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As the direct-to-customer market grows, many brands continue to adopt traditional approaches to customer service and stumble over the same obstacles again and again. How should customer service professionals rethink client care? And where should brands even begin this process? Let’s unpack some common customer service problems and solutions.
Below, we outline common obstacles, such as adapting to new customer preferences and gauging success, and cover modern solutions.
Despite popular wisdom, a majority of buyers do not want to speak to a support agent. That’s according to a survey by market research company Forrester . Analysts found most customers simply want accurate, relevant and complete answers to their queries. Why does this matter?
Returning to the study, more than 50% of U.S. adults said they’re likely to abandon their online purchase if they can’t find a quick answer to their question.
Speaking to only those one-in-two shoppers for whom speed is a factor, whether or not a brand closes a sale depends on how quickly customers can locate answers related to a product.
Delving deeper into this topic, 70% of adults said valuing their time is the most important thing a company can do to provide them with good online customer service .
Customers are increasingly using self-service and agent-assisted digital communication channels for customer service, which apply less friction to the shopping experience, Forrester researchers write.
Examples of these channels include:
Of course, now’s not the time to unplug and retire the landlines. What this report points to is a more nuanced, tech-forward approach to our customer service problems and solutions — an approach that is more vital now than ever.
Customer service problems have become an all-too-common frustration for consumers worldwide. From endless hold times to unresponsive agents and hidden fees, the list of issues seems never-ending. These problems not only hinder the customer experience but also corrupt trust and loyalty. It’s time to address these common grievances head-on and seek out companies that prioritize exceptional support. We delve deeper into some of the most prevalent customer service problems plaguing consumers today.
COVID-19. Social distancing. Virtual connections. With an eye on the upcoming year, Forrester suggests customer service centers will adapt to a shifting market , one shaped by the pandemic. There’s a “need for a more empathetic service experience,” analysts write. Additionally, customer service will become a lifeline for an estimated 33 million consumers.
“With U.S. unemployment peaking in April [2020],” they write, “millions of individuals found themselves struggling to pay for food, bills, and other necessities.” They suggest responsible organizations provide high-quality, emotionally sensitive customer support in a form that meets customers’ needs.
Concurring with the above trend, Forrester predicts a sharp, 40% spike in virtual customer support cases, placing greater scrutiny on brands and greater urgency on their support agents to meet shoppers’ preferences: namely a demand for self-service and agent-assisted digital communication channels.
Finally, Forrester projects the creation of hybrid store/contact center roles. While brick-and-mortar stores have been hurt by the pandemic and subsequent social distancing guidelines, they haven’t been erased. Assuming a hybrid posture towards customer service problems and solutions creates the greatest opportunity for brands to meet shoppers’ needs.
As we covered in a previous blog post , customer service agents who aim to improve their care face a unique challenge. So often, the starting points for new solutions are major issues that may be intangible and tricky to define, such as:
Equally challenging is gauging the benefits of your customer service . Of course, a five-star review on a public forum is a clear sign. Generally speaking, these kinds of signals can be few and far between, creating time gaps without concrete feedback to indicate how well a service center is performing. Where should you look to get a sense of how your service is affecting consumers?
First, look within . Everyone benefits from excellent customer service, not just shoppers. When buyers are happy, that can radiate to an entire organization, boosting morale and — potentially — translating to sales. And in that way, a company’s bottom line becomes a clear, tangible gauge of customer service efforts.
And second, check your workload. Customer service takes time to perform, especially when done well. As such, professionals may find themselves overburdened when fielding a large volume of easy-to-answer conversations, and unable to attend to more severe cases. Often, giving agents the freedom to deflect avoidable queries is a matter of implementing tech solutions, such as self-service and agent-assisted digital communication channels.
Here are just a few options available to customer service professionals:
Learning how to tackle customer service problems and solutions doesn’t have to stop with this blog post. Trust Kustomer as a source of invaluable tactics for honing your customer service center strategy. Download Kustomer’s buyer’s guide to learn more.
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October 11, 2023
In the customer service world, challenges arise when you least expect them. Whether you're a seasoned professional or just starting, mastering the art of problem-solving is essential.
