There’s a looming recession. Can GigCX help businesses?
By Megan Neale, COO, Limitless
According to Bloomberg,
the US economy will likely fall into a mild recession by the end of 2022.
Now is the time to prepare customer service
plans for a potential recession. The most agile leaders will look at ways to
optimize the resources they have, while searching for avenues that provide a
lower cost to serve.
That said, leveraging gig experts for your
customer service may be the alternative that your business needs to weather
changes in the world. In fact, for McKinsey
GigCX is one of the next big developments in customer experience, offering
companies a more flexible, scalable, and affordable model for customer
With GigCX, brands can harness the
real-life experience and empathy of their customers, using them to help achieve
higher customer satisfaction at a significantly lower cost than traditional
The GigCX model, in which Brand Advocates
work on an on-demand basis from anywhere, offers a dramatic reduction of
cost-to-serve by removing the need for the fixed resourcing models. Not only
does this mean GigCX operates at a significantly reduced cost but the
advantages of rewarding your own customers for helping others is powerful at a
time when all consumers are struggling with the rise in cost of living.
According to industry
research, knowledge bases are preferred over all other self-service
channels, whilst millennials’ preferred customer service channel is live chat.
If we add to that the fact that over 90% of US
consumers look at a company’s customer service as a key aspect for doing
business with them, and over a quarter of consumers would switch companies
immediately after a bad customer experience, it is clear that having the right
people in charge of your customer service is more important than ever.
And this is where GigCX experts could play
a pivotal role.
Change in type and volume of customer
demands – demands on customer service agents and GigCX Experts have not only
increased but also changed. Max Ball, Principal Industry Analyst, Forrester
notes that “today, agents are getting a much higher volume of calls, and those
calls are more difficult and challenging to deal with”. Notably, our recent
survey showed that 82% of GigCX Experts surveyed felt the nature of customer
service queries has changed over the pandemic, such as people wanting added
services, faster answers, and more personalized contact.
In such cases having GigCX Experts can be
more beneficial because:
1. Customers are getting advice
from experts who often have a better understanding of user issues, having used
the product or service extensively, than contact center employees, who may not
have the in-depth knowledge of power users after training.
Genesys’ Marijn te Booij calls this “the
conversation function” to explain the fact that customers prefer to take
product advice from other customers rather than the brand itself and compares
it to the concept of “a peer who is helping you, or explaining something to you
that you didn’t yet know, in a very relatable way”.
2. Their motivation of helping others
comes before earning more money. “There have always been people who get a
genuine buzz out of helping other people, but now they are being compensated
for that, and helping to improve the customer experience formally and it can be
done at scale.”
Costs in retaining and attracting staff –
In 2021 contact center attrition rate was 42% which, according
to NICE WEM Global Survey, although this industry doesn’t seem to have
suffered from the Great Resignation, it still equates to millions of dollars of
The worrying point is that only 30% of companies
surveyed said they were actively investing in retention. The (not so)
surprising point is that for 47% of agents, flexible scheduling is a key
requirement to make them stay in the job. Adding to that is the fact
that, according to a recent
survey, 62% of customer service managers said they have had to increase
recruitment spend in order to meet staffing minimums.
This is where GigCX’s agility and flexibility
can help businesses to scale up as and when they need to do so – whether to
support peak seasons or special new product launches. It provides a level of
flexibility that will act as a significant supplement to traditional contact
centers. Serving customers with an agile pay as you go model also helps lower
costs as brands only pay for resolved queries, not per active Expert.
The GigCX model is inevitable – and it is
not just us saying this, 83% of CX leaders interviewed for our recent survey
said so. The benefits it can bring are enormous, particularly at times of
uncertainty and of financial difficulties, GigCX can provide reliable resources
that flex with demand in volume while still ensuring high customer satisfaction
and create a truly customer centric operating model. A win-win for all, for
consumers and for brands.