At Customer Contact Panel (CCP), we’ve witnessed first hand how these factors are influencing decision-makers, especially CX leaders and CFOs. If you’re in the midst of making an outsourcing choice, you’ve probably got one of the following on your mind. 

Growing Customer Demands: Meeting High Expectations 

It’s not just about answering calls anymore. Customers want fast, personalised, and empathetic interactions that feel seamless and aligned with your company values. This means businesses must be more careful than ever when choosing an outsourcing partner. A BPO’s cultural fit with your company is crucial—they need to speak your tone, align with your brand, and uphold the level of service your customers expect – all of which take time which you don’t have. So, companies are scrutinising potential partners more closely, ensuring they’re a perfect match. 

Technology: The New Wild Card 

Right now, you’re being asked to do more with less or deliver a better service with the same budget. With inflation, high interest rates, and currency fluctuations, offshoring doesn’t feel like a financial guarantee anymore. Add in automation—think AI tools and chatbots – and CFOs are starting to wonder if tech could be the silver bullet to that beast of a budget. Whilst AI and Automation can scale fast, they can come with hefty initial costs. Businesses are now weighing their options: 

1. Do they stick with outsourcing (onshore, nearshore, or offshore)? or
2. Do they double down on tech?

It’s a tough decision. Get it right, and they could boost customer loyalty; get it wrong, and it might lead to a backlash.  

ESG: Outsourcing in a Politically Charged World 

Outsourcing is no longer just about cutting costs; it’s also about navigating complex ethical and political waters. With Keir Starmer pushing for stricter ESG (Environmental, Social and Governance) standards, businesses are questioning their outsourcing partners, especially if those countries are known for poor labour practices or environmental issues. Throw in political instability and outsourcing now feels like a risky gamble. Operations could grind to a halt at any time, and businesses can’t afford that. 

On top of that, data security is tighter than ever. With the UK government’s more stringent regulations, especially for industries like finance and healthcare, outsourcing is becoming bogged down in compliance red tape. A single data breach could ruin a brand’s reputation and customers’ trust—so finding a partner who understands data security is more important than ever. 

Lastly, with the UK’s £22 billion budget shortfall and a focus on reshoring jobs, companies are balancing cost savings against their political and ethical responsibilities. 

How CCP Makes Your Life Easier 

At CCP, we get it – outsourcing feels complex. But we’re here to simplify it for you. We help businesses make smart, informed and equitable choices through services such as: 

• Partner Matching: We connect businesses with a handpicked network of pre-vetted outsource partners (220+ partners infact), cutting down on the time and risk of finding the right partner.
• Cultural Fit Analysis: We ensure your outsourced team aligns with your brand’s values and service style, so there’s no misstep in tone or approach.
• Technology Sourcing: We know how difficult it is to cut through the sales patter and find the right tech for your customer contact needs. Well look no further, we have a network of 120+ pre-vetted and audit technology partners – who will get right to the point.

The Bottom Line 

Outsourcing decisions are taking longer now because the stakes are higher. Customers expect nothing less than excellent service, and businesses are being much more careful about who they partner with. But with the right approach, outsourcing remains a powerful tool. 

At CCP, we guide businesses through the process, ensuring they find the right fit, reduce risks, and build lasting partnerships. In fact, 93% of CCP’s clients maintain long-term relationships with their outsourcing providers – proof that our approach works. 

With CCP by your side, navigating the increasingly complex outsourcing landscape is much smoother, helping you make the right decisions for today’s customer demands and tomorrow’s success. 

Connectors 

I came across one of those at the weekend on Nick Clark of Boston Consulting Group’s Service Matters newsletter on Substack (which is always a good read and I’d recommend you subscribe to).

In this brief article, Nick highlights an often-forgotten factor in the (never ending?) quest to deliver seamless, omnichannel service. Whilst acknowledging that data and platforms are vital, he says we should focus on the ‘connectors’, that is the technologies or techniques that customers use to transition from one contact channel to another. We know they are vitally important. And unless they work well and with minimal friction for consumers they will be neglected, often undermining an organisation’s channel shift ambitions.  

However, mapping their function and availability in customers’ service and support journeys is something that’s often only done late on in an extended programme of work. Or maybe not at all. 

Nick describes the graphic we’ve re-used above as non-exhaustive, but it’s a great starting point and framework to use when seeking to understand how you currently support omnichannel service and how it could work better in the future.  

