Media & Entertainment

Bots, Messenger and the future of customer service

Comment

Michael Schneider

Contributor
Michael Schneider is the founder and CEO of Service.

In the 1970s, CFOs sat with CEOs and devised ways for upset consumers to not be able to get compensation easily. They put up automated phone systems and arcane and inflexible policies and rejoiced at how little the company had to “give up” to complaining customers.

And this system worked… until social media gave every average “Joe” the same power as society’s most prominent citizens to get a company’s attention when they weren’t happy.

Watching F8 last month, one couldn’t help but wonder if the future is truly as simple as opening a chat and texting what you need. Order flowers ✔ Get news ✔ Check the weather ✔ Handle customer service issues?

How many of us who have called our cable company and been on hold “forever” wouldn’t love to chat with a rep and get our issue handled in a minute (Amy Schumer would agree)? How many of us would love to chat with an airline and resolve an issue in real time? While these things sound great in theory, it’s not quite so simple.

Chat is a better medium than the phone for most people, especially younger people. But it doesn’t solve everything. An inarticulate consumer is going to be inarticulate over chat. A rep that’s having a bad day is going to be just as inflexible and unsympathetic in a chat. Changing the medium isn’t a silver bullet for customer service.

Bots can help with customer service. They can gather information for the eventual interaction with a human rep, understand exactly what happened and what the consumer wants and even be empowered to solve basic issues, automatically.

Bots have been around a long time —  phone systems ask you to speak your account number, say what you’re calling about or push a digit corresponding to what you want. The difference is that, while those kinds of bots typically annoy customers, chatbots have the potential to have the reverse effect.

The right balance of “bot” and “human” is going to be different for each company, and it depends greatly on the quality of the bot — and, of course, the quality of their human customer service reps.

I believe in an intelligent mix of humans and bots to get the job done  —  the “job” being making a consumer happy when things go awry, while being fair to the business.

Over time, AI (“bots”) will get smarter, and brands will trust it more to solve issues for them. Imagine the cable company allowing you to schedule an appointment in 30 seconds via a chat (versus 5-25 minutes on the phone). Imagine a retailer replacing a defective product in seconds. Or a hotel making up for a bad experience by awarding points. Bots can handle all these scenarios automatically, freeing up the brand’s valuable (and expensive) reps to handle the issues that truly require a human touch.

Facebook’s Messenger platform is just one of many future platforms where you’ll be able to handle customer service issues. By blending smart software with a light human touch, consumers will have a better experience when they need customer service, and companies will avoid nasty tweet storms, negative online reviews and the kind of brand damage consumers are now capable of inflicting when they’re upset.

The future of customer service is making it easy for consumers to go through the medium they want (likely not the phone), have an experience that respects their time and have issues resolved quickly, ideally without involving a human at all (via intelligent software).

In the future, “customer service” won’t be something consumers dread having to call, it will be something that builds powerful relationships with consumers. The best marketing is great customer service, and chatbots are a great step forward.

More TechCrunch

Anterior, a company that uses AI to expedite health insurance approval for medical procedures, has raised a $20 million Series A round at a $95 million post-money valuation led by…

Anterior grabs $20M from NEA to expedite health insurance approvals with AI

Welcome back to TechCrunch’s Week in Review — TechCrunch’s newsletter recapping the week’s biggest news. Want it in your inbox every Saturday? Sign up here. There’s more bad news for…

How India’s most valuable startup ended up being worth nothing

If death and taxes are inevitable, why are companies so prepared for taxes, but not for death? “I lost both of my parents in college, and it didn’t initially spark…

Bereave wants employers to suck a little less at navigating death

Google and Microsoft have made their developer conferences a showcase of their generative AI chops, and now all eyes are on next week’s Worldwide Developers Conference, which is expected to…

Apple needs to focus on making AI useful, not flashy

AI systems and large language models need to be trained on massive amounts of data to be accurate but they shouldn’t train on data that they don’t have the rights…

Deal Dive: Human Native AI is building the marketplace for AI training licensing deals

Before Wazer came along, “water jet cutting” and “affordable” didn’t belong in the same sentence. That changed in 2016, when the company launched the world’s first desktop water jet cutter,…

Wazer Pro is making desktop water jetting more affordable

Former Autonomy chief executive Mike Lynch issued a statement Thursday following his acquittal of criminal charges, ending a 13-year legal battle with Hewlett-Packard that became one of Silicon Valley’s biggest…

Autonomy’s Mike Lynch acquitted after US fraud trial brought by HP

Featured Article

What Snowflake isn’t saying about its customer data breaches

As another Snowflake customer confirms a data breach, the cloud data company says its position “remains unchanged.”

1 day ago
What Snowflake isn’t saying about its customer data breaches

Investor demand has been so strong for Rippling’s shares that it is letting former employees particpate in its tender offer. With one exception.

