This week, the Biden administration launched the “Time is Money” initiative that — as the name implies — aims to crack down on “corporate tricks,” referring to processes that are made intentionally cumbersome for the customer, wasting their time and money. 

While the initiative encompasses a broad range of actions, like eliminating complicated health claims paperwork and simplifying the process of canceling a membership or subscription, there is significant focus on the customer service experience. This may not be overly surprising — after all, we’ve all had frustrating experiences when contacting customer service.

The “Time is Money” initiative specifically calls out: 

  • Tackling customer service “doom loops.” It plans to implement measures that allow customers to bypass automated systems with a single button to connect with a live representative. 
  • Cracking down on “time-wasting” chatbots. It highlights the need to address chatbot limitations, citing an inability to support complex issues and the tendency to “give the run-around” to customers seeking live assistance.

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Now, you won’t catch us suggesting that all chatbots work perfectly well. In fact, quite the opposite. And it’s certainly true that some companies take call deflection efforts a little too far. Maximizing deflection at the expense of experience and resolution is never the right move. 

But, if we take these proposed actions at face value, I’m not convinced they are the right move, either. 

Interactive voice response (IVR) systems are a tool, and like anything else, their effectiveness hinges on thoughtful design and deployment. Instituting a single-button policy to circumvent the IVR could have meaningful downstream consequences like: 

  • Misrouted calls. When designed effectively, IVRs and chatbots excel at capturing the customer’s intent and getting them to the right place —whether that be self-service or assisted service. Skipping this process (by slamming zero or screaming “agent” — hey, we’ve all been there) dumps you into the general queue, which might require transferring you to a different team to solve your issue.
  • Increased volumes and wait times. Allowing customers to bypass automated systems could lead to a significant increase in calls reaching human agents, which is likely to strain resources and wait times for all customers. Add to that the mountain of misroutes, and you have a very clogged queue.
  • Missed opportunities for digital alternatives. Brands who have deployed IVR-to-messaging capabilities in the interest of providing channel choice could see their efforts undercut by overzealous interpretation of the “single button” mandate. Determining the intent before suggesting a channel shift is a best practice, as not all intents suit chat or messaging.

While the intention behind these initiatives is to protect customer interests, the proposed actions may not have the desired effects.

So, should we just leave customer service alone?

Well, I wouldn’t go that far.

There are aspects of the customer service experience that the Biden administration could focus on instead that would enhance customer outcomes and save customers and businesses time and money. Here are two that we’d recommend: 

  1. Incentivizing brands to deploy true self-service. While IVRs and chatbots have been labeled “self-service” solutions for years, they still do put the onus on the customer to reach out to the brand to solve their issues. True self-service would require improving digital experiences (apps, websites, etc.) so customers can solve more issues on their own, without needing to engage with the brand. Customer effort is reduced, and brands enjoy cost savings from contact elimination rather than contact deflection. 
  2. Requiring alternatives to waiting on hold. It’s understandable that customers find waiting on hold frustrating — there’s often no estimated wait time, hold music isn’t very good, and customers are being constantly reminded “your call is important to us.” To mitigate the frustration of waiting on hold for the (right) agent to help, brands should offer call-back options that let customers get on with their day rather than being tethered to their phones. This also allows contact centers to better optimize workforce scheduling. 

As always, Forrester clients looking to improve their customer service experience can schedule a guidance session here.