The Changing Face of Customer Service

ByABC News
August 22, 2001, 3:04 PM

Aug. 23 -- If good customer service is hard to find, maybe it's because you're not looking in the right places.

A growing number of consumers are turning to the Web rather than the telephone for answers to their questions, finds an online study of customer service attitudes by San Francisco-based market analysis firm Modalis Research Technologies.

And, if given the choice, half of all respondents prefer to use the Web to resolve an issue even if they could receive the same answer over the phone in the same amount of time.

But, not surprisingly, WorldCom's e-Services unit, which commissioned the survey argues that online service options won't replace traditional customer service such as the phone. "The driving trend is that consumers expect phone and online interactions to be integrated," conjectures Dodie Vance, public relations manager at the firm.

Challenging Customers

Shoppers want a wider variety of service options and more personalized assistance, the survey finds. Whether seeking help online or on the phone, 73 percent of customers expect companies to be able to know who they are, pull up all their information, know that they already called about a problem as well as know what e-mail they sent last month, explains Vance.

"The problem is that while customers want that [integrated service], companies don't usually provide it," adds Donna Victoria, a vice president at Modalis. In fact, an October 2000 study by Forrester Research found that out of 2,500 managers, 70 percent of firms consider customer service critical, yet only 26 percent of them have Web-enabled their call centers.

In a competitive market, the difference between satisfactory help and bad service can cost not only a sale, but brand loyalty. Victoria says that 72 percent of those surveyed by Modalis said they would stop doing business with a company if they experienced bad service.

She adds that the majority indicated they were willing to pay more for goods and services provided the company pays adequate attention to their needs. Only 8 percent of respondents say low prices are more important than customer service.