In the UK, 81% of consumers have said they’re planning to shop more during the Black Friday period to help manage the cost-of-living crisis while still ensuring they can stock up on gifts. All over the world, these trends can present excellent opportunities for retailers to increase revenue and loyalty. However, it’s crucial to have the right plan in place to handle this demand.  

As tempting as it might be to double down on your marketing and try to cultivate additional sales during the holiday, the promise of short-term revenue wins shouldn’t come at the expense of long-term loyalty. After all, while 58% of consumers say they’re willing to accept long waiting times and delays during the holidays, only 8% will accommodate bad customer service.  

Perfecting Customer Service at Peak Times 

Peak periods, ranging from Christmas to Black Friday to other seasonal events, can be a double-edged sword for brands. On the one hand, they’re a chance to connect with engaged customers and accelerate sales. On the other hand, they can often lead to issues with inconsistent customer service and overwhelmed operational facilities.  

Implementing an enhanced sales strategy for the holiday season means not only creating the right marketing campaign but also ensuring you have the right resources on-hand to support an increase in demand. More sales mean more questions, service requests, and demands from consumers.  

If you can’t handle this extra pressure, pushing your business beyond its limits could cause more damage than good. In 2020, a report found that around 50% of Brits began actively avoiding companies with bad service at Christmas, leading to a loss of around £1.9 billion for those brands.  

Before you dive head-first into a peak retail season, you’ll need to ensure you’re not over-promising and under-delivering. Ask yourself: 

• What do customers expect from you? Start by assessing the kind of expectations you’ve already built in terms of customer experience for your customers. Does your company offer ultra-fast delivery, convenient returns, and rapid customer support? If so, can you continue to deliver on the same promises as demand increases?  

• Do you have a stable supply chain? Do you have what it takes to continue delivering products to a higher number of customers? If your current suppliers are unable to deliver on-demand, do you have backup options in place? How will you deal with popular goods going out of stock during the holiday period? How are you going to manage fulfilment and ensure items arrive at customer destinations on time? Even if the answer is no to some of the above, you can alleviate some inbound traffic by proactively updating your customers and them offering options.

• Can your existing team members handle extra work? Any increase in sales will automatically lead to an increase in work for your team members. If your staff are already overwhelmed, how will you provide additional support? In-house recruitment, outsourcing partners? Short-term solutions can pose a range of problems.  

Plan for Peaks Beyond the Holiday Season 

While the holiday season may be the most common time for many businesses and retailers to experience a peak in demand, it’s important to remember that there are other peaks to think about too. Different brands have different peaks and troughs depending on their industry and target audience. A sports company might see an increase in sales around annual competitions, while a florist may have additional demand during Mother’s Day and Valentine’s day.  

There are even instances in which retailers can manufacture peaks and demands with sales, events, and clever marketing. Ensuring you’re effectively prepared for the unpredictable nature of retail is crucial to ensure you retain loyal customers. Because of this, simply hiring seasonal staff for a couple of months each year may not be the most cost-effective and resourceful strategy. Could it be tied into other activities? Where else could you benefit from support? Can you create long-term solutions to short-term demand?  

Rather than having to find, hire, and train temporary team members on a consistent basis, many brands will benefit from creating more consistent agreements with third-party customer support agents, which allow them to structure a steadier flow of orders and maintain customer satisfaction throughout the year. Companies could even assign their outsourced specialists to different tasks each month to ensure they’re leveraging their available resources effectively.  

A consistent and holistic strategy will allow brands to manage not just holiday peaks but unexpected changes in customer demand whenever they might happen. Make sure you can always take full advantage of peak sales times without compromising on customer service.  

To learn more about the work DDC OS do in retail, please get in touch. 

So, delivering good customer service must be balanced against keeping costs as low as possible. At the same time, it’s vital to understand and manage compliance with ever-changing industry regulation – balancing a complex set of requirements around the Licence Conditions is tricky – and understanding the constant flow of information from the regulator and changing government policy is vital to ensuring that your business model stays compliant. 

Sounds simple, right? Of course not! That’s why partnering with organisations across the sector that can specialise in certain aspects can be so fundamental to success.   

Why is getting it right from the start so important? 

We’ve been working with energy suppliers for many years and have seen the full range of issues as they occur. Experience tells us that energy is not an industry that forgives easily – It can be very difficult to recover service levels from a build-up of errors– but can you stop issues from occurring in the first place?

The first critical stepping-stone is to try and solve customer problems on first contact, which can stop issues from escalating and means less bad debt further down the line. A customer is unlikely to settle a bill in dispute – so as soon as you can resolve the issue, the sooner the bill will be paid, and the debt is unlikely to escalate, compounding the problem. But how do you avoid those expensive customer contacts in the first place? 

Reducing Customer Contact  

Getting the first bill right is critical to preventing errors from snowballing (and avoids that first customer inbound contact) and means you can build up a trusted relationship with a consumer.  That means suppliers should be taking a razor-sharp focus on the onboarding of new customers. 

Some key questions that you should be asking yourself before things start to go wrong. Do you have the correct data from your customers, and do you know what your system does with that data?  Where are the gaps?  Who is working on the issues, both in terms of preventing them and solving them? 

First things first – have you gathered the right data from customers to make sure you can bill them?  Has the first Direct Debit been collected correctly? Are you actively checking for failure, and is the data you’ve got from the previous supplier correct?   

Getting your systems set up correctly is critical here, too – have you got debt tolerance and meter read tolerance set correctly, for example?  Too tight, and you will get ‘pinged’ with errors and failed bills constantly, and too loose, you’ll set yourself up for disaster further down the line when large amounts of debit or credit may build up in the system, impacting cash flow and damaging customer trust. 

Lots of questions, but how about some answers?  

Granted, we focussed a lot there on potential pitfalls and things to consider. But, when in business are things simple, when do we get the luxury of having to consider only one or two things? The good news is that there are people and organisations that can help.  

As an outsourcer with extensive experience in utilities, we have helped solve many of these issues for energy suppliers. From end-to-end processes to a more modular approach. Each supplier is different, and therefore, so is our approach to solution design.   

Key to our offering is being able to support from both a customer-facing perspective and also working on back office tasks in the background, ensuring everything is running smoothly. It gives us a holistic view so our experienced agents can truly support customers and avoid future contact.  

Get in touch to learn more.