How to Easily Handle Customer Interaction Management and Make Your Business Stand Out
- Increase profits
- Increase return customers
- Increase satisfied customers
- Decrease headaches
- Decrease operating costs
These are just a few of the benefits of proper customer interaction management. When properly done, it can lead to smoother business operations and customers that not only return to do business again and again, but also promote your product or service. Imagine having an army of loyal promoters that help spread the word about your business.
You understand what customer interaction management can do for you, let’s quickly define it so we know what to aim for.
What is Customer Interaction Management?
Customer Interaction Management (CIM) is the systematic handling and orchestration of all customer interactions across multiple channels to ensure a consistent, efficient, and personalized customer experience. It involves leveraging technology and data to manage communications, resolve issues, and foster customer satisfaction and loyalty.
Why is it Important?
Handling customer interactions properly will make your business more successful.
Imagine CIM as the conductor of an orchestra. Each communication channel (phone, email, social media, chat) is an instrument in this orchestra. The conductor’s role is to ensure that every instrument plays harmoniously, at the right time, and with the right intensity, to create a beautiful symphony. Similarly, CIM ensures that every customer interaction, no matter the channel, is well-coordinated, timely, and aligned to deliver an exceptional customer experience.
It’s All About the Customer Experience
Great customer interaction management leads to a great customer experience and therefore increases the value of your business.
Table of contents:
- What is Customer Interaction Management?
- Why is it Important?
- The Golden Customer Interactions Management Rule: Log EVERYTHING
- Understanding Customer Interactions: Key Scenarios and Effective Responses
- Questions and General Concerns
- Handling Complaints
- Providing Customer Support
- What are the Types of Customer Interactions?
- Phone
- Social Media
- Text/SMS
- Video Calls
- In-Office or On-Location
- Key Takeaways
The Golden Customer Interactions Management Rule: Log EVERYTHING
Log your communications. Log ALL communications. If there’s only one thing you take away from this article it should be this: Logging your communications meticulously is the difference between success or failure.
In order to prevent problems, correct mistakes and understand how you can improve, you must have data. Using a client communication management solution like the free GoDataHub CRM is a must. Otherwise you’ll be flying blind.
Whatever solution you choose, make sure you train your team to note each and every communication, be it by phone, email, mail, text and so on. Have specific standards as to what information each record will contain. Here is a list of some of the things your communication records should contain:
Time
When did this take place. Note date, hour and even minute. It might sound like overkill to add the date down to the minute, but don’t be fooled. Many situations will require more specific time. Here’s an example: say you need information before a shipping deadline of 12 noon. Your client calls you at 12:45pm (after the deadline) with the information. The next day the client calls again and is irate that the product has not been shipped. If you’re looking at a communications record that just says he called on that day, it won’t tell you very much. By having the exact time (12:45pm) you can explain to your client that his call came after the deadline.
Type
Was it a phone call? An email? Maybe it was an office visit. Whatever it is, make sure you note it. Solutions like the free GoDataHub client manager prompt you for communication type and automatically insert the date and time.
The most common customer interactions are as follows:
- Phone
- Social Media
- Text / Sms
- Video Call
- In-Office / On Location
All of these are disscussed in greater detail later on.
Customer
This is obvious but it should be mentioned that there should be details such as “Spoke to husband” or “Spoke to Jerry”. Whether a business or a household, you may end up speaking to someone different than the original contact. It could be a manager, a wife or someone else from their family or business. Make sure you make it clear in your communication record who you’re talking to.
Job/Task
Make sure you mark clearly in the communications record what job, task or subject you discussed with the client. This comes in handy when there are multiple jobs, services or reasons for the communication. For example: if your client placed five orders with you, it helps to know which order was discussed during this communication.
Resolution
What happened in the end? How did you leave it off? Do you have to call them again? Are they supposed to get back to you by email? Make sure to add this to your communication record so the next time you know exactly where you left things off with the customer.
