Chapter 09 – Customer Service via Technology
9-1
Chapter 9
Customer Service via Technology
Table of Contents
Teaching Tools …………………………………………………………………………………………………. 2
Instructor Teaching Tools …………………………………………………………………………….. 2
Student Learning Tools ………………………………………………………………………………… 2
Brief Chapter Outline …………………………..…………………………………………………………….. 3
Chapter Outline and Lecture Notes ……………………………………………………………………… 5
Class Activities and Sample Assignments …………………………………………………………… 21
Discussion Opportunities ………………………………………………………………………………….. 22
In the Real World Notes ……………………………………………………….………………………… 223
Technology—Netflix ……………………………………………………………………………………. 223
Work It Out Notes ……………………………………………………………………………………………. 25
Work It Out 9.1—Evaluating Voice Mail …………………………………………………………… 25
End-of-Chapter Material Notes ………………………………………………………………………….. 26
Key Terms …………………………………………………………………………………………………… 26
Review Questions ………………………………………………………………………………………… 27
Collaborative Learning Activity ……………………………………………………………………….. 29
Face to Face—Telephone Techniques at Staff-Temps ………………………………………. 29
Chapter 09 – Customer Service via Technology
9-2
Teaching Tools
This book has several tools for both students and instructors to assist in the learning
and development on the topic of customer service. Those tools are listed below:
Instructor Teaching Tools
▪ Instructor’s Manual
▪ PowerPoint Presentations
▪ Asset Map
▪ Test Bank
▪ Customer Service Videos
▪ Sample Syllabi
Student Learning Tools
▪ Customer Service Interactions
▪ Customer Service Videos
▪ Chapter Objectives
▪ Flashcards
▪ Online Quizzes
▪ Practice Tests
▪ Glossary
▪ Spanish Glossary
▪ Worksheets
Chapter 09 – Customer Service via Technology
9-3
Brief Chapter Outline
Learning Outcomes
➢ 9-1: Recognize the role of technology-effective service delivery.
➢ 9-2: Describe ways in which technology enhances an organization’s service delivery
capabilities.
➢ 9-3: Discuss ways in which companies are integrating evolving web-based and
mobile technologies into their service strategies.
➢ 9-4: Communicate effectively via e-mail, the Internet, and fax.
➢ 9-5: Deliver quality service through effective telephone techniques.
I. The Role of Technology in Customer Service
II. The Customer Contact/Call Center or Help Desk
A. Types of Technology
B. Traditional Call Center Technology
Automated Attendant
Automatic Call Distribution (ACD) System
Automated Computer Telephone Interviews
Automatic Number Identification (ANI)
Computer Telephony Integration (CTI)
Customer Relationship Management (CRM) Software
Electronic Mail (E-mail)
Facsimile (Fax) Machine
Instant Messaging
Intelligent Call-Back Technology
Interactive Kiosks or Digital Displays
Interactive Voice Response (IVR) System or Voice Response Unit (VRU)
Internet Call-Back Technology
Internet Telephony
Media Blending
Online Information Fulfillment System
Predictive Dialing System
Screen Pop-Ups
Speech or Voice Recognition
Telephone Typewriter System (TTY)
Voice over Internet Protocol (VoIP)
III. Tapping into Web-Based and Mobile Technologies
A. Websites
Cloud Computing
B. Social Networking
Chapter 09 – Customer Service via Technology
9-4
YouTube
Twitter
Facebook
Pinterest
Podcasts (Portable on-Demand Broadcasts)
Smartphones and Tablets
Text Messaging
Wikis
Blogs
C. Advantages and Disadvantages of Technology
Organizational Issues
Employee Issues
Customer Issues
Additional Issues
IV. Technology Etiquette and Strategies
A. Email
B. Facsimile
V. The Telephone in Customer Service
A. Communication Skills for Success
B. Tips for Creating a Positive Telephone Image
C. Effective Telephone Usage
D. Voice Mail and Answering Machines or Services
E. Taking Messages Professionally
F. General Advice for Communicating by Telephone
Chapter 09 – Customer Service via Technology
9-5
Chapter Outline and Lecture Notes
I. The Role of Technology in Customer Service
• With the number of Internet users continuing to climb throughout the world, online
sales of products and services continue to rise.
