October 21, 2024

Tips on Reducing Operational Costs in Customer Support for B2C

So, you’ve just bought a new smart appliance—maybe it’s a smart fridge, a voice-activated speaker, or even a coffee machine. You’re excited to try it out, but the moment it arrives, you’re overwhelmed by all the options, settings, and troubleshooting steps. Frustrated, you call the company’s support line, only to be placed on hold for 5 minutes (in the best case!). When you finally speak to someone, the solution they offer isn’t clear, and now you’re more lost than before. Exhausted, you’re left wondering if the purchase was even worth it.

Now, shift your perspective. What if you were the business selling that product? The pain of that customer reflects not only a poor experience for them but also a hefty operational cost for you. The long wait times, expensive human agents, and low first-call resolution rates add up, draining both resources and customer loyalty.

For businesses that sell physical products, particularly in the B2C space, operational costs in customer support can be a silent but significant burden. Yet, they can be controlled—and even dramatically reduced—with the right strategies in place. In this blog post, we’ll explore actionable ways to reduce operational costs while enhancing customer experience, using technology and intelligent design, like chatbots, help centers, and interactive product guides. But first, let’s start by understanding the emotional core of this challenge and how to frame it in a relatable way.

The Emotional Toll of Inefficient Support

Customers who buy physical products expect a smooth, seamless experience, from purchase to post-purchase support. When things go wrong—whether it’s unclear setup instructions, malfunctioning products, or confusing features—their frustration grows exponentially. On the flip side, every missed opportunity to resolve their issue quickly and accurately costs your business more than just money. It costs trust.

Imagine a customer purchasing a high-end kitchen gadget from your company. Upon receiving it, they encounter setup issues. Instead of resolving the problem on their own or through quick support, they face long hold times and unhelpful responses. The result? Not only does the customer feel disconnected, but the ripple effect on your operational costs—manpower, time, and repeated calls—adds up.

This common scenario reflects a gap between customer expectations and the support system in place. Businesses often don’t realize just how much this impacts both their bottom line and brand reputation. However, there are proven strategies that can turn these pain points into opportunities for reducing costs while delivering an exceptional customer experience.

Understanding the Impact of High Operational Costs in Support

Before we dive into solutions, let’s unpack the operational cost problem. Research from IBM found that it costs companies up to 6 times more to handle customer inquiries via human agents than through automated solutions such as chatbots. Moreover, companies that rely heavily on call centers spend millions annually on agent salaries, training, technology infrastructure, and high attrition rates—without necessarily improving the customer experience.

Now, let’s break this down into some key insights:

1. Agent Salaries & Overheads: Supporting a customer through human agents involves a massive ongoing cost. Salaries, benefits, and infrastructure (office space, equipment, software) all contribute to high operational expenses.

2. Inefficiencies in Support: When customers have to call multiple times or spend too long on hold, this leads to inefficiencies. Not only does this frustrate customers, but it also ties up agents and delays the resolution process.

3. High Volume of Simple Queries: According to research by Zendesk, 69% of customer inquiries are typically basic questions that can be resolved without human intervention. These include “Where is my order?”, “How do I use this feature?”, or “What other products can I purchase with this?”

So, how can you lower these costs without sacrificing the quality of customer support? The answer lies in a mix of intelligent automation, empowering customers with the right tools, and streamlining processes that eliminate inefficiencies. Let’s walk through some practical strategies.

Practical Strategies to Reduce Operational Costs in B2C Support

1. Implement AI-Powered Chatbots to Automate Common Queries

One of the most effective ways to reduce customer support costs is by implementing AI-powered chatbots. These intelligent tools can handle a large volume of inquiries, provide real-time assistance, and significantly reduce the need for human intervention. But not all chatbots are created equal.

Enter Clue AI, ScalePX’s very own context-aware shopping companion. Clue AI goes beyond basic customer inquiries; it is designed to interact with customers in a meaningful way, answering product-specific questions, comparing items, and even upselling other relevant products in the catalog.

Clue AI acts as a personal shopping assistant, understanding what product the customer is viewing and responding with the exact information they need—whether it’s specifications, comparison with other products, or personalized recommendations. By automating these types of interactions, your business can reduce operational costs while offering a top-tier, pre-purchase customer experience.

For example, instead of a customer calling in to ask, “What are the differences between this coffee machine and that one?” or “Can I get accessories for this product?” Clue AI can provide instant, accurate responses. Not only does this reduce human workload, but it can also drive additional sales by suggesting complementary products.

