The ultimate guide to digital customer service

Digital customer service refers to when a business provides support to customers through multiple online channels to help them find information, resolve issues, and use products or services more effectively. Each digital customer service channel brings distinct benefits, with certain methods proving more effective for handling specific customer inquiries.

Email remains a traditional yet essential method for handling complex inquiries, providing follow-ups, and addressing detailed issues. Live chat offers real-time assistance on websites or apps, enabling instant responses, while video chat allows for face-to-face interactions, providing a more personalized support experience.

Many companies also leverage AI-powered chatbots to manage routine requests and offer 24/7 availability, ensuring continuous support. Social media platforms such as Facebook, Instagram, TikTok, LinkedIn, and X (formerly Twitter) are increasingly popular for customer service, enabling customers to ask questions or resolve issues through direct messages or public posts.

Additionally, SMS/text messaging offers direct communication with customers, providing timely confirmations, updates, or support. Self-service portals, including FAQs and online communities, empower customers to independently find information and resolve common issues.

Offering digital customer service, regardless of the channel, brings significant advantages to businesses. According to a recent Forbes article, 85% of customers are willing to go out of their way to engage with a company that delivers superior service. Below are more key benefits to consider:

1. Increased customer satisfaction

Digital customer service enables brands to quickly address customer inquiries and concerns, with speed often determining where customers choose to spend their money. Our survey of more than 200 brands and 1,000 customers found that 79% of consumers expect fast responses from brands. How fast? Over one-third of customers anticipate a reply on social media within 30 minutes.

Quick, empathetic responses offer multiple advantages. In the same survey, 83% of customers reported that good customer service was the most important factor in making buying decisions. Additionally, 68% of customers are willing to spend more with a brand that understands and treats them as individuals. Providing accessible, rapid digital customer service not only builds brand loyalty but also fosters stronger, longer-lasting relationships.

2. Lower operational costs

Implementing digital customer service significantly improves cost efficiency by reducing the need for large support teams and lowering operational expenses. A survey by McKinsey & Company found that brands shifting to digital customer care can reduce costs by up to 30%. Digital channels like email, social media, and live chat are more cost-effective than traditional phone support, while AI-powered responses and automation can minimize labor costs.

Self-service platforms and AI-based tools further reduce expenses by handling repetitive inquiries, freeing up human agents to focus on complex issues that require advanced problem-solving skills. This not only enhances team efficiency but also helps prevent employee burnout, allowing staff to engage in more meaningful work.

3. Scalability

Digital customer service allows businesses to easily scale their support efforts as customer demands grow. By managing inquiries across multiple channels like live chat, social media, and email, businesses can respond to increasing volumes without sacrificing quality or efficiency.

As customer needs change, digital customer service can be adjusted quickly and cost-effectively. Additionally, 24/7 availability and language support enables businesses to expand globally, ensuring they can meet the expectations of diverse audiences at any scale.

4. Enhanced customer insights

Each digital customer service interaction provides valuable data, turning every customer touchpoint into a learning opportunity. By engaging directly with customers across various digital channels, brands can identify trends, uncover common issues, and gain insights into customer preferences. These interactions help businesses understand customer needs, challenges, and concerns, allowing them to address pain points and adapt services to meet evolving expectations.

This direct feedback often reveals critical insights, such as the disconnect between brand perceptions and customer priorities. For example, while 44% of brands believe recommending products based on past purchases is important, only 11% of customers agree. By focusing on resolving key customer service issues instead of unnecessary remarketing, brands can build trust, improve loyalty, and drive long-term growth.

5. Competitive advantage

Offering exceptional digital customer service sets businesses apart from competitors. Surveys consistently show that investing in customer service is the most critical step in building brand loyalty. Our recent survey found that poor customer service has far-reaching consequences: 67% of customers shared negative experiences with others, and 65% switched to a different brand due to poor service.

By prioritizing digital customer service, businesses not only increase customer retention but also attract new customers who are seeking alternatives after negative interactions with competitors. Exceptional service becomes a key differentiator, helping brands stand out in a crowded marketplace.

If you are ready to elevate your digital customer service strategy, here are several best practices to help you get started:

Connect with customers across multiple support channels

Customers expect businesses to be available on their preferred platforms, whether through social media, live chat, email, or text messaging. Offering multiple digital channels for customer service enables customers to engage with brands in the way they want. For a truly seamless experience, however, these channels must be integrated so that customers don’t need to repeat information when switching between them.

If your business currently offers support through only one or two channels, consider expanding to additional platforms to create a fully omnichannel experience. Khoros Service provides businesses with a centralized platform to efficiently resolve cross-channel inquiries. Expanding your support capabilities with a solution like Khoros enables you to build a more robust and comprehensive customer service experience.

