Why Live Customer Service Wins the Loyalty Race

Despite the rise of chatbots and automated systems, customers markedly prefer human interaction. By offering a human touch, companies can foster customer loyalty and repeat business and build a stronger brand reputation. This human-centric approach is a step toward mending the disconnection spawned by the digital age.

Our world has become very disconnected. People are seldom without their smartphones — they are often preoccupied with them even at social dinners and kids’ ball games. The human part of life has slowly deteriorated, which is why people are yearning for more interactions.

In an era dominated by technological advancements and automated solutions, companies that value the power of human connection will stand out. Customers prefer human interaction. A 2023 survey reveals that 77% of all U.S. consumers find chatbots frustrating, and 88% would rather speak to a person. While chatbots and automated systems are on the rise, those incorporating a human touch are more likely to cultivate and retain loyal customers. Here is why:

1. Humans are reliable.
   According to Simplr’s “2023 State of E-Commerce Customer Service” report, 72% of respondents are “likely” or “very likely” to repurchase from a company that provides live chats with humans. It’s not that chatbots are inadequate, but there are times when human intervention is necessary, and brands need to recognize those times. For instance, chatbots excel at directing people to information already available on a company website and providing recommendations. On the other hand, they fall short in addressing complex, nuanced human concerns requiring out-of-the-box thinking. Live support fosters repeat business and instills a sense of safety. Talking to a human can help customers feel that an organization “has their back” and is there for them. Customer loyalty is earned, so people are likely to switch brands if a company can’t assist them with what they need.
2. Customers feel known.
   Unlike chatbots, humans can empathize with customers. When people reach out to a company, they typically have an issue or a pain point that needs to be solved. When they are met with automated responses, long wait times, and continuous redirection, customers feel like a cog in a wheel — just another transaction. While some artificial intelligence technologies have the power to empathize to a certain extent through sentiment analysis and natural language processing, AI can still struggle to interpret tone, sarcasm, polarity, and emojis.

   By offering easy access to a human touchpoint, companies show customers they know them and care about easing their discomfort quickly. It reflects dedication to understanding and meeting each customer’s unique needs and providing them with the customer experience that is right for them. This personalization may be the one thing differentiating a company from competitors.

3. You build your brand reputation.
   Brands will stand out over time as they continue to show up for customers. Consider Chick-fil-A. It really isn’t much different from other fast-food chains in the market, but its business is booming because of its customer service. Quality customer service is part of the company culture and ethos; people know that they will be treated with kindness and respect when they stop by for a chicken sandwich.

   Robert Hoffman, chairman and CEO of Xchange of America, underscores the importance of this virtue. “If leaders can carve a space in their industry for providing human customer service, they will be known for it, and the customers will follow,” he says. “Many people prioritize convenience over everything. Human customer service is becoming a luxury that saves people time, and time is money.”

   Hoffman has seen this play out in his business with return customers, referrals, and positive reviews online. Positive customer experiences from live customer service are often reflected in reviews online, and many people make buying decisions based on social proof. Reading consistent positive reviews about seamless, high-touch experiences gives them the confidence they need to try a business. Sure, a bot might be cheaper at first, but it is definitely not going to act on your behalf for free referral marketing.

In a world where everyone is becoming more disconnected, brands that slow down to ensure their customers are cared for will make a big impact. The integration of human touch in customer service is a step towards rebuilding the connection that is being lost in the digital age. It’s about reinstating the essence of empathy, understanding, and genuine assistance that machines have yet to replicate. This human-centric approach not only cultivates trust but also establishes a brand identity that resonates with authenticity and care.

Written by Rhett Power.

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