Recently, a report from the BBC showed just how important this is, drawing attention to the increasing number of complaints faced by broadband and telecom companies in the UK.  

What’s interesting about this report is that while many organisations in the market offer similar services, the level of satisfaction among their customers differs drastically.  

Ultimately, companies can’t avoid receiving complaints but can take the right approach to dealing with them.  

The Value of Effective Complaint Management 

Customers complain about a range of reasons, and those complaints are often more valuable than you’d think. Reports tell us that only a handful of customers actually complain to a company directly; the rest (91%) leave and buy what they need from a different company.  

This means a complaint is an opportunity for you to prevent your customer from abandoning your brand. Studies show that 83% of customers feel more loyal towards brands that actively respond to and resolve their complaints. 

Complaints are also a chance for you to spot problems that might cause other customers to churn before they have a massive impact on your retention rates.  

Even complaints about things beyond your control can be helpful. If you notice that customers regularly complain about service outages and issues, proactively contacting them when there’s a problem with the service could reduce their frustration.  

How to Handle Customer Complaints Correctly: Top Tips 

Dealing with a complaint quickly, effectively, and empathetically can be an excellent way to turn an unhappy customer into a valuable advocate for your brand. One report from the Harvard Business Review found that customers who have their complaints handled in five minutes or less often spend more time with a company in the future.  

So, how do you master complaint management? 

Step 1: Listen and Empathise 

Listening is the key to resolving complaints correctly. It’s easy to get defensive when speaking to a frustrated customer, but they’ve contacted your company for a reason. It’s your job to get to the bottom of the problem with empathy.   

Train your agents to use active listening practices like open-ended questioning to ensure they understand the root cause of the customer’s problems. Collecting details about a customer’s order history, details, previous complaints, and issues will make it easier to resolve customer issues quickly. Plus, it ensures that if, for any reason, an agent needs to transfer a call to someone else, the customer won’t have to repeat themselves and start from scratch—a very frustrating practice that’s all too common.  

Of course, only if you are in the wrong, but sometimes, all your customer really wants is for someone to apologise and acknowledge their frustration.  

Studies have shown that customers are more willing to forgive and keep buying from a company that apologises for its mistakes. However, don’t just stop with an apology; thank the customer for bringing the issue to your attention. Then, if possible, it’s time to solve the problem… 

Step 2: Find a Solution 

Some complaints are easy to resolve. If a customer is unhappy with the quality of a product they’ve bought, you can offer them a refund or replacement. Other issues are a little more complex. For instance, a service outage can’t always be resolved quickly. Have clear guidelines available for the team so they know how to handle the issue, clear lines of escalation, and empowerment to make judgment calls to resolve issues to the customer’s satisfaction.  

Step 3: Record Their Feedback  

As mentioned above, complaints are more valuable than they seem. They can offer incredible insights into ways your company can improve and evolve. The only way to detect opportunities for growth is to record your customer’s feedback and look for patterns.  

Examine any complaints you have received and brainstorm ways to prevent the same issue from happening again. Detailed data dashboards can be key to help quickly analyse and action such insight. 

Step 4: Be Proactive  

Complaints might disappear when you solve a customer’s problem, but the frustration they feel towards your company can linger. The best way to repair the relationship is to follow up. Send an email or SMS asking for feedback on how the complaint was handled and if you can do anything else to aid them. Maybe offer a further discount or promotion or flag their account to prioritise care should the issue re-arise. Is it something you are looking to fix on your transformation roadmap, why not keep your customers updated?  

Optimising the Complaint Management Process 

Complaints are important. They offer feedback on your product and service and give you a second chance to retain and develop a loyal customer. However, handling complaints well and consistently can be challenging.   

At DDC OS, we offer a solution. We can provide access to an outsourced complaints service team, expanding your capacity or handling complaints management as a whole, ensuring you can respond quickly and compliantly to customers when complaints arise.  

With a little extra help, you can turn complaints from a daunting prospect into something that helps your company grow.  
 
Get in touch today and follow us on LinkedIn

Trend 1: Customer Service Outsourcing Evolves 

Exceptional customer service is in high demand in today’s marketplace. According to Zendesk, delivering excellent service increases the likelihood of repeat purchases by 81% of consumers. With companies focusing on retention to counteract economic challenges, 54% now rely on outsourcing for managing customer service demands. BPO leaders offer a range of services, including omnichannel support, customer retention, and tech support. Outsourcing customer service unlocks value and provides businesses with unique market insights based on extensive experience in different sectors and organisations. 
 

