information easy to understand

Managing Customer Service Suomi (2009) – E-Service Quality Scale

Empathy

• Good personal attention • Adequate contacts • Address complaints friendly • Consistently courteous

Managing Customer Service

Frameworks for Measuring E-Service Quality - WebQual

Managing Online Customer Service Measuring Online Customer Service: Webqual

Managing Online Customer Service Measuring Online Customer Service: Webqual •  Ease of Use –  Being able to get around a site and ﬁnd things –  Importance of simple, intuiJve and consistent navigaJon •  Experience –  The visual and personal experience of visiJng a site –  Issues include design, use of colours and style, as well as building interest and a sense of community

Managing Online Customer Service Measuring Online Customer Service: Webqual •  InformaLon –  Access to good quality informaJon content, appropriate for consumpJon by the user –  InformaJon should be easy to read and understand, relevant, current, reliable and provided via an appropriate level of detail and format

Managing Online Customer Service Measuring Online Customer Service: Webqual •  CommunicaLon and IntegraLon –  The way the site is integrated with the external environment and communicaJon with the user –  Emphasis on being able to ﬁnd and return to a site, integraJon or links with other sites, the speed and security of communicaJon, and provision for feedback and other contact

Managing Online Customer Service Sohna & Tadisinab (2008) E-Service Quality Measures

[Sohna and Tadisinab, 2008]

Managing Online Customer Service Gommans (2001) - E-Loyalty Conceptual Framework

[Gommans, et al 2001]

Managing Online Customer Service AcLvity 4: Online Customer Service – John Lewis •  Consider the factors inﬂuencing the development of online customer service at John Lewis

Learning Outcomes By the end of this session, you should be able to: •  Consider the changing character of the Internet environment, and how customers are now interac6ng with this space and implica6ons for customer service •  Iden6fy the rela6ve advantages and disadvantages of online service and evaluate the implica6ons for customer service •  Evaluate the key elements of online customer service, making reference to WebQual as an analysis tool