Zendesk 2015 Q1 Report Reveals Live Chat Insights

A new report from Zendesk reveals new insights into live chat.

Zendesk is a leading provider of customer service software. Their 2015 Q1 Benchmark report analyzed live chat data from 2,261 companies.

This post summarizes a few of Zendesk’s more interesting findings. For example, live chat delivers the highest customer satisfaction rating among contact center channels with a 92 percent average. 

You can download the full report here.

Faster Problem Resolution

Implementing chat in a contact center can lead to faster problem resolution.

Companies that introduced Zendesk’s Zopim live chat software saw a significant drop in API and Web Form contacts. These are channels that customers typically find when searching for support on a company’s website. 

Moving to chat allows customers to resolve their problems faster. Zendesk recorded an average chat duration of 10 minutes and 35 seconds. Most companies take an hour or more just to respond to contacts submitted through an API or Web Form.

The grainy graph below shows the percentage of contacts by channel prior to implementing live chat in green. The percentage of contacts after implementing live chat is show in yellow.

Source: Zendesk

Source: Zendesk

Slow Reply Times

There’s still room for improvement when it comes to reply times.

When a customer initiates a chat, they typically have to wait for an agent to respond. In some ways, this is like being on hold when you call a customer service line.

Predictably, customers prefer a faster response.

The average time to first reply is 1 minute and 36 seconds. However, Zendesk noted that customer satisfaction begins to drop once first reply time crosses the 50 second mark. 

Another large drop in customer satisfaction happens just after the two minute mark.

Source: Zendesk

Source: Zendesk

An Emerging Channel

Zendesk’s data also shows that live chat is still an emerging channel.

Most companies are seeing very low chat volume:

62 = Average monthly chats per company

Individual agents aren’t handling a high average volume either:

22 = Average monthly chats per agent

Companies with a low volume of chat contacts face a number of challenges:

  • Live chat agents typically need to support other channels too
  • Training can be difficult when volume is so low
  • Scheduling is tricky at low volumes

 

Whats Next?

Live chat offers two advantages over phone that companies could capitalize on.

First, it has the potential to deliver higher customer satisfaction. It’s a perfect channel for today’s multi-tasking, keyboard addicted consumer. 

Second, chat’s can be more efficient to serve. A typical agent handles two to three chats simultaneously. This means chat agents have the opportunity to serve more customers per hour than phone.

The key to getting this right is response time.

Live chat has to offer a response time of less than 50 seconds to be competitive with phone. Otherwise, the channel will simply continue to divert contacts away from slower channels.

Three Customer Service Perspectives We Naturally Miss

It wasn’t until day two of our vacation that I noticed the band-aid stuck on the smoke detector in our hotel room.

It grossed me out. 

My wife, Sally, had a different reaction. She immediately knew why it was there. Her unique perspective allowed her to instantly see something I couldn’t.

Do you know why the band-aid was on the smoke detector? Just for fun, leave your guess in the comments section below. I’ll provide the answer in a couple of days.

But for now, this band-aid serves as a reminder. 

There are customer service perspectives that we often miss. This miss happens naturally. It’s instinctive. We’d benefit greatly if we could overcome it.

Photo credit: Jeff Toister

Photo credit: Jeff Toister

You Perspective

We lose out on many opportunities to serve because we naturally start from the Me Perspective:

  • That angry customer is being mean to me.
  • These customers are preventing me from getting work done.
  • That customer is making it hard for me to follow the rules.

This is instinctive. We naturally see the world from our own perspective. It takes effort to stop viewing things from our Me Perspective and take steps to find the You Perspective:

  • Why are you angry?
  • How can I help you get something done?
  • How can I help you get what you want?

The Me Perspective is “That band-aid on the smoke detector grosses me out.”

But, imagine what we could learn if we thought about the person who placed it there. “Why did you put the band-aid on the smoke detector?”

 

They Perspective

There’s a danger to the You Perspective.

