Earlier this year, we partnered with the Aberdeen Group on a research report that showcased how messaging for customer support impacts the bottom line. We discovered that companies using messaging achieved 25% more growth in annual revenue than those that don’t and these companies also saw an 8.6% increase in the average profit margin per customer. The data was clear – companies using messaging for customer interactions are seeing such huge returns, while non-messaging companies are paying the high cost of not offering the kind of customer service that consumers prefer.
People of all ages are increasingly turning to digital customer support to resolve issues easier and faster than traditional phone interactions. In fact, Dimension Data reported that customer service via digital channels grew in 2016, specifically for:
- web and mobile messaging
- online communities
- virtual agents
- automated chat dialogs
- chatbots in 2016
Meanwhile, customer service phone volume decreased 12% last year, according to the report.
Consumers are making their preferences for customer service channels very clear, so it’s imperative that companies enhance their customer service strategies to avoid negative impacts on their bottom lines.
To illustrate the impact, let’s examine the costs late messaging adopters are paying:
Satisfied customers buy more, are loyal and sometimes, outright advocate for your company, products or services. Our report revealed that messaging helps companies achieve nearly 3x greater customer satisfaction, meaning non-messaging companies not only have a tougher time pleasing customers, but that this dissatisfaction may directly result in lost sales.
When customers are forced to put in higher effort for customer service, by having to call, email and/or repeat their information multiple times, the overall experience worsens. Since 81% of customers that have had a high effort experience will likely share their negative experience with their friends, family and networks, non-messaging companies are ultimately risking bad word-of-mouth marketing that could cost them their reputation.
Unhappy Employees and Turnover
It’s no secret contact centers have high turnover; in fact, contact center leaders across sectors cited agent turnover as their No. 1 challenge in a survey conducted by Contact Center Pipeline. Turnover can be avoided by giving agents the tools they need to perform their jobs better.
Since messaging allows agents to easily capture conversations to keep track of customer interactions, it can quickly become an essential tool to help boost on-the-job satisfaction.
Contact Center Pipeline’s survey went on to reveal that “non-challenging work” and inflexible work environments were among the top contributing factors to agent dissatisfaction in the workplace. With messaging, agents have the opportunity to step away from scripts, become more flexible during interactions and provide solution-based service to proactively addresses customer issues – all key in addressing agents’ top work-based complaints.
Without messaging, companies miss the opportunity to significantly speed up response times and offer better service and support. Seeing that 55% of people say they are very likely to abandon their online purchase if they cannot find a quick answer to a question, late messaging adopters are paying the cost of inefficiency – and potentially sales.
Speeding up response times requires investment in digital messaging as traditional channels like email and phone calls simply can’t compare to the speed and flexibility of messaging across apps, SMS or social media. In fact, Social Media Today says that Twitter and Facebook are 48% and 44% more accurate and faster, respectively, at delivering customer service responses than email.
What’s more, messaging creates efficiencies in tracking team performance and measuring customer satisfaction. These are critical KPIs. Non-messaging companies miss opportunities to advance their tracking and measurement processes, as messaging increases efficiency and accuracy for capturing performance.
In our messaging study, we found that when companies make the shift from a high-effort customer service approach to offering a low-effort customer service experience, they saw a 37% decline in costs.
Combined, customer satisfaction, employee happiness and missed opportunity costs paid by non-messaging companies impact sales and ultimately, the bottom line. Late messaging adopters looking to increase their revenue must invest in a digital messaging solution for customer service if they truly want to rid themselves of these avoidable costs.
Are you ready to take the leap? Message with us below and learn more about the opportunities and cost savings your company can realize with customer care via messaging.