Re-defining the economics of CX in the new customer journey
There’s no shortage of customer service channels for the enterprise to select from today. Regardless of the many new metrics that have emerged – such as customer success, or empathy – cost reduction is still a primary driver in selection criteria.
There are many articles dedicated to how companies can turn customer service and customer experience (CX) from a cost to a revenue centre. The problem is, if you stop there and don’t look beyond cost reduction, you’re limiting the scope for CX to become an even bigger economic contributor in the enterprise.
There is every opportunity for customer service and CX to significantly influence the front end of business, particularly amongst direct-to-consumer subscription-based products and services, such as popular streaming services like Netflix, Amazon, Disney+, as well as sports subscription services like DAZN.
In these products and services and others, there are new customer journeys that may drive business growth and revenue. They start earlier and may last a lifetime, so getting things right at the start of the journey is key so that customers have the best experience from day one.
Not only will this help in making customers less likely to reach out for issues-based support further down the line, but these customers will be much less likely to churn, and much more likely to take up new services as they are offered throughout the lifetime journey.
So, what does the new customer journey look like for these services?
Opportunity waiting for the likes of Netflix & Disney
While consumers may have previously regarded customer service as a way to mitigate the inconveniences in their lives, the customer journey is expanding in scope every day. Today there are many more touchpoints available that put CX in a position to drive revenue.
For one-off purchases, traditional CX deployments have not changed significantly in the past few years. However, if you look at the change in the CX relationships we’re seeing with subscription-based products and services, particularly media-based streaming services, it’s clear that these companies lead what quickly become very multifaceted relationships with their customers. These have serious potential to evolve over time for increased economic benefit.
For any sort of subscription-based business, customer lifetime value is paramount, and the requirement to actively manage a continued positive customer experience is critical.
Every interaction is an opportunity, and every data point is a chance to offer more value. Introductory offers can convert to longtime customers. Longtime customers may take up opportunities to upgrade to more premium products or services. They may also appreciate incentives to invite family and friends to become customers. Consumers who like a particular service, for example, may appreciate a recommendation for another similar or complimentary service.
It all starts with customer interaction, and the customer experience journey becomes an opportunity to strategically affect the user base and resulting revenue - which is a far cry from the limitations of call center cost reduction or churn metrics.
How do companies support the new customer journey?
More and more, customers look at the new customer journey as engaging with brands as part of their lifestyles. Many companies are making brand ambassadors available before the traditional customer journey even starts, which is a marked change from a purely transactional relationship associated with a one-off purchase.
These ambassadors, who are often independent users of products or services, are providing trusted pre-sales advice, and that same trusted advice can also function to nurture the customer journey in a subscription-based relationship. Call it ‘GigCX’ or ‘crowdsourced customer service’ or even ‘peer-to-peer customer service’ - it doesn’t matter.
The key is in providing impartial, trusted advice from real users. Think about it: who would you rather get advice from? Someone who has used a product or service extensively, or someone who has been trained to provide customer service surrounding that product or service?
For services such as streaming media, advice from trusted experts with real product know-how could be invaluable. This may not be limited to technical issues, such as what to do when you can’t access your favourite show, or how to access services across various devices. It could be parents helping other parents who are concerned about how to restrict adult content from child viewers, or simply customers who have similar taste in programming who can comment on the benefits of upgraded or premium products. The point is, these experts are easily available at any touchpoint in the customer lifetime journey, creating more chances to add value.
It’s also about tipping customers from ‘passive’ to ‘promoter’ in the NPS scale. It’s an opportunity to turn neutral customers who may be vulnerable to competitive offerings into loyal enthusiasts who will keep buying and referring others, fuelling growth. It may ultimately help drive even further revenue by creating customers that are helping to sell the brand itself.
And, while chatbots and automation may play a key role, they are often not able to handle the more complex support needed in the new customer journey. Conversational AI is rarely as conversational as it claims to be, and in the new customer journey, most companies are finding that a mix of automation and people-centric service is an ideal way to nurture the many new touchpoints created.
It’s no longer about trying to replace human capital with automation: it’s about orchestrating a uniquely personalised CX, and proactively engaging during the customer lifecycle to enhance the experience, and to create more long-term value.
At the moment, we’re only seeing the tip of the iceberg in terms of the power to affect the economics introduced by the new customer journey. We’ll no doubt see this evolve rapidly particularly amongst streaming companies as they use human-centric connections in CX to support the full potential of customer lifetime value.
About Roger Beadle
Roger Beadle is an entrepreneur and business leader who is reinventing how customer service is delivered via the gig economy. After establishing several businesses in the contact centre industry, Roger co-founded Limitless with Megan Neale in 2016. Limitless is a gig-economy platform that addresses some of the biggest challenges faced by the contact center industry: low pay, high attrition and access to new talent. Previously, Roger and Megan helped to build one of the largest privately-owned outsourced contact center business in Europe, before selling the business to the global conglomerate Hinduja Group. Roger is an outspoken proponent of digital ethics, worker’s rights and the ‘good-gig:’ which encapsulates gig work for incremental pay versus full time work, skilled gig work, no unpaid time/downtime and zero expenses.
