Has Technology Diminished Customer Service?

Seeking a Balance Between Efficiency and Empathy

In a world rapidly advancing towards technological omnipotence, the essential human element of customer service seems to be dwindling. My recent interaction with a call center executive from MakeMyTrip , India’s largest travel app, stands as a testament to the rarity of what was once a commonplace expectation—human empathy and patience in customer service. The executive’s perseverance during our 70-minute call, despite my apparent frustration and the complexity of my issues, provided a fleeting glimpse of the endangered species of human-led customer service in an era increasingly dominated by automation.

The Shift from Personal Touch to Impersonal Technology

The evolution of customer service has been dramatic and swift—from the personal touch of face-to-face interactions to a depersonalized back-office, moving through phases of Interactive Voice Response (IVR) systems, and now, to Artificial Intelligence (AI)-driven bots. This progression, largely driven by the motive to cut costs and increase efficiency, has often left customers feeling more like hostages than valued patrons.

The airline industry is a prime example of this shift. The virtually complete absence of direct human interaction in customer service routines makes it nearly impossible for customers to resolve issues that deviate from the standard queries anticipated by automated systems. This not only frustrates customers but also erodes trust and loyalty—key components of brand equity.

The Price of Over-Automation

The adverse effects of excessive automation are manifold. Primarily, it alienates those seeking understanding and empathy—qualities uniquely human that machines cannot replicate. A study by PwC reveals that 59% of global consumers believe companies have lost the human element of customer experience. Moreover, 82% of U.S. and 74% of non-U.S. consumers expressed a desire for more human interaction in the future, not less.

This disconnect can have severe financial implications. Dissatisfied customers are less likely to return, adversely affecting revenue. They are also more likely to share their negative experiences, potentially harming a company’s reputation and its ability to attract new customers.

Striking the Right Balance: Examples of Success

Despite the grim scenario, some companies successfully balance technological efficiency with human empathy. Zappos at Work and Nordstrom in the United States are often celebrated for their customer-centric approaches, seamlessly integrating technology to enhance service without replacing the human touch. Their use of CRM systems to equip customer service representatives with comprehensive customer histories enables personalized and empathetic interactions.

In almost a rare phenomenon in Online shopping, 亚马逊 stands out in their exemplary customer service wherein they leverage AI to learn constantly the most frequently asked questions and keeping that updated for easy access of customers. Side by side they ensure customer always has an option to chat with a human for unresolved issues or request for a call back which is usually very prompt.

Am not a big fan of HDFC Bank 's digital tools however the bank is attempting to make strides in maintaining this balance through EVA. Their EVA (Electronic Virtual Assistant) handles over 2.7 million customer queries monthly across multiple channels but is designed to seamlessly escalate more complex issues to human operators. This ensures that while routine questions are handled quickly and efficiently, more nuanced problems are addressed with a human understanding.

Similarly, Tata Play Ltd ’s use of WhatsApp chatbots for customer service effectively manages routine inquiries. However, it retains the option for customers to connect with human representatives, ensuring that customer grievances are not lost in digital translation.

Recommendations for a Human-Centric Approach

1.???????? Human First, Technology Second: Design customer service processes with a prioritization of human interaction where it is most critical.

2.???????? Empower with Technology: Utilize technology to empower representatives, not replace them, enhancing their ability to solve problems with empathy.

3.???????? Feedback Loops: Establish robust mechanisms for feedback to continually refine the balance between technology and human service.

To sum it up, the challenge for modern enterprises lies not in adopting the latest technology but in integrating it thoughtfully to enhance human interaction, not replace it. In the world of ChatGPT - New! and Gemini AI one can achieve unimaginable success in providing stellar customer experience however till the model gets fully refined and tested it is foolish to adopt an only tech based Customer service model. One should have an easy to access human element converging with tech customer engagement solutions. As we navigate the complexities of cost-efficiency and customer satisfaction, we must remember that at the heart of customer service is the connection—one that should be nurtured, not neglected. In the race to embrace technology, we must ensure it serves to uphold, not undermine, the fundamental principles of customer care.

Finally in the words of Founder & CEO of Amazon- #JeffBezos "“If you make customers unhappy in the physical world, they might each tell six friends. If you make customers unhappy on the internet, they can each tell 6,000”.

• Authored by Rituparna Chakraborty?