Government Regulation in CX

Article Discussed

Summary:

Government regulation in CX is debated by the host

• - Host is against most government regulations in business unless preventing exploitation
• - Host emphasizes the importance of not letting government dictate how to run a business

Government regulations driving CX improvements

• - The political environment is leading lawmakers to focus on customer satisfaction
• - Spain's law mandates live support and quick issue resolution for companies with over 250 employees

Elections around the world may impact customer satisfaction

• - Consumer satisfaction in the UK at its lowest point since 2015; USA saw a net CX improvement in Q4 2023
• - Enterprises have done little to improve customer satisfaction, with half-baked automated systems and a growing number of companies refusing to offer voice-based service

Enterprises must improve customer support to avoid excessive government regulations

• - Identify and fix poorly designed chat bots to enhance customer experience
• - Work with BPO partners to improve customer support and avoid political scrutiny

Sourcing talent onshore or further afield improves customer service quality

• - Belief in hiring locally to maintain ecosystem of country or community
• - Interconnectedness of economy demonstrated through example

Government regulation may lead to increased outsourcing due to cost considerations.

• - The law may prompt companies to outsource to lower-wage countries to reduce labor costs.
• - Outsourcing can lead to negative experiences for both employers and employees, impacting business and quality of service.

Customer experience should not be regulated by the government.

• - Customers should regulate customer experience by voting with their wallet and feet.
• - Government should first regulate their own services before private sector.

Full Transcript:

 [Music]

 well it is what it is so uh before we

 start this little uh not even going to

 call it an episode but thank you for

 joining me and it is really good to see

 you again all right before we begin

 these are not sponsors okay these are

 just things that I like that kind of go

 with the

 brand first one we got here is Ghost

 cherry limeade pre-workout it is the

 legend variety and it is just

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 Protein with energy this is of course

 the coffee flavor I guess it

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 what exactly what it is but that's fine