• If measured as a sector, Internet-related consumption and expenditure is now
bigger than agriculture or energy.
• Computers and other forms of technology are continually becoming smaller,
more complex, and more powerful.
• We have become a 24/7 society (we access technology 24 hours a day, 7 days a
week).
• More people are accessing telephone-related customer service and the
economies of many countries are being significantly influenced by technology-
based customer services.
• There has been some shrinkage in the number and size of call centers in the
United States due to the following:
o Offshoring call center functions to other countries
o Outsourcing to third-party companies that specialize in call center
operations
o The rise in self-service web or speech recognition technologies that allow
customers to place their own orders and access information without
contacting a customer care representative
• Companies that are not prepared to meet the future will lose business as
customers migrate to providers that are better.
II. The Customer Contact/Call Center or Help Desk
• Most organizations now have free 800 or 888 numbers that people can use to
call the organization to get information, place orders, or receive service and for a
variety of other functions.
• Organizations are also employing fee-based 900 numbers through which
customers and others can call for information and service.
• Customer care centers or help desks are more powerful and complicated than
ever before.
• Successful service organizations realize that each customer is unique.
o Some people are high touch (preferring assistance) while others are low
Chapter 09 – Customer Service via Technology
9-6
A. Types of Technology
• Technology is advancing at such a rapid rate that the typical organization and
its employees are unable to cope with the changes.
• Today, customer service representatives have a vast amount of technology
at their disposal and the industry and regulations governing it are continuing
to evolve.
B. Traditional Call Center technology
Automated Attendants
• Automated attendants provide callers with a menu of options from
which they can select by pressing a key on their telephone keypad.
o These systems can also be used to provide prerecorded responses
to frequently asked questions (FAQs) and to route callers to specific
representatives or other employees and departments.
Automatic Call Distribution (ACD) system
• Automatic Call Distribution (ACD) System routes incoming calls to the
next available agent based on number called, time of day, caller ID, or
caller-selected codes.
• When agents are busy or lines are full, an ACD automatically places
callers on hold and plays a prerecorded announcement.
Automated Computer Telephone Interview
• Automated computer telephone interviews allow organizations to
conduct automated phone surveys of customers
• Programs are typically built around advanced interactive voice response
(IVR) technology along with voice broadcasting technology.
Automatic Number Identification (ANI)
• Automatic Number Identification (ANI) is a form of caller ID similar to
that on many telephones.
• The system allows customers to be identified and their calls directed
appropriately before an agent talks to them.
Chapter 09 – Customer Service via Technology
9-7
Computer Telephony Integration (CTI)
• Computer telephony integration (CTI) or computer-telephone
integration, systems help integrate a customer service representatives’
computer, phone, fax, web, and e-mail systems to facilitate the automatic
retrieval of customer records and other information needed to satisfy a
customer’s needs and requests.
• Other functions controlled by CTI include:
o Screen population of customer data when the customer answers
the phone.
o Phone controls
Customer Relationship Management (CRM) software
• Customer relationship management (CRM) software systems are
designed to automate and integrate service and other functions within an
organization.
• Among other things, CRM systems can perform the following functions:
o Capture contact information
o Track suppliers and vendors
• Some CRM systems can also integrate with social media sites like
Facebook, Google Plus, and LinkedIn to track opinions and feedback on
experiences about the organization, products, and services and then
communicate with those consumers.
Electronic Mail (E-mail)
• Electronic mail (e-mail) provides an inexpensive, rapid way of
communicating with customers in writing worldwide.
