Turning “Cost Centers” into Customer Loyalty Centers 

Contact centers may become the only channel that feels real or tangible to customers in an increasingly digital marketplace. There’s no getting around the need for contact centers, even though many companies still make the mistake of viewing them primarily as “cost centers” - necessary to have but often requiring a lot of effort and cost to maintain. But, it’s a mistake to view them as financial liabilities rather than the value-generating powerhouses they can be. If properly leveraged, contact centers can quickly transform from a drain on your bottom line to loyalty-driving centers that result in more sales, happier customers, better retention and enduring customer relationships that last beyond one sale, perhaps for a lifetime of purchases. 

Why Contact Centers Are More Vital Than Ever Before 

Contact centers have always been a crucial consumer touchpoint. In many cases, it will be the only personal interaction that a customer ever has with your brand or company. Even with the mass adoption of sophisticated chatbots, AI assistants, and self-serve options, it seems like traditional support channels, like voice, have actually gained popularity, rather than the demand decline that was expected. A recent McKinsey survey showed that contact center volumes have increased more than 60% since 2022, and another study by Statista shows that over two-thirds of Americans still think that reaching a live person when communicating with a business is “very important”. 

For modern consumers, there’s no hard line of distinction between product, brand and customer experience. They are one and the same. Each time a customer interacts with your business it reflects on your brand’s reputation and its perceived value. Yet, according to Gartner, many companies don’t see that connection. They fail to see why customers are frustrated when a brand experience doesn’t live up to the values and promises made by marketing campaigns.   

Do contact centers come with challenges? Of course they do. However, companies that don’t prioritize CX tend see half the retention and 20-40% less profitability compared to organizations that are “customer-obsessed”. In truth, contact centers play a vital role in customer engagement and retention. A contact center experience that goes beyond expectations can be one of the main drivers of customer loyalty. It can even lead to repeat purchases. That is why exceptional CX is a “must-have” if companies want to retain an advantage in today’s hypercompetitive market. 

What Contact Centers Can Do If Fully Leveraged 

How can contact centers become revenue-generating machines? Well, if contact centers can drive loyalty by adding value, delight, and enjoyment to the overall customer experience, then it makes sense that they can also drive higher sales.  

In fact, research shows that 86% of customers will pay more for a great customer experience and almost half of customers have made impulse purchases after receiving a more personalized interaction. This is because most purchases are driven by emotion. According to a study by Motista, consumers that have a strong emotional connection to a brand have a 306% higher lifetime value, purchasing for an average of 5.1 years versus 3.4. The average recommendation rate also increases 25% when a customer finds emotional resonance with a brand.  

To the eyes of the consumer, how well you treat your customers is a direct reflection of how much you value your customers. You can tout that your company is customer-centric, but customer experience is words put into action. This is where contact centers hold the power to win over hearts, minds, and in the end, more sales. Emotional connection can be forged through inbound engagement as much as by advertising or external outreach.  

So, How Do You Get There? 

If you want to turn your contact center into a “value generating” loyalty machine, it takes more than a few rooms with people answering phones. It takes strategic thinking and the right investments, partnerships, and technology. But, it can also be done in a cost-effective manner.  

Prioritize Your Most Loyal Customers 

One way to maximize contact center potential without adding more cost is to prioritize the experiences that satisfy your most loyal customers. After all, in retail and eCommerce alone, two-thirds of a company’s business comes from loyal customers, who spend an average of 67% more than new ones. Loyal customers are the ones most likely to buy, so it’s better to invest your CX budget into building a journey that caters to those key target audiences. Do you have the insights and data to understand what those customers value? Instead of trying to provide every channel, are you selecting and perfecting the engagement channels they prefer? Can customers access the right department or reach an agent when they need one?  

Understand the Value of CX Partnerships 

Outsourcing partnerships can deliver immense value, especially if you outsource to the nearshore, which offers the benefits of proximity and cultural alignment to the U.S., but with lower operational costs. Don’t make the mistake, though, of selecting a vendor based on price alone. Quality service should be your primary consideration, because remember, to capture the lifetime value of a customer, you must be able to offer an experience beyond your competitors. That often takes investments in employee training and quality assurance. Only high-quality training and coaching programs will yield skilled agents who are adept at first issue resolution and customer relationship management – aspects that directly affect customer satisfaction, retention and sales.  

Make the Right Technology Investments 

While AI and automation may seem like a cost-effective way to deliver efficient customer service, if ineffective, it won’t lead to increased loyalty. According to HubSpot’s 2024 Annual State of Service Trends report, almost half of consumers say that most automated platforms and chatbots are a “challenge” to navigate. Instead of helping, they only add to their frustration. Technology solutions should only be deployed at the right time, and for certain tasks. Anything that involves emotional complexity, nuanced judgment, or a personal touch, should still be reserved for live support teams, whose capabilities can be augmented by AI tools like sentiment analysis, automatic quality scoring, and access to customer data that allows them to hyper personalize interactions.   

Turning "Cost Centers" into Connection Centers 

The reason contact centers might enjoy a dubious reputation is largely because they are often viewed as a requirement, not an opportunity. If you don’t invest in them and view them simply as a “cost center” then you won’t get an optimal result.  

A truly skilled CX team can often turn even the angriest customer into a loyal, repeat purchaser. If investments in training and technology are done right, the result could be 5 years of purchases and even lifetime loyalty to your brand. Considering that marketing costs to acquire new customers has risen 60% in recent years,  you can achieve good ROI by focusing on making existing customers happy in an increasingly disconnected, digital age. 

In the end, companies may have no choice but to reframe the way they view contact centers. In a world increasingly dominated by online interactions, and fewer chances for meaningful person-to-person connections, contact centers play a critical role in connecting consumers and brands. The brands who stand out will be the ones that don’t automate every interaction, but those who take advantage of every opportunity to connect with their customers in ways that other competitors don’t.  

Ready to turn your contact center into a loyalty-driving center? We can help!

Reach out to our Sales Team to learn how you can partner with itel.