Part 1

Boost confidence in de-escalation

and conflict resolution
Ensuring customer service representatives provide quality experiences—in particular
during difficult conversations—is critical to building long-term customer loyalty and
reducing churn. Especially when you consider it costs six to seven times more to
acquire a new customer than to keep them. 

Service agents are used to managing dissatisfied, frustrated, and angry customers,
but in today’s climate, where fractured supply chains and polarized political and
social ideologies are rampant, there are significantly more escalating incidents than
before the pandemic. 

Long-time customer service and de-escalation expert, Myra Golden, says this trend
isn’t slowing down anytime soon. Her client, a Chief Member Experience Officer in
the financial industry, recently shared a troublesome story:

We're seeing a higher volume of angry and difficult customers at a higher level of
intensity. We've had customers spit on and kick our employees; we were side-
swiped. And now, we feel we have to guard and give our employees high-level de-
escalation tactics. We have to keep them safe in our current stressful work
environment.

Now more than ever, empowering customer service representatives to swiftly and
efficiently resolve a variety of customer disputes through de-escalation methods is
business-critical.

The importance of service de-escalation tactics 

De-escalation is a conflict-resolution technique that service agents can apply to

resolve issues as quickly, efficiently, and safely as possible. 

When de-escalation methods are not employed correctly, Average Handling Times
(AHT) increase, which, in turn, extend hold time for customers waiting to speak to a
representative. And the longer a customer is on hold, the more frustrated they will
become.

Escalated interactions increase the risk of negative customer reviews and company
perceptions. Worse still, after more than one bad service experience, 80% of
consumers say they would rather do business with a competitor. Moreover, high
levels of conflict with customers cause stress on employees, leading to burnout or
employee churn. 

De-escalation tactics aren’t a one-size-fits-all solution; methods vary by industry and

business type. However, below are some of the most popular de-escalation tactics
and tools for your Service team’s consideration.
The 3R Method of de-escalation

Service agents can remain confident and in control during challenging customer
interactions by implementing the 3R Method of de-escalation: 

1. Recognize
2. Reframe
3. Resolve 

Let’s walk through each step of the 3R Method.

Step 1: Recognize

When you recognize, you’re empathizing with the customer’s pain point. This makes
the customer feel heard and understood, and it begins to move the customer out of
right-brain thinking, which tends to be more emotional. Take, for example, this
agent’s response to a customer who is upset because they’ve just learned that the
shipment of the new table they ordered five their months ago is delayed for another
four months because of a company error:

Our error is no more acceptable to us than it is to you.

This response acknowledges the customer's frustration and the company's mistake. 

Step 2: Reframe

To reframe, is to redirect intensity by positioning the issue at hand under a positive

light. Let’s use the example above about the frustrated customer who ordered the
table. The service agent could say:

We will contact manufacturing about expedited shipping and discuss any concession
necessary if we have delays.

Step 3: Resolve

When you resolve, you’re guiding the customer through the next steps even if you
can’t immediately give them what they want. Using the same customer scenario as
above, a resolution might look like this:

I certainly understand your frustration. If I were in your shoes, I'd feel the same way.
Rest assured, we will urgently work to meet our original timeline. We will be in touch
within seventy-two hours with our recovery plan.

What to avoid during escalated interactions

While navigating tough conversations, it’s important to refrain from agitating the
customer further. Avoid raising your voice or interrupting the customer while they are
speaking. Instead, practice active listening by observing what verbal and non-verbal
messages the customer is communicating. More often than not, customers are just
eager to be heard and have their experiences validated. 

Below are three key behaviors to avoid: 

Elongating customer wait time 

For instance, when speaking with customers via phone, refrain from putting them on
hold or transferring their call unless absolutely necessary. It’s likely that they’ve
already waited to speak with a representative from your company and increasing
their wait time will only frustrate them more.

Poor body language

If you’re speaking with a customer in person, be cognizant of your body language.

Avoid crossing your arms or looking away as they speak. Be patient and listen––this
will help create the space for the customer to calm down so they can share valuable
details that will help resolve their issue. 

