{"id":11132,"date":"2024-10-10T13:58:16","date_gmt":"2024-10-10T13:58:16","guid":{"rendered":"https:\/\/www.salesforce.com\/?p=11132"},"modified":"2024-11-07T15:41:08","modified_gmt":"2024-11-07T15:41:08","slug":"customer-service-profitability","status":"publish","type":"post","link":"https:\/\/www.salesforce.com\/eu\/blog\/customer-service-profitability\/","title":{"rendered":"Yes, Brands Can Turn Customer Service Into a Profit Centre"},"content":{"rendered":"\n

Over the years, you\u2019ve put a lot of money into your customer service centres. You\u2019ve upgraded technology, upskilled your agents, and invested in 24\/7 self-service options. And that was a smart move, because white-glove customer service \u2014 for both B2B and B2C \u2013 is essential for brands who want to build long-term, loyal relationships<\/a> with customers.<\/p>\n\n\n\n

You may view your contact centre as a cost centre, with ongoing pressure to cut operational expenses. But here’s the thing: Cutting costs can’t come at the expense of customer service. <\/p>\n\n\n\n

You need to find ways to decrease costs while keeping your customers satisfied. Why? Because happy customers are more likely to make repeat purchases and recommend your brand to others. Customer service and profitability go hand in hand.<\/p>\n\n\n\n

Why customer service is important for driving brand revenue<\/h2>\n\n\n\n

The consumer goods industry is facing numerous headwinds, leading brands to look for new sources of profit and revenue. To survive and thrive, you must maximise every aspect of your business operations. <\/p>\n\n\n\n

We\u2019ve seen customer service evolve in recent years: Contact centres<\/a> traditionally came into play after a purchase \u2014 handling lost shipments, defective merchandise, and returns or exchanges. But service now plays a role along the entire route to market. <\/p>\n\n\n\n

Service agents may get involved even before customers choose to buy. For example, customers can reach out to agents with questions about products they\u2019re considering. Agents can guide purchase decisions and increase basket size with personalised product recommendations.<\/p>\n\n\n\n

This is essential for companies to improve their overall profitability and achieve sustainable growth. In fact, research shows companies that view service centres as value centres achieve 3.5x the growth<\/a> over those that don\u2019t.<\/p>\n\n\n\n

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Unlock the Future of Service<\/h2>\n\t\t\t\t\t\t\t

Dive into the Sixth Edition State of Service Report to explore groundbreaking trends and strategies from over 5,500 service pros. Learn how AI, automation, and a digital-first approach are transforming customer experiences and driving efficiency across the service industry.<\/p>\n\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t

\n\t\t\t\t\tRead the Full Report<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t
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5 strategies to turn a contact centre into a profit centre<\/h2>\n\n\n\n

Transforming customer service into a profit centre requires several key strategies:<\/p>\n\n\n\n

1. Make your data accessible and actionable<\/h3>\n\n\n\n

The first step is to get your data house in order. This means unifying all data on a single platform across your organisation, so all employees can access a single source of truth. Agents should have the same holistic view of customer interactions<\/a>, via your customer relationship management<\/a> (CRM) platform, as the sales, marketing, and account management teams. Aligning service and sales creates a seamless, connected customer experience and allows the two teams to support each other\u2019s efforts.<\/p>\n\n\n\n

By analysing customer interactions and making those results available at an agent\u2019s fingertips, you make agents more intuitive and proactive. This data-driven approach helps them make better-informed decisions that can lead to increased customer satisfaction and revenue growth.<\/p>\n\n\n\n

What\u2019s more, AI-powered platforms<\/a> provide agents with real-time insights into a customer\u2019s history with the brand, prompting more meaningful and wide-ranging conversations. This increases the likelihood of additional purchases. It also helps build a stronger brand that is committed to meeting individual customer needs.<\/p>\n\n\n\n

2. Minimise operational costs with AI<\/h3>\n\n\n\n

Embedding AI into the contact centre’s flow of work can increase efficiency and productivity. AI can deliver automated case routing, predictive analytics, next-best actions, self-service, message analysis, and speech analytics. With AI baked into their dashboard, agents get informed, data-driven guidance<\/a> through their entire customer interaction, allowing for faster resolutions. And by increasing their efficiency and productivity, you lower operational costs. <\/p>\n\n\n\n

First, increase low-touch, self-service case deflections such as FAQs and chatbots. AI has traditionally used chatbots and self-service portals to support contact centres. The next generation of AI agents can engage with consumers in normal conversational language to tackle problems that traditional methods cannot. And when humans need to be pulled into the loop, a generative summary makes handoff seamless for both the service agent and the customer.<\/p>\n\n\n\n

Next, integrate your CRM system with the contact centre software<\/a>. This provides agents with immediate access to customer data, reducing call-handling times and improving the quality of service. <\/p>\n\n\n\n

