[{"@context":"https:\/\/schema.org\/","@type":"BlogPosting","@id":"https:\/\/www.the-future-of-commerce.com\/2021\/04\/14\/customer-service-model\/#BlogPosting","mainEntityOfPage":"https:\/\/www.the-future-of-commerce.com\/2021\/04\/14\/customer-service-model\/","headline":"Customer service model: What brands need to know","name":"Customer service model: What brands need to know","description":"Customer service is more critical than ever in the wake of the pandemic. Here we look at the top trends reshaping customer service this year and beyond.","datePublished":"2021-04-14","dateModified":"2023-03-24","author":{"@type":"Person","@id":"https:\/\/www.the-future-of-commerce.com\/contributor\/kirsi-tarvainen\/#Person","name":"Kirsi Tarvainen","url":"https:\/\/www.the-future-of-commerce.com\/contributor\/kirsi-tarvainen\/","identifier":151,"image":{"@type":"ImageObject","@id":"https:\/\/secure.gravatar.com\/avatar\/96ca9bf9158da317761f4e785e19819a740ab479d189dd529c081ea73b54193e?s=96&d=mm&r=g","url":"https:\/\/secure.gravatar.com\/avatar\/96ca9bf9158da317761f4e785e19819a740ab479d189dd529c081ea73b54193e?s=96&d=mm&r=g","height":96,"width":96}},"publisher":{"@type":"Organization","name":"The Future of Commerce","logo":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2023\/01\/logo-foc-schema-app-1.png","width":172,"height":60}},"image":{"@type":"ImageObject","@id":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/04\/2021CustServMod_1200x375-2.jpg","url":"https:\/\/www.the-future-of-commerce.com\/wp-content\/uploads\/2021\/04\/2021CustServMod_1200x375-2.jpg","height":375,"width":1200},"url":"https:\/\/www.the-future-of-commerce.com\/2021\/04\/14\/customer-service-model\/","about":[{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/customer-experience\/customer-experience-general\/","name":"Customer Experience","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_experience","http:\/\/www.wikidata.org\/entity\/Q984142"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/service\/customer-service\/","name":"Customer Service","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_service","http:\/\/www.wikidata.org\/entity\/Q1060653"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/sap-sapphire-general\/customer-service-sapphire\/","name":"Customer Service","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Customer_service","http:\/\/www.wikidata.org\/entity\/Q1060653"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/commerce\/e-commerce\/","name":"E-Commerce","sameAs":["https:\/\/en.wikipedia.org\/wiki\/E-commerce","http:\/\/www.wikidata.org\/entity\/Q484847"]},{"@type":"Thing","@id":"https:\/\/www.the-future-of-commerce.com\/service\/","name":"Service","sameAs":["https:\/\/en.wikipedia.org\/wiki\/Service","http:\/\/www.wikidata.org\/entity\/Q7406919"]}],"wordCount":1098,"keywords":["Customer Experience | CX","Customer Service","Customer Service Management","E-commerce"],"articleBody":"Even as the economy begins to open back up, it appears likely that the relationship between customers and businesses has been permanently altered by the pandemic. Although customers have missed in-person shopping, they don\u2019t want to relinquish the convenience \u2013 and the feeling of safety \u2013 that e-commerce provides.As a result, the customer service model of today looks much different than in years past. Here are some key trends reshaping how organizations manage customer service:1. Customer service has become a strategic priority2. Agents are expected to have a deeper understanding of the customer3. A shift away from a focus on products to customer outcomes4. Subscription services is driving more investment in customer serviceTom Sweeny, CEO and Founder at ServiceXRG, and Esteban Kolsky, Chief Evangelist at SAP Customer Experience, recently discussed how customer service is changing for the better this year and beyond.This content is hosted by a third party ( player.simplecast.com ).To view the content, either update your cookie preferences or view it in a new browser window.Cookie PreferencesNew WindowCustomer service model: Critical for CX The shift towards e-commerce has vastly increased the importance of the customer service function in virtually all organizations. As customers seek to shift seamlessly from physical store to e-commerce site, the service function becomes a unifying force, creating continuity across different types of interactions.According to Sweeny, one of the key drivers of change in the customer service function is the recognition that service plays an ever-increasing role in customer satisfaction and the overall relationship between a company and its customers.      2021 customer service trends: Doubling down, post-pandemic                2020 put the spotlight on customer service as businesses dealt with spikes in service demand and dramatically different consumer patterns. After a tumultuous year, what are the customer service trends to watch in 2021?      It\u2019s no longer possible, as he puts it, \u201cto create a product and throw it over the wall to a customer.