Speaking in absolutes 

Avoid saying “no” to a customer. The more options to a solution you provide, the
more likely you are to de-escalate a situation. For instance, a customer walks into a
bank with a big check and asks for it to be cashed. However, the bank doesn’t have
the capacity to do that. The service representative can say, “We can’t cash your
check, but we can deposit it today and put an order for the cash to be ready in two to
three working days.” 

Empower service agents to take responsibility 

One of the most critical aspects of conflict resolution is empowering service

representatives to take responsibility over the customer’s outcome whenever
possible. 

Zappos, the American online shoe and clothing retailer, is exemplary in empowering
customer service agents to take the reins. Below are some examples of actions
taken by Zappos call center agents (with no approval needed):

1. Talk with a customer on the phone for 10 hours and 29 minutes

2. Send get well soon flowers to a customer’s ill mother on the company’s dime
3. Refund a customer for a defective product, and then send a replacement for
free
4. Send a care package to a soldier in Afghanistan who called to exchange his
shoes 

Zappos reduced strict policies and procedures and replaced them with support and
robust training. In doing so, agents feel trusted by the company and more invested in
the customer’s experience.  
For this approach to work, agents must have the right tools and training at their
disposal. The 3R Method is a great resource, but there are many more tools for
empowering customer service teams. 

Apply ample monetary amount

Take a look at your customer data to discover the average dollar amount it takes to
resolve issues. If you find, for example, that reps can fix 80% of problems with
$74.00, empower them to improve the customer’s experience by spending up to
$75.00. This will boost the agents’ confidence and significantly reduce escalations.

Prepare two-tier solutions

You can empower your representatives to solve problems on first contact by

providing pre-established solutions to each of your top issues and additional
resolution options. Identify the top 10 to 50 common problems and map out precisely
how reps should handle them. Here's an example:

Issue: A customer complains they waited 45 minutes for the airport shuttle.

Suggested solution: Recognize concern, apologize and apply a credit of $50 or

$10%, whichever is less expensive. You can say, "Oh no! That's certainly not our
standard. As an apology, I'll take 10% off of your rental immediately when you return
the vehicle."

If the customer pushes back on the solution, you can offer up to $70 or 20% off,
whichever costs less.

Role-play scenarios

Make a note of escalation trends and periodically sit down with your team to go over
your findings. In staff meetings or one-to-one discussions, walk through what
employees missed, what supervisors said and did, and together role-play how the
frontline can better handle such interactions in the future. 

Technology for automation and efficiency

Customer service agents need technology that provides visibility into real-time
customer account data. Providing your agents with a 360° view of the customer’s
history––like order history, status, and satisfaction ratings of last interactions––
enables agents to identify the best, individual course of action for a particular
customer to provide a more efficient experience. 

Integrate your technology––including your CX platform, customer relationship

management (CRM), and communication channels, like Slack––to automate
processes and help agents save time while also taking the right action to better the
experience. For instance, with the right tools, you can set up workflows and
automated alerts so high-value tickets are prioritized and routed to the correct teams
for faster response time.
Remember that technology for Service teams must be robust and flexible. Customer
needs are always evolving, and agents must be able to adapt in real time.

Technology also improves the ability to personalize the customer experience at

scale. And many CX teams are taking note. Since the onset of COVID-19, 73% of
CX professionals have increased their efforts in delivering a personalized experience
to customers as a method to help boost loyalty. 

Mental health resources 

Resources aren’t limited to training and technology. Companies, especially in today’s

climate, need to prioritize their Service teams’ mental health. 

When companies encourage mental health in the workplace, employees are more

likely to say they have “higher job satisfaction and intentions to stay at their
company.” 

A Momentive study found that stress was the number one reason that people are
quitting their jobs. More importantly, 22% of people planning to quit have explicitly
stated that it’s because they “need to focus on mental health.”

There are many ways businesses can support the mental health of service agents,
such as: providing mental health coverage in healthcare plans; granting
subscriptions to virtual wellness services like Ginger and Headspace; and building
flexibility into agents’ workflows whenever possible to enable people to take time
when they need it. 