In this article, we’ll share with you 10 simple yet effective tips and techniques that will empower your team to navigate customer service issues like a pro.
From active listening to setting realistic expectations and offering solutions, these strategies will benefit your business by enhancing your team’s problem-solving skills and boosting customer satisfaction.
Problem-solving skills are crucial in customer service because they turn frustrating situations into bright opportunities. When you effectively identify and address customer issues, you also show that you genuinely care about their satisfaction.
These skills build trust, improve customer loyalty, and lead to positive word-of-mouth recommendations. Moreover, they help your team handle challenges efficiently, reducing stress and improving overall job satisfaction.
In short, mastering problem-solving in customer service is the key to creating happy customers and a thriving, customer-centric business.
Active listening is a vital technique in customer service problem-solving. It involves fully focusing on what the customer is saying, not just waiting for your turn to speak.
To practice it effectively, encourage your team to maintain eye contact, nod in acknowledgment, and use phrases like "I understand" to show empathy. Let them practice how to avoid interrupting and give customers the space to express themselves fully.
By truly hearing your customers’ concerns and needs, your team can respond more precisely and find solutions that leave customers feeling valued and satisfied. This successfully turns potentially challenging situations into positive experiences.
SC Training (formerly EdApp) can empower your customer service team's problem-solving skills by offering interactive and customized training courses. These problem solving training courses include SC Training (formerly EdApp)’s Problem Solver course. There’s also a course on Dealing with Difficult Customers .
Through scenario-based simulations, your team members can practice resolving real-life customer issues in a safe learning environment. SC Training (formerly EdApp)'s reporting and analytics features allow you to monitor individual progress, identify areas for improvement, and provide targeted feedback.
With the flexibility of mobile learning , your team can also access training anytime, anywhere, making it convenient to sharpen their problem-solving abilities. Plus, SC Training (formerly EdApp)'s engaging and adaptive content makes sure that your team stays motivated and develops the critical skills needed to excel in customer service problem-solving.
Sign up to SC Training (formerly EdApp) for free to unlock your customer service team’s best potential.
Staying calm and patient is a superpower in problem-solving. When your team keeps their cool even in tough situations, it sends a reassuring message to the customer that they’re competent and there to help.
Some tips you can give them are to take deep breaths, to remember it's not personal, and to not rush through the conversation. Pausing to collect their thoughts can also lead to better solutions and prevent the situation from escalating.
With this customer service problem-solving skill, your team gains the upper hand in resolving issues effectively, creating happier customers, and making their jobs less stressful in the process.
Apologizing sincerely is a golden technique in customer service. When your team members genuinely say, "I'm sorry," they show empathy and take responsibility for any inconvenience the customer has faced, regardless of fault.
This simple act of acknowledging their frustration can go a long way in diffusing tension and starting the path toward resolution when it comes to customer service problem solving. A sincere apology demonstrates that your customer service team cares about their experience and is committed to making it right.
So, don't let your team underestimate the power of a heartfelt "I'm sorry" in turning a customer's problem into an opportunity to leave them feeling valued and satisfied.
Taking ownership is a remarkable technique when dealing with customer problems. When your team members accept responsibility for resolving an issue, they send a clear message to the customer that their concerns matter to your business.
It doesn't matter if your product or service caused the problem. By taking ownership, your team demonstrates a commitment to finding a solution and ensuring their satisfaction. This step builds trust and confidence in your customers, showing that your team is there to support them every step of the way.
Encourage your team to say, "I'll take care of this for you." It's a powerful way to transform challenges into opportunities in exceptional customer service problem solving.
Setting realistic expectations is an important step for customer service problem solving. When you communicate clear timelines, you're being honest and transparent with what the customer can expect.
This helps manage their expectations and prevents disappointment down the road. Under-promising and over-delivering is a technique your team can use to make sure that they have the time and resources needed to meet or exceed the commitments they’ve made.
This technique not only prevents misunderstandings but also creates a positive experience by showing that your team is dependable and trustworthy. It ultimately makes customers happier and more satisfied with the service they receive.