Trend 2: Nearshore Outsourcing Increases 

Nearshore outsourcing has seen a significant increase in adoption, especially in countries like the United Kingdom. According to a survey, approximately 65% of respondents plan to continue or even increase their outsourcing to nearshore companies in the coming years. 

While all forms of outsourcing have gained traction recently, nearshore outsourcing has become increasingly popular for several reasons. It allows businesses to collaborate with companies in close proximity to their operations and target market, without compromising on quality, all while enjoying cost savings. Additionally, nearshore outsourcing can enhance communication by minimising time zone differences and addressing cultural compatibility and compliance challenges. 
 

Trend 3: Automation & AI Improves Efficiency 

Artificial Intelligence (AI) and automation are disrupting various industries, and outsourcing is not an exception. These technologies are being integrated into outsourcing services, automating repetitive tasks, and leaving more complex tasks to human workers. While this trend brings numerous benefits, such as increased efficiency and reduced costs, it’s also essential to be prepared for potential challenges, such as the onboarding of tools too quickly or without a clear purpose.  
 

Trend 4: Knowledge Process Outsourcing

Unlike traditional forms of outsourcing, Knowledge Process Outsourcing involves delegating work to individuals with extensive training or expertise in specific areas, such as data analysis, process improvement, or research and development. 

Moreover, in an era where businesses seek to minimise labour costs, the practice of hiring temporary experts to collaborate with their teams, rather than employing full-time staff, is becoming increasingly prevalent. This approach allows companies to tap into specialised knowledge while optimising resource allocation. 

Misconception 1: Reduction in Quality 

One of the most common misconceptions about outsourcing is that it results in a reduction in quality. However, this largely depends on the outsourcing partner you choose. By selecting a reliable partner with a proven track record, you can ensure high-quality services. It’s also crucial to establish clear communication lines and set expectations upfront to maintain quality standards. 

Misconception 2: Loss of Control 

Another common fear is losing control over the outsourced operations. However, it’s essential to understand that outsourcing is a collaborative effort. Companies can maintain control over their outsourced tasks by setting clearly defined goals, establishing robust communication channels, and regularly monitoring progress. These strategies help in building a successful outsourcing relationship, where control is shared rather than lost. 

The Evolving Trends of the Outsourcing Landscape 

As we anticipate 2024, the outsourcing landscape will continue to evolve, driven by advancements in technology, changing work dynamics, and an increased emphasis on data security. By understanding these trends and debunking the misconceptions, businesses can better navigate the outsourcing world and leverage its numerous benefits.  

Remember, it’s not about replacing your workforce with an outsourced one, but rather about strategic partnerships that enable growth and foster innovation. Embrace the opportunities outsourcing presents and gear up for a future where geographical boundaries blur, collaboration excels, and business potential expands. 

Why not get ahead of the curve and reach out to an outsourcer with decades of experience?  

Check out our Case Studies

As ever, time has flown, and Hayley has already been hard at work implementing changes to focus on continuous improvement for our whole operation. However, we did manage to sit with Hayley and discuss her time here so far…

Hayley, it has been over six months now since you joined DDC. Has it been what you expected so far?  

Has it really been six months? Wow, that has flown by. I expected to join a growing organisation with a great opportunity ahead, and that is exactly what I have. The bonus to that is a great team who all have a passion for delivering both for our people and our customers.

For the benefit of our wider audience, could you tell us a little more about your background and what brought you to DDC?  

Where do I start? I have been very fortunate to have built a career in contact centres over the past 31 years, starting as an agent on the phones for Mercury Communications (now Virgin Media). Over the years, I have developed my skills in multiple disciplines, from Operations, People Development, CX, Transformation, Outsourcing and Consultancy across many different industries, including Telecoms, Finance, Retail, Education and Utilities, but what keeps me getting up in the morning is people and seeing them grow. I joined DDC as I felt I could really make a difference and help take our business and, most importantly, our people on a journey of growth, discovery, and success.

What has really stood out to you so far about DDC? Positives only of course!  