• It allows customers to access information via telephone and then,
through prompting (and using the telephone keypad), have the
information delivered to them via e-mail.
• The downside of using this vehicle from a customer standpoint is that
spamming or sending spam by unscrupulous people and organizations
has given e-mail advertisers in general a bad reputation.
Facsimile (Fax) Machine
• A facsimile (fax) machine allows graphics and text messages to be
transported as electronic signals via telephone lines or from a personal
computer equipped with a modem.
Chapter 09 – Customer Service via Technology
9-8
• Information can be sent anywhere in the world in minutes, or a customer
can make a call, key in a code number, and have information delivered to
his or her fax machine or computer without ever speaking to a person
(fax-on-demand system).
Instant Messaging
• Instant messaging is a type of technology that allows online chats in
real-time text transmission over the Internet between customers and
service representatives.
• Some more advanced systems use technology that provides real-time
texting in which each character typed is seen simultaneously by the
receiver as the message is being written.
Intelligent Call-Back Technology
• Customers have become far less tolerant of long wait times to receive
service.
o To address this concern, many organizations have introduced
intelligent callback technology into their call centers.
o With this equipment, they are able to allow customers to decide
whether they prefer to wait to speak to a representative or would
rather receive a scheduled callback.
Interactive Kiosks or Digital Displays
• Interactive Kiosks or Digital Displays are an evolving technology that
allows customers and customer contact centers equipped with video
camera–computer hookups to interact via the computer.
• Many organizations are now using these in lobbies to allow self-service
to customers.
Interactive Voice Response (IVR) System or Voice Response Unit (VRU)
• An interactive voice response (IVR) system or voice response unit
(VRU) allows customers to call in 24 hours a day, 7 days a week, even
when customer service representatives are not available.
• Such systems perform a text–to-speech conversion to present database
information audibly to a caller.
Chapter 09 – Customer Service via Technology
9-9
Internet Call-Back Technology
• Internet call-back technology allows someone browsing the Internet to
click on words or phrases, enter his or her phone number, and continue
browsing.
o This triggers a predictive dialing system and assigns an agent to
handle the call when it rings at the customer’s end.
Internet Telephony
• Internet telephony allows users to have voice communications over the
Internet.
Media Blending
• Media blending allows agents to communicate with a customer over a
telephone line at the same time information is displayed over the Internet
to the customer.
Online Information Fulfillment System
• Online information fulfillment systems allow customers to go to the
World Wide Web, access an organization’s website, and click on desired
information.
o This is one of the fastest-growing customer service technologies.
Predictive Dialing System
• Predictive dialing systems automatically place outgoing calls and
deliver incoming calls to the next available agent.
o This type of system is often used in outbound (telemarketing/call
center) operations.
Screen Pop-Ups
• Screen pop-ups are used in conjunction with ANI and IVR systems to
identify callers.
• As a call is received and dispatched to an agent, the system provides
information about the caller that “pops” onto the agent’s screen before he
or she answers the telephone.
Chapter 09 – Customer Service via Technology
9-10
Speech or Voice Recognition
• Speech- or voice-recognition programs allow a system to recognize
key words or phrases from a caller.
o These systems can be for routing callers to a representative and for
retrieving information from a database.
• In addition to use in call centers, voice-recognition software is being used
by many of the world’s largest companies to facilitate customer service
and provide services through their products.
Telephone Typewriter Systems (TTY)
• Partly because of the passage of the 1990 Americans with Disabilities
Act in the United States, and similar laws in other countries, which
required that telecommunication services be available to people with
disabilities, organizations now have the technology to assist customers
who have hearing and speech impairments.
• By using a Telephone Typewriter system (TTY)—a typewriter-type
device for sending messages back and forth over telephone lines—a
person who has a hearing or speech impairment can contact someone
who is using a standard telephone.