Letting your team members collaborate with their colleagues for problem-solving is like having a superhero team for customer service in your organization. Sometimes, challenges are complex, and it's perfectly okay to call in reinforcements.
They can also involve other team members or departments when needed, ensuring that they have all the expertise and resources at their disposal. Effective internal communication is the key here; so make sure that everyone is on the same page.
This customer service problem solving example helps find more comprehensive solutions and demonstrates a unified commitment to customer satisfaction. So, remind your team that they’re not alone in this mission–collaborate, conquer, and make your customers' day better together.
Offering solutions is not just about acknowledging the issue; it's about actively seeking ways to fix it. Presenting practical solutions to the customer's problem shows that your team is dedicated to making things right and that customer satisfaction is their top priority.
So when faced with examples of problem-solving scenarios, have your team discuss the options, outlining the pros and cons if necessary, to help your customers make an informed decision.
Offering solutions not only resolves the immediate problem but also fosters trust and loyalty, leaving customers feeling heard, valued, and confident in your team’s ability to provide exceptional service.
Once the issue is resolved, your customer service team shouldn’t leave your customers hanging. They should take the extra step to check in with them.
Whether it's a quick email or a phone call, asking if everything is going well shows that your team genuinely cares about their satisfaction even after the problem is resolved. It's a fantastic way to ensure their needs are fully met and to gather valuable feedback for continuous improvement.
Following up not only leaves a lasting positive impression but also transforms a simple resolution into a memorable and delightful customer experience . So, remind your team to circle back and make sure that your customers are smiling long after the issue is history.
When your team members keep detailed records of customer issues and the steps taken to resolve them, they’re creating a valuable resource for your customer service team.
These records offer a clear picture of past challenges and solutions, making it easier to spot trends and identify areas for improvement. Plus, they guarantee consistency in your service by allowing any team member to pick up where you left off, providing a seamless customer experience.
Think of documentation as your team’s secret weapon for conquering future customer service adventures, helping them navigate problems with confidence and precision.
After resolving an issue, let your team take a moment to reflect on what went well and what could be improved. Have them analyze customer feedback and common issues to identify patterns and trends.
By turning each case into a learning opportunity, your team can continually refine their problem-solving skills and fine-tune your business’s customer service approach.
It's the key to growth, making sure that you and your team are always ready to tackle new challenges with even greater expertise. This ultimately creates happier customers.
Donna is an elearning content writer for SC Training (formerly EdApp), a mobile-based microlearning platform designed for today's digital training needs. When she's not writing web articles, she writes lines of code or songs or anything food-related.
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Your customers are your purest form of quality control. Without their approval, your business doesn’t grow and succeed. So, when customer complaints roll in, it’s important to hear them out because these are opportunities to improve the customer experience and prevent potential churn. No matter which industry you’re in, you’re going to deal with customer complaints. Even if your business doesn’t make a mistake, one of your customers will eventually hit a roadblock that leads them to your customer service team. In this article, we will take a look at some of the most common customer service issues and how to resolve them.
Why Great Customer Service Can Be an Asset to Your Business
Great customer service can be a great asset for your business. For example, it can help you increase customer loyalty. According to Salesforce, 91% of customers say a positive customer service experience makes them more likely to make a further purchase. Also, investing in new customers is five times more expensive than retaining existing ones. Therefore, you definitely want to prevent a customer service issue from affecting the purchasing behavior of your customers.
Now that we see how important it is to address customers’ issues, let’s take a look at why it’s important to address customer problems head-on.
Improve Your Customer Service Standards by Addressing Problems Head-on
Customer complaints are often a sign that there’s a disconnect between what customers expected and what you delivered. However, problem-solving in customer service should be done head-on. Try digging deeper into the issue by asking the right questions. Complaints — even angry ones — can contain insights, and it’s your job to seek out the point of friction. Socratic questioning can help you get to the source of the issue. Also, try to identify the type of customer you are dealing with. For example, there are customers who pay well and demand premium support for it. Therefore, when responding, avoid excuses and just get to the solution. Consider creating a VIP folder and workflow to make it easy to identify and respond to their complaints.