The Passion! Any transformation journey is challenging at the best of times, but DDC has hit this head-on! Unafraid to take risks and learn from them, challenging the norm in order to create the DDC way and as we continue to grow our family, remembering to maintain focus on our biggest asset – our people!

Do you believe you have identified some areas that you can really add some value and support DDC’s continued growth?  

Absolutely! And over the past five months, we have firmly placed our racing car on the track, delivered some fantastic changes and created a strong operational team that is engaging, supportive and on a journey of self-discovery and growth. We will require a few pit stops along the way, but we have our sight firmly fixed on the chequered flag.

There have been many global challenges in recent years; what do you think has been your biggest challenge in your time so far?  

I think, like many, our immediate challenge is that we attract and retain good people. We have so much to offer at DDC, and I want to ensure that all our people have every opportunity to utilise all of our benefits fully and contribute to helping build a brilliant place to work. I have always said you leave one family in the morning and go to another, and that’s what we are well on the way to creating here at DDC.

Looking ahead to the next six months, what are you hoping to achieve and, moreover, looking forward to!?  

Investing more in our people with succession planning and strong leadership programmes and working across all of our global locations to maximise our potential.

Have you had the chance to visit many of our operational locations so far? 

• What stood out in those locations? 
• Were they new destinations for you? 

I feel very lucky to have a global responsibility which means that I get to work with some fantastic people across several locations.

Our team in Sarajevo have gone through significant growth and is a great hub for supporting The DDC Group and clients. Our expansion into Serbia is also an exciting time, that will see us continue to be recognised as a key outsourcing provider.

Also, exciting for me personally is that I get to work in two new European locations (although learning Bosnian is a work in progress let’s just say).

To finish off, what is your favourite film, album and meal…  

Difficult question! I don’t actually have a favourite album but my top 3 songs are Teardrop by Massive Attack, Iris by the Goo Goo Dolls and Woman’s Work by Kate Bush.

My favourite film is Meet Joe Black (although I am a Harry Potter fan).

And my favourite meal has to be homemade pasta with an amazing fresh tomato & basil sauce.

Thanks to Hayley for her time, we can’t wait to sit down again with her in the future and see how the journey is going!

The good news is that companies recognise the need for exceptional service, with 65% of brands saying they plan to increase their investment in customer experience solutions during 2023.  

The bad news is that many companies still don’t know where to get started with their strategies to boost client satisfaction. As the landscape we know continues to change at a phenomenal rate and customer expectations evolve, it’s challenging to determine where organisations should be focusing the majority of their efforts. Fortunately, if we look at the current patterns in the customer service landscape and the statistics surrounding CX, we can see some emerging trends. 

Here are 5 of the key customer service trends businesses will need to prepare for in 2023:

1. Customer Service Channels Continue to Evolve 

First, companies need to be prepared for the channels they use to interact with customers to change more aggressively in the years ahead. Over the last couple of years, we’ve seen a range of new platforms for customer communications emerging around the world.  

Consumers have started connecting with brands on social media, interacting via video, and even using instant messaging tools like What’s App. Going forward, experts predict the lines between the digital and physical world will become increasingly blurred, thanks to the emergence of the “metaverse” and XR technology. “Phygital” experiences, which blur the line between physical and digital with AR-enhanced apps, and QR codes, are likely to increase in the years ahead.  

We’ll also see a larger number of companies investing in extended reality to meet their customers in the digital world. Brands like Nike, Wendy’s and Gucci have already started expanding into these areas.  

2. Hyper-Personalisation Becomes Crucial 

Consumers are becoming increasingly less enamoured by their favourite brands. Customer satisfaction levels have dropped to their lowest point in 17 years, and clients are becoming increasingly frustrated by one-size-fits-all experiences. Analysts like Gartner believe the companies who will succeed in the years ahead are those who focus more aggressively on “hyper-personalisation”. 

Companies will need to think more carefully about how they can transform customer service experiences to suit the individual needs of each user. This will mean not only giving customers more say over how they interact with a brand (in person or on digital channels) but also providing each customer with unique offers, guidance, and support during their purchasing journey.  

Going into 2023, we can expect to see more companies exploring ways to help customers have more of a say in the services, support, and offers they get.  

3. Companies will Leverage AI for Proactive Service 

Demand for artificial intelligence in the customer service landscape has been increasing rapidly in the last few years. Brands have begun to learn that leveraging AI allows them to provide more personalised and unique experiences to their users across virtually every channel. Already, we’re seeing companies utilise intelligent tools to automate customer service requests, route conversations to the right agents, and analyse sentiment during conversations.  