Tone
Here’s one you may not have thought of: mark down the tone of the conversation. Was it cordial? Did the client become upset? Angry? Knowing the ‘tone’ of the conversation is essential when the next communication rolls around. Not knowing the tone of the last conversation can be like walking into a mine-field the next time you speak to this client.
Tools like the free GoDataHub client logger helps you with all of the above by prompting you for this information. This helps you have great customer interaction management because everything will be at your fingertips. For example: if your client David calls again and complains he didn’t get the email that Jeff from your team promissed, you can quickly search for all communications between your client David and Jeff. You can even filter out only communications by email and see that Jeff did send the email about an hour after speaking with David. This lets you handle any difficults client situation with ease.
Understanding Customer Interactions: Key Scenarios and Effective Responses
Customer interactions can be prompted by a variety of factors. Here are some common types you should be prepared to handle effectively.
Questions and General Concerns
One of the most frequent reasons customers reach out to businesses is to ask questions or express concerns. Whether it’s during a presentation or a routine interaction, addressing these inquiries is crucial for improving the customer experience. Always make sure that the customer understands your answers.This can save you time and headaches down the line.
Handling Complaints
Customer complaints are inevitable, even for the most reputable businesses. A proactive approach to managing complaints can significantly enhance customer interactions and protect your brand’s reputation.
Encouraging customers to voice their concerns directly to your contact center allows you to address issues promptly and prevent negative word-of-mouth. By resolving complaints effectively, you not only improve customer satisfaction but also turn potential negative publicity into positive experiences.
For complaints it’s important to have the meticulous logging of all communications we discussed before. Nothing frustrated a client more than having to re-explain the situation when they call in again or deal with clueless employees. Implement something like the free GoDataHub solution and make sure you and your employees are using it all the time.
Providing Customer Support
For businesses that offer complex products or services, customer support interactions are common. Ensuring your agents are well-equipped to handle these interactions is essential.
To help, you can use the documentation section of GoDataHub and put in the proper information that your team members need to solve customer issues.
What are the Types of Customer Interactions?
There are many types of customer interactions. Each presents their own challeges and benefits. It’s important to understand them. Let’s go over some of the most common ones.
Phone
Customer Preference for Phone Communication:
- A 2021 study by Zendesk found that 56% of customers prefer to resolve service issues over the phone, making it the most preferred method of communication for complex or urgent issues.
- According to Gartner, 70% of customers use phone support as their primary channel for contacting customer service.
In other words if you’re neglecting the phones, you may be missing out. People love to talk to a person in real time. Email is fine, but let’s be real, nothing beats picking up the phone and having a resolution to your issue right there on the spot. Also, complicated issues and questions are often difficult to address by email. Nobody has time (or wants) to write “novels” back and forth for something that could be solved in a 5 minute phone conversation.
Details
Age Demographics
Young Adults (18-34):
- While younger customers (18-34) are more inclined towards digital channels, they still utilize phone support for complex issues. A 2019 Microsoft report indicated that 52% of Millennials and Gen Z prefer phone calls for resolving complicated issues.
Middle-Aged Adults (35-54):
- This group shows a higher preference for phone interactions. A study by PwC found that 63% of customers aged 35-54 prefer phone calls for customer service, particularly for financial and healthcare services.
Older Adults (55+):
- Older adults (55+) show the highest preference for phone interactions. The American Customer Satisfaction Index reports that 74% of customers in this age group prefer to resolve issues over the phone, often due to comfort and familiarity with the medium.
Gender Differences
Women:
- Research by HubSpot indicates that women are more likely to use phone support for customer service, with 60% preferring phone calls for resolving issues.
Men:
- Men also show a significant preference for phone support but are more inclined to use online channels compared to women. The same HubSpot study found that 50% of men prefer phone calls for customer service.
Income Brackets
Low Income:
- Customers with lower income levels tend to prefer phone interactions due to limited access to other digital channels. A Pew Research Center report suggests that 68% of low-income customers rely on phone calls for customer service.
