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New Frontiers (and New Findings) on Emotion in Customer Service Professor Anat Rafaeli Slides and papers available at http://Anat.Rafaeli.Net

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  • New Frontiers (and New Findings) on

    Emotion in Customer Service

    Professor Anat Rafaeli

    Slides and papers available at http://Anat.Rafaeli.Net

  • Service Loaded with Emotions!

    Slides and papers available at http://Anat.Rafaeli.Net

  • Logic: Employee Emotions (Smile, Apology)

    Essential for Sales and Service; Emotions are easy, do not require effort;

    Emotional Labor:Jobs Require Employees to

    Display Expected Emotions

    Rafaeli & Sutton (1985), Academy of Management Review

  • Formal Expectation: Pleasantness, Empathy to ALL Customers

    Available Research:Based on Self-Report Limited External Validity

    Limited Operational Connections

    Smile and Be Nice Rule

    Rafaeli & Sutton (1987), Research in Organizational Behavior

  • Rafaeli (1989):

    A Struggle for Control

    A Social Context toService Interactions

    Slides and papers available at http://Anat.Rafaeli.Net

    Henkle, Rafaeli et al (2016):

    When Marketplace Interactions

    BecomeSocial Interactions

  • Physical Set Up

    Multiple Managers

    Multiple Causes of Stress

    The Service Context

    Pratt & Rafaeli (2001), Symbols and organizational relationships, Research in OB

  • What Do Queues Feel Like?

    Rafaeli & Munichor (2007), Journal of Applied Psychology

  • Lots of Customer Anger in Service: What is the Influence?

    What are the Implications?

    Slides and papers available at http://Anat.Rafaeli.Net

  • Service through interactive technology and social networks;

    Extensive NON-OBTRUSIVE data.

    New tools and paradigms!

    New Platforms Create Great Opportunities

    Rafaeli & Altman (2016), Journal of Service Research

  • No News in Terms ofEmotion Labor Rules!

    Slides and papers available at http://Anat.Rafaeli.Net

  • Written Interactions(through Tweet or Chat)Customers

    Do customer emotion displays influence employees?

    New Service Context

  • Experimental Research Paradigm

    Angry Rude Customer Polite CustomerIts such a nightmare to reach you! Your service is just horrible. Update my home phone to 03-7526654. George Ashley

    My home phone number changed. Need to update it please. My number is 03-7526654. Thank you very much, George Ashley.

    I am sick and tired of your lousy service. Move me to the weekend deal. Password is "Friends". Josh.

    Hi please note my request to move me to the weekend deal. My password is "Friends". Thank you, Josh.

    Rafaeli et al. (2012), Journal of Applied Psychology

  • Customer Anger Reduces Employee Accuracy

    Rafaeli et al. (2012), Journal of Applied Psychology

    Chart1angryneutralDisplayed emotion of customerPercent of requests handled correctly0.4550.5651excellentcorrecteeper_vip_exper_vip_regangry0.467941angry0.455angry3.52angry0.40.49angry4.7neutral0.549429neutral0.565neutral2.77neutral0.530.55neutral5.8angryneutral1Displayed emotion of customerPercent of requests handled correctly and quickly2Displayed emotion of customerPercent of requests handled correctly3Displayed emotion of customerEmotional exhuastionEffect of customer emotion on employee emotional exhuastionneutralneutralvipregularDisplayed emotion of customerPercent of requests handled correctly and quicklyInteraction of VIP and displayed emotion on PerformanceDisplayed emotion of customerNumber of correct answersEffect of customer emotion on cognitive performance (problem solbing test)
  • Customer Anger Increases Employee Fatigue (Burnout)

    Slides and papers available at http://Anat.Rafaeli.Net

    Chart1angryneutralDisplayed emotion of customerEmotional exhuastion3.522.771excellentcorrecteeper_vip_exper_vip_regangry0.467941angry0.455angry3.52angry0.40.49angry4.7neutral0.549429neutral0.565neutral2.77neutral0.530.55neutral5.8angryneutral1Displayed emotion of customerPercent of requests handled correctly and quicklyEffect of customer emotion on performance(Quality and quantity measure)2Displayed emotion of customerPercent of requests handled correctlyEffects of customer emotion on performance (quality measure)3Displayed emotion of customerEmotional exhuastionneutralneutralvipregularDisplayed emotion of customerPercent of requests handled correctly and quicklyInteraction of VIP and displayed emotion on PerformanceDisplayed emotion of customerNumber of correct answersEffect of customer emotion on cognitive performance (problem solbing test)
  • Cumulative Effects on Accuracy of Performance

    Slides and papers available at http://Anat.Rafaeli.Net

    Chart10123Number of Angry CallsMemory Performance65.564.444.14Sheet10615.5624.4434.14Sheet1Number of Angry CallsMemory PerformanceSheet2Sheet3
  • Habituation Challenges