As customer expectations continue to evolve, one key area where business leaders are likely to increase their investment in AI is to develop proactive services. Artificial Intelligence can use historical information to pinpoint trends and patterns and provide business leaders with insights into how they can solve customer issues before they even begin.  

Moving forward, we’re likely to see more companies looking for ways to get one step ahead of their customer needs with proactive support, assistance, and sales.  

4. Automation Will Continue To Increase 

As staffing concerns and shortages continue to wage war on company productivity levels, countless businesses have begun turning to automation to reduce the pressure on their teams. Intelligent chatbots and conversational AI tools have emerged as valuable resources for businesses looking to reduce the number of support and service requests actually requiring human interaction.  

At the same time, businesses are also leveraging automated systems to help reduce the number of repetitive tasks their team needs to complete daily. The right systems can automatically store information, record conversations, and even follow up with customers without the need for human input. This gives team members more time to focus on the conversations that really matter.  

In 2023, these intelligent automation tools will likely become indispensable tools for companies that need help making the most of their human resources. Unfortunately, they won’t be able to address the staffing shortage alone, which leads us to our final trend prediction. 

5. Service Teams Will Invest Substantially in Outsourcing 

While automation and AI will go some way towards empowering companies to accomplish more with fewer employees, they won’t eliminate the need for informed, educated, and empathetic human interactions entirely. As consumers continue to demand more hyper-personalised and engaging interactions across every channel, companies will still need to ensure they have access to the right human resources. 

Since cost constraints and severe skill/people shortages will make it difficult for business leaders to hire full-time employees to fill the gaps, many will begin looking into outsourcing strategies to augment and supplement the workforce.  

For those who are looking to engage with outsourcing for the first time, those returning to the solution, or those looking for a hybrid approach, DDC OS can support you from a range of global locations to suit your requirements.  

Get in touch to learn more.  

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.  

There has never been as much choice as there is today; the world of e-commerce has ballooned, which means that there are seemingly endless options at the click of a button. The pandemic has only accelerated this trend, and, as a result, some of the best-known brands globally have seen a considerable peak in sales. For example, in September 2021, Boohoo reported a record £976 million in sales over the previous six months.  

Competition is tough, so retailers must make sure that they meet consumers’ current needs and even the future needs they don’t yet know they want. Additionally, modern customers are increasingly concerned with the environment and sustainability. Developing an offering covering all these bases is taxing on retailers’ resources, particularly for less established brands. Consequently, retailers are turning to partnerships more than ever before in order to resolve these challenges. 

Collaboration is the Key  

There are multiple benefits to partnerships that can help us manage the biggest challenges set to hit retail in the coming years:  

• Recruitment, Floor Space, and Infrastructure. 

One challenge that every organisation is up against is finding enough skilled people to facilitate the number of roles available. For example, it has been commonplace for some companies to partner with department stores or other retailers by utilising some of their store space to sell products. This means that existing staff are upskilled to be able to support a level of customer queries for partners.  

Another way to tackle recruitment challenges is to partner with an outsourcing organisation, such as DDC OS. Slight sales puns aside, outsourcing has been a huge supplier of customer services for many years, giving brands strategic insight and access to a skilled workforce, all without the pains of resources and intricacies of contact centre management.  

Back to physical retail space, despite high street struggles, we still see mega supermarkets appear on what sometimes feels like a weekly basis. Interestingly though, we are witnessing the collaboration of brands sharing floorspace (or what is known as brick-and-mortar benefits) and, in turn, footfall, infrastructure and setup costs. Take Asda and Greggs, for example, which became the first supermarket to open the bakery goods counters within its own stores. There’s no doubt we’ll see more and more of this in the coming years.  

• Technology 

The challenges of keeping up with the fluid world of technology are plain to see. The sheer cost of reimagining your tech offering every few years is enough to scare even the most established organisations – the cost of not investing is even scarier. So, to help share this burden, we see a rise in collaborations:   

Take Virgin Media and O2 – a broadband giant and a mobile giant, working together to offer customers the ultimate bundle. Rather than competing and investing huge sums to do so, together, their offering has sent ripples through the telecoms market.   