According to Gartner, businesses that utilize AI chatbots in their support process see up to a 70% reduction in call, chat, and email inquiries—a game-changer for cutting down operational expenses.

2. Streamline Product Support with Self-Service Solutions

Another cost-effective strategy is empowering your customers with self-service options. Consumers prefer solving their problems independently, without waiting for a human agent. One powerful way to enable this is by using an all-in-one Help Center.

ScalePX’s Help Center is a fully integrated, easily navigable platform where customers can find answers to their questions 24/7. Rather than contacting support, they can browse FAQs, watch tutorial videos, or access step-by-step product instructions. Not only does this decrease the number of customer support inquiries, but it also boosts customer satisfaction by giving them instant solutions.

In fact, research by Forrester shows that 72% of customers prefer using a company’s website to find answers rather than contacting customer support. By building an extensive knowledge base, you’ll not only slash support costs but also provide a better user experience.

Take, for instance, a customer who recently purchased a smart vacuum cleaner. Instead of contacting support to ask how to connect it to Wi-Fi, they could access the Help Center and follow simple video guides, saving your business time and resources.

3. Use Interactive Product Guides for Post-Purchase Support

A critical aspect of reducing operational costs is lowering the number of post-purchase queries. Whether it’s unclear setup instructions or difficulty using a product’s features, post-purchase questions can quickly pile up—unless you get ahead of them with interactive product guides.

Traditional manuals that come in the box are often outdated and hard to follow. Instead, businesses should invest in digital, interactive guides that customers can access via QR codes. This is where ScalePX’s QuickPage comes into play.

QuickPage replaces paper manuals with easy-to-access, mobile-friendly digital guides. Once a customer scans the QR code on their product packaging, they are taken directly to a personalized support page, complete with how-to videos, detailed product information, and troubleshooting tips. By offering this kind of immediate, accessible support, businesses can drastically reduce incoming support calls and emails.

Not only does this improve post-purchase support, but it also offers an opportunity to upsell additional products or services right within the guide itself. QuickPage can highlight compatible accessories, extended warranties, or subscription services—all while giving customers the answers they need.

Real-World Example: How Reducing Support Costs Transformed One Business

Let’s consider the case of a kitchen appliance company struggling with high operational costs due to a flood of customer inquiries. The business found that the majority of its support calls were related to simple product setup and usage questions, all of which could be easily answered via an FAQ or chatbot. They decided to implement a strategy using both Clue AI for pre-purchase inquiries and QuickPage for post-purchase support.

Within six months, the company saw a 40% reduction in support calls, with a significant decrease in post-purchase queries, as customers were able to find the answers they needed through QuickPage’s interactive guides. Additionally, Clue AI helped drive a 12% increase in upsells, as customers received personalized product recommendations while browsing.

4. Integrate Support Data into an Analytics Engine for Continuous Improvement

Finally, to keep reducing costs over time, businesses need to continuously improve their support systems. One of the best ways to do this is by analyzing support data to identify common issues, bottlenecks, and areas where customers struggle the most. By integrating an Analytics Engine into your support infrastructure, you can gather insights that help refine your processes.

ScalePX’s Analytics Engine offers powerful insights that allow you to track customer inquiries, product issues, and overall support performance. You can use this data to identify patterns—whether it’s a recurring product issue or a common setup question—and take proactive measures to address them. This not only improves the customer experience but also reduces the number of repetitive queries, ultimately lowering operational costs.

Wrapping It Up: Transforming Your Customer Support with Smarter Solutions

Reducing operational costs in customer support doesn’t mean cutting corners on service quality. In fact, when done right, cost reductions can enhance the overall customer experience. By embracing AI-powered chatbots like Clue AI, implementing a self-service Help Center like ScalePX’s Help Center, and offering interactive product guides via QuickPage, businesses can streamline their support operations, lower expenses, and improve customer satisfaction.

The key is to meet your customers where they are—online, on their devices, and looking for fast, easy answers. By automating what can be automated and offering empowering tools for customers, your business can both save money and build stronger relationships with your audience.

Now it’s time to act. Evaluate your current support systems, identify areas for improvement, and start implementing these strategies. Whether you’re looking to cut down on support calls, empower customers with self-service, or make use of AI, ScalePX’s suite of solutions has you covered.

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