Market view: chat bots and the customer service revolution

Utilities companies face greater competition in the open market than ever before, and as consumers are confronted with more choices, suppliers will have to become more innovative with their customer services.

Our recent study revealed that utilities companies provide the most frustrating online customer services in the UK, closely followed by local authorities and tradespeople.

One of the main irritants was the lack of up-front, basic information (45 per cent of people had experienced the problem in the last month), as well as the inability to answer simple questions quickly.

While feeling annoyed by online customer services is nothing new, it’s interesting to see that the industries identified as the most frustrating are also those who are notoriously slow to provide easily accessible online services. So, what’s the solution for the future?

Well, chat bots, or automated virtual assistants, might be the answer – offering a swifter and smarter user-friendly online experience.

What are chat bots?

Chat bots provide simple, yet intelligent responses to queries in a messenger platform. You can ask them simple questions and they will efficiently respond with helpful answers at any time of the day.

There’s room for ongoing improvements too as the AI (artificial intelligence) that supports Facebook Messenger chat bots continues to develop by learning language patterns and commonly asked questions by users across the globe.

How can chat bots help improve customer services?

There is a significant need for current online customer services to improve as 33 per cent of survey respondents said that even when they had the option to ask questions, the tools they used were of poor quality or unresponsive.

However, when told about the benefits of chat bots, 51 per cent of consumers said they would be key-holders to speed, unlocking immediacy and convenience in online services. They felt that these virtual assistants, designed to simulate conversation with humans, would significantly improve customer service experiences. Some of the key expected benefits of using chat bots was the availability of a 24-hour service and the ease of getting quick answers to simple questions.

The assumption of age being a barrier to chat bot usage was unfounded. In fact, older people were the most welcoming of the benefits associated with the online service. In turn, they expect high quality online services as 42 per cent admitted they would prefer not to have face-to-face communications if they didn’t have to.

What are the benefits of chat bots to utilities?

When considering how companies can effectively use this technology to best serve their customers, it’s important to highlight the sooner this innovation is embraced, the more cost savings there will be in the long term.

Speed is of the essence in meeting customer needs but, in the absence of face-to-face communications, businesses are already struggling to find the human resources to make online chats effective. Improving online services means staying ahead of the competition and consciously making an effort to retain customers, while also attracting new ones.

Unsurprisingly, social media plays a major part in customers’ communication with businesses, with one in three users preferring this method of contact compared to using the telephone. Customers now often turn to Twitter with queries; 53 per cent expect to receive a speedy response within the hour, climbing to 72 per cent if it’s regarding a complaint.

Companies still do need to work hard to ensure their customers’ needs are being met as 53 per cent of social media users report bad experiences. With such high expectations for good online customer service, businesses need to make sure they’re adapting to the needs of their target markets.

Customers look for the most efficient and convenient methods to get the answers they need, whether they’re paying their gas bill or submitting a meter check. In order to meet this demand in consumer services, it makes sense that businesses respond with the right tools and flexibility online, as well as offline.

The future of customer services

Utilities companies face their biggest challenges around summertime, the busiest time for people moving house, with 28 per cent of moves taking place from June to August. They experience problems with customer retention and people moving into properties where they inherit another provider, despite having had a great relationship with a previous supplier.

This means that providers need to raise the bar when it comes to offering both competitive prices and services to their customers to stop them from switching.

The water market reforms in 2017 will also open up the sector to greater competition as businesses and public sector bodies will be able to choose their water and wastewater providers. By 2020 this could open up to the much larger household market.

The number of energy customers switching has hit a record high and risen by 58 per cent with more than two million people changing suppliers in the first half of the year. Utilities customers seem to be shopping around more for the best deals and the cheapest offers they can get. Arguably chat bots could be one of the most cost effective and efficient responses.

If investing in chat bots provides a suitable solution to online and even offline service woes, then they could make a real difference to customer satisfaction and a company’s reputation. Clearly, the revolution starts here.