Edition - 01/2017

GO DIGITAL OR GO HOME:
a simple way to digitize your customer service
and boost customer loyalty
INDEX

03 Go digital or go home: a simple way to digitize your customer service and boost customer loyalty

05 How does digitalization affect customer service?

06 What types of service are currently available? And whats on the horizon?

11 The key factor: making knowledge available

13 From self-service to artificial intelligence

15 Omni-channel service: turning a service wasteland into contact paradise

16 Strategy: the path to digital customer service

17 Looking for more details?

DIGITIZE YOUR CUSTOMER SERVICE AND BOOST CUSTOMER LOYALTY 2

GO DIGITAL OR GO HOME: A SIMPLE WAY TO
DIGITIZE YOUR CUSTOMER SERVICE AND
BOOST CUSTOMER LOYALTY
Consumers have become accustomed to get-
ting information on demand. Search, find, and
be happythats the standard procedure these
days. And it all happens in a matter of seconds.
Its a development that represents a big oppor-
tunity for customer service. If you can be on-site,
on the phone, and on digital devices with quick
answers, youve got a clear competitive advanta-
geand customers are faster to switch brands
than ever before. All this is made possible by
digitalization. This e-book will give you some
initial suggestions for how to digitize your custo-
mer service without biting off more than you can
chew.
Its easy to scare off your customers. Let them wait
forever, give them vague estimates of how long
the wait is, keep forwarding them through to more
people who just tell them the same thing every
time. In the end, no one can really help because
the knowledge is just not there. Companies around
the globe pass up billions and billions in revenues
this way every year. If your service isnt on the spot,
DIGITIZE YOUR CUSTOMER SERVICE AND BOOST CUSTOMER LOYALTY
youre dead in the water. This is even the case in
B2B, even though the decision cycles are much
longer. Does it take a few days to get the proposal,
or is it there in just a few hours? Can they deliver
the machine in three weeks, or two months? These
factors can weigh heavily on purchase decisions.
These (mostly analog) examples clearly show how
expectations have changed in recent years. Custo-
mers want information immediately. Information
that is correct, and able to resolve their specific
issue. Tutorials on YouTube or FAQs on company
websites offer excellent self-service support when
customers have questions.
A call center agents dream
What the customer wants is crystal clearand
all the information needed to provide the
(verbal or written) answer is right there. The
customer is pleasantly surprised and feels
taken care of. That in turn motivates the agent,
who is glad to provide additional assistance.
Customers feel valued, and they rate the com-
panys service highly. Ideally, they recommend
the business to others.
3
Doing customer service right
When businesses use digital channels such as so-
cial media for customer service, they should adjust
their activities to the conventions of that medium
as demonstrated by the following example. An air-
line passenger was so upset that their fathers bags
were lost on a long-haul flight that they purchased
a Promoted Tweet that cost an estimated $1000.
It read: Dont fly @BritishAirways. Their customer
service is horrendous. 76,000 people saw the
tweet before the airline replied. Eight hours later.
Sorry for the delay in responding, our twitter feed
is open 0900-1700 GMT. Please DM your baggage
ref and well look into this. For social media, thats
a late reaction and coming from a company that
transports passengers seven days a week, around
the clock, its very damaging to their image.
The expectations customers have regarding ser-
vice can vary greatly. Businesses should know
these expectations and organize their service ac-
cordingly. What type of service do customers want?
Does it need to occur in real time, and which
channels should be used? Once you know that,
the question becomes: whats the easiest way to
provide that service without running up costs?
DIGITIZE YOUR CUSTOMER SERVICE AND BOOST CUSTOMER LOYALTY
Its crucial to take a strategic approach when dea-
ling with a topic as important as customer service.
Because there will always be lots of ideas, and you
have to choose the ones that are best for your bu-
sinessand throw the other ones out the window.
If you are looking to gain a competitive advantage,
merely optimizing existing channels and adding
digital ones piecemeal just isnt enough. That
clearly falls short of the mark. Digitalization means
organizing key processes across all business units
for customers in a way that makes it possible to
use them independently of time and locationfor
instance via web services or apps. Businesses
should use digitalization as an opportunity to
thoroughly modernize their customer service and
focus on the needs of the customer. To ensure
that sound decisions are reached, well first take a
look at digitalizationhow does it impact customer
service?
The objectives of service
In todays world of interchangeable products,
service is what sets a company apart. It shows
that you truly value customers and listen to
them so that you can provide the best service
possible. That increases customer loyalty,
which enhances a businesss reputation and
lets it up-sell successfully. Finally, service is a
way to achieve higher margins.
4
HOW DOES DIGITALIZATION AFFECT
CUSTOMER SERVICE?
The digital transformation is having an outsized
impact on customer service, where efforts are
underway to link everything together for greater
convergence (see the chapter on omni-channel
service). The idea behind storing data at a central
location is partly about efficiency, but its also about
exceeding industry standards to deliver the right
answers quickly and satisfy customers. Lets take a
closer look at an example.
Everyone knows the situation. Youve got a questi-
on about a product, and you want a quick answer
that addresses your particular situation. Whether
thats on the telephone, over email, in an app, in a
chat window, or at the store. Canned responses just
dont cut it anymore. All they do is show the custo-
mer how little they are valued. Increasingly, custo-
mers want personalized service immediately, anyti-
me and anywhere, through the channel they prefer.
Digitalization has changed expectations. If you want
to connect with customers, you have to be willing
to go along for the ride. Offering customers simple
and easy solutions to their issuesanytime and
DIGITIZE YOUR CUSTOMER SERVICE AND BOOST CUSTOMER LOYALTY
anywhere is a goal that all businesses should
strive for.
For customer service, digitalization is also about
collecting information on the company and the
products in a central repository and then making
it available for distribution across all the various
channels. Not everything can be automated. Hu-
mans will continue to play an important role. But
theyre going to be integrated into the system. The
transformation has already begun, and its going to
affect every business. Miss the boat, and you could
find yourself facing an uphill battle.
Digitalization and jobs
There are a lot of experts writing about how
many jobs are going to disappear as a result
of automation. Its certainly true that certain
tasks will be carried out by robots in the future
and service is no exception. But new types
of jobs will also be created. Community ma-
nagers, social media managers, IT specialists,
and app developers are increasingly in de-
mand. The same is true of service employees.
So, participate in continuing education and stay
up-to-date on digitalization.
5
WHAT TYPES OF SERVICE ARE CURRENTLY
AVAILABLE? AND WHATS ON THE HORIZON?
Weve already mentioned a number of types of introduced a Mayday button on its Fire tablets that