The matrix is a simple concept, but it allows you to rapidly summarise what needs to be in place to allow your customers to pivot between channels – in a way that works for them (easy and intuitive) and you (transitioning data and context across channels, along with the customer).  

Building that dynamic, customer-led view of how you can help customers shift channels will also help you better serve them within a single channel. As you develop scenarios and journeys, overlaid with an awareness of consumers’ real-world behaviours, you can better design quicker resolution and outcomes. 

So, that’s connectors. A new term and concept to me, that I think I’ll be re-using a lot in the future, thanks to Nick Clark. 

Connections 

And connections? Creating valuable, effective connections is what Customer Contact Panel’s all about:  

• Connections between you and your customers and prospective customers   

• Connections between you and service and technology providers who can elevate your customers’ experience  

• Connections between any of us who are interested in the world of the customer    

Nick Clark has generously shared his insights and when we at CCP have what we think are useful connections, ideas and examples of CX success we’ll do the same. A lot of our challenges are shared and we’re at our best working together to meet them. 

Want to explore how best to help your customers get the most effective service, through the channel and at the time of their choice? 

Then get in touch, we’d love to chat. 

Running a contact centre can be tough and a real challenge, so it is always good to know you are not alone.

However, tapping into our teams experience in running and managing a contact centre operations over the past 25+ years, we thought we’d highlight the top 4 common contact centre challenges seen in centres today:

1. Call Duration – this isn’t talking to agents about AHT, but inefficient process resulting in higher AHT is still an issue for many. Agent knowledge/competence could be part of the solution, however so could appropriate automation.
2. Repeat Contacts – whether intentional (process requirement) or unintended as a result of unclear information these contribute to:
   • Cost to serve
   • Customer retention
   • Agent frustrations
3. Improve Service Levels – in recent years average speed of answer has increased, queries have become more complex and recruitment has become tougher!
4. Understanding The Possibilities – Technology is evolving at pace and as a result it can be hard to understand the art of the possible. The CCP network has >120 technology and >220 outsource partners – so there’s plenty of options to find the right fit.

Are you facing similar challenges within your contact centre? Not sure where to start when it comes to finding the right fix? Weel look no further than CCP, we are here to provide both generous and equitable advice when it comes to your customer contact operations.

Click here to contact the team today.

Reviewing the results there was a clear view that people know their roles, the different aspects of it, the impact of people development and appropriate investment in it and the importance of the ongoing development of people in contact centre environments.

We know why we are here and what we are supposed to do

This survey area scored strongly and aligns with wider miPerform research around front line staff and how they are engaged, there is no shortage of data at a senior level, however those who engage directly with customers are perhaps less likely to see the strategic objectives of an organisation.  There are still opportunities to unlock further value from customer conversations, ensuring people have the right skills and knowledge to engage in these.

I know what excellence looks like in my role

84.5% of participants in the survey believe that they know what excellence in their role looks like. However, the ability to demonstrate this to customers and to clients is something to be considered, how can we ensure that we are measuring and reporting the service that is being delivered?  Measures like CSAT are always considered, however the retention of both customers and critically employees, which could be the most significant metric as staff who are engaged, know their role, are confident in their delivery are happier in their work, they will not only delight customers but will be less likely to leave due to feeling undervalued. This results in unquestionable benefits the employee, customer and business.

The ability to deliver continuous feedback in the right way so that people feel supported and empowered is critical to people wanting to, and being able to share that knowledge with customers.

Staff development plays a huge role in brand reputation, perhaps as an output of increase productivity and delivery of service levels, with 94% suggesting a strong correlation to the impact on this.

However there was sometimes a clear disparity between the amount of time available for staff training and the recognised benefits equally there were times when the time available was much higher than expected. Another key theme was there was a gap between in knowledge about what specifically people needed to be trained on, to ensure that there is value in coaching there needs to be better analysis as to where the training is needed and what technology can be used in supporting this.

Ensuring that coaches and trainers have the right insights to direct training as effectively as possible can be supported by technology:

• Focusing efforts with support on the right subjects and with the appropriate delivery methods,
• These may be conversations within the operation, not necessarily removing people from the operation to sit in a training room
• Remote working needs to be considered in this context with the appropriate monitoring and support,
• Training still needs to be specific to the needs of the individual,
• Which enables us to think more about how we make training and coaching really count for the individual?