Now that we know you should tackle customer problems head-on, let’s move on to the most common customer service issue you will encounter.
8 Main Customer Service Problems and How to Resolve Them
Studies on the state of contact centers today show poor customer service costs businesses more than $75 billion every year. Therefore, you want to resolve customer issues as soon as possible. Here are the eight most common customer issues you will encounter:
Why is customer service problem-solving important?
Customers have more power than ever. If customers have a positive experience with your company, they will share this experience with friends, family, and connections – which in turn can lead to new business. However, if the customers do not get the right level of service, they will complain. A customer complaint highlights a problem, whether that’s a problem with your product, employees, or internal processes, and by hearing these problems directly from your customers, you can investigate and improve to prevent further complaints in the future.
How to Solve Customer Service Problems?
Customers want a great experience, and part of that experience means not losing time, money, and patience. Brands similarly value their time and money, but they must always have the patience to deliver their customers a great experience. Even with the best efforts, however, difficult customer situations are sure to arise, and how companies handle these situations can mean the difference between customer churn and long-term loyalty. Therefore, be sure to show a lot of empathy. Regardless of the channel on which they contact a business, an agent must patiently welcome a full explanation of the issue and then show genuine empathy for the customer’s frustration. It’s critical to show customers that a brand values its customers as people, not just buyers.
Trust Pexly With All of Your Customer Service Needs
If you are experiencing customer support issues or would simply like to increase your key performance indicators, consider hiring Pexly to improve the level of customer service. We have extensive experience actualizing projects of all sizes and complexity and can provide you with a custom solution that will fit your needs. Contact us today to learn more about how we can help you.
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Customers interact with your business through your customer service team. This team is the voice of your business and customer feedback can help you grow your company and improve your customer journey. According to American Express , 68% of customers believe that a polite customer service agent is the key to providing great service.
How your team members handle customer queries is crucial to your organization’s success. If you want to provide excellent customer service and achieve customer retention, you need to invest in your customer service representatives .
Dissatisfied customers will often bolt to a competitor, slashing revenues. According to the statistics published by Venture Beat , 76% of customers stop doing business with a company after one poor customer service experience.
Dealing with customer issues can be stressful for the customer support team if they don’t know how to handle customer dissatisfaction and lack key skills , such as active listening and empathy . Thankfully, we are here to help by providing customer service solutions that allow flawless customer interaction.
The key to customer service performance is knowing how to respond effectively and on time. Excellent service enhances customer experience, boosts customer loyalty, and increases corporate profitability.
Below are 12 common customer service challenges businesses face daily as well as ideas on how to turn them into relationship-building opportunities:
Handling this challenge is more about what you shouldn’t do than what you should do.
The key is to avoid being unclear in your response.
If you do not have the answer , acknowledge the question’s difficulty, ask the customer for time to find a solution, and assure them you’ll contact them.
There will be times when the best way to help a customer is to transfer them to another person within the customer service department. To avoid creating a negative experience for your customers, you first need to let them know you’re transferring them to a different customer service professional.
Avoid the mistake of doing a “blind transfer”, which means transferring the customer to another customer service rep without verifying they are available to take their call.
How do you think they will feel if they are expecting to talk to a live person, but instead gets a reply from a voicemail?
Customers can have a hard time explaining what they want, even if we’re talking about common issues with your products. This doesn’t mean they’re difficult people. They simply may not know the technical jargon to tell you exactly what the problem is.
In this specific customer situation, ask the customer to take you step-by-step through their issue.
You might find it helpful to take notes while they explain.
Consider sharing the problem with another customer support agent or your manager. A second opinion could help you solve the issue quickly.
Even the best companies get calls from angry customers and this usually impacts customer service workflow. The only method that works here is first to calm them down to find out how you can help them.
One approach is to use the HEARD technique for helping customers: Hear. Empathize. Apologize.
The trick to beating this challenge is setting reasonable customer expectations and meeting and exceeding them. Going the extra mile in this case can generate repeat business.
