Digital Customer Service: Definition, Benefits, Strategy
Digital technologies and AI, in particular, have significantly transformed customer service. Consumers now expect much more immediacy and for queries and issues to be resolved across their platforms of choice, such as social media, live chat, or email.
Brands can no longer rely on handling customer interactions through just calls and emails, as the brands that don't meet their customers' expectations will ultimately lose them as customers.
Brands now need to embrace digital customer service to stay relevant and competitive. They must offer fast, personalized, and seamless customer service. Digital customer service isn't a convenience anymore; it's a necessity, and it's almost impossible to maintain customer loyalty and satisfaction without it.
What is Digital Customer Service?
Digital customer service is the interactions between brands and customers on digital platforms like live chat, email, social media, chatbots, apps, etc. Its goal is to provide fast, efficient, and personalized customer service where customers want it.
While traditional customer service involves in-person interactions or phone calls, digital customer service can seamlessly handle queries using customers' preferred platforms.
The ultimate goal of digital customer service is to optimize it, making it as convenient and responsive as possible. Automation and artificial intelligence can be used to improve efficiency, and by digitizing customer interactions, companies can match their customers' digital habits, offering them customer service in the form they expect.
Why Digital Customer Service Matters in Today's Market
For modern businesses to be successful, digital customer service is almost non-negotiable. There are plenty of advantages, such as cost efficiency, handling multiple requests simultaneously, and personalizing the customer service experience for each customer.
Cost Efficiency
Companies can reduce operational costs significantly through digital customer service. Traditional customer service models can't handle anywhere near the number of queries as an optimized digital customer service model using social media, email, and chatbots.
Digital customer service handles more inquiries at a lower cost, with social media customer service typically being around six times less expensive than handling customer phone calls.
Digital platforms allow companies to maximize their resources, reduce wait times, and focus on high-priority issues that require a human customer service agent.
Handling Multiple Requests Simultaneously
With phone-based customer service, agents can only feasibly handle one call or query at a time. With digital customer service, multiple requests can be handled simultaneously.
For example, live chat and chatbots can address inquiries from several customers simultaneously without the delays typically associated with call centers and phone-based customer service.
Digital customer service shines during peak times when customer inquiries spike. With digital customer service solutions, there's often the possibility of scaling with demand, improving customer satisfaction, and preventing customer churn.
Offering a Personalized Customer Experience
Digital customer service can offer a level of personalization that was simply not possible with more traditional solutions.
For example, companies can track behavior, preferences, and purchase history, using data analysis and AI to create personalized interactions. Customers love these interactions, and it's been shown that the brands that implement them effectively enjoy healthy growth.
Customer satisfaction and loyalty go hand-in-hand with personalized customer experiences.
Core Channels of Digital Customer Service
Digital customer service uses several platforms to ensure customers can reach brands easily. Here are some of the key channels that digital customer service uses:
Email: Email is still one of the main channels customers use to reach brands. It's typically preferred for more detailed responses than those offered in chat solutions.
Social Media: Facebook, Instagram, Twitter/X, and other social media channels allow brands to offer quick responses, and customers who want to feel seen and heard prefer contacting companies through social media.
Phone: Though the phone is one of the main channels for traditional customer service, digital tools like voicebots and AI-driven automation can be used to digitalize channels.
Apps: Many companies now have apps that offer customers a branded channel through which they can contact customer service. Apps can include live chat or FAQs to help with customer service or self-service.
Live Chat: Websites and apps can offer live chat with customers using textual communication for immediate queries.
Chatbots: Chatbots are much like live chat, but instead of dealing with a human customer service agent, customers interact with AI or a more primitive chat client.
AI Integration: AI integration is possible for all of these channels and can be leveraged to speed up response times, personalize the customer experience, and analyze customer sentiment, offering a smoother and more responsive digital customer service.
Best Practices for Implementing Digital Customer Service
While digital customer service has many benefits, maximizing them requires a strategic approach.
