What Does a Customer Experience When You Handle Fraud the Right Way?

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By: Tim Prugar

This morning, tens of millions of Americans woke up and experienced the same, sinking feeling:

Was my information exposed in the Equifax Breach? Am I at risk for being a victim of fraud?

As a business, your customers are frightened right now. They're worried about their accounts, and their identities, and the lives that they have worked hard to build for themselves and their families. What they want more than anything is the peace of mind that if something goes wrong, it can and will be taken care of in a timely fashion.

I know that feeling well - last month I was the victim of credit card fraud. The feelings above were real, and they were intense. However, my bank was able to transform a very scary experience into a positive one by making it easy to have my problem addressed and fixed. The fundamental tension in fraud prevention is between Customer Experience and Security. However, as you'll see here, those two can very easily work hand-in-hand to protect the customer while ensuring loyalty. 

My story, originally posted over at CustomerThink, is as follows:

Speed

I had just become the victim of credit card fraud.

While sitting at my desk, I received an email alert from my bank — one of the largest in the United States — that my credit card had just been used in Iowa. Of course, I wasn’t in Iowa. And I hadn’t used my credit card in nearly three weeks.

Upon looking, to me, it was an amount that clearly showed someone was testing the card to see if it would go through — often the first step in a fraudster’s bag of tricks.

My bank prompted me to confirm the purchase — “Was this your purchase, or is something wrong?” it read. They had started on the right foot, and with 15% of banking customers who experience fraud closing all accounts with that provider, the bank knew the next steps were just as critical to keeping my business.

I clicked “something is wrong” and my card was immediately frozen. I called the support number listed in the email, was quickly authenticated by the bank, and in less than five minutes, my card was closed, the fraudulent transactions reversed, and a new card was on its way.

Efficiency

Chances are, you or someone you know has or will be a victim of credit card fraud. According to the consumer financial protection bureau, more than 10% of the US will fall victim at some point in their lifetime; indeed, the United States accounts for 47% of the world’s credit card fraud cases.

To combat this, companies are always improving their security. For example, the advent of EMV, the smart chip on your card, has led to a decline in total losses in recent years, as it has become more difficult for some fraud acquisition techniques like card skimming.

So where do high-tech fraudsters turn when they’re thwarted? The weakest link, of course. And today that is the call center. The place where customers are earned and lost.

In 2016, call-center fraud rose more than 110%. Financial institutions authenticating primarily through ANI — automatic number identification — were startlingly vulnerable to attacks carried out by phone spoofing, which remains a heavily relied upon technique for fraudsters.

Shoring up this vulnerability is a fine line for financial institutions to walk.

Too little security and perpetrators of fraud can easily game the system. Too much security, and you’re putting an already aggravated customer through the ringer.

The worst thing a bank can do is handle this poorly: bouncing someone between multiple agents, poorly thought out knowledge based authentication question that either the person may not know the answer to, or a fraudster may be able to figure out through social media, long hold times, etc.

You need a system that does this, and does it quickly, so a customer can get on with their day as quickly and efficiently as possible.

Positivity

Ironically, having my credit card stolen ended up being a pleasant experience, because now I’ve got a great story to tell — a firsthand account of how a powerful authentication system can transform the customer experience in fraud cases.

How a company handles fraud and makes the customer feel is important; a company has the same responsibility as when they’re trying to convince a customer to buy. If someone has a terrible experience dealing with the counter-fraud measures of their banking institution — that can derail the entire relationship.

Speed is a factor in situations like this, and with a solid authentication system in place, my bank and I can operate with trust and peace of mind that I am who I say and solve the problem at the speed I desire as the victim. I want to get a person on the phone as quickly as possible.

When a company can authenticate a caller quickly, they chop off the clunky knowledge based process at the beginning of the call and it allows them to green light calls like mine.

The primary benefits are twofold: identifying fraudulent calls and beginning the procedures on dealing with such calls, or authenticating the call quickly before any further damage is done by a perpetrator of fraud.

Who knows what the damage of an additional 5, 10 or even 30 minutes means in terms of fraud — but we can stop the damage before it gets that far.

When companies use efficient technology to put the customer experience first while simultaneously demonstrating a commitment to strong security measures, everyone comes out ahead.

Even though my account was compromised, even though there was fraud — I walked away with a positive feeling about the company, because of the efficiency of how my case was handled.

With brand loyalty harder than ever to win, and fraudsters continuing to evolve the way they commit attacks, smart organizations will do well to bake fraud prevention into their CX.

 

Tim Prugar is the VP of Operations at Next Caller. He can be reached at tim@nextcaller.com.

AI in the Contact Center: What Can We Learn From AlphaGo?

   By: Tim Prugar

           The nearly infinite moves a player can make in a game of Go makes it the perfect playground for AI. When DeepMind’s AlphaGo took on Go Champion Lee Sedol, the world wondered whether the AI Lab had been able to create a better Go Player. The reality was much more shocking.

            Early in the series, it became clear that AlphaGo wasn’t AI that played Go better…it was AI that played Go differently. By making moves that defied traditional human convention (an excellent rundown can be found at Quartz) AlphaGo demonstrated how to play the thousand-year-old game differently. Even more surprisingly, its human opponent was able to adapt and elevate his own creativity in ways that even confused the AI player.