If we aren’t careful, we can confuse the opinions, tastes, and preferences of one customer with those of all customers. When thinking of all (or many customers):

  • Do they tend to get angry about this?
  • Do they find it difficult to get things done?
  • Are they able to get what they want?

In my book, Service Failure, I wrote about a wine bar that can be a bit polarizing.

A few customers don’t like it. The employees use colorful language. There’s a chummy group of locals who enjoy loud conversations across the bar. The place is definitely not romantic. The wine bar might want to make some changes if they listened to the You Perspective of a few customers.

However, the They Perspective reveals that their regular customers have a few things in common:

  • They enjoy the employees’ fun personalities.
  • They like meeting other wine enthusiasts and making friends at the bar.
  • They appreciate having a wine bar that’s more social than romantic.

The very things that turn a few customers off are exactly what makes the wine bar special for a large number of loyal customers.

So, back to the band-aid. 

Sally instantly knew why the band-aid was there because she had seen it before. This wasn’t the work of one random customer. It was part of a larger pattern. She had the They Perspective.

 

We Perspective

There’s value in looking inward.

The challenge with the Me Perspective is we only look at ourselves. But, customer service is often a team endeavor. That’s where the We Perspective comes in.

  • A delivery driver relies on the dispatcher to set appointments for the right time.
  • A restaurant server relies on the chef to provide a great meal.
  • A doctor relies on the office staff to keep things running efficiently.

Chronic problems often exist because we don’t step back and look at the whole system. There are a few obstacles:

This short video explains how overlooking customer service icebergs can be dangerous:

Back to the band-aid. The hotel could ask a few questions:

  • Have we seen this before?
  • Are we aware of similar issues?
  • Is there something we can do?

 

What You Can Do

A lot of pithy advice tells us to ignore our instincts. This is unhelpful. Instinctive behavior is just that. Instinctive. It’s what we naturally do. The Me Perspective is one of those things.

What you can do is be aware of it. 

Sense those moments when you are thinking of yourself and not your customer. Then, take charge of your perspective and re-frame. 

  • You Perspective: What help do you need?
  • They Perspective: What help do they need?
  • We Perspective: What can we do better?

Back to the band-aid one last time. Can you figure it out? Enter your guess in the comment section. I’ll respond with the answer in a couple of days.

Three Social Customer Care Trends You Need to Know

Social customer care should be entering an age of maturity.

The dominant social media channels have been around for awhile. Facebook is more than ten years old. Twitter is now nine. 

In reality, best practices are still evolving.

Here are three trends from the 2014 Customer Experience Management Benchmark (CEMB) study that’s co-produced by Executives in the Know and Digital Roots. These trends all seem to indicate that companies are still trying to find their way.

Trend #1: Channel Priorities

You can tell a lot about a company’s social media priorities by who owns it.

The CEMB revealed that customer care is an owner or co-owner of social media channels in only 50 percent of companies.

Why is this happening?

One explanation could be that corporate CEOs still don’t understand social media. A 2014 Domo study revealed that 68 percent of Fortune 500 CEOs have no presence on social media.

Another explanation is an apparent lack of social media adoption by customer care representatives themselves.

The Twitter backchannel was a virtual ghost town at ICMI’s 2015 Contact Center Expo & Conference. Only a few highly active participants regularly chimed in. 

Likewise, when I conducted an informal poll in my conference sessions, less than 10 percent acknowledged they were Twitter users.

We can't win the social customer care game until we're actually playing the game.

 

Trend #2: Wavering Commitment

Many companies are experiencing a commitment problem when it comes to social customer care. They're just not as invested in social like they are in other channels.

According to the CEMB, the growth of social media customer care has slowed.

And, fewer companies are training their social media agents.

Even worse, many companies are almost completely ignoring social media as a customer care channel.

