Skip to content

Customer Service in 2024: Why it Isn't Working and What Can Be Done

The Crisis of Customer Service Today

Let's call a spade a spade: customer service, as it stands today, is a hot mess. Whether it's cancelled flights with no explanations or futile efforts to connect with customer service agents, the dissatisfaction is palpable. According to the Institute of Customer Service (ICS), general satisfaction levels have hit an eight-year low, which is an unenviable record to beat. And the issue isn't restricted to one sector. Airlines, utility companies, and even once-loved brands are feeling the heat.

Technological Backfires: The AI Dilemma

Contrary to the popular Silicon Valley sermons, the rush to integrate AI into customer service has been less than stellar. Organisations eager to slash costs saw the advent of AI as an opportune moment to eliminate human interaction. Theoretically, chatbots should resolve basic queries while human agents tackle more complex issues. However, the reality has been a far cry from this utopian vision. AI hasn't been a panacea; it's been more akin to an aspirin trying to cure a migraine.

The Labour Market Conundrum: Where Have All the Workers Gone?

It's no secret that customer service sectors, including retail, are reeling from a post-Brexit, post-pandemic labour shortage. Operational standards have been shaky since 2018. Organisations find themselves in a quagmire, unable to return to pre-pandemic norms while dealing with a deluge of queries and complaints. The common scapegoat? An 'unprecedented' number of calls—so common it's become a cliché.

What's the Cost of Saving Money?

Sure, companies have looked to AI and automation as ways to cut corners, but at what cost? Operational efficiencies should not result in emotional deficiencies. When emotions run high, the last thing you want to interact with is a soulless machine. The dissonance between company goals and customer expectations has never been so pronounced.

The Remedy: A Fresh Approach to Customer Service

Enough about the problems; let's talk about solutions.

The Human Element: Non-Negotiable

We must reinvigorate customer service with the human touch. Organisations must train telephone agents and retail staff to solve problems and empathise with customers. First Direct, a telephone-only banking service, offers a glimpse into what such a model could look like. Their customer service representatives are not constrained by metrics but are encouraged to engage in meaningful interactions. No wonder they're seeing unprecedented growth in their current accounts.

The Fine Balance: Technology with a Touch of Humanity

AI and human agents should complement, not substitute, each other. If a chatbot can't resolve a query, the transition to a human agent should be seamless and immediate. It should be implemented to enhance human performance rather than adopting technology to reduce human intervention.

The Bottom Line: Good Service Is Good Business

Companies need to grasp this simple equation. Sure, better customer service may require an upfront investment, but the returns are worth their weight in gold—or, in this case, customer loyalty and profit.

The Future of Customer Service

What we're experiencing is not a mere crisis; it's a paradigm shift. The ethos of "the customer is always right" has been replaced by a transactional mindset. But it's time we reclaim that adage. We can navigate these tumultuous times by striking the right balance between technological efficiencies and human empathy. And let's face it, in a world where customer loyalty is becoming as rare as a four-leaf clover, good service is not just a need—it's a necessity.