Tools like Cognexo as a micro learning solution can take as little as 2 minutes per day and be delivered through a channel aligned to the daily tasks of the staff member, therefore engagement levels are maintained above 91% as it is part of the daily routine.

Behaviour shifts are the result of the right conversations.

It isn’t always necessary to take people out of their day-to-day environment to change culture or behaviours and the role of the manager in ensuring that they are “walking the walk” being a visible leader, providing coaching and support, leading with the right insights ensures the most impact.

Managers must be able to understand their people as individuals, that the outcomes that need to be delivered for the customers require appropriate trust and autonomy due to the unique nature of customer interactions which is increasingly pertinent as AI and automation completes the easier tasks, we need to consider what measure and how we manage.  Whilst this may feel obvious, the shift to home working may make access to these skills harder for our next generation of Team Leaders.

We need to listen to the experiences of the front line staff, the roles are getting harder, but we need to ensure people are allowed to contribute to the process, to provide feedback about the processes and how things may be done differently, technology may be used for surveys with employees and to consolidate those responses, with a workflow to the management to ensure that all staff feedback is captured.   

“Managers need to ensure that they understand their people on a personal level”  

Enabling people to review their own performance and to track against the expected levels of delivery empowers them to properly understand where they are, how they are doing and where they may need support.

This can be used as a tool to support culture change, however, when time can be limited because of operational pressures so the subject matter and insight of what training or coaching is critical to get the right support to staff at the right time.

Budgets may not always be allocated to ongoing training and investment time may not always be scheduled as often as people may like, ROI models around attrition reduction benefits and how this filters through the business in other impacts, the role of ongoing personal development to retaining staff and supporting the growth of brand reputation,

In a world of AI we still need to ensure investment in people

A 1% increase in engagement can deliver a 2% increase in productivity, there are multiple benefits as a result, using coaching and learning to deliver contact centre culture is not achieved through pizza on a Friday, technology can be useful but we need to ensure that people within the organisation are considered in the mix, from agents and first line manager levels, who need to see that the insights are being used through to the senior team who may need stronger insights to drive strategic decision making.

If you’d like to talk further then please contact me directly and we can look at how we can help. 

Will changes for other businesses lead to a realisation that contact centres have been progressive in their approach and potentially increase the recruitment pool or will contact centre leaders need to make changes to become more competitive in recruitment of the best talent?

Perhaps we are more progressive in contact centres than we give ourselves credit for?

We’ve written before around the view that despite our collective best efforts, our industry can often have something of an image problem with those on the outside, and, unfortunately, for some who work in the sector as well, because of arcane processes that may have been applied by some managers.

Working in contact centres can be tough and is seen by many as an interim role as opposed to a career path. The use of terms like CX may make it a more noble cause, even if the gap between customer ambition and realities can seem large. However, (I hope!) many people reading this article will recall a journey from a stop-gap role to a ‘proper’ career, which has delivered job satisfaction, personal development, promotions and a level of reward which affords a quality standard of living and the attainment of life goals.

You may also reflect on the flexibility that working in contact centres may have afforded you in your life, initially from being in operations in which there were options as a result of:

• 7 days per week, which may have resulted in working a weekend day, but having time off in the week,
• 24/7 operations where dealing with something through the night resulted in lieu time at a convenient time
• Creating 4 day weeks with compressed hours to enable flexibility for your staff and ensure capacity where your customers needed it
• Split shifts (ok maybe not 25 years ago, when that meant going to work twice in the same day, but post pandemic with home working)
• Part time shifts which worked around the school run or after lectures
• The ability to work remotely and therefore mitigate communing time

So, perhaps when talking about flexible working and encouraging greater control over work-life balance we should already be seeing contact centres of a beacon of what can be achieved (even if that does sometimes mean rolling rotas to ensure that customers have access to support when they need it?).

But it doesn’t end there does it?

Contact centres – through necessity in some cases, of course – have embraced the real living wage and providing better rewards for frontline staff. However, the reality is that skilled contact centre agents may still be earning similar amounts to those in roles where there may be less stress or pressure. Self-service and automation mean there are less “easy” contacts and as customer expectations and levels of knowledge increase, the role does get harder.  Put simply, there is more for agents to deal with now, when considering the complexity of queries and vulnerabilities of customers.