Taking a more physical view of how technology partnerships can work, we shift our gaze to the US, where Walmart and Verizon have joined forces. The 5G rollout is well underway, and what would be a costly release for Walmart in its superstores is instead handled by their mobile partner, who in turn benefits from more users and exposure thanks to Walmart’s customer base; a win-win.   

• Brand building for specific demographics. 

We have all become increasingly more aware of the impact our actions are having on the planet. For some brands, attaining a green image is a vast and costly task, yet there is hope in the shape of collaboration.  

Roll back the years, Body Shop was making waves in the cosmetics industry. By highlighting how ethical they were, they, in turn, were displaying how lacking some cosmetic firms were with their own practices (at least in the eye of the customers). Impressed by their work, L’Oréal bought Body Shop in a huge deal, in turn showing a massive investment in ethical cosmetics and gaining an existing customer base and chain of stores. Natura have of course since purchased the Body Shop brand from L’Oréal.  

Ok, maybe a buyout isn’t the best example of collaboration. But, as ‘environment’ and ‘sustainability’ continue to gain airtime in boardrooms up and down the land, we see new articles every day highlighting the latest projects and partnerships.  

Take Tony’s Chocolate – their passion for improving the supply chain in the cocoa industry is inspiring. Aldi, possibly the UK’s biggest disrupter in the supermarket game, has partnered with them by first joining Tony’s Open Chain, which facilitates their supply chain’s goal. This was then followed by launching a chocolate bar partnership with them, the first in the UK.  

So, if you’re looking to increase your green credentials and appeal to conscious customers, ask yourself, who can I partner with?  

In a post-Covid world (still an uncertainty even today), things will continue to change quickly and remain challenging, and handling this as a retailer, regardless of size, will be testing. Therefore, partnerships are more appealing than ever.  

Collaboration felt like the ideal place to conclude this short blog series. We hope you have enjoyed the topics covered; we’d love to hear your take on any of the areas important to you. Moreover, we’d love to hear about your services that will help take retail forward.  

As we continue to develop in the wonderful world of retail, we will share more thought pieces with you. Why not get involved?  

With thanks, 

Team DDC.  

 ~

Get in touch 

DDC OS in Retail 

AI is here and here to stay…  

With higher volumes of online shopping comes more data, which means the emergence of Artificial Intelligence. The next generation of insights is here, and their ability to create tailored customer experiences are exciting. As per DataRobot, at least 70% of retailers are expected to adopt AI in the next two years. Here’s why:  

Utilise your existing data – many retailers have data-rich processes but are yet to unlock its potential, with 2/3 retailers claiming their greatest challenge is utilising their data. The uses can be endless; from planning your upcoming promotions and when to run them to choosing your next store location, data enables you to work smarter, not harder.  

Operational excellence – what operational team hasn’t questioned what can be done better? How many hours have been spent pouring over data looking for quick wins, big wins and that extra 5%? AI is helping retailers discover three times the gains in their efficiencies, saving time, resources, and even cash. 

Increase your revenue – each element of a retailer’s processes is under scrutiny to be more cost-effective, including any investments. Thankfully, AI is proving to increase revenues up to 31%.  

The Power of Personalised Marketing  

Setting yourself apart from the crowd could be as simple as understanding your customers better. In fact, according to recent data, a massive 80% of consumers are more likely to buy from brands that offer a personalised experience. Fortunately, you can use data-driven insights to determine what it is that your customers expect and need from you.  

Inevitably, more customised content increases your marketing spend, but the added value for customers could be the difference between them spending with you or a competitor. Insider Trends offered the following insight into how retailers are creating this more customised experience:  

• Create personalised recommendations based on customers’ search histories.  
• Customise your website based on the customer profile so they can access relevant items quicker.  
• Show products suited to their sizes and tastes. (Maybe you’ve already noticed a little note on your recent shopping experiences online: ‘you usually purchase this size’).  
• Advertise on their social media feeds based on their viewing of your website.
   

The possibilities that come from social media alone are endless. Facebook IQ’s report on the next era of hybrid shopping encapsulates the power of social media platforms perfectly: ‘With social feeds increasingly curated to personal tastes, these platforms act as tailored catalogues for shoppers to find products or brands that they may never have known existed before. It works too: 84% of shoppers purchased in-store after finding or discovering the item on social media.’ 

