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SQM Group Resources Library Blog Customer Service vs. Customer Experience
Customer Service vs.
Customer Experience
June 25, 2024 | 7 min read
The terms ‘Customer Service’ and ‘Customer Experience’ are often used interchangeably in customer support.
Customer service and customer experience are closely related but different.
Customer service is about helping customers with their immediate needs, while customer experience covers every Have a Question?
interaction a customer has with your company from start to finish. Understanding and combining both can greatly
improve your company’s reputation and customer satisfaction. Contact Us
What is Customer Service? Search blog... Search
Customer service in call centers revolves around the support offered to customers before, during, and after purchasing
products or services. This encompasses a range of activities, from answering customer inquiries, resolving issues, and
providing technical support to handling returns.
Effective customer service is often judged by the speed, efficiency, and courtesy extended by agents. It is primarily
reactive, focusing on customer-initiated contact and addressing specific problems or questions that arise.
SQM research shows that 88% of people have stopped doing business with a company due to poor call center
mySQM™ QA, the #1
customer service. This statistic alone should motivate companies to train their agents in customer service skills.
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Strong customer service is fundamental to building lasting relationships with customers. It provides a critical touchpoint
First Call Resolution (FCR): A
that can significantly influence customer loyalty and satisfaction. By efficiently resolving issues and demonstrating
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genuine care and empathy, call centers can make a meaningful impact on how customers perceive their brand. Here
are some key aspects:
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Responsiveness: The speed and efficiency with which customer inquiries and issues are addressed. Quick
response times and timely resolutions are crucial for maintaining customer satisfaction. Call Center Agent Coaching
Professionalism: The manner in which agents interact with customers. This includes being courteous, respectful, Session - 10 Tips for Improving
and maintaining a positive demeanor throughout the interaction. Performance and Increasing
Knowledgeability: The ability of agents to provide accurate and helpful information. This requires thorough Customer Satisfaction
training and a deep understanding of the company’s products, services, and policies.
Empathy: The ability to understand and share the customer's feelings. Demonstrating empathy helps build Call Center Quality Monitoring:
rapport and trust, making customers feel valued and understood. Best Practices for Improving Its
Impact on Customer Service
These elements help build trust and confidence in the brand, encouraging customer retention and fostering a positive Customer Quality Assurance –
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What are the Key Metrics for Customer Service?
Call Center Agent Turnover
1. First Call Resolution (FCR) Problem: The Great Resignation
and Quiet Quitting and Top 3
FCR measures the percentage of customer issues resolved on the first contact. A higher FCR indicates efficient
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problem-solving and reduces the need for follow-up interactions. SQM's CX research shows that 93% of customers
expect their call to be resolved on the first call.
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Measuring First-Call Resolution (FCR) can be complex. SQM’s Customer Service QA software uses internal (e.g., case Service QA Form – With a
management/CRM) and external (e.g., post-call surveys) methods to calculate the FCR rate. Scorecard Example
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customer survey data from the agent to Customer Service Call Center
satisfaction derived from a QA evaluation. Our
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2. Average Handle Time (AHT)
AHT is the average duration of a customer service interaction, including talk time, hold time, and any follow-up work. Quality Assurance in a Call
Lower AHT can indicate efficient service, but it must be balanced with quality. SQM Group’s research shows that the Center
number one thing customers expect from call centers is fast resolution for resolving their inquiries or problems.
3. Customer Satisfaction Score (Csat) View All Related Content
Csat is a metric derived from customer surveys that ask customers to rate their satisfaction with the service they
receive. It is typically measured on a scale of 1 to 5 or 1 to 10.
4. Net Promoter Score (NPS)
NPS gauges customer loyalty by asking customers how likely they are to recommend the company to others.
Responses are on a scale from 0 to 10, with scores categorized into promoters, passives, and detractors.
5. Average Response Time
Average response time is the average time it takes for an agent to respond to a customer inquiry. Faster response times
generally correlate with higher customer satisfaction.
What is Customer Experience?
Customer experience in call centers extends beyond simple service interactions to the overall perception customers
form based on their cumulative interactions with the brand. It considers the entire lifecycle of the customer, aiming to
create a seamless, positive journey from start to finish.
This holistic approach includes everything from finding the correct contact information to how well the call center
integrates with the rest of the company’s offerings.
What is the Impact of Customer Experience on Customer Relationships?
The impact of a well-designed customer experience strategy on long-term relationships cannot be overstated. It serves
as a differentiator in a competitive market and can be the deciding factor in customer loyalty.