Rippling bans former employees who work at competitors like Deel and Workday from its tender offer stock sale

It turns out the space industry has a lot of ideas on how to improve NASA’s $11 billion, 15-year plan to collect and return samples from Mars. Seven of these…

NASA puts $10M down on Mars sample return proposals from Blue Origin, SpaceX and others

Featured Article

In 2024, many Y Combinator startups only want tiny seed rounds — but there’s a catch

When Bowery Capital general partner Loren Straub started talking to a startup from the latest Y Combinator accelerator batch a few months ago, she thought it was strange that the company didn’t have a lead investor for the round it was raising. Even stranger, the founders didn’t seem to be…

2 days ago
In 2024, many Y Combinator startups only want tiny seed rounds — but there’s a catch

The keynote will be focused on Apple’s software offerings and the developers that power them, including the latest versions of iOS, iPadOS, macOS, tvOS, visionOS and watchOS.

Watch Apple kick off WWDC 2024 right here

Welcome to Startups Weekly — Haje’s weekly recap of everything you can’t miss from the world of startups. Anna will be covering for him this week. Sign up here to…

Startups Weekly: Ups, downs, and silver linings

HSBC and BlackRock estimate that the Indian edtech giant Byju’s, once valued at $22 billion, is now worth nothing.

BlackRock has slashed the value of stake in Byju’s, once worth $22 billion, to zero

Apple is set to board the runaway locomotive that is generative AI at next week’s World Wide Developer Conference. Reports thus far have pointed to a partnership with OpenAI that…

Apple’s generative AI offering might not work with the standard iPhone 15

LinkedIn has confirmed it will no longer allow advertisers to target users based on data gleaned from their participation in LinkedIn Groups. The move comes more than three months after…

LinkedIn to limit targeted ads in EU after complaint over sensitive data use

Founders: Need plans this weekend? What better way to spend your time than applying to this year’s Startup Battlefield 200 at TechCrunch Disrupt. With Monday’s deadline looming, this is a…

Startup Battlefield 200 applications due Monday

The company is in the process of building a gigawatt-scale factory in Kentucky to produce its nickel-hydrogen batteries.

Novel battery manufacturer EnerVenue is raising $515M, per filing

Meta is quietly rolling out a new “Communities” feature on Messenger, the company confirmed to TechCrunch. The feature is designed to help organizations, schools and other private groups communicate in…

Meta quietly rolls out Communities on Messenger

Featured Article

Siri and Google Assistant look to generative AI for a new lease on life

Voice assistants in general are having an existential moment, and generative AI is poised to be the logical successor.

2 days ago
Siri and Google Assistant look to generative AI for a new lease on life

Education software provider PowerSchool is being taken private by investment firm Bain Capital in a $5.6 billion deal.

Bain to take K-12 education software provider PowerSchool private in $5.6B deal

Shopify has acquired Threads.com, the Sequoia-backed Slack alternative, Threads said on its website. The companies didn’t disclose the terms of the deal but said that the Threads.com team will join…

Shopify acquires Threads (no, not that one)

Featured Article

Bangladeshi police agents accused of selling citizens’ personal information on Telegram

Two senior police officials in Bangladesh are accused of collecting and selling citizens’ personal information to criminals on Telegram.

2 days ago
Bangladeshi police agents accused of selling citizens’ personal information on Telegram

Carta, a once-high-flying Silicon Valley startup that loudly backed away from one of its businesses earlier this year, is working on a secondary sale that would value the company at…

Carta’s valuation to be cut by $6.5 billion in upcoming secondary sale

Boeing’s Starliner spacecraft has successfully delivered two astronauts to the International Space Station, a key milestone in the aerospace giant’s quest to certify the capsule for regular crewed missions.  Starliner…

Boeing’s Starliner overcomes leaks and engine trouble to dock with ‘the big city in the sky’

Rivian needs to sell its new revamped vehicles at a profit in order to sustain itself long enough to get to the cheaper mass market R2 SUV on the road.

Rivian’s path to survival is now remarkably clear

Featured Article

What to expect from WWDC 2024: iOS 18, macOS 15 and so much AI

Apple is hoping to make WWDC 2024 memorable as it finally spells out its generative AI plans.

2 days ago
What to expect from WWDC 2024: iOS 18, macOS 15 and so much AI

As WWDC 2024 nears, all sorts of rumors and leaks have emerged about what iOS 18 and its AI-powered apps and features have in store.

What to expect from Apple’s AI-powered iOS 18 at WWDC 2024

Apple’s annual list of what it considers the best and most innovative software available on its platform is turning its attention to the little guy.

Apple’s Design Awards highlight indies and startups

Meta launched its Meta Verified program today along with other features, such as the ability to call large businesses and custom messages.

Meta rolls out Meta Verified for WhatsApp Business users in Brazil, India, Indonesia and Colombia