If that list isn’t exhaustive enough, we are seeing the entire marketing mix (the 4 P’s) utilised –let’s look at the product element. Customisable products and solutions are more popular than ever. Even major global brands notorious for their consistency are offering levels of personalisation. Take McDonald’s; whilst no longer in play; they launched the “create your taste” option across restaurants worldwide, letting customers build their perfect McDonald’s burger for the first time, a great example of mass personalisation.  

We don’t have to look in great detail to find many more current options for personalisation, from designing your own football boots with Nike, editing your Moet Champagne label, and getting your name on a jar of Nutella or a Dairy Milk bar.  

On that note, we’re heading to the snack cupboard as we look towards the next instalment which focuses on the role of collaboration in the future of retail.  

 ~

Get in touch 

DDC OS in Retail 

The Rise of Digital Window Shopping 

A quarter of consumers return between 5 and 15 per cent of all the items they purchase online, which is one of the more conservative estimates. There’s a variety of reasons for this trend, not least the fact that it’s hard to judge the quality and fit of certain products when online shopping. Notably, this statistic sharply rises when customers are effectively ‘window shopping’ from the comfort of their own homes.  

For example, when it comes to fashion, a consumer may buy three different sizes of the same item or three outfits for one event, intending to try them all and choose a favourite. The return rate shoots up for such purchases; it’s a whole new level of stock management and returns processing. 

Some retailers are choosing to walk into the ‘£7bn storm’ –consider the Amazon Prime Wardrobe service. It allows customers to select eight items, receive them, try them before returning any they don’t like, before finally being charged for the items they keep. We must ask, would we have imagined a service like this ten years ago? Or would it have been considered too high risk? Which is the higher risk move now, to ignore the demand for these services or embrace them?  

Alongside this trend, the demand for swift deliveries and return options naturally grew. Of course, specific retail sectors were impacted more by this shift than others; according to the IMRG Quarterly Benchmark Q4 2020, women’s clothing has the highest average returns rate at 23 per cent, with footwear closely following, coming in at 20 per cent. Therefore, we must also consider what retailers can do to ensure deliveries and returns are as simple as ever for customers.  

Customers Demand a Smooth Returns Experience 

Returns remain a difficult and inconvenient part of the online shopping journey for many – with research InPost conducted finding that 83% of people who shop online say retailers should do more to make the returns process as easy and fuss-free as possible. Meanwhile, 86% say that a poor returns experience will put them off shopping with a retailer again*, highlighting the critical importance of retailers getting returns right.  

• Parcel Lockers 

With returns now a crucial part of the customer experience, innovations such as lockers can play a central role in driving customer lifetime value and giving retailers a competitive advantage. Available 24/7 and positioned at convenient locations such as supermarkets, train stations and petrol forecourts, lockers offer people a genuinely convenient and easily accessible way to return online purchases as part of their daily routine — be it during their daily commute or while meeting a friend for coffee.  

InPost’s Instant Returns solution is the first of its kind where there is no need for the customer to print out a label at all — not at home nor at the drop-off point — customers can simply scan and drop. With labels being replaced by QR codes, it means it is completely self-service, giving online shoppers ultimate control and convenience, with the whole process taking as little as 10 seconds to complete.  

• In-Store Returns  

There is a straightforward solution if your business has brick and mortar stores and an online presence. Allowing customers to return items in-store when they have purchased items online could be a significant advantage. This is because 62 per cent of shoppers are more likely to buy things online when they know this is an option. Moreover, it can lead to increased footfall instore and, therefore, increased sales.   

• Postal Returns 

Perhaps the best-known method here (and cause of queues at the local post office!) is postal returns. Most retailers now allow customers to print off their return labels at home and take them to a local post office/selected convenience store or have the label printed in-store.  

Steps are being taken by some retailers, such as Next, to make postal returns even more convenient by utilising the delivery vans that stop at our houses or a neighbours’ houses almost daily. It allows the customer to return items from their doorstep. Delivery services are now being used as tools for returns, a clear example of a UX focus.  

All of the above is great, but we must also consider the customer experience element. Here are some thoughts on what should supplement the above.  

• Excellent self-serve tools.  

Customers are happy to do things for you; in fact, 40% of customers now prefer self-serve over human contact. They are often happy to arrange their returns, collect items, and check status updates on their order. They’ll even chat to a bot. So, it’s important for CX that retailers recognise this and then deliver the tools that allow the customer to do exactly what they need to.  