Admittedly, where costs are key and businesses are feeling pressure to manage the cost of customer service and acquisition, then offshoring has been the norm for some time. As we know, offshoring doesn’t necessarily reduce quality, but it takes hard work to get it right. The manufacturing sector had already followed this route, in many cases years earlier.  Unfortunately, our industry faces more scrutiny for moving work out of the UK than others, it seems.

The same customer service ‘exceptionalism’ may also apply to automation, with a recent Gartner survey highlighting that 64% of customers would rather companies didn’t use AI in customer service delivery.

Out of necessity the industry will keep pace with changes to minimum wage, however there will be an inevitable impact to either the cost of the product or margins. In which case more innovative techniques will need to be adopted to maximise margins.

I’d like to think we’ve been pioneers in ensuring equality. When I see news pieces around gender and representation of women in boardrooms, I reflect on the fantastic female influences I’ve had through my career, senior management and directors who have shaped my career and given me opportunities to develop.

I believe that contact centres are (for want of a better term) unfortunately ahead of the changing employment curve. I say unfortunately as contact centres’ relative enlightenment can disadvantage other sectors.  I don’t have access to contact centre-specific data on gender pay gaps. And though I assume a gap is still sadly probable, I would think it is relatively lower in contact centres, based on the skill, talent and mindset that we have in the sector, 

So, could this be a new dawn of realisation?

We were discussing last week the same story in multiple newspaper articles around easyJet and their recruitment of people aged 50 and above for cabin crew roles, citing their life and communication skills as a key benefit to passengers and by extension their new employer.

The shift rotas offered the flexibility of working alternate weeks, for example, or four days on four days off (I recall that over 20 years ago in contact centres we called this a continental shift pattern). This type of recruitment should open up the ability to recruit people who previously decided to leave full time employment after the pandemic back into roles.

Admittedly, customer service at 35,000ft may have more appeal for some than dealing with a phone call or webchat concerning a utility bill, for example.  However, in contact centres we recognise clearly that life skills and knowledge are of significant benefit to our customers and have been recruiting from all demographics for decades.

We believe that we are well ahead of other sectors in our approach to working practices and rights. Undeniably, negative perceptions evoking the ‘dark satanic mills’ persist for many and horror stories from 20 years ago (and occasionally today) remain.  But the contact centre industry is probably in a better place than we are given credit for.

We will however need to manage challenges as a result of changes to legislation around worker rights, there are likely to be changes in WFM that will need to be considered, potential impacts to payroll and management of holidays.

Additionally, there may be changes harder to identify on the surface – maintaining knowledge and communications when more people work compressed hours could be one.

We have the skills and tools ready to support altered employment practices and we’ve demonstrated time and time again that we can change when needed.  If you are facing challenges maintaining employee knowledge and experience, managing performance metrics or even protecting a sustainable margin in your contact centre operations then you won’t be alone.   

We are here to help, just ask.

The Customer Contact Panel team is made up of contact centre professionals who have seen a number of challenges and changes in the sector over the past 30 years, we use our experience to support both in-house operations, those wanting to outsource and outsourcers to deliver contact centres that match their ambitions whether that be sales or service.

If you have a thorny challenge then we’d love to hear about it, we share our thinking and have supported fantastic brands in finding the right fit solution for their and their employees’ needs.  We have over 220 contact centre partners and 120 technology partners, we don’t have favourites only right fits for your needs.   

Since the launch of ChatGPT and subsequent proliferation of AI-driven technologies across the customer contact technology landscape, the pace of change has accelerated exponentially. From communication analytics, quality management and agent assist, to replacing IVRs with their omni-channel equivalents and real time translation services, the impact of AI on our industry has almost been as big as the invention of the telephone itself. Not only is this a source of organisational stress, are there implications for outsourcing and contract mechanisms?

While the telephone fundamentally changed human-to-human communication, AI technologies are transforming human-to-machine interactions. And given how we now communicate with each other, that can only mean that change is both permanent and ongoing.

This permanent change is putting increasing stress on organisations to restructure how they equip themselves to communicate with both their customers and their target market, irrespective of the sector they operate in.