• The federal government has a similar service (Federal Information Relay
Service, or FIRS) for individuals who wish to conduct business with any
branch of the federal government nationwide.
Voice over Internet Protocol (VoIP)
• Another video-based service option for businesses that has been used
by individuals for a number of years is known as Voice over Internet
Protocol (VoIP) and allows voice communications combined with
multimedia, such as video images, to be transported over the Internet.
o This free or low-cost means of communication has been popular
with users as an alternative to long-distance calling that does not
allow speakers to see one another.
III. Tapping into Web-Based and Mobile Technologies
• Web-based and mobile technologies continue to multiply and expand on a daily
basis, and so do ways in which businesses are rapidly learning to harness their
power.
• Everything from delivery of organizational branding, sharing information,
Chapter 09 – Customer Service via Technology
9-11
introducing new products, and communicating and helping satisfy customer
needs is possible on technology that is evolving rapidly.
A. Websites
• Websites provide organizations with a valuable tool for presenting a “face” to
the entire world.
o Websites are a series of electronic “pages” that are hosted on a web
server and that provide vital organizational, product, and service
information and multiple ways for consumers to get in touch with key
company representatives via the Internet.
• One key to effective website effectiveness is recognition and connections.
• The thing to remember about websites is that they are basically a “pull”
mechanism.
o That means that site owners post information, provide service chat
support, and encourage people to come to the site to retrieve
information, use services and support, and make purchases.
Cloud Computing
• Cloud computing technology involves using hardware and software
delivered over a network, such as the Internet.
o This form of computing allows end users (e.g., customers) to use
mobile phones, tablets, computers, or laptops to access data
through a mobile application on the device through a web browser
such as Internet Explorer, Firefox, Opera, Safari, or Google
Chrome.
B. Social Media
• The Internet has exploded with social networking websites that allow people
and organizations a vehicle to post information about themselves, products,
and services.
• Social media—websites through which users come together as
“communities” of friends, relatives, and like-minded individuals for social
networking and microblogging and to share ideas, content, and personal and
other information—has become popular and available to consumers.
• Users connect on various social and media sharing sites for a variety of
reasons.
o This potentially provides a wealth of opportunity for companies that
want to share their message about products and services with the
Chapter 09 – Customer Service via Technology
9-12
world.
• One of the biggest advantages to using social media to get information out to
current and potential customers is that the sites are almost exclusively free.
• Some of the ways that social media are being tapped by organizations
include:
o Targeting specific customer groups
o Identifying and solidifying their position in niche markets by separating
themselves from competitors and emphasizing why their products and
services are superior.
• An important thing for companies to realize is that their employees are
networking with other employees and possibly their customers directly or
indirectly through social media.
o This can have either a positive or negative impact on company image
depending on what is being shared.
YouTube
• YouTube—the largest video-sharing websites on the Internet, where
users can upload, share, and view videos—was established in 2005 by
three former PayPal employees.
• The company is a subsidiary of Google and provides a forum for users to
upload and view videos containing movie and TV clips or music,
educational content, and personal or organizational messages and
content.
Twitter
• Twitter is a real-time, short messaging service that works with a variety
of communication networks and electronic devices.
• Because of its rapid delivery potential, many organizations are using
tweets to interact with customers quickly in order to share information
about products and services, respond to complaints, and answer
questions.
• Twitter is a great vehicle for checking customer reactions to a
commercial or product rollout, asking for ideas, or gathering information
regarding other organization sponsored events or activities.
Facebook
• Facebook was founded in 2004 by Mark Zuckerburg and his college
roommates as a social networking tool to allow students at Harvard
Chapter 09 – Customer Service via Technology
9-13
University to network socially.
o It quickly expanded to other major educational institutions and then
to the world.
• In recent years, large and small organizations have realized the potential
in tapping into the Facebook network and are setting up professional
profiles to which people and organizations can link and share
information.
o Using Facebook provides another creative option for
communicating with current and potential customers.
