Think Customers: The 1to1 Blog

More than 2.5 million Americans lost their jobs in 2008. And at least two million jobs are expected to vanish in 2009, according to the Conference Board Employment Trends Index. How will this truly affect customer service?

Microsoft, for instance, announced that it would lay off 5,000 employees over the next 16-18 months, but reports say that a portion of those include people from customer service.

We know that customer experience correlates to loyalty, but with enormous pressures on the service organization to deliver better service with fewer resources, delivering great customer experience will be a challenge.

Some companies, however, are not choosing to scale back service amidst layoffs. Home Depot recently announced 7,000 layoffs, with 2,000 being in "non-customer-facing positions," while the other 5,000 will come from store closings.

Other companies, may not have to make cuts, but are choosing a more "back-to-basics" approach to service. Phone and Internet provider Embarq, for instance, is in the middle of a trial to move to a live customer service environment. In its North Carolina contact center, 15 CSRs have been picking up the phone when customers call customer service.

Launched in November, the program is in response to complaints from customers about the IVR. If the trial proves to be successful with customers, the company will likely continue using real people to answer customer calls.

It's good to see that most companies are still investing in service during these troubled times. What are your thoughts on how the economy is affecting customer service?