Middle Income:
- Middle-income customers use a mix of phone and digital channels. A study by Forrester Research found that 58% of middle-income customers prefer phone calls for urgent or complex issues.
High Income:
- High-income customers, while tech-savvy, often use phone support for personalized service. According to Bain & Company, 61% of high-income customers prefer phone calls for high-stakes issues, such as financial services and luxury products.
Industry-Specific Insights
Healthcare:
- The healthcare industry shows a strong reliance on phone interactions, with 75% of patients preferring to discuss medical issues over the phone (American Medical Association).
Financial Services:
- Phone support remains crucial in financial services, where 65% of customers prefer resolving banking and financial issues via phone (JD Power).
Retail and E-commerce:
- In retail and e-commerce, 55% of customers use phone support to address issues like returns and refunds (National Retail Federation).
Key Takeaways
- Phone support remains vital across all demographics, especially for complex and urgent issues.
- Older adults and lower-income customers show the highest preference for phone interactions.
- Women are more likely to use phone support compared to men.
- Service industries like healthcare and financial services heavily rely on phone interactions.
Customer Preference for Email Communication:
- A 2022 report by Salesforce found that 62% of customers prefer email for customer service inquiries, appreciating its convenience and ability to document interactions.
- According to Statista, 77% of customers consider email a vital channel for business communication, with 50% of consumers preferring it for non-urgent inquiries.
Email remains a favorite channel of communications for customers. There is one point to keep in mind as it relates to email, when compared to phone. Email is preffered when the issues discusses are not immediate. This means that email is a great medium for customer interaction management as long as nothing is “burning.” This means that email is great for things like promotions or simply keeping in touch.
Email is also considered the proper medium for interactions when the customer shows preference for this medium. In other words, if the customer shows a preferrence for email.
Details
Age Demographics
Young Adults (18-34):
- Young adults (18-34) tend to use email for formal and follow-up communications. A study by Adobe found that 47% of Millennials and Gen Z check their email frequently throughout the day.
Middle-Aged Adults (35-54):
- This age group shows a significant preference for email, especially in professional settings. Litmus reported that 68% of adults aged 35-54 prefer email for business communications due to its traceability and formal nature.
Older Adults (55+):
- Older adults (55+) are heavy email users. A report by Pew Research Center found that 72% of older adults use email regularly for both personal and business communications, valuing its accessibility and ease of use.
Gender Differences
Women:
- Women are slightly more inclined to use email for customer service. A survey by Benchmark Email indicated that 58% of women prefer email for handling customer service issues due to its non-intrusive nature.
Men:
- Men also prefer email but are equally likely to use phone or chat for urgent issues. The same Benchmark Email survey found that 54% of men use email for customer service, valuing its convenience and record-keeping capability.
Income Brackets
Low Income:
- Low-income customers use email primarily for cost-effective communication. A study by Forbes suggests that 60% of low-income individuals prefer email due to its accessibility and minimal cost.
Middle Income:
- Middle-income customers appreciate email for its ability to document conversations. According to Gartner, 65% of middle-income consumers use email for customer service interactions, valuing its efficiency.
High Income:
- High-income customers prefer email for its professionalism and formality. McKinsey & Company found that 70% of high-income individuals use email for business communications, particularly in finance and legal sectors.
Industry-Specific Insights
Healthcare:
- In the healthcare industry, email is used for appointment confirmations and follow-up care. According to the HIMSS, 55% of patients prefer email for receiving medical information and reminders.
Financial Services:
- Email is crucial in financial services for sending statements and updates. Deloitte reports that 67% of financial service clients prefer email for official communications.
Retail and E-commerce:
- Retail and e-commerce heavily rely on email for marketing and customer support. The National Retail Federation found that 60% of customers prefer email for order confirmations and customer service inquiries.
Key Takeaways
- Email is a vital communication channel across all demographics, especially for non-urgent and documented interactions.
- Older adults and high-income customers show the highest preference for email interactions.
- Women slightly favor email over other channels for customer service.