    Slides and papers available at http://Anat.Rafaeli.Net

  • Field Research: Service Through Text

    Chat with McCafee call center started @ 13:23:07. Full transcript can be found at :https://community.mcafee.com/thread/28171

    SYSTEM: Welcome to McCafee. How may I help you?Customer (13:37:46):Hi. I purchaed a disk and it doesnt work. Employee (13:41:33):Please let me know the locations you purchased the CD.Customer (13:41:46):Ive been waiting for this info for 20 mins.Employee (13:42:00):You can contact the McAfee Sales team at +91 80 6656 9000 to renew the McAfee software.Customer (13:42:17):Come on.Customer (13:42:29):Don't pass the bill.Customer (13:42:46):Youre not answering my question.Customer (13:43:05):Can I chat with your supervisor?Employee (13:43:22):I apologize for the inconvenience.Customer (13:43:33):Can I have a chat with your supervisor?

    @BestBuySupport

    Large scale data sets Actual customer and

    employee behaviors Non-obtrusive measures

    Rafaeli & Altman (2016), Journal of Service Research

    https://community.mcafee.com/thread/28171
  • Multiple Terms for Customer Negative Emotion

    Anger Abuse Bullying Deviance Contempt Irritation ... Rudeness

    Focus: (High Arousal) Negative Emotions

    Slides and papers available at http://Anat.Rafaeli.Net

  • Emotion in Tweet Service

    @VanDusenEthan

    @BestBuySupport

    EmployeeApologyEmpathy

    CustomerAnger

    Frustration

    @BestBuy too bad your site keeps saying my email is invalid. You just lost a $300 dishwasher sale.

    @VanDusenEthan I'm sorry you were unable to purchase. Indeed it is annoying.

    Slides and papers available at http://Anat.Rafaeli.Net

  • Emotion in Tweet Service

    Data Set 1:N = 305 service conversations

    Customer Satisfaction

    Data Set 2: N = 305

    StudyHerzig, J., et al (2016). Predicting Customer Satisfaction Using Affective Features. UMAP

  • Mturk Ratings Emotions expressed by customers

    Emotional labor strategies of employees

    Customer Emotions

    Employee Emotional Strategies

    ? Customer Satisfaction

    Mturk 1 Workers

    Mturk 2 Workers

    5 Raters per conversation; Agreement of raters;

    ICC2=0.73 0.94

  • Results

    Customer Emotions Employee Emotional Strategies

    EmpathyApology

    ThankingBeing cheerful

    AngerFrustrationDisappointment

    HappinessGratitude

    Negative Emotions

    Positive Emotions

    Support

    Positivity

    CFA confirmed model superiority over 2-factor model2[21df] = 106.83, p = .001, CFI = 0.98, TLI = 0.96, RMSEA = 0.07

    Slides and papers available at http://Anat.Rafaeli.Net

  • Effects of Employee Emotion Strategies on Customer Satisfaction

    Employee Expressing Positivity

    Employee Expressing

    Support

    Customer Satisfaction

    +-

    Slides and papers available at http://Anat.Rafaeli.Net

  • Role of Customer Emotion?

    Customer Satisfaction

    Employee Apology

    Customer Negative Emotions

    -.42*** (.13)-.45*** (.12)

    Only Long Enough ConversationsN = 168 conversationsAdj. R2 = .52***

    b (SE)

  • Up to 3 customers at a time!

  • Natural Language Processing

    Dictionary of words defined as emotional (e.g., LIWC)

    Emoticons and CAPS

    Added rules (amplifier, negation e.g., Very, Not)

    Negative PositivePrecision 0.72 0.87Recall 0.24 0.57

    Automated Emotion Detection

    Slides and papers available at http://Anat.Rafaeli.Net

  • 14%7%

    79%

    37,189 CustomerMessages

    37%

    18%

    41%

    4%

    7,147 Full Chats

    Positive Negative

    No-Emotion Mixed

    Emotion in Chats(two weeks; airline sales and service)

  • 14%8%

    78%

    10,035,32 Customer Messages

    38%

    10%14%

    38%

    677,936 Full Chats

    Positive Negative

    No-Emotion Mixed

    Emotion in Chats (11 weeks; telecommunication)

  • One week data;14,700 conversations.Sample 10 time points in each; (messages at 0%, 11%, 22% ); calculate emotion at each point;Average 10 sample points across all company conversations;

    Unfolding of Emotion

    No emotion

    Negative

    Positive

    Slides and papers available at http://Anat.Rafaeli.Net

  • Emotion patterns of satisfied and dissatisfied customers;Tele-comm company chats;Data of one month26703 conversations with NPS = 109382 conversations with NPS = 0

    Emotion Dynamics in Different NPS Scores

    Slides and papers available at http://Anat.Rafaeli.Net

  • Note:All are from customer 1.All are from customer 2.All are from the same Employee.

    with no represent earlier sent messages.

