How to take on the "Doom Loop" and win

Aug 23, 2024

If you haven’t yet heard about the “Doom Loop” then get ready, it’s going to be a big topic in customer service over the next few years.

Last week, the US Government announced plans to crack down on “Doom Loops” as part of a package of proposals to improve consumers’ access to service. A Doom Loop is when a customer gets stuck in a self-service interaction, commonly through an IVR or a chatbot, where it is seemingly impossible to get through to a human being, no matter what option they choose. The solution being proposed is a stringent one - regulators want to require companies to allow customers to speak to a human Customer Service Representative (CSR) with a single button press.

Many customer service leaders will see that move as frustrating. It’s an unfortunate fact that a significant proportion (up to 45% according to this survey) of customers will prefer to speak to a human being even when the self-service option is quicker and easier than ringing the contact centre. The challenge remains: how do we get customers to at least try a self-service option first rather than them “zeroing out” to the contact centre at the earliest opportunity?

Kicking the “deflect-and-contain” habit

If these rules come into place, it will be work for some companies to adapt, but I would argue that the intent and the direction of travel is right. The role of customer service is to serve customers, after all, so we need to work towards helping customers find the simplest and most effective way to get help.

The big mindset shift is to stop thinking in terms of “deflecting” customers to digital self-service, or “containing” them in an IVR. Customers don’t want to be thought of in those terms, and will react negatively if they feel that is what is happening to them.

It can be hard to kick the deflect-and-contain habit. The problem is that, in the short term at least, it appears to work. Remove any trace of a phone number from a company website, and call volumes will reduce by 3-5%. The longer-term implications are less obvious: customer dissatisfaction, complaints start to rise, and customers start to look to competitors.

Instead, here are some positive actions that companies can take to drive self-service adoption, without resorting to the doom loop:

1. Check and acknowledge customer intent

Many bots fail at the first hurdle because they don't fully understand the customer’s need and try to solve the wrong problem. In a recent survey by Gartner, 43% of respondents stated that self-service tools did not serve them content that was relevant to their request.

It is vital to carefully validate the customer’s intent at the start of the conversation. This gives customers the confidence that the bot is actually going to be able to help them.

2. Create zero-time-risk journeys

Customers are more likely to use bots and IVRs if they know their time is not being wasted. Any information collected by the bot should be made available to a CSR, so that the customer never needs to repeat themselves. It's important to signpost this to customers so that the can be confident that they are not taking a risk with their time by trying the bot.

3. It’s not just about time, think security

Customers are not just worried about their time being wasted, they also have concerns about safety and security, and how their data is being used by an AI. In fact the term AI is showing signs of becoming a turn-off for consumers.

Companies should be transparent about security that is in place and how data will be used.

4. Proactively offer the off-ramp to a human CSR

Don't wait for a customer to start frantically pressing zero! Use data to proactively identify customers that will need enhanced support. Examples could be:

Customer is already flagged as vulnerable in the company’s database
Customer has more complex / higher value products than normal
Customer has called more than twice already, or has recently complained
Sentiment analysis identifies that customer is expressing frustration

5. Advertise your bot’s capabilities

If you have a bot that is better than the competition, that is genuinely simpler and quicker than human support for some requests, then shout it from the rooftops. Include the bot in your advertising, post video clips of the bot in your FAQ pages and on YouTube. Make it clear that the bot offers an enhanced experience compared to what customers may be used to.

Act now before regulations force your hand

The industry as a whole needs to act proactively to improve the reputation of chatbots and IVRs before regulators put in place punitive rules that may restrict company’s options in future. If companies can demonstrate the positive value of AI in helping customers more quickly and more simply, then the outcome could be better for everyone.

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