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Chapter 12Chapter 12The Impact of Globalization on The Impact of Globalization on

Customer ServiceCustomer Service

Objectives

Understand the impact globalization has had on the world economy and call center hiring trendsDiscuss the reasons globalization of customer service has shifted from an offshore to a homeshore environmentDescribe the extent to which online services are growing and the challenges facing companies involved in e-commerce on the InternetList the multichannel communication methods used by online shoppers

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Globalization andGlobalization andOutsourcing of E-commerceOutsourcing of E-commerce

Globalization initiatives ensure that customers around the world have appropriate and useful experiences as they communicate, collaborate, and transact online—regardless of location, language, culture, or business practices.

Outsourcing is the purchase of labor from a source outside the company rather than using the company’s own staff.

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HomeshoringHomeshoring

A work-style trend that companies are using is hiring U.S. home-based call agents as an alternative to more expensive in-house operators or less-qualified offshore call centers.According to data from IDC, home-based phone representatives in the U.S. will grow to 300,000 by 2010.

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Providing Customer Service Providing Customer Service on the Interneton the Internet

Business advantages of e-commerceThe global market is open 24/7Customers can conduct price comparisons easilyFeedback to queries regarding the status of orders can be immediateFAQ pages provide easy access to self-help customer supportCompanies can gather customer information, analyze it, and react on the basis of current dataDistribution costs for information are reduced or eliminated

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Online Shopping PreferencesOnline Shopping Preferences

Effective search tools, express ordering, and highlighted specialsAssurance of on-time order fulfillmentOrder status information or the ability to securely track their own ordersThe ability to exchange items purchased online at any of the chain’s physical storesThe ability to buy merchandise 24/7

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Relationships withRelationships withOnline CustomersOnline Customers

Five rules to follow when building strong relationships with online customers

1. Excel at each stage of the customer buying cycle

2. Empower customers to help themselves

3. Help customers succeed by empowering them to be in control of the buying situation

4. Protect the privacy of consumers

5. Offer several types of free technical support

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Customer Relationship Customer Relationship Management (CRM)Management (CRM)

CRM is a business strategy that integrates the functions of sales, marketing and customer service using technology and wide-ranging databases of information.

Elements of CRMKnowledge management

Database consolidation

Integration of channels and systems

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Recognizing Online Customer Recognizing Online Customer Service IssuesService Issues

In response to growing customer complaints, many e-commerce companies are trying to make technological “fixes” to the customer service problems by investing in software and technology-based systems.Specifically, they are

Evolving into multichannel customer interaction centersHiring and training e-reps or an online CSR

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MultichannelMultichannelCommunication CentersCommunication Centers

A traditional call center mainly uses the telephone to contact customers dealing with routine concerns.

However, the evolving customer contact center is a technology driven area where customers want to talk to a CSR only if they cannot successfully address their situations electronically themselves.

Many e-customers are seeking to avoid human contact.

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Hiring and TrainingHiring and Trainingan Online CSRan Online CSR

Online CSRs are referred to as e-reps.They interact with customers by using e-mail and chats that require good oral communication and accurate and fast keyboarding skills.

Multi-tasking, a component of work efficiency, is a critical skill for e-reps.