Key Terms Used in the Customer Service Industry in the USA

In a world where customers are more discerning and demanding than ever, the customer service industry has evolved into a complex and dynamic field. The ability to provide exceptional customer service is no longer just a matter of answering phone calls or responding to emails. It's about understanding and meeting the ever-changing needs and expectations of customers. To excel in this industry, professionals must be well-versed in a multitude of customer service key terms and concepts. In this blog, we'll delve into some of these essential terms that define the landscape of the customer service industry in the USA.

Customer Service Key Terms and Definitions

Navigating the intricate world of customer service and acing customer interactions require more than just a friendly demeanor and a willingness to help. It demands a deep understanding of the terminology that underpins this field. From NPS to CRM platforms, these customer service key phrases are the bedrock of exceptional service. Whether you're a seasoned pro or just starting out, using these professional words for customer service will equip you with the knowledge to excel in this industry.

● NPS: Gauging Brand Advocacy

A key term in customer care, Net Promoter Score or NPS. is a customer satisfaction benchmark used to evaluate the chances of customers recommending the brand to their contacts. It ranges from -100 to 100, which measures both negative and positive reviews. It is derived from a simple question: "On a scale of 0 to 10, how likely are you to recommend our product or service to a friend or colleague?" Customers who respond with a score of 9 or 10 are considered promoters, while those who score 0 to 6 are detractors. The NPS is calculated by subtracting the percentage of detractors from the percentage of promoters. A higher NPS indicates more assertive brand advocacy and customer satisfaction.

● TPH: Unlocking Productivity Insights

TPH or Transactions Per Hour refers to a metric that analyzes an individual or team’s transaction on a per hour basis. This is a very important performance measure, as it notes the number of customer interactions handled by an agent in an hour, such as calls or chats. TPH can reveal valuable insights into an agent's efficiency and workload, helping organizations optimize their staffing and workflow processes.

● CSAT: The Heartbeat of Service Quality

CSAT in customer support terminology, otherwise known as Customer Satisfaction, is a score to measure the level of satisfaction of a customer when it comes to transactions or interactions with the brand. The metric of this vital indicator of service quality often ranges from "very dissatisfied" to "very satisfied." CSAT scores provide immediate feedback and allow companies to identify areas for improvement in their customer service operations.

● AHT: Unveiling Efficiency Metrics

AHT or Average Handle Time is a metric that is used to calculate the total average duration of a single interaction between a customer and an associate, from the initial contact to the closure of the interaction. This helps in assessing the efficiency of the associate and the organization as a whole. A lower AHT often indicates faster and more efficient customer service, but it must be balanced with the need to provide thorough and effective solutions.

● BPO/BPM: Evolving Service Paradigms

Business Processing Outsourcers, commonly termed BPO in the customer service industry jargon, are organizations that provide business process operations to various clients. In this digital age, they are now known as BPM or Business Process Management companies. BPM services include payroll, human resources (HR), accounting, and customer/call center relations. They are integral components of the customer service industry. BPO involves contracting third-party organizations to handle specific customer service functions, while BPM focuses on optimizing and streamlining internal processes to enhance service delivery. BPO and BPM are vital strategies for organizations looking to adapt to changing customer needs and market dynamics.

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● IVR: Guiding Call Direction

Another common professional word in customer service - IVR, or Interactive Voice Response- is an automated telephony system, which gathers information about the nature of the call and directs the call to the appropriate departments. These systems use voice and touch-tone prompts to guide callers to the appropriate department or information source. IVR systems help reduce call wait times and improve the overall customer experience.

● FCR: Pinnacle of Customer Resolution

FCR or First-Call Resolution is an important metric that is used to identify the ability of an associate to resolve customer queries or grievances in the initial call without any follow-ups or repeats. High FCR rates are indicative of efficient and effective customer service operations, as they minimize the need for customers to make multiple contacts for the same issue, reducing frustration and enhancing satisfaction.

● EWT: Managing Expectations

EWT or Expected Wait Time is the approximate waiting time, which is informed to a customer before they are connected to an associate. Expected Wait Time (EWT) is an essential component of managing customer expectations. Accurate EWT predictions help set realistic expectations and reduce customer frustration during peak call times.

● Wrap Time & ACW: Documenting Interaction Closure

Wrap Time or Wrap-up time is the amount of time taken by an associate in completing ACW or After Call Work, the documentation process for each interaction, once the interaction has been concluded. It also includes updating customer records and preparing for the next interaction. Efficient management of wrap time is essential for maintaining productivity and ensuring that customer information is accurately recorded.

● Skills-Based Routing: Tailoring Solutions with Expertise

Skill-Based Routing or SBR is a tool used in an organization to effectively match and direct customer queries or grievances to the best-suited associates based on their skill sets. This ensures that customers are connected with agents who can provide specialized assistance, resulting in faster problem resolution and improved customer satisfaction.

● Virtual Bots: AI-Powered Assistance

Virtual Bots, commonly known as ChatBots or Voice Bots, use artificial intelligence and machine learning to provide answers to basic queries by customers via either a chat messenger or automated voice replies. They are valuable for handling routine inquiries, providing quick answers, and freeing up human agents to focus on more complex issues. Virtual bots enhance efficiency and accessibility in customer service.

● Canned Responses: Streamlined Communication

Canned Responses, which is a frequently-used customer interaction term, are predetermined, scripted responses that allow associates to respond quickly and efficiently to a customer query or grievance. They help streamline communication, ensure consistency in responses, and save time for both agents and customers.

● Self-Service: Empowering Customers

Self-Service is a proactive support for customers who would want to find the solution to their problem by themselves rather than getting into an interaction with an associate. This can include FAQs, knowledge bases, tutorials, or interactive troubleshooting guides. By offering self-service resources, organizations can reduce the volume of customer inquiries and enhance the customer experience.

Read More: How to quickly land a successful Customer Service Job

● CRM Platform: Capturing Interaction Insights

CRM or Customer Relationship Management is a tool employed by an organization to effectively capture and manage interactions for both current and prospective customers. These platforms help companies track customer history, preferences, and feedback, facilitating personalized and informed interactions.

● Assisted Service: Guiding Resolution

Assisted Service provides various solutions to those customers who are not able to find a solution to their query on their own by initiating an interaction with a trained associate. This can include troubleshooting technical problems, assisting with account setup, or providing detailed explanations. Assisted service ensures that customers receive expert assistance when needed.

● Customer Journey: Immersive Brand Experience

Customer Journey, as the term suggests, is the complete journey and experience of a customer when interacting with a brand, from initial awareness to post-purchase support. Understanding and optimizing the customer journey is crucial for creating a seamless and immersive brand experience.

● Digital Customer Experience: Crafting Virtual Impressions

Digital Customer Experience is the digital interaction and the resulting impression of a customer when interacting with a brand through digital channels, such as websites, mobile apps, and social media. A positive digital customer experience is essential for building brand loyalty and attracting new customers in the digital age.

Conclusion

HGS USA has a prominent presence in the customer service sector. We place a profound emphasis on our customer service roles. Our approach is rooted in the belief that responding with empathy is a vital element in forging enduring connections with customers. In various customer service positions, our team members consistently embody this principle, ensuring that each interaction transcends mere transactional engagement, and instead, fosters a genuine rapport with customers.

The customer service industry in the USA is a dynamic and ever-evolving field, driven by the need to meet and exceed customer expectations. Understanding the customer journey and crafting positive digital experiences are essential for building strong customer relationships and brand loyalty. By mastering call center vocabulary, customer service professionals can contribute to their organization's progress in a competitive marketplace where exceptional service is the hallmark of success.