\u201d In that scenario, the customer only contacted the company if there was a problem. Now, however, companies are viewing service as a way to continue engaging with the customer.At the same time, companies have a long way to go in terms of elevating customer service to the strategic level that it warrants.As Kolsky explains, even though companies profess to understand the importance of service, the level of investment in technologies that genuinely improve the customer experience is lagging. The common factor across many of these technologies is that they enable customers to engage with the company when, where, and how they prefer.Just as customers have grown used to controlling the various stages of the shopping experience, they now expect a similar level of control in the service arena.The new model for customer service is personalizedAt the same time, customer service is evolving to focus more intensively on (wait for it) the customer. Traditionally, customer service representatives only needed to have a deep knowledge of the products in the company\u2019s portfolio. They weren\u2019t expected to have an in-depth understanding of the customer at an individual level \u2013 not least because there was no easy way for them to tap into that data.\u201cThe biggest change we have seen is how decisions are made, because the representatives have the data at hand to understand the specific needs and preferences of an individual customer,\u201d Kolsky says.      Powers activate! The making of a customer service superhero                What makes a customer service superhero? Help your customer service agents activate these superpowers and see customer satisfaction soar.      This might mean knowing that the person on the line is a loyal, 10-year customer. Or, it could mean better understanding their frustration because you know this is their third time calling in.It\u2019s about outcomes, not just productsAnother important shift in the customer service model is the need to focus less on the product itself and more the outcome the customer is trying to achieve.Suppose the company is a subscription-based pet food company, and the customer is a pet owner whose dog has trouble digesting store-bought food. In this case, the outcome the customer is seeking to achieve is not merely pet food delivery, but a happy, healthy dog. That means the customer service reps should follow up to find out whether the dog\u2019s health is improving, and whether any adjustments need to be made to the ingredients.It\u2019s this focus on outcome vs. product that will differentiate many companies in the new economy.Subscription-based economy makes its mark Another factor that\u2019s reshaping the customer service model is the massive shift toward a subscription-based economy. Once you engage a new customer \u201cthe revenue only continues to come in as long as you keep that customer,\u201d Sweeny says.      Subscription business models: Start small, plan big, reap rewards                70% of organizations are deploying subscription business models to sell directly to consumers \u2013 thereby creating recurring revenue and customer loyalty.      In other words, customer service essentially becomes the face of the company \u2013 whether it\u2019s shaving supplies or pet snacks or underwear. For this reason, Sweeny sees the subscription economy as the primary catalyst for the next wave of investment in customer service.Measuring customer service successAs with other business investments, a key concern around the customer service function is how to effectively measure success. Even though customer satisfaction is, on the face of it, the most important metric, it\u2019s also crucial to understand the impact on customer retention along with recurring revenue from each customer \u2013 particularly important given the shift to a subscription-based model.\u201cMeasures like these are traditionally not part of the lexicon of customer service \u2013 but they need to be, because service plays a critical role in the financial health and well-being of a company,\u201d Sweeny says.It takes a villageOne thing that Sweeny and Kolsky both agree on is that every function within a company has a role to play in the customer service model.In an electronics device manufacturer, for example, it could be the product design team informing the service organization that some customers may need assistance with a certain element of set-up \u2013 think, for example, of the nettlesome clock on a microwave oven.Or it could work the other way, with the service team letting the designers know that a certain issue keeps recurring. In other words, the service function will, by necessity, continue to become more fully integrated into the overall operations of the company.  Everyone is TALKING AI, but who is DOING AI? Meet smarter sales + service that delivers immediate benefits AND long-term results HERE. "},{"@context":"https:\/\/schema.org\/","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"2021","item":"https:\/\/www.the-future-of-commerce.com\/2021\/#breadcrumbitem"},{"@type":"ListItem","position":2,"name":"04","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/04\/#breadcrumbitem"},{"@type":"ListItem","position":3,"name":"14","item":"https:\/\/www.the-future-of-commerce.com\/2021\/\/04\/\/14\/#breadcrumbitem"},{"@type":"ListItem","position":4,"name":"Customer service model: What brands need to know","item":"https:\/\/www.the-future-of-commerce.com\/2021\/04\/14\/customer-service-model\/#breadcrumbitem"}]}]