The way in which companies treat their customers during times of upheaval has never been more important, or relevant. Businesses that fail to demonstrate empathy and compassion for their customers in times of crisis risk long-term damage to their brand.
But more importantly, corporations now need to go a step further to ensure that vulnerable customers are protected, says Jonathan Wax, Vice President EMEA, NICE Nexidia.
“During the pandemic, there was a huge spike in vulnerable customers,” he says, pointing to research by the Financial Conduct Authority (FCS) which shows that more consumers find themselves in vulnerable circumstances due to the pandemic. Fifty-three percent of adults today display a characteristic of vulnerability – an increase of more than three million between February and October 2020.
The FCA issued guidance last year to help firms ensure they are treating vulnerable customers fairly. The organisation said the vulnerability could be due to health reasons such as cognitive impairment, or life events such as new caring responsibilities. Or they may struggle with resiliency – they have a low ability to withstand financial and emotional shock, or have low capabilities, such as poor literacy or numeracy skills.
“Based on those classifications, companies need to handle those customers differently,” says Wax.
NICE Enlighten AI
However, organisations can struggle to define and identify who is a vulnerable customer. It is not always apparent during an interaction between customers and front-line staff.
“When people call in, they don’t necessarily identify themselves as vulnerable, but the onus is on the company to uncover that during their conversation. If they are calling regarding late payment, for example, it is the company’s responsibility to determine the reason why it is late,” says Wax.
Contact centres rely on their agents to identify vulnerable customers based on the training they have received, but this is subject to error. Similarly, traditional analytics are often ineffective as the clues – spoken words and phrases – can be incredibly subtle.