            AI is a hot topic in the world of Customer Service and a constant on “CX Trends for 2017” listicles. Thought leaders debate whether Chatbots raise the specter of jobs lost to automation, while others laud the potential of AI to answer time-consuming, “quick fix” questions. Customer Service Guru Shep Hyken argues that AI has the potential to serve as a real-time Intelligent Assistant for customer service representatives, leading to more positive impacts on the customer.

            However, most of these conversations address what AI can do, not what we can learn. In five brief games, AlphaGo showed the world that even in 2017 there can be new moves and approaches.

What might Contact Centers be able to learn if they viewed AI as a resource rather than a tool?

How might AI allow businesses to find and develop entirely new ways of approaching Customer Service?

            The next leap in customer service won't be achieved by businesses that shop for AI to solve an existing problem. That leap will be made by companies who lean into adopting AI to find new and unique solutions that people never knew existed.

 

Tim Prugar is the Director of Customer Success at Next Caller. He can be reached at tim@nextcaller.com. 

Offline Interactions Don't Exist: Wisdom from Dan Gingiss

By: Tim Prugar         

           Last week, I had the pleasure to sit in The Standard Club in Chicago, Illinois and listen to Dan Gingiss present to a room full of Customer Experience Executives regarding his philosophy on social customer service. With a single, calmly delivered thesis, Dan changed the tone of the room from interest and curiosity to stunned realization: there is no longer any such thing as an offline experience.

            This point is even more pertinent during the recent whirlwind of airline controversies. Whether it’s assaulted passengers, threatened parents, slapped cell phones, or retaliatory reservation cancellations, it’s clear that what happens on airplanes or in airports is not probably going to find its way on line, but is certainly going to do so. An endless spate of blog posts have been penned expounding upon the need for empathy and knowing the full situation before reacting (or in these cases, overreacting). However, when these PR nightmares explode online, brands typically have at least a few precious hours to huddle, fact-gather, game-plan, and ultimately craft an A/B tested response with more complete information.

            But what if you’re a Contact Center agent, and your “Customer Service Nightmare” is happening with you, on the phone, in real-time?

            The strongest agents have an ability to de-escalate, gather information, express empathy (or even sympathy!) and work rapidly towards a resolution. However, even agents possessing those incredible professional and social skills start the conversation from behind the proverbial 8-ball. So what can brands do to ensure that a contentious customer service phone call doesn’t become a viral social media debacle?

            It’s simple. Arm your agents with more information before they even pick up the phone.

            If I’m experiencing a CX nightmare, and the first thing I have to do is spell, respell, repeat, and re-respell my last name? I am certainly not going to de-escalate any time soon. If it takes upwards of 2 minutes to link my call to the item I’m calling about that was never delivered? Not helping the situation. If agents are able to acquire information as basic as the name and home address of the caller, or as advanced as the caller’s email address or social media profiles, they are immediately better equipped to skip the friction-filled portion of the call and get right down to collaborating with the caller to solve the issue.  

            There is no situation where more information or more context cannot better prepare the customer-facing brand representative to do their job more effectively.

            Keep yourself off of the internet for bad reasons and on it for good ones. Give your agents the information they need to handle every interaction, every time.

 

Tim Prugar is Next Caller's Director of Customer Success. He can be reached at tim@nextcaller.com.

Don't Call it a Call Center - A Next Caller Interview with Jeremy Watkin

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Jeremy Watkin is the Head of Quality at FCR, one of the most respected outsource providers. He has more than 15 years of experience as a customer service professional.  He is also the co-founder and regular contributor on Communicate Better Blog.  Jeremy has been recognized many times for his thought leadership.  Follow him on Twitter and LinkedIn for more awesome customer service and experience insights.

 

Why are call centers still relevant in today’s age of social media?

Call Centers are irrelevant in this day and age, but thankfully “Contact Centers” aren’t. That single change in word really points to the way contact centers have evolved along with technology and the growing needs and preferences of both businesses and customers. While phone is still king, email, chat, social media, and SMS are definitely gaining steam and the evolution is far from over. That being said, supporting customers over the phone is still a much more effective channel for clear communication and de escalation of customers.

 

How do you ensure a frictionless customer experience?

This starts with contact centers realizing just how important their role is in the overall customer experience. Many interactions with customers occur because there is friction in the customer experience. Observations gained on the front lines from talking directly with customers along with feedback from customer surveys is a gold mine of insight for reducing friction in the customer experience. Customer service needs to work with all other departments in the organization to make sure those insights are shared and acted upon. This must become a regular discipline.

 

What are your largest challenges in providing excellent call center service?

From the perspective of the agents, the largest challenge is having the tools, training, resources and support to solve problems. The better leadership does at putting those things in place and having enough engaged customer service professionals to answer the calls, the better customer service will be. From a leadership standpoint, the temptation is to live in “fire fighting mode” all of the time and never step back and find ways to become more efficient and really improve customer service.

 

How does knowing more about your caller improve the call experience, both for the customer and for the agent?

In a contact center, the more you know about your caller BEFORE they call, the less you have to ask them during the call. Looking up an account and verifying the caller’s name and number takes a minute on a good call. I’ve listened to calls where english wasn’t the primary language and it took several minutes just to look up the account. When you talk about reducing handle times by minutes there is real cost savings associated with that. Besides that, what customer actually wants to spend any more time than they have to talking to customer service? You should see improvement in customer satisfaction as well.

 

In one word, what is your guiding value for your call center(s)?

People! Focus on your people first. As a leader, you should embody the same great customer service skills that you expect from your agents on every customer interaction. Listen to them, learn what frustrates them and do something to improve that. That will absolutely trickle down to customers.