And finally, automate routine tasks with AI to reduce the manual workload for agents. For example, automation tools can prioritise and route tickets, summarise and log case resolutions for future reference, and even manage customer follow-ups without human input. Then agents can focus on more high-value interactions.<\/p>\n\n\n\n

3. Boost sales with proactive service, upselling, and cross-selling<\/h3>\n\n\n\n

To revamp your contact centres, you should transform service agents into trusted customer advisors.<\/p>\n\n\n\n

For example, help your agents be more proactive by anticipating customer needs and addressing issues before they escalate. Your CRM system<\/a> is critical for this, and AI can help by analysing patterns from historical data to predict future customer behaviour and potential issues. If data shows a particular product tends to sell faster within a certain timeframe, AI can alert the service team to reach out to customers to place orders for additional units to avoid an out-of-stock occurrence.<\/p>\n\n\n\n

For connected products, AI can monitor product performance in real time and send alerts to both customers and service teams when it detects a problem. This immediate notification allows for quick action to prevent further issues or to prepare for a service intervention. You can even go one step further: Use AI-powered chatbots<\/a> and virtual assistants to inform customers of updates, policy changes, or disruptions in service, so customers feel valued and well-informed.<\/p>\n\n\n\n

AI can also assist service teams in upselling and cross-selling initiatives. By understanding individual customer preferences and past interactions, AI can tailor recommendations specifically to each customer. This can give confidence to service agents who struggle with making sales offers. This makes every service engagement an opportunity<\/a> for agents to support the sales, marketing, and key account management teams in reaching their business goals.<\/p>\n\n\n\n

4. Expand value-added services<\/h3>\n\n\n\n

In addition to their primary products, consumer goods brands can further drive exceptional customer service and profitability by offering value-added services. Extended warranties, maintenance contracts, and personalised customer support are just a few examples of services that help you build customer loyalty, generate recurring revenue streams, and set your brand apart from competitors. <\/p>\n\n\n\n

Use the first-party data collected by your customer service agents to identify and develop services that meet emerging customer needs. Then, agents can recommend relevant services to customers during future service calls.<\/p>\n\n\n\n

Another high-value service is automated customer education, with AI platforms able to suggest educational content and tutorials on products and services recently purchased. For example, after buying a high-tech gadget, a customer might receive personalised tutorials on how to use it.<\/p>\n\n\n\n

5. Measure success<\/h3>\n\n\n\n

To keep your new profit centre on track, data-driven evaluations are a must. By using a robust measurement framework with key performance indicators<\/a> (KPIs), you can quantify your success. Metrics like sales sourced by service teams, account gross margin, and customer retention reflect agent performance.<\/p>\n\n\n\n

Use customer satisfaction scores (CSAT), Net Promoter Score (NPS), and customer effort score (CES) to understand customer loyalty and satisfaction. Improving these metrics through enhanced service can lead to higher retention rates, which increases customer lifetime value and profitability.<\/p>\n\n\n\n

AI tools that analyse customer feedback across various channels can help you identify dissatisfied customers or those experiencing recurring issues. These insights allow you to develop new products and value-added services that address customer desires or pain points, expanding the product offering and deepening the customer relationship.<\/p>\n\n\n\n

Use the insights from your KPI analysis<\/a> to identify areas for growth, adopt industry best practices, and adjust your processes. <\/p>\n\n\n\n

Ready to rethink customer service and profitability?<\/h2>\n\n\n\n

You don\u2019t need to choose between offering great customer service and increasing profitability. If your contact centre isn\u2019t contributing to your bottom line, now is the time to change that. By empowering service agents, using AI, and executing on data-driven strategies, you can improve customer satisfaction, increase revenue, and gain a competitive advantage.<\/p>\n\n\n\n

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Unlock the Future of Service<\/h2>\n\t\t\t\t\t\t\t

Dive into the Sixth Edition State of Service Report to explore groundbreaking trends and strategies from over 5,500 service pros. Learn how AI, automation, and a digital-first approach are transforming customer experiences and driving efficiency across the service industry.<\/p>\n\t\t\t\n\t\t\t\n\t\t\t\t\t\t\t

\n\t\t\t\t\tRead the Full Report<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\n\t\t
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Consumer goods companies are up against ever-decreasing margins. Customer service can help boost your bottom line.<\/p>\n","protected":false},"author":476,"featured_media":11131,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"sf_justforyou_enable_alt":true,"optimizely_content_id":"","post_meta_title":"","ai_synopsis":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"sf_topic":[75,134,83,277,256,426],"sf_content_type":[],"coauthors":[425],"class_list":["post-11132","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","sf_topic-service","sf_topic-consumer-goods","sf_topic-customer-experience","sf_topic-sales-strategy","sf_topic-industry","sf_topic-sales-operations"],"yoast_head":"\nCustomer Service and Profitability in Consumer Goods<\/title>\n<meta name=\"description\" content=\"Customer service and profitability aren\u2019t mutually exclusive in consumer goods. 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