The key to exceeding customer expectations is for your customer service employees to take a customer-centric approach. You can then generate data that tells you exactly what customers want. Use print, electronic, and social media to produce that kind of data.
Customers are okay with being put on hold if it helps resolve their issues. Telling customers that you’re going to put them on hold to solve their problems will not impact the quality of service and will buy you time to talk with another customer.
Above all, avoid telling the first customer you’re talking with a second customer. And don’t leave customers on hold for a long time.
Is there anything worse than having a power failure or a crisis? Severe emergencies, like security breaches, can be deadly.
How do you handle them? First, put a crisis communication plan in place. That tells employees precisely what they have to do during a crisis. Then, when customers call, you need to apologize to customers for what they’re going through.
Also, provide constant updates—say once every 30 minutes— to help reassure nervous customers.
Once everything’s over, you can publish a post-mortem .
Discounting can get customers to buy from you. But it also devalues your brand’s perception in the customer’s eyes. So, use this strategy sparingly.
No customer likes to hear “no” from a customer service agent. Explain to them why you can’t give them the discount.
The biggest challenge when speaking to customers is saying no. But sometimes you must. Here’s a way to do it gracefully:
This challenge is common during the holiday season, especially if you don’t have an employee working 24/7 or a reputable outsourcing provider like Unicom to provide round-the-clock responses. Many customers expect an answer within six hours. When backed up like this, focus on responding instead of resolving.
You can also have customer service agents write a personal email telling customers, “We’re backlogged, but we’ll be taking care of you soon.” Also, give customers a hard deadline by which you’ll help them.
Some people are better suited for your product or service than others. But letting a customer go is never easy. So, if you need to do it, do it with grace and respect. Use this four-step approach:
Going above and beyond can save this relationship.
Customers want answers now. Or better yet, five minutes ago. To start, review the ticket handling process you have in place. If you have tickets bouncing around from one department to another, find out why and eliminate the problem.
Strengthen your communication channels. Try omnichannel support, create a service-level agreement, and set up your internal structure for team success. According to CX Today , 9 out of 10 customers want omnichannel services.
Customer service challenges don’t go away. But if you don’t handle them correctly, they could cost you your existing and potential customers. Not providing outstanding customer service generates negative word-of-mouth advertising. No business can afford that.
Turn service challenges into relationship-building opportunities and improve customer satisfaction . Prepare your team to handle these challenges in advance and ensure the highest level of customer care.
Hiring an answering service can help you increase your customer satisfaction score and achieve the customer support goals you have for your business.
This article was originally published on December 17, 2020. It has been updated in October 2023 to reflect current trends and new information.
I’ve been in the call center industry for over a decade. A big part of my job is educating businesses on the role telecommunications and outsourced task procedures can play for their business. Understanding their customer service processes is critical to verify and implement the right services. When I am not in front of clients I manage the technological infrastructure in the call center.
Post Update: The article was updated on October 1st, 2023, originally published on December 28th, 2021. It has been completely revamped and updated for accuracy and comprehensiveness.
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Recently, I’ve read an interesting customer service story.
An American Express customer has made a decimal mistake while making a payment and paid thousands of dollar instead of hundreds (ouch!).
He called AmEx to inform them about the mistake and ask for advice. He was assured by a representative that the problem won’t affect his account and all charges will be refunded. But it turned out to be just the beginning of his problems.
A few days later customer has noticed that all his debit cards are suspended . But when he checked his account, he didn't find anything suspicious, not even a note that the account is blocked, so he called AmEx once again for clarification.
To his surprise, the representative he reached, asked why he didn't stop the payment and accused him of a fraud attempt. When customer responded that a previous rep didn't advise him to do so and assured that there will be no negative effects of his mistake.
Do you know what was the rep's response?
That's what customer service does. They tell you what you want to hear.
This quite nasty customer service story inspired me to write about the real purpose of customer service . Which is not “telling customers what they want to hear”, but helping customers and resolving their problems . You’ll also learn a couple of troubleshooting techniques that should make your job easier.
You might wonder how the story of the AmEx customer ended.