• A knowledgeable customer service team.  

As we all know, irrespective of how innovative your organisation may be and how easy your delivery and returns processes are, there are always situations whereby your customers will want to talk to you. Therefore, the customer service team must know your processes so they can firstly relate and understand the customer and then solve the issue. This can be a difficult task given the options available. Still, through extensive training and support and knowledge bases, your customer service team should be able to provide the final touches to your delivery and returns processes.  

* All figures, unless otherwise indicated, are based on a survey of just over 2,000 UK adults conducted by Opinium on behalf of InPost from 25 February-1 March 2021. 

Get in touch 

DDC OS in Retail 

Flexibility in Delivery and Returns  

Perhaps one of the most significant changes in e-commerce is the customer’s decision-making process. For example, when a customer buys a piece of clothing online, they are unlikely to be sure of the fit and size; even the style can be hard to judge through a screen. In a physical store, much of this is negated. We have seen an increase in people purchasing more items online with the intention of returning much of the order – 1 in 3 fashion purchases are now returned. This change in purchasing behaviour has led to the need to modify and simplify returns processes. Ensuring that customers can return items quickly and efficiently isn’t an easy task, nor is it cheap, with an estimated £7bn cost associated with returns.  

As online orders increase dramatically, so have delivery and return demands, ‘with parcel deliveries rising 50 per cent to 4.2bn in the financial year ending last March, according to industry regulator Ofcom’. As a result, services such as, parcel lockers – like those provided by InPost – have become all the more necessary and popular. So much so that ‘the number of potential customers within 5 minutes of a locker has risen from 2 million to almost 7 million in the last year‘. Such infrastructures have been vital in easing the strain on even the biggest delivery giants whilst still living up to consumer expectations of a stress-free process. 

For those of us with an eye on innovation much further in the distance, enhanced touch screens are being discussed as an option to help customers feel objects. That would surely help reduce some of the return’s volumes. Watch this space, with some early versions of this expected in the next five years!  

Options for Payment  

The way that customers pay for online purchases is constantly changing. Before now, most retailers offered a single payment option. A consumer would input their card details and the money would leave their account accordingly. However, there has been a movement here to provide customers with more options. Using credit-based systems, such as Klarna, means that customers can buy products now and settle the balance at a time that suits them. Alternatively, a customer might choose to pay with PayPal, Apple Pay, Google, etc.  

Giving customers options is key – the easier their journey, the more likely they are to make a purchase. A word of caution, though; as the saying goes, more money (or, in this case, payment options), more problems. Therefore, your customer service team must be armed with the knowledge of the different options available to customers so they can effectively support incoming queries on payments. An informed customer service team is an effective one.  

Customised E-Commerce Experiences  

The major difference between in-store shopping experiences and the world of e-commerce is the presence of human interaction. So much of the online experience is automated; customers simply click a button and the products they’ve ordered get delivered to their door. This means retailers have limited opportunity to upsell products or encourage a purchase, as is possible in-store. Digital tools have come a long way in terms of the support they can offer customers online, but what can we do to make that situation more interactive and brand immersive?  

We are seeing more ‘customised’ shopping experiences appearing in the market. Take the fashion world with Stitch Fix and Thread – where the experience replicates having a personal shopper. These services show that creating more interactive offerings doesn’t necessarily mean increasing your headcount and therefore costs. We can certainly expect to see more of this as time goes on.  

Keeping up with Demand  

But, what of situations where a higher headcount might be required? Creating more interactive and immersive digital experiences will depend on your resources. As you add more strings to your bow, you aren’t replacing the old ones. Your customers will still want to call to see why that parcel is a day late, or to ask why they haven’t received a refund yet, or to complain that their order has not met expectations. This realistically leaves two options: 

Firstly, you can grow your own team – utilising that loyal, experienced instore team that has sadly seen its store close, giving them the chance to reallocate those skills. This has already been successfully implemented throughout lockdown; for organisations such as jewellers. Clearly, it is still possible to deliver high-quality customer service in such ways. 