- Industries such as healthcare, financial services, and retail heavily rely on email for customer interactions.
Details
Age Demographics
Young Adults (18-34):
- Young adults (18-34) are the most active demographic on social media. A study by Pew Research Center found that 84% of adults aged 18-29 use social media, making it a crucial platform for customer engagement.
Middle-Aged Adults (35-54):
- This group also shows significant social media use, particularly on platforms like Facebook and LinkedIn. According to eMarketer, 74% of adults aged 30-49 use social media regularly.
Older Adults (55+):
- Social media use among older adults is growing. A report by Pew Research Center found that 45% of adults aged 65 and older use social media, with Facebook being the most popular platform.
Gender Differences
Women:
- Women are more active on social media platforms than men. A survey by GlobalWebIndex indicates that 80% of women use social media for brand interactions, compared to 70% of men.
Men:
- Men are also significant users of social media, particularly on platforms like Twitter and LinkedIn. The same GlobalWebIndex survey found that 75% of men use social media to engage with brands.
Income Brackets
Low Income:
- Low-income individuals use social media as a primary means of communication. According to Pew Research Center, 69% of low-income adults use social media, finding it an accessible and affordable way to connect with brands.
Middle Income:
- Middle-income consumers are active on social media for both personal and business interactions. A study by Nielsen found that 78% of middle-income adults use social media to follow brands and make purchasing decisions.
High Income:
- High-income individuals use social media extensively for professional networking and brand engagement. According to McKinsey & Company, 82% of high-income consumers use social media to interact with brands, particularly on LinkedIn and Instagram.
Industry-Specific Insights
Healthcare:
- The healthcare industry increasingly uses social media for patient engagement and information dissemination. According to the Journal of Medical Internet Research, 58% of healthcare organizations use social media to interact with patients.
Financial Services:
- Social media is critical in financial services for customer support and brand awareness. A report by Accenture found that 63% of financial service firms use social media to engage with customers and enhance their brand presence.
Retail and E-commerce:
- Retail and e-commerce brands heavily rely on social media for marketing and customer service. The National Retail Federation found that 72% of customers interact with retail brands on social media for product information and support.
Key Takeaways
- Social media is a crucial communication channel for customer engagement across all demographics.
- Young adults and high-income customers show the highest social media usage for brand interactions.
- Women are slightly more active on social media platforms compared to men.
- Industries such as healthcare, financial services, and retail heavily rely on social media for customer interactions.
Text/SMS
Customer Preference for Text/SMS Communication:
- A 2021 report by Gartner found that 58% of customers prefer SMS for quick customer service inquiries due to its immediacy and convenience.
- According to Salesforce, 64% of customers want to use SMS to interact with businesses, appreciating its ability to provide timely updates and support.
Text and SMS communications can be a potent tool but it tends to be abused. Use it very carefully and make sure that you present real value when using it for marketing. However, it is a great tool for keeping customers informed of order progress. Imagine a package getting sent out, or being “out for delivery”. This kind of information needs to be quickly received by the user. Therefore using text / sms messages makes sense. Do not bloat the message with pointless marketing of unrelated stuff.
Details
Age Demographics
Young Adults (18-34):
- Young adults (18-34) are heavy users of SMS for customer service interactions. A study by Pew Research Center found that 89% of adults aged 18-29 use SMS for communication, including interactions with businesses.
Middle-Aged Adults (35-54):
- This age group shows a significant use of SMS for business interactions, particularly for appointment reminders and service updates. According to Statista, 76% of adults aged 30-49 use SMS regularly for various forms of communication.
Older Adults (55+):
- Older adults (55+) also utilize SMS, though to a lesser extent compared to younger demographics. A report by Pew Research Center found that 54% of adults aged 65 and older use SMS, primarily for essential communications.
Gender Differences
Women:
- Women are more likely to use SMS for customer service than men. A survey by Mobile Marketer indicates that 62% of women prefer SMS for receiving service updates and support.