We are seeing organisational stress in three areas:

1. Understanding the impact of these changes across the customer and target market demographic
2. Properly evaluating the ability of existing technology platforms to accommodate change and realign to new communication paradigms in the mid to long term
3. Fully understanding the mid to long term commercial impact of bolt on technologies to deliver short term performance and cost reduction gains.

In helping organisations cope with these stress areas we see striking parallels to the changes seen when organisations first began to interact with customers remotely. The evolution which began in the 90s to get more value from data, media and communication spend resulted in specialist operational activity often being outsourced as few organisations had the specialist people, process or technology to support those functions as cost effectively as outsourced providers could.

As customer became core to operations and remote customer management became an operational necessity, organisations began to establish their own capabilities, leveraging existing data management infrastructure to control and drive insight. Customer contact levels boomed, the technology to enable customer contact saw similar growth and our industry was born as more organisations grasped the benefits of controlled and managed remote customer contact.

Considering those parallels, we ask “Should organisations be stressing themselves or does that same customer contact outsourcing industry ‘muscle up’ for this second cycle of permanent change to reduce organisational stress in the shape of Outsourcing 2.0, underpinned by end-to-end AI driven technologies and the accelerated levels of operational insight that provides?”

Observing change in the global customer contact outsourcing market

Outsourcing is a very broad church. Our global network of two hundred plus providers gives us a privileged view of the diversity of the services provided, service delivery and how services are contracted. Whilst industry pricing has generally reduced in real terms over time, the way that service pricing is presented has not really evolved that much, it has not been that complicated, clients have had a choice of:

1. straight hourly rate,
2. the hourly rate with outcome components,
3. outcome with activity components and
4. outcome alone.

Making money has not been that complicated either. As long as the effective revenue per hour outweighed the total known costs per hour, then outsourcers made money.

The outsourcers’ challenge has always been about packaging service and price to be more attractive than the nearest competitor. Of course, that global mind set has led to an incredibly diverse and attractive industry offering, but it is doing little to relieve the level of stress we see in organisations today. Especially as permanent change begins to impact on mid to long term business performance forecasts.

What we see in the global outsource community is the emergence of some clear lines of distinction between service offerings. Principally between those that have the capability (or plan to have the capability) to relieve mid to long term organisational stress and those that don’t. Whilst those customer contact outsourcers that don’t have (or don’t plan to have) this capability to de-stress, continue to be well placed to solve organisations’ immediate and short-term challenges, we have seen some significant levels of technology and skills investment towards an Outsourcing 2.0 capability, amongst those that can.

What we are not seeing enough of is an evolved, Outsourcing 2.0 contracting proposition. One that is equitable for both parties. A simple contract proposition that provides an upside for the technology and skills investment of the outsourcer and in return, long term risk and cost reduction for the client.

Striving to deliver an equitable position to accommodate permanent change

1. know more about how changes in customer contact are going to flow through product and service delivery,
2. be able to make active decisions on what those changes mean in terms of risk and profitability,
3. identify service solutions that will de-risk their journey to deliver customer contact at lower cost,
4. deliver value and benefits that justify the time, cost and effort in enabling process change
5. potentially deal with specific customer use cases where they do not have the physical capacity or technical capability,
6. do all this without compromising service delivery in terms of quality and data governance i.e. the regulatory and contracted controls supporting data privacy and data security.

We also recognise that the world of customer contact tech is changing faster than it probably ever has; and it’s hard to tell what the next few years will bring in terms of time saving and service enhancing technologies.

SaaS based technology is easier to deploy, easier to recognise ROI, is already impacting on the flow of low complexity tactical work into the global outsourcing industry. This trend is also evidenced by more work. being delivered via the client’s own technology, enabling them to leverage their existing back-end systems integrations and continue BAU without interrupting the established end to end data flows supporting their existing operational reporting and decision-making processes.

Whilst the outsourcer community is continuing to strive to deliver uncompromising value, to positively impact  service delivery and comply with regulatory and contractual data governance, there is clearly an acknowledgment of the impact that customer contact automation brings to their core market.

Contracting to deliver mid to long term value by de-risking the transition to a permanent change in customer contact

Global outsourcing capability now has a firm dividing line across it. Those that have (or plan to have) the infrastructure and technology to deliver permanent change (2.0) and those that have not.