Pinterest
• Pinterest—a pin- or cork-based type of forum where users can share
photos and images on various themes or interests—was founded in 2009
and initially run from a New York apartment by its founders, who had
around 5,000 users the first year.
• Since the site started allowing people to establish business accounts, in
addition to their personal account, there has been an influx of
organizations using it to act as a storefront or inexpensive means of
promoting its brand, products, and services.
Podcasts (Portable on-Demand Broadcasts)
• With podcasts, information (e.g., advertisements, product information,
etc.) can be shared with potential and current customers or the
community.
• People subscribe to and download the content through their mobile
device or computer.
• Organizations can transmit scheduled material to customers as a free
service or as a subscription or per-event/item purchase.
Smartphones and Tablets
• Smartphones are mobile telephones that are built with a mobile
operating system similar to a computer that allows them to perform a
myriad of functions using what are called applications or apps.
• Tablets are basically a personal computer (PC) that is a hybrid between
a notebook or laptop computer and a personal digital assistant (PDA)
and has a flat-screen viewing panel.
• These devices can connect to the Internet through wireless (Wi–Fi)
connections; provide information; play music; allow users to read books;
Chapter 09 – Customer Service via Technology
9-14
act as navigational devices, cameras, and calculators; and perform
myriad other processes and functions.
• These amazing devices have provided new opportunities to
organizations wishing to get information and services to mobile phone
customers.
Text Messaging
• Text messaging or texting, an electronic form of messaging between
mobile, portable, or fixed devices over a telephone network, has been
popular, especially between younger users.
• For over a decade, businesses have adopted the practice as a readily
available and inexpensive way to interact with customers.
• The following are some ways that organizations are applying the
technology.
o Travel agencies, entertainment companies, and others that deal
with scheduling, events, and changing information for customers
use this format to send short updates or information related to
products and events to customers’ cellular phones.
o On-call personnel such as maintenance, engineering, and medical
staff are being notified when an issue or emergency needing their
attention arises.
Wikis
• Many employers and organizations are using websites called wikis to
allow a form of social networking among their internal customers
(employees).
o These sites provide a means of collecting and exchanging
information and brainstorming ideas related to a project.
• Wikis are also being used by some employers to provide information that
would normally be delivered in a training session, thus saving time and
money.
Blogs
• A relatively new tool being created and used by individuals and
organizations is web logs (blogs).
o These chronological “diaries” are a creative way for individual
bloggers, and those within organizations, to provide updates,
Chapter 09 – Customer Service via Technology
product or service commentary, and information and graphics or
video to internal and external customers (e.g., product recalls,
updates, etc.) in the form of posts.
• The key to successfully using a blog as a marketing tool is consistency
and frequency.
C. Advantages and Disadvantages of Technology
Organizational Issues
• Through the use of computers, software, and various telecommunication
devices, a company can extend its presence without physically
establishing a business site and without adding staff.
• By setting up a website, organizations can become known and develop a
worldwide customer base while helping to equalize the playing field with
multinational and distant competitors.
• The challenge for organizations is to have well-maintained, state-of-the–
art equipment with trained, qualified, competent, and customer-oriented
people to operate it.
o In a low-unemployment period, this can be a challenge and can
possibly result in disgruntled customers who have to wait on hold
for service until an agent is available to help them.
• Staying on top of competition with technology is an expensive venture.
Employee Issues
• The greatest benefit that technology brings to employees is that it frees
them from mundane tasks such as taking information and mailing out
forms, information, or other materials.
o These tasks can be done by using fax-on-demand, IVR, or online
fulfillment systems and more recently through self-service
mechanisms where customers can access information and get
answers on websites or interactive store kiosks.
• The downside for employees is that many organizations see technology
as a way to reduce staff costs and overhead related to employees, and
they therefore eliminate positions.
o Another problem created by technology is an increase in stress
levels of both employees and customers.