Well, the customer gave the company a last chance. He canceled the payment and got back to the customer service asking if there is anything else he’d have to do. But this time, he reached a different representative.
However this time... she is willing to listen. It was like night and day. I explain the situation to her. She is immediately understanding. She looks at my account, puts me on hold, then comes back on and says that her supervisor has authorized my card to be reactivated. I'm shocked... and happy.
Two reps working in the same customer service team for the same company and two entirely different customer experiences, a great one and a terrible one.
It’s hard to tell what led to the bad experience: maybe the rep was not the right person to work in customer service, perhaps management failed to train and motivate them properly. The bottom line was that the customer called for help and did not get it.
In many cases, problem-solving is so difficult because you need to maneuver between company policies and the interest of a customer . That’s what happened here. But it turned out that while the first rep was not able to deal with such a situation, the second had the right problem-solving skills to address the problem.
Here’s something that should be helpful for any customer service representative: a path that you should follow to provide satisfying solutions to customers.
So, here’s the customer.
They contact you and ask for something impossible to do. Let's say that they were informed that your company will be cutting their phone line for non-payment. Now, this customer is asking you to credit the last couple of invoices because they don’t have money (this is a real request I’ve got when I was working in call center).
A regular person’s first thought would be: “Are they nuts?” But you are not a regular person. You’re a Support Hero and it’s your job to save the customer’s day . Negative thinking won’t get you any closer to the solution.
Maybe a customer is a fraud, but maybe they are in a very bad situation and desperately need help. You can’t tell what’s right and what’s wrong at this stage, so you should assume that the customer is not a fraud and you should assist them.
It’s not your job to judge their motives.
You need to listen actively to understand the problem and find a way you can help.
Sometimes customers are not able to clearly explain what is wrong and it’s completely normal. They don’t know your processes or your jargon; they just know that they’ve had expectations towards your product or services and are disappointed now .
It’s your job to restore their faith in your company, but first, you need to find out where the problem is.
Here are few questions that can help you troubleshoot. Sometimes thanks to these simple questions you’re able to see that there is an outage or that a faulty batch of products was sent out by a manufacturer!
And now ask yourself:
Once a customer replies to all your questions, summarize answers back to them. It will let them know that you understand them and will help you to verify the facts.
If you haven’t heard about such a problem, or you’re not sure what to do, apologize briefly and inform that you need to discuss this case with your colleague or supervisor. Try to sound self-confident and don’t be afraid to ask a customer to hold on a minute.
Customers appreciate getting the correct answer, even if it will take a bit longer.
But instead of saying an awful “sorry but I’ll have to transfer you to the other department”, try to say:
We’re going to resolve this case for you. I will transfer you to a specialist who’s the best person to answer your question.
Make a good use of your analytical thinking and try to find out a solution that will suit your customer the best.
Here are a few questions that should help you to plan a solution:
Even if you’re dealing with a case that’s not going along with your company’s policy, there is always something you can suggest.
Let’s take the example with a customer asking for a refund .
Even if your company’s policy won’t let you credit these charges, there is still something you can do.
One unreasonable request and three possible solutions that depend on your creativity!
But what will happen if you are not the one who can solve the problem?
First of all, you might need to open a ticket .
You need to make sure that this ticket doesn’t get lost in your CRM's oblivion, so you need to assign it to yourself and monitor if it’s resolved in time. If the problem is not solved in 24 hours, you might want to contact the customer and inform them that you’re still working on a problem.
Sometimes the problem cannot be solved at all. Your company stopped selling the particular product, you don’t have a gluten-free option in your restaurant’s menu, a customer wants to use a feature that doesn’t exist...
It doesn’t mean that you can’t still find a possible solution!
If you’re not selling these gear bags, let the customer know who does it. If you don’t have anything gluten-free in your menu, ask the customer if they want something from the nearest shop.
Making an extra mile can translate into customer happiness even if you don’t solve the problem the way customer expected you to do .
Here’s an example from our experience. My colleague, Justyna , has received a chat from a customer upset with the fact that our application doesn’t have an in-built screen-sharing and screenshot-making tool.