customer service and channels where it is offered lets customers get a response to their problems in

in the digitized world as well as the new develop- just a few seconds. Service doesnt get any easier

ments the future has in store. Call centers are or more direct than that. A basic prerequisite for

losing significance due to the fact that service is fast and efficient service is a centralized knowledge

becoming increasingly text-based. But for now, base with a clearly organized architecture. More on

theyre still the number one customer service chan- that later. First were going to outline the customer

nel around the world. Younger generations mil- service options that are currently available.

lennials and generation Y are booking travel

and rental cars with their smartphones, and they Voice and body: in-store service

expect the accompanying service to be provided

on those same devices. Amazon, for instance, has Serving customers at a physical location is a tra-

dition that will likely never die. Even though online

business is growing, there will always be business

Accenture study: How consumers behave
done at bricks-and-mortar locations where you can
8
 3% of US consumers would prefer to inter-
act with human beings for problem resoluti- speak to a salesperson and have them explain the
on or consultation
device to you. And if I have a problem, I can go talk
7
 7% of US consumers prefer to contact a to a person I trust and perhaps have even known
person even for simple questions.
for a long time. But digitalization has even made its
5
 2% of US consumers switched providers in
the past year due to poor customer service. way into offline stores. US companies like Neiman

A
 fter switching providers, 67% of US custo- Marcus or Kroger, for instance, are experimenting
mers have been irrevocably lost.
with robotic retail stores. Theyre already using
The Accenture Global Consumer Pulse Survey
robots as help guide shoppers as well as augmen-
questioned 24,489 customers from 33 coun-
tries and 11 industries. ted reality apps helping the customer see how the

desired product might look.

DIGITIZE YOUR CUSTOMER SERVICE AND BOOST CUSTOMER LOYALTY 6

Are salespeople going to be left out in the cold? beings are needed to connect with customers on

Maybe. But the exponential growth of e-commerce an emotional level. Merely reading off answers from

weve seen in the past has now slowed considerab- a list is not enough. Robots can already do that

ly. And thats making stores more attractive again. better and faster than us.

On-site service staff are already experts, but digi-

talization is now giving them additional support. Voice: telephone

PCs, tablets, and wearables offer comprehensive

knowledge that staff can make direct use of while Call centers are the big losers in the field of custo-

assisting customers. Wearables, for instance, provi- mer service, but theyre in no danger of dis-

de airline staff information about passengers, their appearing entirely. As the Accenture survey con-

destinations, current flight information, the weather, firms (see page 6), lots of customers still prefer

and any upcoming events at the destination. At to have a real person solve their problems. That

physical locationsand elsewherehuman should be a quick and easy process. And the better

DIGITIZE YOUR CUSTOMER SERVICE AND BOOST CUSTOMER LOYALTY 7

the software the call center agent is using, the already businesses of all sizes using these options.

better they can provide answers. Its important to Text-based: email, service apps, live chat, and

not ignore relationships and the human element social media

many customers are looking for more than just a

solution to a problem. They also want to be reassu- Responding in writing is an art in and of itself if you

red, advised, and praised. Well-trained call center want to reply in a way that is empathetic and not

agents can do thatjust by using their voices. merely technically correct. Getting a written answer

They increase customer loyalty through emotional from a company via email can still take a couple of

intelligence. days. That says to the customer, weve got loads of

other customers, and you are not that important.

Voice and image: video chat Service apps and social media promise to provide

rapid responses. With live chat, replies come im-

Video chat is nearly as personal as a one-on-one mediately, as can be expected and its important

conversation in a store. Service staff and customers that the application is responsive here. Customers

can hear and see each other on the screen, which expect the chat to be displayed flawlessly on a ta-

can be a PC, tablet, or smart phone. Emotions blet or smart phone as well. Looking for a good ex-

come across better, and the service has a more ample its worth visiting Lufthansas Twitter account

upscale feel to it. With desktop sharing, agents to get a feel for what a positive approach to custo-

are able to see whats happening on the custo- mer communications looks like. One should keep

mers screen and even take over control. Thats in mind that, with social media, practically anyone

very useful for resolving software issues and allows can reply. That brings us to dedicated forums.

agents to fix problems very quickly. The one-on-

one conversations in video chats also convey to Amazon enhances its service by using the

customers that they are important to the company. knowledge that consumers possess to its advan-

The customer feels they are being taken seriously, tage. Shoppers can submit written questions on the

and problems can usually be fixed very quickly this product page asking customers who have already

way. Video chats little sibling, audio chat, is also purchased the product for assistance. The answers

sometimes used for customer support. There are can be added to the knowledge baseand if you

DIGITIZE YOUR CUSTOMER SERVICE AND BOOST CUSTOMER LOYALTY 8

use chatbots, the knowledge can be used for them

as well. Ideally, the data are structured and prepa-

red for entry into a knowledge base.

Self-service: homepage, YouTube, etc.

The term self-service is used to account for all con-

tent that helps customers resolve problems them-

selves. Customers find good service information

on the homepage to be very useful. That includes

dynamic FAQs and click-to-call buttons discreetly

placed everywhere a customer might need them.