Focus on fast response times

Speed is crucial in digital customer service, and a key best practice is regularly evaluating and reducing customer wait times throughout the support process. Asynchronous communication methods, such as self-service FAQs, chatbots, and online communities, can help reduce wait times.

Additionally, identifying peak times for customer support – whether during specific hours of the day, certain days of the week, or seasonally – allows you to optimize staffing and ensure your team is prepared. By understanding these trends, you can allocate resources effectively and leverage the right tools to maintain fast, responsive service.

Leverage AI and automation

Artificial intelligence and automation are transforming customer service, making processes more efficient across both digital and traditional support channels. Businesses can leverage technologies, like Khoros AI, to streamline the customer experience. AI-powered tools can refine scripts for both call center agents and digital interactions, ensuring consistent and effective communication. Additionally, automated systems can handle routine inquiries and provide 24/7 support, allowing customers to get help at any time while freeing up human agents to focus on more complex issues.

Prioritize mobile-friendly support

With 9 in 10 Americans owning a smartphone, optimizing service for mobile is crucial. Consumers increasingly use mobile devices to shop, browse, and engage with businesses. In fact, one-third of all customers use their mobile devices to initiate contact with customer service. It’s essential to ensure that your customer service is fully optimized for mobile, whether through mobile-friendly chat, app support, or text messaging. Compare wait times and sentiment between mobile and desktop users to identify any discrepancies in experiences.

As more consumers rely on mobile devices for on-the-go support, a poor mobile experience can lead to frustration. Optimizing mobile support is no longer optional – it’s vital to creating a seamless and satisfying customer journey.

Be transparent with your customers

Clear communication is key to an effective digital customer service strategy. Customers should easily find or be directed to your support channels without hassle. Use platforms such as social media, your website, and online communities to proactively update customers about product changes, service outages, delays, or policy updates. This level of transparency builds trust and ensures customers know where and how to reach you. By being open and direct, you can guide customers to the most appropriate channels for their needs, improving their overall experience.

Create internal customer service goals

If you’ve implemented an omnichannel strategy but see areas for improvement, setting clear customer service goals is a great next step. Digital customer service channels provide more data, making it easier to create and track SMART goals – Specific, Measurable, Achievable, Relevant, and Time-Bound. This data can be used to help align your team, create accountability, and highlight areas needing attention. Goals may include reducing ticket response times, improving customer satisfaction scores, or analyzing data to identify recurring issues. These benchmarks will not only guide your team’s efforts but also demonstrate tangible progress as you refine your digital customer service strategy.

Here are some examples of brands providing excellent digital customer service:

TELUS: Focuses on self-service and automation

As Canada’s fastest-growing national telecommunications company, TELUS prioritizes delivering exceptional customer service through digital channels. As you can see above, TELUS creates helpful content, including self-serve articles, to address common challenges and empower customers to find solutions independently. This approach not only enhances the customer experience but also reduces the need for direct support interactions.

To further enhance customer support, TELUS also offers a virtual assistant chat feature and a Generative AI Customer Support Tool, both of which deliver instant answers to customer inquiries. This commitment to responsive and effective digital customer service has resulted in an impressive customer satisfaction rate of 98%, reflecting TELUS's dedication to meeting and exceeding customer needs.

Takeaway: To enhance customer satisfaction, businesses should prioritize digital service strategies that empower customers with self-service options and provide immediate support through advanced tools.

Midco: Expands digital customer service channels

Midco, an internet service provider serving communities in Kansas, Minnesota, North Dakota, South Dakota, and Wisconsin, initially relied on traditional phone and chat support for customer service. To enhance its digital customer service, Midco expanded its digital communication options to live chat, social media, and SMS. This shift significantly improved communication and reduced time-consuming phone calls. This addition streamlined support processes, allowing customers to connect on their terms and their preferred channel, which ultimately leads to increased customer satisfaction and loyalty to the brand.

Takeaway: Expanding digital customer service channels and offering flexible communication options can significantly enhance customer satisfaction and streamline support processes.

As you can see, investing in digital customer service can transform how your business interacts with your customers, enhancing satisfaction, reducing operational costs, and creating a competitive advantage. By leveraging the right tools and strategies, brands can meet customers’ evolving needs and deliver seamless, personalized support across channels.

With Khoros Service, agents can effectively manage queues, tagging, and routing automation across any channel — including chat, messaging, text, social media, email, online communities, and more — leveraging the power of AI. Our all-in-one digital contact center provides a seamless, always-on omnichannel customer experience and easily integrates into your existing tech stack. Build and customize your own chatbot for faster service and gain instant customer insights through our unified analytics.

Connect with your customers where they are and request a demo today.