For those that have (or plan to have), we can see the opportunity for a new type of contracting relationship with clients. A contracting relationship that:

1. de-risks the client from the turbulence of technology change whilst delivering the permanent changes we see in human communication and the impact that has on customer contact service delivery,
2. will enable the outsourcer to deliver appropriate levels of automation without compromising the clients service objectives and targeted cost reduction when expressed as simply as a ‘cost per customer per annum’.

In the context of customer contact, clients find the idea of managing permanent change, de-risking the potential downside of getting that change wrong and doing that at a fixed and reducing cost very attractive. Especially when that contract properly considers how service quality is measured and underpinned as well as being directly linked to cost.

There are then two big variables in the client conversation that are both fundamental to a new contracting proposition.

One is the composition and contracting position of the legacy technology overhead that delivers existing levels of customer contact, especially how that customer engagement technology stack is connected into the ‘back office’ technology of the organisation.

The second is about existing costs. This is the client’s understanding of their current cost of managing their customers. Specifically, how that’s calculated especially in the context of a desire to express that as a ‘cost per customer per annum’.

Recognising the barriers to change

It is easy for us to oversimplify what we see as a new contracting paradigm. But we also recognise that the old contracting models don’t proactively and deliberately reduce the organisational stresses that put mid to long term business performance at risk.

Of course, some business verticals carry significant levels of technology debt. However, unless we explore, and explore deeply, what the possibilities are, then the weight of technology debt will drown organisations and fail as a lifejacket to guarantee ongoing survival.

Unless your technology is able to destress your organisation now, then the same technology stands little chance of keeping you afloat in the mid to long term.

Customer communication and customer contact management has changed permanently and is different from customer contact pre-the explosion in generative AI. This means new risk and new levels of risk for both client and the customer contact outsource communities. Our view is that contracting between the parties needs to change fundamentally.

Outsourcing 2.0 offers a mid to long term view of how both client and service provider can benefit whilst reducing risk on both sides. By looking at contracting differently, both parties can focus on their core strengths and experiences to set and deliver against service goals and commercial objectives. To do that mutually establishing, expressing and agreeing the existing technology stack directly supporting customer engagement and the cost per customer per annum to deliver growth and service objectives.

What next?

What are your thoughts on the future of customer contact outsourcing contracts? Do you think we’re thinking along the right lines, or have we underestimated the complexity of clients’ current position, especially in the context of technology debt? Whether you’re a client or service provider we’d love to hear what you think.

Say it quietly if you like, but businesses are grown and maintained through increases in customer numbers and/or customer value. Undoubtedly cost management is also a critical factor, but ultimately sales and retention activity that provides topline growth is critical to ongoing success and business value.

We all know that the chances of winning or retaining a customer are increased when you provide a great product or service. And that those who deliver, not just on price but perceived value, are in prime position to pick up customers from competitors when they do not.

Yet many businesses are focused on the potential cost savings that could be achieved through AI and automation. Have they have lost sight of the potential benefits of delivering a personalised service and those golden opportunities to encourage a customer to buy more or stay for longer?

Are you getting the best sales through service opportunities from AI and automation?

There are two key scenarios that could be playing out for many organisations, both B2B and B2C. Either of which could be limiting sales success:

1. The technology is doing great stuff

Customers are getting the service that they need in the moment they need it. Which means the brand is working on the assumption that because they’re well-served, they will come back to buy more. However, they are not engaged with these customers, they are simply dealing with their admin when they need to and as a result are being passive in their habits. This may work for on a number of levels, and it is reducing the cost to serve. However, is this a step away from brand bypass, as ultimately a gap in the connection with customers will result in them moving on when they see a better offer?

2. The technology isn’t hitting the mark

Customers are trying to resolve their issues, but are struggling. The automation or self-serve models don’t provide the right options and/or have no ‘way out’ for customers and as a result they become frustrated. So at the first opportunity, they are going to look to an alternative brand.

The examples are out there in key sectors.

Ofgem March 2024 data 

Harder to contact and less satisfying to deal with?

Despite and improving picture, the latest Ofgem data shows that 16% of customers find it difficult to contact their supplier, up from the low of 10% in Q1 2019.  Meanwhile, the same Ofgem data suggests that overall satisfaction with customer service across the energy industry currently sits at 66%, down from the peak of 74% seen in Q2 of 2020.