Men:
- Men also frequently use SMS for business interactions, particularly for timely notifications and confirmations. The same Mobile Marketer survey found that 55% of men use SMS for interacting with businesses.
Income Brackets
Low Income:
- Low-income individuals rely heavily on SMS due to its cost-effectiveness and accessibility. A study by Pew Research Center suggests that 72% of low-income adults use SMS as their primary communication method.
Middle Income:
- Middle-income consumers use SMS for convenience and efficiency in customer service interactions. According to Forrester Research, 68% of middle-income consumers prefer SMS for receiving service updates and promotional offers.
High Income:
- High-income individuals appreciate SMS for its immediacy and reliability. McKinsey & Company found that 74% of high-income consumers use SMS to interact with businesses, particularly for personalized services and updates.
Industry-Specific Insights
Healthcare:
- The healthcare industry uses SMS for appointment reminders and patient updates. According to the HIMSS, 65% of healthcare providers use SMS to communicate with patients.
Financial Services:
- Financial services firms use SMS for transaction alerts and account updates. A report by Accenture found that 70% of financial service firms use SMS to enhance customer engagement and security.
Retail and E-commerce:
- Retail and e-commerce brands rely on SMS for marketing and customer service. The National Retail Federation found that 62% of customers prefer SMS for order confirmations and delivery updates.
Key Takeaways
- SMS is a crucial communication channel for quick and efficient customer service across all demographics.
- Young adults and high-income customers show the highest usage of SMS for business interactions.
- Women are slightly more inclined to use SMS for customer service compared to men.
- Industries such as healthcare, financial services, and retail heavily rely on SMS for customer interactions.
Video Calls
Customer Preference for Video Call Communication:
- A 2021 report by Gartner found that 46% of customer service leaders use video chat to improve customer experience, highlighting its growing importance.
- According to a 2020 study by McKinsey & Company, 38% of customers prefer video calls for complex or high-stakes interactions, appreciating the personal touch and visual engagement.
Video calls can be a secret weapon. That’s because they can help create a much better bond between you (your company) and the customer. It should be noted that video calls can, and should only be done when the customer is comfortable with them. But if they are, having your salesperson, your customer rep or anyone from your company on camera will instantly make your client more receptive. We are built to read faces. For milenia, communication among humans was done mostly face to face. This means the video calls have a high value by default. Having said that, your staff should be trained to be pleasant and smile while they talk to the customer. Remember, in video calls, your tone but also your facial expressions will be make or break.
Details
Age Demographics
Young Adults (18-34):
- Young adults (18-34) are frequent users of video calls for both personal and business communications. A study by Pew Research Center found that 67% of adults aged 18-29 use video calls regularly, making it an essential platform for customer interactions.
Middle-Aged Adults (35-54):
- This age group shows significant use of video calls, particularly for professional purposes. According to Statista, 61% of adults aged 30-49 use video calling services for business and customer service interactions.
Older Adults (55+):
- Older adults (55+) are increasingly adopting video calls, especially during the COVID-19 pandemic. A report by Pew Research Center found that 39% of adults aged 65 and older use video calls, primarily for essential communications and family interactions.
Gender Differences
Women:
- Women are more likely to use video calls for personal and professional interactions. A survey by GlobalWebIndex indicates that 58% of women use video calls regularly, compared to 52% of men.
Men:
- Men also frequently use video calls, particularly for work-related purposes. The same GlobalWebIndex survey found that 55% of men use video calls for business meetings and customer service interactions.
Income Brackets
Low Income:
- Low-income individuals use video calls primarily for cost-effective communication. A study by Pew Research Center suggests that 42% of low-income adults use video calls for interacting with businesses and accessing services.
Middle Income:
- Middle-income consumers use video calls for convenience and efficiency in customer service interactions. According to Forrester Research, 54% of middle-income consumers prefer video calls for personalized service and support.
High Income:
- High-income individuals appreciate video calls for their personal touch and enhanced communication. McKinsey & Company found that 63% of high-income consumers use video calls to interact with businesses, particularly for high-stakes issues and consultations.