Here are two stats that really jump out:

  • Only 14% of companies measure CSAT via social (Source: CEMB)
  • The Top 100 brands ignore 78% of Tweets (Source: Freshdesk)

Brands would love us all to have social media conversations about how great they are. They encourage us to share our positive thoughts using their carefully selected hashtags. 

But, they can't have it both ways. If they want us to engage with them, they'd better engage with us.

 

Trend #3: Strong Alternatives

Other customer care channels are a much higher priority than social.

The CEMB report revealed that social media is the preferred customer care channel for only 9 percent of customers.

Phone is still the top channel. According to ICMI Senior Analyst Justin Robbins, self-service is the fastest growing channel.

My own 2014 study of customer care via Twitter revealed that most customers view Twitter as a secondary channel, not a primary one. They only take to Twitter when another channel has failed them.

Another Twitter study I did earlier this year suggested that the impact of an upset customer ranting online may be overestimated. Or, viewed another way, a customer who receives poor service via any other channel is just as dangerous.

 

What’s Next?

Sadly, I could easily cut and paste the conclusion from a similar post I wrote a year ago.

It’s about time more companies figure it out. Key areas for improvement include:

  • Faster response times
  • Fewer ignored questions
  • Consistent service quality across all channels

The few companies that get it right can really stand out from the rest that don’t.

There are a few additions, too:

  • Customer care teams must gain a seat at the table.
  • Customer care professionals must personally engage with social.
  • Organizations must provide their agents with adequate training.

Perhaps most importantly, organizations must strive for consistency across all channels. A service failure can be just as damaging over the phone, in person, or via social media.

Unfriendly Signs Are Bad For Business

Imagine you stroll into your local self-serve frozen yogurt shop and see this sign:

Image credit: Jeff Toister

Image credit: Jeff Toister

The business hung the sign because a few people would come into the shop, load up on samples, and then leave. This sign was the response.

But what does this sign really say?

It’s unfriendly. It discourages you from lingering. It almost feels threatening, as in “You’d better find a flavor you like or we’ll charge you!”

There’s a better way to handle this.

  • Do nothing. What’s really the cost of a few free samples?
  • Talk to people who abuse sampling on an individual basis.
  • Have employees give out sampling cups to encourage friendly interaction (and sales!).

I’ve previously written about unfriendly signs here and here. These were two places I haven't returned to. 

These signs usually point to a bigger problem. A lack of trust. Poor customer engagement. And lost business opportunities.

It’s a self-serve yogurt place, so the cashier usually stands behind the register waiting to ring up customers. There’s typically a lot of downtime in between. 

Why not encourage sampling?

The cashier could suggest a new flavor or recommend toppings. He could do a lot of things to engage with customers. This might actually justify the tip jar that otherwise inexplicably sits in front of the register.

Shep Hyken recently wrote about a similar experience on his blog. He made this excellent suggestion for business owners:

Don’t make a rule because just one or two customers (out of hundreds or even thousands) abuse your system. In other words, don’t penalize all of your honest customers for the sins of a few.

ATD 2015 Conference Re-cap: Training is Changing Fast

The Association for Talent Development’s 2015 International Conference & Exposition may have finally caused a tipping point in how we train employees. 

I’ll address this more in just a minute.

But first, here’s an overview of the conference in case you missed it:

The conference was held in Orlando, FL and featured nearly 10,000 training professionals from around the world. There were keynote presentations, breakout sessions in 10 topical tracks, and a massive expo hall with more than 400 exhibitors.

You can read more here:

Image courtesy of ATD

Image courtesy of ATD

Training is Changing

Rigid, formal training will soon be a thing of the past. The classroom may soon be gone or at least unrecognizable. E-learning may look very different.

In it’s place? Problem-centered, self-directed learning where participants train themselves.

In customer service, this has huge implications on the way we deliver training over a number of topics:

  • Training new hires
  • Developing customer service skills
  • Product knowledge training
  • Educating customers
  • Developing customer service leaders

I’ll dive deeper into the how and why over the coming weeks. In the meantime, here are a few resources to start exploring.