What’s more, the latest UKCSI data shows utilities performing the poorest with a score of 69.8. Telecommunications and Media brands are doing a little better at 73.3 (though down from January’s 74.7), but are still some distance short of the podium positions achieved by Retail (non-food) at 80.4, Tourism at 79.3 and Banks & Building Societies at 79.3. However, we can see drops in satisfaction across the board.

Could automation be contributing to those less satisfying experiences?

UKCSI data from earlier in the year tells us that for 53.7% of automated contacts, the customer still needed to speak with a human being.

Equally concerning, though, was that neither AI/chatbot or customer service employees are managing to resolve customer queries more than 54.2% of the time, as seen in the January results. Quite the damning indictment.

Consider also that 45.4% of customers would avoid using an organisation again due to poor use of technology.

Clearly there is work to be done.

Companies with higher customer satisfaction show stronger growth

But what is the impact of this on a brand’s fortunes? Is the 2-point drop in score for Telcos material?

Research in the UKCSI report from January 2024 shows that between 2017 and 2023 “companies with customer satisfaction at least one point higher than their sector average achieved stronger revenue growth”.

With c.80% higher compound revenue growth, 6.6% higher EBITDA, more than double the operating profit margin and a whopping £283.9k – more than half as much again – revenue per employee on the table for that increase of just one point, the importance of customer satisfaction to both the topline and the bottom line is stark. On the other side, the virtual lack of revenue growth and much reduced operating profit margin for 1-point lower puts into context the plight of Tourism, Leisure, Insurance, Public Services and the rather more beleaguered Telcos.

The same report highlights that 27.6% of customers who score an organisation 9 or 10 out of 10 for overall satisfaction will look to buy other products or services from them, whilst 20.8% of customers scoring 1 to 4 will spend less with the organisation and 41% scoring them at 1 to 4 will avoid dealing with the organisation again in the future if possible.

And so, it is easy to see why investment in customer service is critical to the success of an organisation. Why an organisation should be – and hopefully is – highly focused on it. And why a pure cost-reduction focus for automation or AI is short-sighted.

While these numbers tell quite the story, let’s assume things are the right side of the line service-wise, whether through AI or not. The next question then is, are you following up with the appropriate sales activity to effect further topline growth?

Are you ready to pick up the sales baton?

Effective sales operations depend on 7 key factors for growth, the same apply to both sales team and those required to deliver sales through service:

1. Access to the best people with the necessary sales and communication skills,
2. Clear reward and recognition structures with incentives, creating a culture and environment which encourages growth,
3. Appropriate product knowledge and ongoing team development, ability to handle objections effectively and to share learning to advance the performance of the team,
4. Effective technology which the team can leverage to access customer insights, understand which are the best customers to be contacted, when to contact them and what solutions to offer,
5. Practical approaches to sales compliance, which provide clear guidelines but can be managed without excessive burden to managers, allowing sales to be signed off effectively and if necessary, learning applied in a timely manner,
6. Ability to manage data and reporting to maximise sales opportunities which benefits the organisation, the sales agents and also the customers through ensuring access to right information at the right time,
7. Understand market conditions, customer behaviours and how your team needs to react to these.

If just one of these seven isn’t working too well, sales will suffer. But so may customer service or perceived value. For example, an intrusive offer in the middle of a customer complaint is likely to occur as unempathetic and may see the customer running for the hills. A well-handled complaint can increase value – or at least maintain it.

A colleague described a recent interaction about a problematic return with a well-known retailer, where mid-conversation they were invited to look at product that may interest them. Unsurprisingly, their reaction was not to immediately head to the link to browse, but instead to give a sharp retort – and then tell anyone who cared to listen how annoyed they were.

Not only did the retailer not make the sale, they likely turned the customer off. An excellent example of numbers 1, 2, 3, 4 and 7 (at least) not working. Not only was it bad scripting and a lesson in not what not to do, it may speak to overly aggressive reward structures and an environment that favours sales over growth. The nuance of which is important and why point four is critical – this was not the best customer to be contacted in this way at that time.

The same colleague similarly experienced rather odd service (from a Telco…) in store recently, where a service conversation without a satisfactory outcome turned to an attempt to upsell on a different product, followed by a recommendation to leave the brand for the product where the service outcome was unsatisfactory. Quite the rollercoaster! And no doubt an experience driven by a particular sales focus that the brand’s managers would be horrified to learn they have – let’s hope – inadvertently incentivised.