They provide a quick and convenient way to get

good answers. Additional examples of self-service

tools include kitchen planning software, an auto-

mobile configurator, a restaurant reservation tool, or

a car rental app.

Good self-service is characterized by instructions

that are easy to understand, with illustrations if Customers like to be able to get answers without

possible and the ability to quickly locate content. jumping through hoopsthe ideal self-service

offering will be good at that. But when a customer

has to search and doesnt find an answer, then

Service as a business model
self-service can damage your image.
Service is an important part of corporate com-
munications. It communicates the corporate
culture and the businesss philosophy. It is the Videos are also a good way to provide answers
embodiment of how the business values its
customers. in an attractive format. There are heaps of how-

to videos on YouTube now. Most of them get lots

DIGITIZE YOUR CUSTOMER SERVICE AND BOOST CUSTOMER LOYALTY 9

of views and are truly helpful. In less than two negativity. Community managers should therefore

minutes, customers get answers and sometimes be well-trained and able to get discussions back on

more, discovering all the things they can do with course. Brand evangelists they can be emplo-

the product. Self-service is a very efficient me- yees or faithful customers are also a good way to

thod of support when companies have access to a bring credible expertise into forums. Vodafone has

well-maintained knowledge base. done a good job of this with its Service Friends. But

before a business builds a community, its worth ta-

Service forums and communities king a look at how other businesses have organized

and moderated their communities. The Swisscom

In service forums and communities, customers Support Community is just one example, as are the

share their knowledge and help other customers. Feedback Community of Deutsche Telekom and

For businesses, this option provides an opportunity the Bosch Bob Community. Companies certainly

to find out more about what customers want and should try to gather the knowledge produced in

improve their products accordingly. But forums and forums and communities and make it useful.

communities also bear the risk of giving disgrunt-

led customers a platform where they can spread

DIGITIZE YOUR CUSTOMER SERVICE AND BOOST CUSTOMER LOYALTY 10

THE KEY FACTOR: MAKING KNOWLEDGE
AVAILABLE
No matter how your company chooses to offer
You can test simple, centralized knowledge
service to its customers, a central knowledge management free for 30 days here:
https://join.getsabio.com/
base (see graphic) is the foundation for quick and

correct answers, which is what customers want

to have. It offers you a properly-maintained infor- can quickly find the information they need, even

mation architecture, lets you keep track of every- in the middle of a telephone conversation.

thing, and aggregates verified knowledge. Agents Deploying a central knowledge base for your

Customer

Customer service Email, faxes,

Social App Mobile Web Web Shop Sales reps Other CRM
(inbound calls) letters

Tool: central source of knowledge

Editorial staff

organization / department
KNOWLEDGE

A central source of knowledge lets businesses quickly and efficiently propagate to all service channels. The knowledge repository can
pull data from existing applications such as CRM systems, wikis, the intranet, documents, or websites.

DIGITIZE YOUR CUSTOMER SERVICE AND BOOST CUSTOMER LOYALTY 11

customer service means all the relevant infor-

mation must first be collected, analyzed, and

structured. An editorial team should generate

easily digestible content structured according to

the channels your company wishes to target. This

can be FAQs, blog articles, videos, checklists, or

guidelines. The content in a central knowledge

management system is prepared and then distri-

buted from there to the desired channels. With

consistent knowledge, customers always get the

right answer no matter where they look.

Of course the data must be updated when ch-

anges take place. On the whole, this central

knowledge base saves time and ensures that

there is an efficient and consistent single source

of truth for all departments. If customers are then

able to get the right solutions fast, their satisfac-

tion will also increase.