 um but it has 95 Mig of caffeine per

 serving the servings is Two Scoops which

 is ridiculous it's like raisin brand in

 there you know so did I just pop this

 video want to tell you about some

 caffeinated uh supplements no that would

 have been crazy I have more around here

 but I don't know where they are I don't

 want to dig so it's fine it's fine it is

 what it is so no what we're talking

 about today or this evening as it

 were is something that I want to go

 over so with

 you the esteemed audience yourself I'm

 going to make my uh screen very small

 here or me on the screen very small and

 we're going to go over this uh article

 by uh the Ryan strategic

 advisory

 which

 your friend in mine Peter

 Ryan so let's start Peter Ryan if you

 don't know him he's one of the hosts of

 uh the CX files and

 uh very very very good guy very

 Canadian so which is good in my book I

 grew up in Maine which is about as

 Canadian as you can get and yeah we uh

 use Canadian money at the stores so very

 good

 guy friend of the

 show been on the CX files a couple of

 times

 myself um since I don't usually have

 guests I have not had the pleasure of

 having Peter Ryan on but this is like

 the next best thing poor CX 2024

 elections may change that this was

 published on Valentine's Day which as of

 the recording of this video was last

 week I

 think and we're going to go through this

 and we're going to talk about it

 now just to be clear right off the

 bat

 I your

 friendly caffeinated CX host am against

 most government

 regulations all right when it comes to

 business business other than the obvious

 stuff right you shouldn't be able to

 take advantage of people right you

 shouldn't be able to rip people off I

 think payday loans are

 predatory just the obvious stuff but I

 don't think uh the government should be

 able to tell people how to run their

 business nice trifed I'm still not

 paying my taxes stuff like that I'm not

 going to go that far okay CU that would

 get me into a lot of trouble so let's

 begin shall we whether it be digitally

 driven interactions or those over the

 telephone customer experience has been

 in a tail spin for some time consumers

 around the world are Beyond Fed Up the

 excuses of not enough staff High wage

 rates and so on do not really matter to

 an end user who needs information on a

 utility bill help changing a flight or

 finding out when an online food order

 may arrive all to no avail we've all

 been

 there ah God imagine like navigating

 through

 a artificially stupid chatbot to find

 out when your uh Uber Eats is going to

 arrive when you see that uh the car they

 picked up your order but they're just

 parked somewhere yeah it's beautiful oh

 did I not tip enough did I not tip

 enough Mr Uber

 driver what are you doing to my food

 that you're parked in that parking lot

 so

 long do I trust eating it is the chatbot

 going to help me at

 all law M lawmakers are not blind to the

 level of Rage that so many consumers

 have at the moment the PO the political

 environment of 2024 and Beyond is one

 that politicians will seize on for an

 advantage over their Rivals with

 customer satisfaction tanking in so many

 different countries nobody should be

 surprised to see minimum standards of CX

 become a

 potential

 electoral Hot

 Potato I'm going to start using that

 phrase Peter that's that's amazing uh

 this has been most recently witnessed in

 Spain a law passed in 2022 I remember

 posting on Linkin about this too uh a

 law passed in 2022 that comes into

 effect this year mandates that all

 companies operating in the country with

 over 250 employees

 or50 million EUR or more in revenue must

 provide consumers with Live support

 during business hours and have a wait

 time of no more than three

 minutes to comply with the legislation

 the issue must be settled within 15 days

 refusal to follow this new regulation

 means fines of up to 100,000 euro is it

 Euro or

 Euros thought the Euro was a

 sandwich that a

 gyro anyway while the the enforceability

 of such legislation is debatable the

 spirit of the law comes from somewhere

 and that is likely the frustration found

 among Spanish consumers the question

 then becomes what is preventing other

 jurisdictions from following suit and

 passing their own requirements for how

 private businesses must address customer

 service needs very little really indeed

 given the political atmosphere of 2024

 ho ho ho feeling it already aren't we it

 could happen sooner rather than

 later over the next 11 months there will

 be a significant number of Elections

 around the world two will occur in

 countries where consumer satisfaction

 has been running at abysmal levels in

 recent

 time in the UK The Institute of customer

 service reports that enduser

 satisfaction is is at its lowest point

 since

 2015 in the USA

 there was admittedly a net CX

 Improvement in Q4 2023 but the ghosts of

 terrible service that creat the American

 customer satisfaction index not even two

 years ago still

 linger alas Enterprises have done little

 to help themselves of late with more

 half-baked automated systems pushing the

 limits of end users

 patience and a growing number of

 companies simply refusing to offer

 voice-based

 service that is

 crazy politicos on either side of the

 pond have every opportunity to make

 better CX a ballot

 issue that no voice thing is

 crazy um I

 get the appeal of it some

 days but then my uh my intelligence and

 my

 rational thinking kicks in and I kick

 myself in the ass and call myself an

 idiot and tell myself never to think

 that way

 again so there you go maybe some other

 people should do the same thing I don't

 know I don't

 know but that is

 crazy no

 voice

 yeah let's just let chat GPT take care

 of it maybe they can start up every

 chat uh interaction with in a bustling

 world of

 X in the Tous world of

 why you can always tell when someone

 post something that was generated on a

 chat GPT because it always starts with a

 in X world of Y

 so just food for thought when you're

 going through your LinkedIn posts

 okay so no one likes frivolous

 government regulation in the current

 business environment there is simply no

 reason for Enterprises regardless of

 sector not to offer a decent level of

 support to Consumers to avoid more laws

 like that in Spain CX decision makers

