How to set up customer service operations in 2024

Let's cut to the chase: if your customer service isn't top-notch, don't expect to keep those customers around for long.  

Each year, businesses in the U.S. wave goodbye to over $75 billion because of lousy customer service. Kicker, right? But here's the catch: how you kickstart your customer service operations sets the stage for happy customers and loyal fans.  

Sure, having those customer service pillars in place is great—it screams "customer-first!" But ensuring those pillars hold up requires fine-tuning the nitty-gritty, like who's on your team, how things get done and how your service gets delivered. That's what this blog is all about.  

We'll discuss why customer service operations are so darn important and how they shape customer experiences and we'll even map out a step-by-step guide to setting up your own customer service operations, no matter the size of your business.

What is customer service operations 

Customer service operations are essential for a company's service delivery mechanism. They involve coordinated efforts, systems and strategies to ensure customer satisfaction and loyalty. These operations drive interactions between your business and your customers, covering everything from initial inquiries to issue resolution and ongoing support. 

Now, let's take a scenario to better understand the importance of customer service operations. A customer named Sarah orders a pair of shoes online from a well-known footwear retailer. Upon receiving the shoes, she discovers that they don't fit properly. Frustrated, Sarah contacts the retailer's customer service department to initiate a return and requests a replacement or refund. 

Here's how the customer service operation works in the background as Sarah navigates her path to resolution. 

Why is customer service operation important for businesses 

Businesses today understand that retaining customers is more cost-effective than acquiring new ones. As a result, they leave no stone unturned to enhance their customer service operations, ensuring existing customers remain satisfied and share positive experiences. Strengthening customer service operations offers a myriad of benefits. 

• Customer retention: Exceptional customer service operations are paramount for retaining customers. By providing prompt, efficient and personalized support, you can build customer loyalty and encourage repeat business. 
• Brand reputation: A positive customer service experience can significantly impact a company's brand reputation management efforts. Outstanding customer service enhances brand credibility and attracts new customers through word-of-mouth referrals and positive online reviews. 
• Revenue generation: Satisfied customers are more likely to make repeat purchases and spend more money on a brand. Effective customer service operations can directly impact revenue generation and contribute to the bottom line. 
   
• Differentiation: Excellent customer service can be a powerful differentiator in a competitive marketplace. Prioritizing customer satisfaction and exceeding expectations in service delivery sets you apart from competitors and provides a competitive edge. 
   
• Customer insights: Customer interaction analytics offer valuable insights into customer preferences, pain points and behavior. You can make informed decisions to improve products, services and overall customer experience by leveraging these insights.  
   
• Crisis management: During crises or unforeseen challenges, a well-functioning customer service operation can be a lifeline. Effective communication and support help mitigate damage to your brand's reputation and maintain customer trust. 

Good Read: How to Manage Crisis Communication in 2024 (+ Checklist)  

Steps to set up efficient customer service operations

Alright, now that we've hammered home the importance of customer service operations, let's dive into how to set them up: 

🎯Step 1: Define your objectives 

First, let's clarify what you want to achieve with your customer service operations. Are you seeking happier customers, faster response times or just overall slicker operations?  For instance, if you're starting out, your focus might be on snagging and keeping customers, building brand loyalty and staying light on your feet to adapt to whatever the market throws your way. But if you're already an established player, you might be more about fine-tuning your processes, polishing up that customer experience and ensuring you stay one step ahead of the competition.

 ✅Step 2: Choose the right tech 

Now that your objectives are set, it's time to talk tech! When it comes to customer service operations, having the right tools in your belt isn't just about making life easier—it's about staying ahead of the curve, too.  

With customer expectations increasing, you need to ensure your customer service software is up to snuff. That means picking solutions that can handle the heavy lifting, like automating mundane tasks, serving personalized interactions and being there for your customers round the clock. 

📐Step 3: Design your processes 

While setting up customer service operations, it is vital to ensure a smooth customer journey. Here's the plan.  

Mapping customer journeys: Dive into your customer's shoes to identify key customer touchpoints along their journey. Understanding these interactions allows you to design processes that cater to their needs and preferences.  
 