DIGITIZE YOUR CUSTOMER SERVICE AND BOOST CUSTOMER LOYALTY 12

FROM SELF-SERVICE TO ARTIFICIAL
INTELLIGENCE
Self-service is also a good opportunity to ensure
high customer satisfaction through efficient infor-
mation offerings. But with new technologies such
as artificial intelligence, big data, and deep lear-
ning, the machines themselves are providing con-
text-sensitive answers to customer questions. With
chatbots, you speak or write your question and get
an answer from a digital robot. This technology is
(at least at the moment) not yet indispensable, but
its important to know about it and whether or how
you would want to use it. Chatbots are currently
able to answer static questions such as, which
televisions have UHD and 3D? or what are the
shipping costs for overseas delivery? and yes/no
questions such as do you offer express shipping?
In cases in which it is possible, its still a very cost-
ly proposition to create chatbots that integrate and
evaluate data stores to answer dynamic questions.
Examples of dynamic questions include the follo-
wing: how long will it take until my package arri-
ves? as well as have you received the payment?
and how many days do I have to return the item?
But these intelligent bots keep getting smarter.
Development is ongoing, with an eye towards
DIGITIZE YOUR CUSTOMER SERVICE AND BOOST CUSTOMER LOYALTY
Accenture study: The digital consumer
One third of respondents are interested
in having a digital voice assistant on their
smartphones.
52% already use monthly live chats and live
mobile apps that are supported by artificial
intelligence.
6
 2% would agree to artificial intelligence
answering their questions.
enabling bots to respond to unique cases. Then
artificial intelligence would benefit customer
service even for dynamic questions by eliminating
the need for many tickets to even be opened in
the first place.
The fact that artificial intelligence has yet to integ-
rate emotions is reason to be cautious about using
it to handle customer contact. The ideal scenario
right now is a collaboration between humans and
machines. If artificial intelligence is not able to
help someone, it has to recognize that quickly and
forward the customer to a human agent seam-
lessly, and without delay.
13
Proactive customer service may also be an inte- have touchscreens and self-service options to get

resting option. Bots scan the internet for problems answers straight from the knowledge base. You

that customers have expressed somewhere and cant get much more efficient and elegant than

then offer appropriate answers. Service could be- that.

come about staying a step ahead of the customer.

The answer is there before theyve even asked the Pre-sales and after-sales service is also becoming

question. In PR and marketing, real-time moni- part of an integrated service offering conceived

toring is already establishing itself. Technologies within new ecosystems. One example of an eco-

for predictive analytics are also becoming more system from the fitness market is Runtastic, which

sophisticated. These tools are going to be seen offers a range of apps for smartphones, fitness

more often in customer service as well. armbands, and GPS watches. When appropriate,

the system funnels users to a web shop where

Adding new value for service: the Internet of they can purchase health and fitness products.

Things Customers interact with one another in a com-

munity. In this manner, customers are heavily

Lots of devices are already connected now. Practi- integrated into the Runtastic ecosystem, which

cally everyone has heard of smart homes, smart supplies all their health and fitness needs. They

cities, and smart cars. That means service is get real-time feedback and are constantly offered

increasingly taking place right on the customers incentives to purchase.

devices. Refrigerators, microwaves, and cars all

DIGITIZE YOUR CUSTOMER SERVICE AND BOOST CUSTOMER LOYALTY 14

OMNI-CHANNEL SERVICE: TURNING A
SERVICE WASTELAND INTO CONTACT
PARADISE
Weve really been talking about it the whole time, nels to ensure rapid and precise interaction that

but it should get its own chapter to emphasize takes into account the customers past activities.

its significance: omni-channel service, designed This allows the brand to accompany the customer

to establish communications across multiple through the entire service process across multiple

channels without gaps. The service should be as channels, with seamless transitions.

personalized as possible. Customers dont feel

like repeating on the telephone everything theyve The main challenge in establishing omni-channel

already entered into the app. service is getting quality-assured knowledge thats

available across all channels. In the complex,

Heres an example: for an antivirus program sub- heterogeneous system landscapes of omni-chan-

scription, a license extension is purchased but not nel customer service, its not the availability of

yet activated. The software makers service system technology but the availability of knowledge that is

is not informed and keeps sending offers. One the decisive factor. This can only be resolved with

of them is less expensive than the offer that the an integrated knowledge management solution

customer had already accepted. The customer is capable of storing, preparing, and optimizing all

displeased, and justifiably so. First because they information for each individual channel before it is

were not recognized as a faithful customer who then distributed to the selected channel. As a re-

should have been spared the advertising emails, sult of the quick and easy availability of constantly

and secondly, because they feel cheated. Centrali- updated knowledge from a central knowledge ma-

zed omni-channel service should be able to avoid nagement system, the quality of the data and con-

these types of mishaps and facilitate successful sequently the quality of the service both increase.

up-selling. It aligns a number of different chan- This, in turn, boosts customer satisfaction.

DIGITIZE YOUR CUSTOMER SERVICE AND BOOST CUSTOMER LOYALTY 15

STRATEGY: THE PATH TO DIGITAL
CUSTOMER SERVICE
Youve heard a lot about the options that are vice as part of a premium offering. Or you could

available for customer service. But what you need enhance your companys image by providing good

to do now is find the solution that best fits your video self-service for everyone. Youve probably

company, not adopt every last trend, which would got an answer in the back of your mind already.

probably require more resources than most com- Which target group are you looking to reach with

panies have available anyway. One thing is surely your support services? Even if were only consider-

clear by now: the customer service of the future ing different age groups, the service expectations

has digital DNA. Its personal, mobile, and flexible. among different demographics vary widely.

Artificial intelligence will see greater use, but one-

on-one human interaction will remain important. Once you define the channels and you know that

A purely technology-based digitalization of custo- you only want to have text-based contact with

mer service is not capable of maximizing efficien- customers for instance (which means you should

cy and customer satisfaction. gradually build and expand your service system),

its time to implement: organization, processes,

The trick is to identify the right channels and personnel, and technology. How do you build a

connect them in an intelligent way. That requires a central knowledge base? Approaching the trans-

precise analysis of the situation and the strengths formation one step at a time requires accompany-

and weaknesses of existing service processes. ing communications. Architectures are usually

The percentages of service requests received built by using a network of internal capabilities

through the various existing channels should and external vendors. To satisfy connected custo-

also be part of this analysis. Which channels are mers, companies will have to be connected in the

growing the fastest? These ratios are going to shift future as well. The intelligent linking of the skills of

dramatically over the next few years. Ask your- various service providers is increasingly morphing

self which objectives you are pursuing with your into a success factor.

customer service. You could view customer ser-

DIGITIZE YOUR CUSTOMER SERVICE AND BOOST CUSTOMER LOYALTY 16

LOOKING FOR MORE DETAILS?
The foundation for the digitalization of customer service is a central knowledge base, and thats exactly

what SABIO specializes in. For more information, visit SABIO online at www.getsabio.com or ask our

experts how you can take your customer service to the next level with integrated knowledge manage-

ment:

Hendrik Buske email: hendrik.buske@sabio.de

Hendrik spent several years as a managing consultant for a consulting firm that focuses on customer

service, CRM, and customer experience management. His next position saw him become the head of

customer service at Europes largest consumer electronics retailer. As the director of customer engage-

ment at SABIO, hes responsible for both customer projects and the strategic design and development

of SABIO products.

LinkedIn: https://www.linkedin.com/in/hendrik-buske-43795aa8/

Joel Eiglmeier email: joel.eiglmeier@sabio.de

Joel is a specialist for integrated knowledge management solutions at SABIO. He has been part of the

team for 3 years and as a member of Generation Y, he understands the importance of hashtags. Not

just for showmanship, but also for successful #customerservice.

LinkedIn: https://www.linkedin.com/in/joel-eiglmeier-1b780913a/

DIGITIZE YOUR CUSTOMER SERVICE AND BOOST CUSTOMER LOYALTY 17

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+49 (0) 40 / 85 19 27-0
info@sabio.de