Picking your moment to turn service into sales is critically important and relies heavily on the skill of the individual, their training and incentivisation, supported by culture, technology and management.

With so much focus on customer service, do you have the need, will and capacity to optimise sales?

Great agents who can both serve and sell can be hard to find, and can be even harder to retain..

The use of technology and automation is increasingly expected for customer service – and rightly so, simple service issues don’t need complex solutions. But they do need human intervention when the service question isn’t simple, or the automated response fails. Or perhaps when a sales opportunity requires a more personal service.

The ability to deal with customers, their nuanced needs and when selling, their objections, still has a high level of dependency on human interaction.

Yet the data from Ofgem and UKCSI both illustrate that customers are frequently frustrated by both automated and agent interactions. Service delivery in many sectors is still some way short of previous highs, meaning there are still gaps to fix in customer service before you can even think of perhaps selling.

And to some extent, when improving customer experience can deliver increased revenue, getting the basics of service right first is a significant route to growth and building value – whether you agree or not about whether they ought to be, measures such as revenue growth, EBITDA and revenue per employee are important to investors and share price.

How you achieve optimised service, then layer on sales through service or even pure sales activity is a significant question. Each have their own challenges, but successful outcomes add up to an organisation that both sells to and retains customers optimally.

Manufacturers are having to grapple with a vast range of challenges; supply chain difficulties, skills gaps, changing commercial and distribution models, harnessing the potential of automation and AI, to name just a few. In which case the role, purpose and configuration of contact centres may seem like a question for another day.

But communicating with and managing customers is now a core undertaking – and manufacturers changing how they do it can have significant positive impacts across the rest of their business.

Customers, customer everywhere!

Managing customers in a commercially effective and brand-enhancing manner is a challenge, but the first challenge is often to define exactly who those customers are.

For manufactures they may well include: end-users, service and maintenance providers, sales agents and distributors, logistics and shipping agents, governmental agencies – as well as colleagues such as finance, billing, mobile engineers and so on.

All these customers have their specific needs and expectations, but all need to be handled and addressed in a manageable way, with best practice techniques developed, optimised and consistently deployed.

The financial case for consolidation of contract centre activities is often obvious, but the adoption of new contact centre advisor-supporting tools and technologies now make a high-performing, multi-skilled service a feasible reality.

A tower of babel?

Today, very few manufacturers can afford to operate in a single language market or markets. Globalised supply chains mean that – whether selling direct to end-users or through dedicated or networked agents and distributors – manufacturers inhabit a multilingual world. Without the ability to interact remotely with customers across most or all of the languages they use, firms will limit their scope to penetrate overseas markets and/or rise up the value chain with the product/service proposition.

Irrespective of the undoubted advances made in translation technologies which can enable multilingual customer support, operating a multilingual contacts centre – be that in a centralised hub, or through distributed in-country operations – is very challenging and costly. Increasingly, the skills to do so successfully – and leverage those supporting technologies – is a specialised undertaking.

Facing up to the cybersecurity threat

The threat from cybercrime and data security challenges more generally grow and grow. Aviva’ research suggests that 20% of UK businesses are subject to cybercrime annually (https://www.aviva.com/newsroom/news-releases/2023/12/One-in-five-businesses-have-been-victims-of-cyber-attack-in-the-last-year/ ) and the impact of such crime is increasing as organisations’ digital shifts progress.

Distributed, ill-managed systems and lines of communication often present firms’ greatest areas of vulnerability. Added to which ‘social engineering’ and scammers’ targeting of individuals employees continues to account for most points of corporate failure, giving criminals access to vital systems and data.

Professional, secure and well-trained contact centre operations can provide a robust defence against the cybercrime threat. Again, a consolidated contact centre function, with tested processes and technology to underpin data control, isn’t a guarantee of cyber resilience. But it’s a great way to address threats whilst building internal coherence and capabilities.

Need to talk?

Customer Contact  Panel  based in Sheffield, a city with a proud industrial history and a strength in advanced manufacturing technologies. So, we know a little bit about manufacturing, but we know a lot about contact centres! Contact centre services are intrinsic to the manufacturing sector’s success. We can help guide firms through the best approaches, infrastructures and technologies to deliver the best customer management. This includes outsourcing to specialist providers who can deploy their expertise and insight, allowing manufacturing firms to focus on developing their products and services.

We’re always happy to chat. Get in touch