After taking a few deep breaths, I told Aline that even though the tools that she needed doesn't come with LiveChat itself, she can set up an integration allowing her to have screen-sharing sessions with her clients, and use a free screenshot tool like Jing. That did the trick! She was very happy with the solution, so my mission was accomplished.
At last! The customer has agreed on a solution. You’ve briefly apologized for the problem and now you can fix it and close the case, right?
Unfortunately, it’s not that simple.
Sometimes your solution will not resolve the cause of the problem. Let’s say that customer had an issue with the application and you’ve suggested restarting the device. It is possible that it will resolve the problem, but it’s more likely that this customer will come back to you. And it’s more probable that they’ll be upset that the solution you gave them did not work.
I know, when working in customer service, you hardly have time to go for a break and I’m asking you to follow up your customer’s problems, right?
But there are positives of spending a bit of your time on contacting these customers back.
And if you don’t have time to make any calls or send any emails, there are two things you can do. The first thing is, some apps allow you to send automatic emails after a ticket is solved (LiveChat does that, for example, you can test it and try ).
But your team can also make use of an automatic survey that will tell you how happy the customer was and if you’ve helped to solve his problem. You can use SurveyMonkey, Typeform, or you can simply send a template of a message asking two questions:
Customers will appreciate it!
If you’ve read my post about problem solving skills , you remember the golden rule of customer service. Even when the problem does not concern your product, you can still create an amazing customer experience by suggesting a possible solution.
Because this is what is customer service for. For solving problems, not for telling what customers want to hear.
So as long as you don’t give up, use the advice I’ve shared with you and think positive – there will be no problem you can’t solve.
You might want to check " 5 Common Customer Service Problems and How to Resolve Them ."
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4 steps to effective customer service problem solving with examples.
Recently, I came across a fascinating customer service story involving an American Express cardholder. It all began with a seemingly innocent mistake while making a payment involving a decimal point in the wrong spot, resulting in the customer inadvertently paying thousands of dollars instead of hundreds.
Determined to rectify the error and seek guidance, the customer promptly contacted American Express to report the issue. To his relief, a representative assured him that the mistake would have no adverse impact on his account and that all charges would be promptly refunded. Little did he know that this was just the prologue to a series of challenges.
A few days later, the customer was taken aback when he discovered that all his debit cards were unexpectedly suspended. Perplexed and concerned, he went over his account for any indications of suspicious activity or an account block, but to no avail. Thus, he decided to reach out to American Express once more to seek clarification.
To his utter surprise and dismay, the representative he connected with not only questioned why he had not halted the incorrect payment but also accused him of attempting fraud. The customer explained that a previous representative had not advised him to stop the payment and had, in fact, assured him that there would be no negative consequences resulting from his honest mistake.
The response?
That's what customer service does. They tell you what you want to hear.
This quite nasty customer service story inspired me to write about the real purpose of customer service. Which is not “telling customers what they want to hear” but helping customers and resolving their problems.
In this article, you’ll also learn some troubleshooting techniques to make your job easier.
A customer-centric culture serves as the bedrock of exceptional problem-solving and sustainable business success. In a world where customers today wield unparalleled power and influence, placing them at the heart of your operations is not just a choice; it is a strategic imperative.
At all levels of the organisation, employees must wholeheartedly prioritise customer happiness, understanding that every interaction is an opportunity to leave a lasting impact. By cultivating such a culture, businesses create a positive and supportive environment that empowers employees to go above and beyond to delight customers.
Nurturing this culture demands a multifaceted approach. One potent strategy is to recognise and reward outstanding customer service efforts. By celebrating employees who embody the customer-centric ethos, businesses reinforce the value they place on exceptional experiences. This recognition motivates individuals to exceed customer expectations continually and sets a powerful example for others to follow.
Encouraging collaboration is another pivotal aspect of fostering a customer-centric culture. In today's interconnected business landscape, problems seldom fit neatly within departmental silos. Emphasising collaboration cultivates a shared sense of responsibility for customer success and enables employees to pool their expertise, collectively devising innovative solutions that surpass individual capabilities. The result is a seamless and consistent experience for customers, who benefit from the collective effort of a united organisation.
