WELCOME TO UNIT 7 Customer Service MT 221 Marilyn Radu, Instructor

Tonight’s Agenda Tonight I am going to review the following topic with you: The Impact of Globalization on Customer Service

Do you feel that outsourcing is good for American consumers and should increase in usage? Yes No

When you have a customer service question, is your preference to find the answer on the company’s website (FAQs, etc.) or to address someone in the customer contact center via or phone? 1.Self-serve at the company’s website 2.Access a CSR in the customer contact center

Unit 7 The Impact of Globalization on Customer Service Objectives Understand the impact globalization has had on the world economy and call center hiring trends Discuss the reasons globalization of customer service has shifted from an offshore to a homeshore environment Describe the extent to which online services are growing and the challenges facing companies involved in e-commerce on the Internet List the multichannel communication methods used by online shoppers

Globalization and Outsourcing 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.

Homeshoring 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.

Providing Customer Service on the Internet Business advantages of e-commerce –The global market is open 24/7 –Customers can conduct price comparisons easily –Feedback to queries regarding the status of orders can be immediate –FAQ pages provide easy access to self-help customer support –Companies can gather customer information, analyze it, and react on the basis of current data –Distribution costs for information are reduced or eliminated

Online Shopping Preferences Effective search tools, express ordering, and highlighted specials Assurance of on-time order fulfillment Order status information or the ability to securely track their own orders The ability to exchange items purchased online at any of the chain’s physical stores The ability to buy merchandise 24/7

Relationships with Online 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

Customer Relationship 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 CRM –Knowledge management –Database consolidation –Integration of channels and systems

Recognizing Online Customer Service 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 centers –Hiring and training e-reps or an online CSR

Multichannel Communication 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.

Any Questions? Thank you for attending! See you next week.