A positive experience can lead to repeat business and referrals, which are crucial for growth and sustainability. On the
other hand, a negative experience can cause lasting damage to a brand’s reputation and result in lost customers. Key
factors include:
Consistency: Ensuring that customers have a seamless and uniform experience across all touchpoints, whether
in-store, online, or over the phone. Consistency builds trust and reliability.
Personalization: Tailoring the customer experience to individual needs and preferences. This can include
personalized recommendations, offers, and communications that make customers feel unique and valued.
Ease of Use: The simplicity and intuitiveness of navigating the company's products, services, and platforms. A
user-friendly design and clear processes enhance the overall experience.
Feedback and Improvement: Actively seek and utilize customer feedback to continuously improve the customer
experience. This shows customers that their opinions matter and helps refine services to better meet their needs.
These practices ensure that customers feel valued throughout their relationship with the company, turning average
interactions into memorable experiences.
What are the Key Metrics for Customer Experience?
1. Customer Effort Score (CES)
CES measures how easy it is for customers to interact with the company and resolve their issues. Lower scores indicate
that customers find it easy to get the help they need.
2. Customer Lifetime Value (CLV)
CLV estimates the total revenue a company can expect from a single customer over the course of their relationship.
Higher CLV indicates that customers are engaged and loyal.
3. Churn Rate
The churn rate is the percentage of customers who stop using a company’s products or services within a given period. A
lower churn rate indicates better customer retention and satisfaction.
4. Customer Feedback and Reviews
Qualitative data is collected from customers about their experiences, often through surveys, online reviews, and social
media comments. Positive feedback and reviews indicate a good customer experience.
5. Repeat Purchase Rate
The repeat purchase rate is the percentage of customers who make multiple purchases over time. A higher repeat
purchase rate indicates that customers are satisfied and value the overall experience.
What is the Difference Between Customer Service and
Customer Experience?
Understanding the distinction between customer service and customer experience can be confusing. While customer
service focuses on addressing specific customer needs and issues, customer experience encompasses a broader
overview of the customer's journey and overall brand satisfaction.
Here are the main differences:
Scope: Customer service is a single aspect of the customer interaction, primarily reactive and problem-focused.
In contrast, customer experience is all-encompassing, focused on the customer's entire journey with the brand.
Objective: The primary goal of customer service is to resolve problems efficiently and effectively, whereas
customer experience aims to fulfill customers, fostering long-term loyalty.
Impact: Good customer service can resolve issues, but excellent customer experience can transform a first-time
buyer into a lifelong advocate.
For example, imagine you call your internet service provider for help with a connectivity issue:
Customer Service: The agent answers your call quickly, listens to your problem, and provides a clear, step-by-step
solution to fix your internet. They are polite and knowledgeable and resolve your issue on the first call.
Customer Experience: When you call, the company's automated system recognizes your number and greets you by
name. You have the option to request a callback instead of waiting on hold. After the call, you receive a follow-up email
with additional resources related to your issue and a survey to rate your satisfaction. The company also uses your
feedback to improve its service.
In this scenario, the agent's effective and courteous assistance is an example of good customer service. The overall
smooth, personalized, and considerate process from start to finish showcases a positive customer experience.
By distinctly addressing both customer service and experience, call centers can significantly enhance their overall
effectiveness in fostering lasting customer loyalty and satisfaction.
Which One is Better: Customer Service or Customer
Experience?
Customer service and customer experience are not mutually exclusive; instead, they work hand in hand to create a
holistic and impactful relationship between a business and its customers.
Customer service focuses on addressing immediate needs and concerns, providing quick resolutions, and ensuring
customer satisfaction on a transactional level.
On the other hand, customer experience takes a broader view, encompassing every touchpoint and interaction a
customer has with the company throughout their entire journey. This includes pre-purchase interactions, the buying
process, post-purchase follow-ups, and ongoing engagement efforts.
While customer service is essential for addressing specific issues promptly and effectively, customer experience aims
to create a seamless, personalized, and memorable journey that fosters loyalty, advocacy, and long-term relationships.
Ultimately, both customer service and customer experience are crucial elements of a successful business strategy, each
contributing unique benefits that collectively enhance the overall customer relationship.
About the Author
Amelia Colquhoun is the Content Manager at SQM Group, an organization dedicated to
helping call centers improve CX and QA through their mySQM™ Customer Service QA
Software.
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