    12:00 12:01 12:02 12:04 12:05 12:08

    Serv

    ice

    Tim

    e =

    RT (C

    1)

    1 m

    in

    Serv

    ice

    Tim

    e C1

    2

    min

    Serv

    ice

    Tim

    e C1

    3

    min

    Resp

    onse

    Tim

    e C1

    6

    min

    Employee Response Time (RT) vs. Service Time (ST)

    Slides and papers available at http://Anat.Rafaeli.Net

  • 7,147 chats 65,536 messages

    37,174 customer messages 28,362 employee messages

    Number of messages per chat (M= 12.3, SD=8.3)

    Removed system messages Employees simultaneously serve

    multiple customers

    SYSTEM: Welcome to McCafee. How may I help you?Customer (13:37:46):Hi. I purchaed a disk and it doesnt work. Employee (13:41:33):Please let me know the locations you purchased the CD.Customer (13:41:46):I have been waiting for this information for 20 mins.Employee (13:42:00):You can contact the McAfee Sales team at +91 80 6656 9000 to renew the McAfee software.Customer (13:42:17):Come on.Customer (13:42:29):Don't pass the bill.Customer (13:42:46):Youre not answering my question.Customer (13:43:05):Can I chat with your supervisor?Employee (13:43:22):I apologize for the inconvenience.Customer (13:43:33):Can I chat with your supervisor?

    Airline Data (December 2015)

  • Mere presence of customer POSITIVE emotion correlated with lower employee Response Time (RT)(30 seconds less for each employee message! (b= -29.57, SE=6.77, p0.05).

    Results Chat Level Analysis

    Slides and papers available at http://Anat.Rafaeli.Net

  • Empl

    oyee

    RT

    (log1

    p(se

    c))

    Log1p (Emotion intensity)

    Positive Negative

    Analyses control number of words per message (customer and employee), time waiting for service, and service/sales

    HLM(chats within employee):n=7,147

    R2 = 40.08%

    b= -0.36 (SE=0.10, p

  • Empl

    oyee

    RT

    (log1

    p(se

    c))

    Log1p (Mean Number of customer words)

    No Emotion Positive Negative

    Analyses control number of words per message (customer and employee), time waiting for service and service/sales

    Emotion Moderates Effect of Workload (#customer words) on Employee RT

    HLM(chats within employee):n=7,147

    R2 = 40.08%

    b= -0.36 (SE=0.10, p

  • Airline data and analyses (20,355 chats from January 2016):Time based analysis (using T1 customer behavior to predictT2 employee behavior.

    T1 T2

    Study 2

    Customer

    Study 1

    Employee

    Problems and issues: What causes what?

    Slides and papers available at http://Anat.Rafaeli.Net

  • 1 2 3 4 5 6 7

    1 2 3 4 5 6 7 8

    Customer Emotion (Positive and Negative)Customer number of words

    Customer Response Time.

    Employee Service Time to focal customer

    T1 T2

    January 2016 Airline DataChats with at least 6 customer messagesN= 6,013 (from total of 20,355 chats)Random point in chat with at least 4 customer messages before and 2 employee messages after44 Employees

    Control Variables

    Control Variables

    Rand

    om b

    reak

    poin

    t

    Study 2

    Employee

    Customer

    Herzig, J., et al (2016). Predicting Customer Satisfaction Using Affective Features. UMAP

  • Customer T1 positive emotion REDUCES employee T2 service time AND response time (b= -0.78, SE=0.20 ,p0.05).

    Results

  • Study

    Understanding EmployeeUNSCHEDULED Breaks

    (up to 15 minutes)

    Likelihood (1/0)

    Length

    Slides and papers available at http://Anat.Rafaeli.Net

  • Employee Status During the Day

    0.0

    2.0

    4.0

    6.0

    8.0

    10.0

    07:30 08:30 09:30 10:30 11:30 12:30 13:30 14:30 15:30 16:30 17:30 18:30 19:30 20:30 21:30 22:30

    Time (1 min. resolution)

    Aver

    age

    num

    ber o

    f cas

    es

    Total Break Online

    Aver

    age

    num

    ber o

    f em

    ploy

    ees

    Slides and papers available at http://Anat.Rafaeli.Net

  • First customer

    assignment to employee

    8:00 8:01 12:00 12:01 12:02 12:03 12:04 12:05 2:06 12:07 12:08 12:09 12:10 12:11 12:12 12:13 12:14

    Customer 11 (C11)

    Customer 12 (C12)

    Customer 13 (C13)

