6. Challenges & Opportunities for Customer Service

Question 1

What legal requirements are the baseline for firms when formulating the levels of service they provide to their customers?

Answer 1

1. Consumer Rights Act 2015
2. FCA’S TCF

Question 2

Reputation of an industry can also impact whom?

Answer 2

An individual firm - many within the industry are trying to work together incl LA & insurers to restore consumer trust following the credit crunch and financial crisis which damaged the reputation and trust of the financial services sector.

Question 3

Who suggested that the financial industry is showing signs of restoring customers trust?

Answer 3

Edelman Trust Barometer

Question 4

What is the key challenge for the financial sector moving forward?

Answer 4

Trust

Question 5

The Evolving Customer - customers are constantly changing in terms of service they expect, examples incl: (4)

Answer 5

1. Response times: Expect near immediate response times, less patient. Different ways to contact, social media - HIGH expectations(fb etc). Firms need clear strategy to meet these expectations.
2. Personalisation: Seamlessly access their info and receive great service. Customers want choice. Products & services to be tailored to their needs. Accuracy in documents they receive.
3. Empowerment: customer always right when leaving feedback. Customers expect to be listened to and have their feedback acknowledged.
4. Product Knowledge: have limited knowledge on insurance, therefore comparing insurance products, key factor is price, not cover or service. Concern of custs buying wrong product or underinsurance. Insurance industry has attempted to resolve problem by - simplifying products, educating consumer, providing transparency on pricing etc.

Question 6

There are a range of channels available in doing business in terms of producing product, servicing customer & communicating. Channels can include; (6)

Answer 6

1. Physical locations
2. Webpages
3. Social Media
4. Live Chats
5. Mobile applications
6. Telephone communication

Question 7

What is an advantage of omni-channels?

Answer 7

The customer can choose how they interact with the firm

Question 8

What is a disadvantage of omni-channels?

Answer 8

Providing high standard of customer service across all channels consistently