Named a Rising Star at Deloitte’s Technology Fast 50 program, Limitless is a gig customer service platform, combining crowdsourcing and AI to help global businesses address their biggest customer service challenges – rising costs, increasing attrition, variability in demand and the need for diversity. Brands like Microsoft, Unilever, Daily Mail Group and Postmates are using Limitless’ SmartCrowdTM technology to connect with their most engaged customers, and reward them for providing on-demand customer service that can flex in line with demand. Limitless is one of the world’s first global tech platforms to introduce localised platform terms to protect the rights of its gigging workers. Backed by AlbionVC, Downing Ventures and Unilever Ventures, Limitless is empowering people worldwide to earn money for providing brilliant customer service for the brands they love.
Why Your Team Should Contribute to Open Source Projects
Much of the world’s software infrastructure, including that which underpins multibillion-dollar corporations, has been created and maintained by developers, often anonymous, who do it for free in their spare time.
This is the open-source software movement: software whose source code anyone can use and edit. It has united developers from all around the world to create, improve and iterate on flagship software: from well-known consumer products like Firefox and Android, through to key tech infrastructure like Kubernetes.
Open source has served as the training ground for a generation of programmers, developers, and software engineers. It has given them the opportunity to improve their skills and to self-direct, and get involved in projects that they find interesting and meaningful. In fact, according to a new survey, open-source skills are more valued than proprietary ones.
Around 30 years ago, open source-driven innovations were often academic endeavours, sponsored by university IT departments, where students were encouraged to contribute and learn software engineering skills while simultaneously benefiting the university and the wider world.
However, over the last ten years, the world of open source has changed. Today, open-source is seen as the innovation engine across large, forward-thinking enterprises. Organisations are increasingly eager to adopt open-source projects like Linux or Jenkins, whereby they not only leverage technologies but also provide resources to create and contribute to projects. For example, Facebook, Google or LinkedIn embrace open source by creating and building innovative software as communal projects. In fact, open-source technologies and influencers are seen as rock stars in industries from global banking to retailers.
We can see open source everywhere. Projects like Linux, Kubernetes, React.js, or Tensorflow are becoming ubiquitous in IT departments, while open source technologists are quickly becoming the most highly sought-after talent. Innovative organisations are clamouring to build open-source credentials to draw in the best talent to cope with the increasing digital demand on businesses.
Why we all benefit from open source
The ubiquity of open source software means that your organisation is probably already using some of these technologies, many in business-critical applications. By encouraging community participation, organisations have the opportunity to drive change that matters to their business today as well as drive technology innovation forward. Participating in open source helps in-house teams stay motivated and at the cutting edge. Developers want to work on projects they are passionate about. Letting them do this can improve morale, and allowing them to take on challenges they may not face when working on in-house software can help nurture creativity and new approaches.
What’s more, companies that are seen as supporters and leaders in open source are seen as innovators in their industry, increasing motivation internally and visibility externally. In addition, these organisations find it much easier to attract the best IT talent to their businesses in a virtuous cycle of innovation driving innovators.
In the end, there is a clear economic reason to get involved with open source - in 2018, open-source software added between €65 billion and €95 billion to the European economy. It is in everyone’s long-term interest to cultivate and nurture open source projects that can do far more commercial and social good than siloed in-house teams could alone.
Today’s challenge to the open-source movement
While the benefits are clear, some companies don’t see the immediate benefit in letting their teams contribute to open source projects and believe all of an employee’s productive energy should go into work that directly generates revenue. Some organisations have discouraged the use of and contribution to open-source projects in-house or even prevented employees from contributing outside of work.
However, even if companies don’t restrict their out-of-work activity, many developers with full-time jobs simply don’t have the time. Getting seriously into the weeds of an open-source project means a lot of time and energy on coding and fielding bug reports and support requests - often in numbers that an overwhelmed developer minority couldn’t possibly manage completely.
In her book, Working in Public: The Making and Maintenance of Open Source Software, Nadia Eghbal notes that almost half of contributors across 275 popular GitHub projects only contributed once - accounting for under 2% of overall ‘commits’.
Helping open source communities helps us all
We all benefit from ensuring that open source projects retain their guiding hands and most experienced talent from a mixture of employed and volunteer contributors. While there will always be a new generation of younger programmers willing to build up their skills and take the reins of open source projects, full-time developers who are motivated and supported by their employers can leverage their experience to take these projects to the next level.
Open source communities should be considered as shared assets. Their engagement provides short- and long-term benefits for companies, contributors, and society as a whole. When it comes to open source communities, we should always keep in mind the classic problem of the tragedy of the commons - it is a shared space that benefits everyone, and we have to actively work to ensure that both developers creating and companies using open source software put in and take away a balanced contribution. The very companies that put the most energy into helping the open-source movement stand to gain the most from it flourishing.