Here are some of the best practices for effectively implementing digital customer service.
Identify Your Customer Journey
To offer a seamless support experience, you need to understand the customer journey. This includes all the steps your customers go through with your brand.
Mapping this journey from initial contact to post-purchase engagement can help you and your brand pinpoint the touchpoints where customer service is needed or could be improved.
Many tools can help you analyze each phase of the customer journey and optimize customer support.
Adopt an Omnichannel Approach
Omnichannel support provides customers with a consistent and cohesive customer service experience across every channel.
This involves integrating platforms like social media, live chat, and email into a unified system so that companies and customers can maintain continuity during customer service queries, even if they choose to change channels or platforms.
For example, a customer may start their query on social media. They should be able to seamlessly transition to live chat or phone without repeating their query or issue. This can make the whole digital customer service process much more efficient, something your customers will greatly appreciate.
Utilize Self-Service Options
Thanks to self-service, customers are empowered to find solutions to their inquiries. FAQs, knowledge bases, and interactive guides help customers troubleshoot themselves, while your other platforms, channels, and human customer service agents can be used for more complex issues.
Most customers prefer solving problems on their own. However, this doesn't mean you should leave them to their own devices. Instead, provide them with everything they need, and you'll see customer satisfaction increase and ticket volume decrease.
Automate Simple Queries with AI Agents
AI-driven chatbots and voicebots can easily handle the most repetitive queries at any time of the day. Whether tracking orders or troubleshooting, automation reduces response and wait times, especially outside usual business or call center hours.
Best Western Hotels, for example, uses chatbots on WhatsApp and Messenger to help with reservations. Meanwhile, human customer service agents can focus on offering more value on more complex customer service issues.
Provide a 360° Customer View for Agents
Digital customer service empowers human customer service agents with all the information they need. They can see purchase history, previous interactions, and personal preferences while handling customer inquiries.
CRM tools can be used to build customer profiles, which agents can use to offer more personalized customer service. Interactions will also typically be smoother and more efficient.
Leverage Data for Enhanced Customer Service
Data is one of the most powerful resources for any digital customer service strategy. By using it, brands can identify trends, preferences, and potential issues.
This data, which usually comes from customer interactions, allows brands to proactively improve products, services, and customer service.
You can anticipate customer needs, personalize experiences, and optimize services and processes through a data-driven strategy.
Examples of Digitalized Customer Service
Here are three companies that have effectively implemented digital customer service, improving their customer satisfaction and loyalty.
MAIF
The French insurance provider MAIF has combined digital customer service with a human-centered approach. The omnichannel experience allows MAIF customers to seamlessly transition between channels.
Since advisors can access customer profiles, they can personalize each interaction, improving customer interaction efficiency while building trust in line with MAIF's brand values.
FNAC Darty
The European retail group FNAC Darty integrated AI and omnichannel support to provide a consistent experience across both online and offline channels.
With live video chats and AI-driven chatbots on its website and social media platforms, it can offer personalized support at every customer touchpoint, including online orders and in-store pickups.
Best Western Hotels
Best Western Hotels is working with partners like iAdvize and YeldaAI to introduce chatbots, voicebots, and callbots.
These solutions have streamlined reservations and can handle most of the company's frequent inquiries, ensuring customers enjoy a fast and smooth booking experience on their channel of choice.
The chain has also digitized its customer service using platforms like its website, WhatsApp, and Facebook Messenger.
The result? An improved customer experience and stronger brand loyalty.
Digital customer service is no longer just a way for brands to find a competitive edge. It's so ubiquitous that it's integral to building customer trust and loyalty.
Companies now have to embrace digital channels and simply use self-service, automation, and data analysis to meet customer expectations.
To exceed customer expectations, every part of the digital customer service strategy has to be optimized and personalized, and AI offers a powerful way to do this.
Given how fickle customer loyalty can be, the businesses that lead the way in digital customer service will continue to drive growth.