Alternatively, you could choose to work with an outsourcing partner. They can deliver your standard customer service expectations and, importantly, go way beyond this by providing the kind of personalised services aforementioned. Outsourcers are flexible enough to grow with you, taking on the pains of recruitment during peak times. They can also offer you multiple locations for cost-saving purposes and, in most cases, provide access to multilingual, skilled staff – at least that’s the case here at DDC OS. More importantly, an outsourcing partner should be strategic, supporting your aims as an innovative, ever-evolving retailer.  

Indeed, lots to think about; in fact, next time, we will dive even deeper into the topic of delivery and returns.  

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DDC OS in Retail 

Since the COVID-19 outbreak began, many of the most beloved retailers have gone into administration; just over a year ago, the Arcadia Group – including Topshop, Topman, and Miss Selfridge – closed for good, and this shift has left the high street looking more and more desolate. However, while many physical shops have been forced to look at new and innovative ways to keep interest in an in-store experience, the e-commerce market has quickly adapted to the challenges, and demand continues to grow as a result.  

On a further positive note, e-commerce first businesses are now looking at what impact can be made with a physical presence. Amazon, the world’s largest e-commerce site, continues to push on with the opening of physical stores around the globe. It’s a trend that seems to be catching on with the likes of Gymshark and The Boohoo Group joining the movement. It will be interesting to see the innovative approaches they take to a more traditional channel.  

Online shopping has seen a 22% year-on-year increase since the pandemic started, so many UK consumers have evidently taken the transformation in their stride. Ordering products online — such as clothing, cosmetics, games, and homeware — has become the norm. This has created a gap in the market for new features and offerings in customer service: what can be done to handle the increased communication volumes driven by digital activity? How can we begin to replicate in-store experiences so that the customers leave with positive shopping experiences that go beyond a few clicks?   

The Interactive Digital Experience  

Most of us by now have used a chat bot or live chat, but could it be time to also make co-browsing, and virtual agents commonplace? Almost 40% of internet users prefer interacting with a chatbot instead of a virtual agent. Still, there are many ways to implement one of these systems into your online customer service setup.  

When a customer is browsing on your website and has a question about your products or services, they may be able to seek support through a live chat/bot feature or hesitate to interact at all. However, retail firms have the opportunity to take this to the next level: “Hi there, are you looking for something specific today? Here’s something to match the jeans in your basket. Just let me know if you’d like to ask any questions or see some recommendations.” So now, through pro-active chat there can be an in-store experience online.   

Whilst chatbots can deal with numerous customer concerns, co-browsing or virtual personal shopping is a tool that allows online agents to help consumers select the right products in real-time. For example, when a customer is searching for products on your site, a live agent will be able to see their active screen and look at products alongside them simultaneously. 

One of the significant advantages is that it allows agents to play a vital role in the customer journey. During this process, the agent can offer technical support, recommendations, upselling options, and deal with customer onboarding (to membership schemes and the like). In addition, as a retailer, you can install co-browsing platforms or add-ons into your existing online offering to give customers an entirely new—more immersive—experience.  

Further to co-browsing, we saw the rise of live video consultations. High-end purchases often require a more detailed shopping experience, which is often tricky online. Allowing customers to speak to an advisor “face to face” can make that daunting proposition easier. As highlighted by the Retail Times, “demand for live video consultations sees no let-up as physical retail reopens.” It is a great option where co-browsing may not be suitable, or the customer is looking for that next level of service.  

These kinds of tools are enabling market “disruptors” to have an impact on traditional practice. Take the world of estate agents – video consultations for viewings and beyond are becoming standard with the likes of Strike and Purple Bricks. As well as making the UX as simple as possible, it also enables the organisations to grow and manage resources in markets previously out of reach.  

Future Proof your Experienced Team  

As many stores close, redundancies unfortunately follow, and brand-loyal and highly experienced staff members are lost, the value of which can be immense. Yet, the need for online customer service advisors still exists. Taking the time to reposition your talent elsewhere could be the answer; after all, customer-facing service roles have a plethora of skills ideal for delivering an in-store experience digitally. These individuals are well-versed in all your brand’s values, understand customers’ needs, and are comfortable sharing their expertise with the people who need it most.  

Making these staff members brand ambassadors and allowing them to play a vital role in this new chapter of your company sounds great, right? As highlighted above, there are means in which to enhance your online customer support, an ideal place for such team members.    

As Retail Week stated, “Those that get it right will secure the talent that can lead their business into an uncertain – but exciting – future.”  

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DDC OS in Retail