Contact Centers vs. Cost Centers

Many business owners see customer service as a cost center to be minimized, not an engine for growth.

They might pay lip service to providing a “great experience," but behind closed doors, they become fixated on efficiency metrics like call resolution time and first call resolution (FCR). The prevailing wisdom is that shorter calls and FCR maximization are the key to profitability.

But there are a few reasons why these assumptions rarely bear out in practice:

1. 1. On its own, efficiency doesn't create a memorable customer experience. It doesn't lend itself to positive word-of-mouth, organic social media buzz, or elevated retention. In the long run, superficially efficient processes can even end up costing a company customers.
2. 2. Short interactions often look great in the moment but stand little chance of escalating the relationship to its full potential. Customer service is a marathon, not a sprint. Every interaction presents an opportunity to capture more information, offer more personalized support, and nudge towards a sale. An AI that quickly resolves a narrow issue may be very efficient but often isn't doing anything to improve the customer's lifetime value.
3. 3. A blind focus on FCR rates can be misleading. The metric doesn't account for how the customer feels about their experience or whether the issue was satisfactorily resolved. If the AI agent is more concerned with wrapping up quickly than with responding thoughtfully, the initial FCR can be earned at the cost of follow-up calls, dissatisfaction, and attrition.

Our experience at OpenCall has shown that AI-assisted customer service that prioritizes the customer's needs frequently pays off in tangible ways:

When agents are freed from menial, time-sucking inquiries, they can generate new revenue streams by offering non-routine services or nurturing leads.

• • Loyalty and retention spike as customers begin to see a brand's support as integral to the overall product value proposition. Not just a cost to be optimized away.

• • Inbound calls become an opportunity to cross-sale or reactivate dormant clients, rather than just a cash drain to eliminate.

• • Informed, polite AI agents set the right expectations about upcoming events or offers, giving customers a reason to engage proactively.

While taking shortcuts to "optimize" customer support will put dollars back in your pocket in the short term, in the long term, it often takes them right back out, through the expenditures needed to acquire the customers you lose.

On the flip side, businesses that invest in an AI-enhanced customer experience that truly understands and adapts to the user - call by call, interaction by interaction - are making a bet that will pay dividends for years to come. In today's digital economy, a great support experience is brand equity.