Only 7% of CFOs plan to decrease customer service spending over the next 12 months, according to a
"In response to inflation, supply chain disruptions, and a tight labor market, CFOs will make trade-offs in spending that affect customer service and support (CSS) leaders," said
Nearly all CFOs prioritize, and will continue to prioritize, digital investments over categories such as sales or research and development, focusing particularly on technologies that enhance current revenue streams or new digital products and services. CSS leaders should therefore prioritize the technologies that meet these criteria to make the strongest case for investment to their CFO.
CSS leaders must also make a strong case for digital investments that reduce costs. For example, digital self-service channels offer a tremendous cost savings opportunity for service organizations, costing
CFOs will also look to ramp up investments in hiring and compensation, but increase scrutiny on consultants, contractors, and facilities. "Service leaders with large budget allocations in the latter of these categories should be prepared for increased scrutiny, as well as have contingency plans in place," said Dibble. "For instance, there may come a time when a contact center in an expensive geography needs to be closed down, transitioned to remote work, or the frontline is unable to handle contact volume without contractors."
Overall, CSS leaders should look to demonstrate ways that their function helps the company achieve its financial objectives by increasing customer loyalty, especially as CSS organizations are faced with frustrated customers who are dealing with their own financial stresses.
Other actions for CSS leaders to mitigate the effects of the economic downturn include:
*Influencing the C-suite on cost reduction and avoidance
*Migrating volume to digital and self-service
*Improving, automating, or eliminating inefficient processes
*Assessing outsourcing options and partnerships
*Contributing to the top-line by developing value enhancement strategies
Gartner clients can read more in "The Corporate Functions CFOs Are Targeting for Spending Cuts or Increases in 2022 and 2023" and "Quick Answer: How Will My CFO Respond to Concerning Economic Trends?" Learn more in the Recession Playbook for Customer Service Leaders.
About Gartner for Customer Service & Support Leaders
The customer service and support function is vital to maintaining customer loyalty and influencing brand perceptions. Gartner for Customer Service & Support Leaders provides indispensable insights, advice and tools needed to achieve service and support leaders' mission-critical priorities, specifically improving the customer experience while managing costs. Gartner's research, advice and best practices equip customer service and support leaders to design an optimal service channel strategy; measure and reduce customer effort; and hire, develop and retain high-potential frontline talent.
More information is available online at www.gartner.com/en/customer-service-support. Follow news and updates from the Gartner Customer Service & Support Practice on Twitter and LinkedIn using #GartnerCSS. Members of the media can find additional information and insights in the Gartner Newsroom.
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