Some Service teams have taken an even more creative route, establishing Slack
“scream channels,” where agents can vent with their peers about unpleasant
customer interactions (keeping the customer anonymous). For more ideas,
read: Pandemic rage: how to support your customer-facing employees. 

And if you’re looking for more resources to improve the wellness of your agents,
check out this Human Resources toolkit.

A few words about language and cultural differences 

In such a diverse world, service representatives will engage with customers who
don’t share our native language, or whose accents might be challenging to
understand. In these scenarios, it's essential to demonstrate extra care, so
customers from diverse backgrounds feel respected. Here are two tips to guide you.

Be fully present and engaged

Often, a complete focus on the customer helps you overcome language challenges.
Lean in (on the phone and in-person) and listen with the intent to understand.

Put things on your shoulders

When you struggle to understand a customer, put things on your shoulders rather
than making them feel they aren't communicating well. You can say, "I'm sorry, it’s
very loud in here. Can you repeat that for me?" Or, "Can you please spell out your
last name for me?"

Now that you’re equipped with tools and tactics for de-escalation, let’s discuss how
your Service team can measure the success of its efforts to boost customer loyalty. 

Part 2

Improve customer loyalty while

navigating unexpected changes
According to McKinsey, customers are switching brands at an unprecedented rate––
75% of shoppers tried a new retailer, brand, or behavior during the pandemic, with
up to 83% expecting that trend to continue post-pandemic. 

Though people may choose a company based on its product, they won’t hesitate to
leave if the service experience is poor. Great customer relationships are founded on
great customer service and support. 

Customer service boosts customer loyalty by making experiences effortless.

However, this has become increasingly difficult. Customers are more agitated due to
the disconnect between their expectations and the reality of the situation––supply
chain issues are a great example. In turn, service representatives are becoming
resentful toward these customers, making it harder to remain customer-centric within
the organization.  

It is possible to cultivate customer loyalty while navigating unexpected changes by

instilling confidence in service agents and empowering them with proper conflict
resolution methods (see Part 1 of this guide). The key is to measure the efficiency
and scalability of your service team’s efforts in real time. In doing so, you’ll be able to
pivot quickly and hone in on the areas that require improvement. 

There are two main CX metric categories for customer service: customer

satisfaction and customer effort. Both include a variety of metrics to choose
from––use what is most relevant to your company’s goals.

How to measure customer satisfaction 

When you consistently measure customer loyalty, you earn executive buy-in: 83% of
CX leaders say that executive leadership finds customer experience data extremely
valuable. 

The top satisfaction metrics for service teams to take into account are Customer
Satisfaction Score (CSAT), Star Ratings, Net Promoter Score® (NPS), and Value
Enhancement Score (VES). Let’s dive into each metric.
Customer Satisfaction Score (CSAT) 

The Customer Satisfaction Score is assessed by asking customers: “How would you

rate your overall satisfaction?” with your company and its products, services, and
interactions. 

A five-point scale is most commonly used, with options ranging very

unsatisfied, unsatisfied, neutral, satisfied, and very satisfied.  

Customer service teams should use a CSAT survey throughout their support

channels—email, live chat, SMS, communities, and knowledge base—to identify
problem areas that need immediate attention in real time. 

The most popular CSAT use case is case-closed. This survey helps service teams
monitor how well issues are resolved in real time. Once a customer provides
feedback, your team can set up workflows and automated alerts for ticket support, so
high-value customers are escalated directly to the right team and resolved
immediately. 

YETI, an American manufacturer specializing in outdoor products, uses

GetFeedback to collect Customer Satisfaction Scores (CSAT), combining it with
other data to ensure the right agent is assigned to the right customer. The gathered
data includes customer issue type and efficiency stats about individual service reps,
such as handle time. This way, problems are handled quickly, which leads to greater
satisfaction. Read their full case study here. 

The CSAT metric can also help you optimize support content for self-service. Identify
what help center content is fulfilling customer issues and what areas need
improvement, and you’ll minimize your caseload.