Implementing omnichannel support: Enable customers to connect through various customer service channels like phone, email, chat and social media. Ensure seamless integration for a consistent experience across all platforms. With omnichannel customer service, you can meet customers where they are and deliver exceptional service as they want. 

👥Step 4: Build your team 

This step is make or break. It demands meticulous attention and tests how aligned your recruitment strategy is with the set objectives. The contact center agents are your frontline warriors, so they must possess top-notch communication skills, customer empathy and problem-solving prowess.   

Through structured onboarding and comprehensive training in product details, customer service scenarios and contact center compliance, you empower them to deliver exceptional service with confidence and expertise. 

🔭Step 5: Measure performance 

What gets measured gets improved. Assessing how well your customer service operation runs is crucial for enhancing. Here's how to do it:  

Start by setting a performance benchmark for your team for customer service metrics like response time, average handle time, first-contact resolution and customer satisfaction score (CSAT). This will give you concrete measures to track progress and success. 

Do you know: With modern AI-powered reporting and analytics software, your agents can monitor their daily performance and track their targets, while supervisors can monitor individual agent performance and team metrics in real time. But that's not all. It also provides insights into the root causes of performance anomalies and offers visibility into the queue and agent performance, allowing immediate actions to improve SLAs and reduce wait times.

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📝Step 6: Evolving through feedback 

Now that the building blocks are in place, it's time for routine evaluation and improvement of your customer service operations. Here's how you can do it: 

Gathering feedback: It's essential to hear from your customers directly. Whether through customer surveys, reviews or direct conversations, gathering feedback helps you understand what's working and needs improvement.

Continuous improvement: Once you have feedback, use it! Regularly review and refine your customer service operations based on what you learn. By staying agile and responsive, you can adapt to changing needs.

🚀Step 7: Embracing innovation 

Now, let's discuss the importance of staying ahead of the curve:  

Staying informed: The world of customer service is constantly evolving, with new technologies and trends always emerging. Stay informed about the latest developments, such as chatbots, conversational AI, predictive analytics and more.  

Exploring new ideas: Don't be afraid to try new things! Experiment with innovative tools and approaches to enhance efficiency, personalize interactions and delight customers with memorable conversations. 

🤔Hold up, what about my existing tech stack? 

Investing in your customer service operations is a smart move, but it's equally important to assess your current technology stack to ensure it meets your business's evolving needs. By doing so, you can improve your overall efficiency and customer satisfaction. Here's what you should keep in mind to achieve your goals. 

🤖AI-friendliness: Evaluate how well your existing technology integrates with AI-powered solutions. Since AI in customer service highlights the importance of chatbots, natural language processing (NLP) and machine learning algorithms to meet modern customer demands, look if your existing technology can leverage AI capabilities to automate tasks and improve customer service workflow.  

🔧Customizability: Consider the level of customizability offered by your technology stack. Look for platforms that allow you to tailor workflows, user interfaces and reporting features to meet your specific requirements. Customizability ensures that your technology adapts to your unique business needs and processes rather than forcing you to conform to rigid standards.  

🔄Interoperability: Assess how well your existing technology integrates with other systems and tools within your organization. Look for platforms that support seamless interoperability through open APIs (Application Programming Interfaces) and integrations with popular third-party applications. Interoperability ensures smooth data exchange and workflow automation across different departments and systems, enhancing overall efficiency and collaboration.

Set up customer service operation effortlessly with Sprinklr Service 

Now, let's address the elephant in the room: your existing technology stack. 

Does your technology stack possess the agility to adapt to changing customer expectations? Is it equipped with AI-powered capabilities to enhance efficiency and personalization? And most importantly, does it facilitate seamless integration with other enterprise systems to drive operational excellence? 

These questions underscore the importance of investing in advanced customer service solutions that empower organizations to deliver unparalleled experiences across every touchpoint. 

Enter Sprinklr Service — a comprehensive platform with AI-driven features, customizable workflows and seamless interoperability. Sprinklr Service equips enterprises with the tools to exceed customer expectations and drive business success. 

But don't take our word for it—experience the transformative power of Sprinklr firsthand, all by yourself!