On a personal note, I was one of nine recipients of the CPLP Contributor Award, which recognizes holders of the Certified Professional in Learning and Performance credential for outstanding volunteer efforts to support, promote, and advance the CPLP program.

Webinar Re-cap: Five More Obstacles to Outstanding Customer Service

On Tuesday, I hosted a webinar called Five More Obstacles to Outstanding Customer Service.

The title was a riff on a session I facilitated at ICMI’s recent Contact Center Exposition & Conference called Tackling Five Hidden Causes of Poor Customer Service (see a conference re-cap here). 

The webinar revealed five additional obstacles that I’ve uncovered through my research. Below are links to additional information on each obstacle. You can also watch the webinar here

Obstacle #1: Too Much Feedback

We often think that employees don’t get enough feedback on their performance. A few studies suggest that employees might be getting too much!

Even worse, all that feedback is hurting their performance. The short version of the story is excessive feedback gives people too much to think about.

 

Obstacle #2: Fight or Flight

“Don’t take it personally,” might be the worst advice you can give to a customer service employee.

The advice is well-meaning. We don’t want employees to get into an argument with a customer or do their best to just get away.

Unfortunately, taking it personally is an instinctive reaction called the Fight or Flight response. We’re hard wired to do exactly what we shouldn’t do when we’re faced with an angry or upset customer.

 

Obstacle #3: Caffeine

Most of us have a caffeine habit. 

One or two cups of coffee in the morning (or energy drink, soda, etc.) followed by a pick-me-up in the afternoon. 

You probably already know that caffeine can be addictive. Studies show that the problem might be worse than you think. That daily caffeine habit might be the root cause of a lot of poor customer service!

 

Obstacle #4: Empowerment

Employee empowerment is often viewed as a panacea for a lot of problems.

The truth is not many employees are being empowered. A recent study from ICMI found that 86 percent of contact centers don’t fully empower their employees.

Real empowerment is scary. It turns out there’s a whole host of things customer service leaders worry about when it comes to employee empowerment. We ran a poll in our webinar and discovered the number one concern: consistency.

 

Obstacle #5: Learned Helplessness

Employees may eventually stop trying when they aren’t fully empowered.

This is a condition psychologists called learned helplessness. It happens when a person believes that any effort to change things is futile. The result is they stop trying.

Engaging employees in problem solving can help. Customer service employees love to help their customers, but they often perceive obstacles in their way. Help your employees take ownership of tough situations and you’ll see motivation soar.

 

More Obstacles

Customer service isn't easy.

These are just a few of the many obstacles customer service employees face on a daily basis. You can read about ten more ways that customer service is hard in my book, Service Failure.

Re-cap: 2015 Contact Center Expo & Conference

The 2015 Contact Center Expo and Conference took place in Orlando this week. More than 1,500 contact center professionals from around the world attended for educational growth, networking, and to share best practices.

Here’s a re-cap of some of the conference highlights along with links to additional resources.

Conference Overview

You may want to start by familiarizing yourself with the conference if you didn’t attend.

 

Conference Highlights

Here are just a few highlights from the conference:

 

2015 Contact Center Awards

ICMI threw an incredible Cinco de Mayo themed party to celebrate the 2015 Contact Center Award winners and finalists.

These awards recognize best practices from individuals and organizations. Award winners included UPMC Health Plan for best large contact center and VF Imagewear Customer Support for best small to medium contact center.

You can see a list of all the winners and finalists here.

#ICMIchat Live

ICMI hosts a weekly Tweet chat on Tuesdays at 10am Pacific (1pm Eastern). 

These lively chats touch on a wide range of topics from customer service to training to workforce optimization. There’s a new topic each week and anyone can join in by following the #icmichat hashtag on Twitter.

On Wednesday, I joined a few #ICMIchat regulars for a panel discussion in the Expo hall. We touched on a few topics including technology, agent experience, and customer effort.

The panel included:

It was fun to have a conversation in front of a live audience. A few were even live Tweeting:

Erik Wahl’s Keynote

Conferences like this always bring informative, inspirational, and entertaining keynotes.

Graffiti artist Erik Wahl’s keynote stood out on this front. He challenged participants to be a force for positive disruption.

One of the most amazing parts of Wahl’s presentation was his ability to quickly create incredible paintings live on stage.

Here’s his first painting:

Wahl created a moment of uneasy tension when he picked an audience member at random to play a special game of “Fear Factor.”

She was given a sealed envelope and was told the game involved coming up on stage, opening the envelope, and reading her instructions out loud. She was then to do whatever the instructions said.

That’s a pretty scary moment in front of a huge crowd, but Wahl turned the tables a bit. He told the audience member that she could select anyone she wanted to take her place.

Ultimately, she decided to go for it. In a fun twist, the instructions in the envelope informed her that a painting of U2's Bono that Wahl had just created on stage was her’s to keep!

On a personal level, I gained a lot of new ideas, contacts, and information. This is a great conference and I'm already looking forward to next year.

New Report: Contact Center Leaders Don’t Get Engagement

Happy agents lead to happy customers.

This pithy saying is a widely held belief among contact center leaders. The logic flows that if you engage your contact center agents, they’ll deliver outstanding service.

A new report from ICMI reveals a severe disconnect between this belief and what contact center leaders are actually doing.

The data suggests that most contact center leaders don’t get engagement.

This post examines the disconnect, uncovers some root causes, and makes a few suggestions for correcting the problem.

The Big Disconnect

It’s hard to find any disagreement that it’s important for contact center agents to be engaged. Here are two findings from ICMI’s study:

  • 99% of respondents believe that agent engagement drives performance
  • 88.8% believe that agent engagement is a priority in their organization

Now, here’s where the disconnect begins. Only 7 percent of contact center leaders said that agent engagement was a top priority. 

The disconnect is further revealed by what contact centers measure. Here are the top five agent metrics in contact centers today:

  1. Quality - 74%
  2. Average Handle Time - 73%
  3. Customer Satisfaction - 58%
  4. Adherence to Schedule - 58%
  5. First Contact Resolution - 43%

These metrics suggest that compliance and efficiency are the true priorities in today’s contact centers.

Justin Robbins, ICMI’s Senior Analyst, shared with me that only 19 percent of contact centers measure agent engagement.

 

Root Causes

A lack of clarity makes engagement hard to manage.

Many reports, like ICMI’s, omit a definition. The assumption is the term is clear so it doesn’t need to be defined.

Unfortunately, there’s a lack of consensus. There’s even disagreement among the top employee engagement consulting firms, like Gallup and BlessingWhite.

Here’s the definition I prefer:

Employee engagement is the extent to which an employee is deliberately contributing to organizational success.

This definition helps identify some additional root causes.

Engaged agents want to serve their customers at the highest level. Unfortunately, many contact centers make this difficult.

The ICMI report also looked at what would motivate contact centers to invest in giving agents better tools to serve their customers. Unsurprisingly, the top choice was cost.

 

Engagement Solutions

These issues always come down to dollars and cents.

That’s why employee engagement initiatives fail. They’re reduced to surveys on touchy-feely subjects like morale.

You’ll need to make a stronger business case if you really want to engage your agents.

Start by going back to the definition of employee engagement. There’s no soft stuff here. This is all about results:

Employee engagement is the extent to which an employee is deliberately contributing to organizational success.

Next, get out your calculator and add up the cost of making it hard for agents to do a great job. Here are just a few options to consider:

  • What’s the real cost of agent turnover?
  • How much could we save by improving first contact resolution?
  • Could we reduce customer churn through better service? If so, how much?

There’s real savings here. 

Even a 10 percent reduction in turnover, repeat contacts, or customer churn could add up quickly. Measure those items and you’ll be much more likely to find the budget you need to improve agent engagement.