August 19, 2020

How to Reduce Your Customer Support Costs

The quality of your customer support can have a huge impact on your retention rate and brand loyalty. According to a survey by PwC, 59% of US consumers would walk away from a product or a company they love after having multiple bad experiences. Furthermore, 17% of consumers would do the same after a single bad experience.

It’s evident that providing excellent customer support should be a priority for all businesses. After all, it is integral to building trust in your brand. The problem is, it can cost you a lot of money.

On the flip side, you’ll lose out on revenue if you provide sub-par customer support. US businesses incur a cost of approximately $1.6 trillion when customers switch to other companies due to poor service.

The best solution is to look for ways to improve the quality of your customer support without inflating your budget. Here are a few ideas to get you started:

1. Proactively Reduce Customer Problems

Good communication is integral to the success of your customer support strategy. Your approach towards customer support should be proactive, not reactive. 

The first step in this process is to identify your customers’ problems. Keep track of the complaints that your customers raise. Once you identify the most common problems, you should work on fixing them.

Additionally, you should also pay close attention to your customers’ journey. It will help you find processes or products that lead to an inferior customer experience. Invest some time into understanding the core reasons behind these issues. 

This will help you to reduce your query resolution time and boost customer satisfaction levels. You can also expect to receive fewer repeat calls. So, it can help you keep your customer support costs low.

2. Invest in Talented Customer Care Executives

Even if you have the best product in the market, if your customer support representatives are not efficient, it can damage your reputation. So, choose your customer support team wisely. Invest some time and resources into sourcing and recruiting the best talent available. 

Remember that customer support is all about conversations and people. Your customer support representatives will deal with different kinds of people every day. Someone may be in a good mood, others may not be in one. They need to be able to tackle all situations in a professional manner. 

During your hiring process, look for the following qualities in your candidates:

  • Good listening skills
  • Patience
  • Ability to understand customers’ problems easily
  • Empathy
  • Fast decision-making capability
  • Good communication skills
  • Clarity of speech
  • Ability to write well

It may seem expensive to hire good talent. But in the long run, it will help you boost your reputation, revenue, as well as customer satisfaction. After hiring the right people, familiarize them with your brand values and product features. 

Train them well. You don’t want them to be stumped by customer questions. Ideally, they should have a list of anticipated questions along with ways to solve those issues.

Related article: How AI is Redefining the Customer Support System

3. Automate Repetitive Communication

You may receive the same queries multiple times a day from different customers. The solutions and answers may be the same, but responding to the same questions over and over again can cost your customer service representatives a lot of time. It’s an inefficient way of handling queries. 

With the help of chatbots, you can help your customers get instantaneous answers to frequently asked questions. 

One of the main concerns with automation is the lack of personalization. However, AI chatbots like AgentBot are designed to understand the needs of consumers. Our chatbot is designed to tackle queries that may be different from the ones they are programmed for. 

It provides unique answers to customers based on what they are looking for. The best part about an intelligent bot is that it understands conversational language. In addition to this, it uses human-like dialogues to keep the conversation informal.

By providing automated chat support options, you could take some of the burden off of your representatives. Bots can also save time by eliminating the back and forth between your representatives and customers. At the same time, you can save a lot of money.

If you’re on the fence about automation, invest some time into calculating the amount you spend on phone and online support per month. 

4. Have an FAQs Page 

Another way to reduce your customer support costs is to set up a detailed FAQ page on your website. This enables your customers to get answers to their queries without having to contact your customer support team.

Here are a few tips to make it easy for your customers to find solutions easily:

  • Search Bar: Add a search bar on your FAQ page. This makes it easy for users to get answers to their specific questions. They won’t have to go through unnecessary information to find what they are looking for.
  • Conversational Language: Keep in mind that your users may not understand technical jargon. The purpose of an FAQ page is to make sure that your customers can find solutions on their own. So, write the instructions in an easy-to-understand manner. It’s a good idea to use simple language that people normally use for conversing.
  • Prominent Page: There is no point in having an FAQ page if your users don’t know that it exists. Make sure that it’s easy for users to find the FAQ section. It’s advisable to add your FAQ section to your navigation bar so that it easily accessible from all web pages.

A well-updated FAQ section can help you lower customer requests and reduce your overall customer support costs.

5. Request Feedback

Instead of guessing, ask your customers what their pain points are. Not only will you save the time and money you would have otherwise invested in researching their problems, but you are also likely to get more accurate answers.

Regardless of how their experience was, encourage them to share it with you. Pay special attention to the negative feedback that you receive. It will help you identify opportunities for improvement.

By asking them for their honest opinions, you’re likely to make your customers feel heard and valued. This tactic can go a long way in winning your audience’s trust and loyalty.

Our chatbot allows you to send feedback polls after their interaction. You can also leverage social media channels to get feedback. Organize polls and encourage them to rate your business and leave reviews on social media. Alternatively, you could also send them an email requesting feedback.

However, asking for feedback is only half the job done. Unless you really listen to their complaints and act on them, they won’t help your cause.


You don’t have to compromise on quality when lowering your customer support costs. Rather, it means you need to work smarter to understand your customers’ needs and to solve their issues quickly. You can ask for feedback to identify their pain points and come up with solutions for them.

By leveraging automation and investing in talented staff, you can boost your efficiency and lower your customer support costs. In addition to this, include FAQs on your website so customers can find answers to their queries on their own.

Have you reduced your customer support costs without affecting customer satisfaction? If you want to do it but don't know where to start, don't hesitate to get in touch with one of our specialists.

Are you looking for new ways to improve your CX?

Our customer service solutions powered by conversational AI can help you deliver an efficient, 24/7 experience  to your customers. Get in touch with one of our specialists to further discuss how they can help your business.