    C12 Assignment

    to employee

    C13 Assignment

    to employee

    C11Assignment

    to employee

    Beginningof shift

    Customer Emotion and Employee UNSCHEDULED Breaks

    Time interval

    Two intervals:12 minutes (length of average chat, predicting likelihood of break); 30 minutes (prior to break taken, predicting length of break)

  • First customer

    assignment to employee

    8:00 8:01 12:00 12:01 12:02 12:03 12:04 12:05 2:06 12:07 12:08 12:09 12:10 12:11 12:12 12:13 12:14

    Customer 11 (C11)

    Customer 12 (C12)

    Customer 13 (C13)

    C12 Assignment

    to employee

    C13 Assignment

    to employee

    C11Assignment

    to employee

    Beginningof shift

    Start of break

    Employee activated a

    break

    Workload

    # chats handled# words employee wrote# words employee readMean # concurrent chats Cronbachs = 0.75/0.84

    (Predicting likelihood and length)

    Customer Emotion and Employee UNSCHEDULED Breaks

  • First customer

    assignment to employee

    8:00 8:01 12:00 12:01 12:02 12:03 12:04 12:05 2:06 12:07 12:08 12:09 12:10 12:11 12:12 12:13 12:14

    Customer 11 (C11)

    Customer 12 (C12)

    Customer 13 (C13)

    C12 Assignment

    to employee

    C13 Assignment

    to employee

    C11Assignment

    to employee

    Beginningof shift

    Start of break

    Employee activated a

    break

    Customer Positive Emotion

    Customer Negative Emotion

    Customer Emotion and Employee UNSCHEDULED Breaks

  • Workload and Customer Positive Emotion Increase Likelihood Employee

    Takes Break

    Employee workload and customer positive emotion

    increase likelihood employee will take a break

    **p

  • Customer Positive Emotion REDUCES Length of Breaks

    With higher customer positive emotions,

    high workload leads to shorter breaks

    Lengthof Employee

    BreakWorkload

    Customer

    Leng

    th o

    f Bre

    ak (s

    econ

    ds)

    Workload

    Low Medium High

    *p

  • Customer Negative Emotion INCREASES Length of Breaks

    *p

  • What Have We Learned?

    Slides and papers available at http://Anat.Rafaeli.Net

  • Customer Positive Emotion: REDUCES employee Response Time; Stronger effects of LOW intensity then HIGH intensity REDUCES effects of work load on length of employee breaks;Customer Negative Emotion LOW Intensity - NO effects HIGH intensity - INCREASES employee Response Time; In General

    REDUCES effects of workload on employee Response Time INCREASES effects of workload on length of unscheduled

    breaks

    Summary of Findings

  • Many open questions

    Slides and papers available at http://Anat.Rafaeli.Net

  • Affect based routing could increase contact centers efficiency

    Including emotion to employee tasks, and fair division of labor

    New opportunities for research

    Where are we going?

    Slides and papers available at http://Anat.Rafaeli.Net

  • Daniel AltmanShelly AshtarGalia Bar

    David SpivakMonika Westphal

    Slides and papers available at http://Anat.Rafaeli.Net

    Dr. Galit Yom-Tov

  • Slides and papers available at http://Anat.Rafaeli.Net

    New Frontiers (and New Findings) on Emotion in Customer ServiceService Loaded with Emotions!Emotional Labor:Jobs Require Employees to Display Expected EmotionsSlide Number 4Slide Number 5Slide Number 6Slide Number 7Slide Number 8Slide Number 9Slide Number 10Slide Number 11Slide Number 12Slide Number 13Slide Number 14Slide Number 15Slide Number 16Slide Number 17Multiple Terms for Customer Negative EmotionSlide Number 19Slide Number 20Slide Number 21Slide Number 22Slide Number 23Slide Number 24Slide Number 25Slide Number 26Slide Number 27Emotion in Chats(two weeks; airline sales and service)Emotion in Chats (11 weeks; telecommunication)One week data;14,700 conversations.Sample 10 time points in each; (messages at 0%, 11%, 22% ); calculate emotion at each point; Average 10 sample points across all company conversations;Emotion patterns of satisfied and dissatisfied customers; Tele-comm company chats;Data of one month26703 conversations with NPS = 109382 conversations with NPS = 0Employee Response Time (RT) vs. Service Time (ST)Airline Data (December 2015)Results Chat Level AnalysisValence of Customer Emotion Moderates Effects on Employee Response TimeEmotion Moderates Effect of Workload (#customer words) on Employee RTSlide Number 37Slide Number 38Slide Number 39Slide Number 40Slide Number 41Slide Number 42Slide Number 43Slide Number 44Slide Number 48Slide Number 49Slide Number 50Slide Number 52Slide Number 53Slide Number 54Slide Number 55Slide Number 56Slide Number 57