 must take action immediately a logical

 First Step would be to tighten up poorly

 designed find deployed chat Bots that

 don't

 work I've been saying this for

 years and um to tell you the truth right

 now and i' I've never made this a secret

 one of my favorite hobbies is to go in

 on people's websites and break their

 chatbot it is fun to me and it is very

 easy in most cases usually it gets an

 into a infinite Loop right which is also

 fun although I was able to go onto a uh

 the the name of the company will be

 undisclosed here but I was able to get

 this chatbot to give me the name and

 address and phone number of one of their

 rival companies and this is in the

 plumbing space all right so that was

 fun I should charge for that

 service where was I okay the

 frustrations outlined by South Korean

 consumers in this article which there's

 a link here um are almost certainly felt

 by end users around the

 world then ditch the digital only

 contact center and find the means of

 ensuring a decent level of Staff support

 for callers Martin Lewis's campaign to

 call out firms using the excuse of unus

 usually High call volumes in the UK as a

 reason for prolonged whole times has

 gained notable media coverage and could

 easily become a political lightning rod

 working with a BPO partner to Source

 Talent on Shore or further a field would

 be an effective manner of addressing

 this in the near medium term I'm going

 to come back to that I have some

 thoughts on that there are just two

 things that firms can do to saave off

 political scrutiny and greater

 regulation if efforts are not made by

 Enterprises to internally police the

 quality of customer service they offer

 parliaments and legislators might just

 do it for

 them first of

 all

 amen

 amen yeah

 so now couple of thoughts while I

 readjust and annoy you with the screen

 changing here all right hope I didn't

 give anybody a vertigo so couple of

 thoughts on

 this so

 one working with a B partner to Source

 Talent onshore OR further a field would

 be an effective manner of addressing

 this in the near medium term I've never

 made a secret how I truly feel about

 Outsourcing and is this because I've

 been burned before both as an employee

 and as an

 employer

 yes I am not a

 fan I am of the opinion that for most

 cases in most

 situations that a company that does

 business in one country or one Community

 should hire from that country or from

 that

 Community if you take jobs and money out

 of a country or a community it ruins the

 ecosystem of that country or

 Community

 if all of a sudden you move all these

 wages from a country or Community into

 another country or Community the

 original country or community starts to

 fall as well

 because Paulie can't go down to Greg The

 Butcher and use his money that he got

 from his job in the community to pay

 Greg the butcher for some meat and if

 Greg the butcher isn't

 making money from

 Paulie then he can't afford to buy

 Frank's

 bread and if nobody's buying Frank's

 bread because nobody's buying Greg's

 Meat because Paulie lost his

 jobby then

 Frank I'm trying to keep these names

 straight then Frank is not going to buy

 Charlene's I don't know flowers right

 and so on and so

 forth I think for as much as possible

 you should keep the money within the

 community if you service a particular

 area of a country that's your hiring

 pool that's my opinion I'm probably

 wrong on that and that's probably just

 from being burned before like I said as

 both an employee and as an

 employer bad

 Outsourcing Partners will do that to you

 and that's okay I spoke at length at a

 uh an event hosted by Peter Ryan where I

 talked exactly about that and I will

 never hold my tongue on that it was bad

 it was a very very bad experience and

 honestly maybe psychologically I have

 not recovered from how bad it was and

 how bad it was for business and was

 garbage and there we go

 so

 now as far is that this law if it's

 passed is going to encourage a lot more

 Outsourcing right because of

 wages because of the fact that things

 cost more now including employees

 especially good employees and why pay

 for one good employee with x amount of

 wage dollars when you can get four good

 employees or even just mediocre

 employees for the same wage price right

 you'll never wait 3 minutes again you'll

 never get your issue solved but you

 don't have to wait 3 minutes so there

 you go and let's talk about the uh due

 to an unusually height call volume your

 call is going to be blah blah blah blah

 it's not unexpected anymore is it

 change your

 message give a call back

 option and then you know have someone

 available on the line when they do call

 you back cuz oh my gosh I've g into that

 don't just have a chat bot on your site

 that doesn't lead to a human if someone

 says hey I want to talk to a

 human right or can see that it's uh

 chatbot is going into an infinite Loop

 and then a human being can take over

 this is simple amateur stuff guys it is

 very easy to do the reason it's not done

 is because you don't want to do it and

 that's I'm not going to say that's okay

 I almost did but it's not do better all

 right we shouldn't have to have the

 government Big Daddy government Big

 Brother policing and enforcing customer

 experience customer

 experience should not have to be

 regulated by the government that's crazy

 it should be

 regulated by the customer and the

 customer will vote with their wallet and

 their

 feet that is what makes capitalism

 work the fact that customers can choose

 what

 businesses they want to do business

 with

 period if you have to wait 20 minutes on

 hold but once you do get to speak with

 someone the service is exquisit and you

 want to do business with that people you

 should have every right to do that

 I think a really good test for this

 law would be for government owned like

 utilities or

 services start with them first in the

 states have it for the

 IRS have it for the

 DMV then go after the Walmarts and

 the uh tell

 and everybody else right

 start with the government services and

 the government utilities first then if

 it works spread it out if you

 must to the private

 sector I don't know I only meant for

 this to be like 5 minutes long but it is

 what it is I'll see you guys next time

 bye

 [Music]