Industry-Specific Insights
Healthcare:
- The healthcare industry increasingly uses video calls for telemedicine and patient consultations. According to the HIMSS, 78% of healthcare providers use video calls to improve patient engagement and access to care.
Financial Services:
- Financial services firms use video calls for personalized consultations and customer support. A report by Accenture found that 59% of financial service firms use video calls to enhance customer experience and trust.
Retail and E-commerce:
- Retail and e-commerce brands use video calls for virtual shopping experiences and customer support. The National Retail Federation found that 47% of customers prefer video calls for product demonstrations and personalized shopping assistance.
Key Takeaways
- Video calls are becoming an essential communication channel for personalized and high-stakes customer interactions.
- Young adults and high-income customers show the highest usage of video calls for business interactions.
- Women are slightly more inclined to use video calls for customer service compared to men.
- Industries such as healthcare, financial services, and retail increasingly rely on video calls for customer interactions and support.
In-Office or On-Location
Customer Preference for In-Office or On-Location Communication:
- A 2022 report by Accenture found that 75% of customers prefer in-person interactions for complex issues, appreciating the personal touch and immediate assistance.
- According to a study by PwC, 59% of consumers feel that businesses should offer both digital and in-person services to meet their needs.
Types of In-Office or On-Location Customer Interactions
Let’s explore some common types of customer interactions that occur in-office or on-location and how to manage them effectively.
Questions and General Concerns
Customers often visit offices or locations to ask questions or express concerns. Addressing these inquiries promptly is essential for enhancing the customer experience.
Utilizing tools like [Dialpad’s cloud contact center](https://www.dialpad.com/contact-center/) can help capture and analyze these interactions. For instance, Dialpad’s AI can transcribe face-to-face conversations and track keywords or phrases mentioned frequently. This allows businesses to identify common issues and improve service offerings based on real-time data.
Handling Complaints
Dealing with complaints in person requires a different approach than digital or phone interactions. Customers may prefer discussing their issues face-to-face to ensure they are heard and their concerns are taken seriously.
Providing a dedicated space for addressing complaints and ensuring that staff are trained to handle such interactions professionally can turn negative experiences into opportunities for improvement. Allowing customers to share their experiences directly helps manage your reputation and demonstrates your commitment to resolving issues.
Receiving Praise
Positive feedback received in person can boost staff morale and highlight areas where the business excels. It’s important to capture this praise and use it to reinforce successful strategies.
Implementing customer feedback systems, such as comment cards or in-person surveys, can help collect and analyze this valuable information. Additionally, recognizing and rewarding employees who receive praise encourages a culture of excellence.
Providing Customer Support
In-office or on-location support is crucial for businesses that offer complex products or services. Customers often prefer in-person assistance to ensure they receive accurate and personalized help.
To enhance on-location support, businesses can use tools like Dialpad to monitor interactions and provide real-time guidance to staff. This ensures that even new employees can offer effective support, improving the overall customer experience.
Details
Industry-Specific Insights
Healthcare:
- In the healthcare industry, in-person interactions are vital for patient consultations and treatment. According to the HIMSS, 85% of patients prefer in-person consultations for medical advice and treatment.
Financial Services:
- Financial services often require in-person interactions for consultations and complex transactions. A report by Accenture found that 70% of customers prefer face-to-face meetings for financial planning and advice.
Retail and E-commerce:
- Retail stores benefit from in-person interactions for personalized shopping experiences and customer service. The National Retail Federation found that 64% of consumers prefer in-store shopping for the ability to see and try products before purchasing.
Key Takeaways
- In-office or on-location interactions are crucial for addressing complex issues and providing personalized service.
- Effective management of complaints and praise received in person can significantly impact customer satisfaction and business reputation.
- Industries such as healthcare, financial services, and retail heavily rely on in-person interactions to enhance customer experience.
- Utilizing technology to capture and analyze in-person interactions can provide valuable insights for continuous improvement.
Social Media
Customer Preference for Social Media Communication: