What is Customer Service and how did it all begin?

A simple one-line definition from Investopedia says,” Customer service is the direct one-on-one interaction between a consumer making a purchase and a representative of the company that is selling it.” But is that it? If yes, then why companies are failing to build loyal customers even after spending appreciable amounts in AI-supported Chatbots and business analytics to understand the consumers' behavior? And, if not, then where are we lacking??

To understand this, let's crawl up to the roots of customer service. While researching the history of customer service, I couldn't find a particular point in time when the word "customer service" was coined but found out how it has been shaped over the centuries by the advancements of technology. Here are some of the major insights from my research-??

? Before the Industrial Revolution, when there were no strong means of long-distance communication, people used inscriptions to complain or to give feedback on the services or products they paid for.

? During the initial years of the Industrial Revolution (the 1760s-1840s), steam engines powered the businesses’?assembly lines resulting in varied customer bases from across the world because traveling, transportation and mass production became possible.

? In 1876, the invention of the telephone came to the rescue for businesses dying due to lack of communication between the customer and the companies. The development of switchboards and telephone exchanges took place which made it easier for a customer to connect with a company’s representative through an operator.

? With the reach of telephones, increased the number of interactions between customers and companies. It gave rise to the emergence of call centres through which businesses managed to connect with their customers in a more organized and frequent manner. Still, it wasn’t easy to directly contact the company’s representative without an operator.

? In 1967, AT&T introduced toll-free numbers starting with the prefix 1-800 followed by seven-digit numbers and it established a hassle-free connection between the two.

? With the advent of IVR (Interactive Voice Response) in the 1970s-1980s, the customer service process became more categorized which allowed customers to connect with a specific representative based on the issue faced by the customer.

? By the end of the 1980s, It became an entire industry where agents were hired and trained through third-party companies allowing businesses to save on their operational expenses.

? Finally came the internet and came with it the World Wide Web, Email, E-commerce platforms (like Amazon), and social media platforms (like Twitter, Facebook, etc.). Nowadays, AI-powered chatbots and Customer Relationship Management software (like Salesforce, Freshdesk, Zoho, etc.) are a major part of any business.

Conclusion:

Customer service, once a simple interaction, has evolved dramatically with technological advancements. From handwritten complaints to AI-driven chatbots, the journey reflects a pursuit of efficiency and customer satisfaction. Yet, the persistent challenge lies in transforming these interactions into genuine customer loyalty. The answer may not reside solely in technology but in a deeper understanding of human connection and the art of building lasting relationships.