To equip employees for the challenges of modern customer service, businesses must invest in skills training. Outstanding problem-solving skills do not materialise by chance; they are honed through intentional development. Equipping employees with the necessary tools and knowledge to navigate diverse customer interactions positions them to respond adeptly and confidently, even in the face of dissatisfied customers.
Speaking of dissatisfied customers, they hold the key to unlocking greater customer retention. Rather than viewing poor experiences as a liability, businesses must embrace them as opportunities for growth. Each negative interaction presents a chance to introspect, identify pain points, and make tangible improvements. By actively seeking feedback from dissatisfied customers, businesses demonstrate their commitment to listening and learning, earning trust and loyalty in the process.
A customer-centric culture is more than a mere buzzword; it drives superior customer experiences and enhanced customer retention. By prioritising customer satisfaction at every touchpoint, celebrating exceptional service, fostering collaboration, investing in skills training, and actively engaging with dissatisfied customers, businesses can forge a path to sustained success and unmatched customer loyalty. Embrace the customer-centric ethos, and you will unlock the true potential of your organisation in a customer-centric world.
Timely response and resolution are essential components of successful troubleshooting. Customers appreciate swift action, showing that their concerns are taken seriously. Personalisation also plays a significant role, as customers feel valued when their issues are treated individually rather than generically.
Navigating challenging situations with irate customers requires patience and tact. Service reps need to stay calm, acknowledge the customer's feelings, and work towards finding a resolution.
As a customer service agent, providing satisfying solutions is essential. Let's explore the path to achieve this.
Imagine yourself in the customer's shoes. They reach out to you with what seems like an impossible request. For instance, they received a notice that their phone line would be cut due to non-payment, yet they requested credits on their invoices due to financial constraints. Initially, you might question their request, but remember, you're not just an ordinary person; you're a Support Hero tasked with saving the customer's day. Negative thinking won't lead to solutions.
At this stage, it's hard to distinguish if the customer is genuine or potentially fraudulent. However, instead of passing judgment, assume the customer needs assistance and act accordingly. Engage in active listening to comprehend the problem thoroughly and find a way to help.
Exceptional problem-solving hinges on understanding customer needs and concerns. Active listening enables service representatives to connect with customers on a deeper level and empathise effectively. By listening attentively, you can pinpoint the root cause of the problem and tailor solutions to meet their specific needs.
Remember these keywords throughout your journey: fully understand the problem, solve the customer's problem, find a workable solution, and ensure the customer is happy with the resolution.
Ensuring that customers are happy with the solutions provided is crucial in customer service. Sometimes, customers simply struggle to articulate their issues, and that's entirely normal. They may not be familiar with your processes or jargon; all they know is that their expectations regarding your product or service have been disappointing.
As a Support Hero, it's your responsibility to restore their faith in your company, but to do that, you must first pinpoint the problem.
To troubleshoot effectively, here are a few questions that can guide you. Sometimes, by asking these simple questions, you can quickly identify an outage or a faulty batch of products sent out by a manufacturer!
Can you describe the problem you're facing precisely? When did this problem start? Has this issue occurred before?
Next, consider the following:
Are all users affected, or is it isolated to just one customer? Has anyone else faced a similar problem in the past?
Once the customer responds, summarise their answers back to them. This gesture demonstrates that you genuinely comprehend their concerns and helps you verify the facts.
If you're unfamiliar with the problem or unsure how to proceed, offer a brief apology and inform the customer that you need to discuss their case with a colleague or supervisor. Maintain a self-assured tone, and don't hesitate to ask the customer to hold on for a moment.
Remember, customers value accuracy even if it takes a bit more time to sort out the issue.
Instead of abruptly transferring a customer to another department, try saying:
"We're committed to resolving this for you. Let me transfer you to a specialist best equipped to address your question."
Customers appreciate the effort you put into understanding their journey and resolving their issues promptly. Poor customer service can lead to bad customer experiences, but by actively listening to their concerns, you can turn their dissatisfaction into a happy customer.
Always focus on solving the problem, no matter how common or complex. As a customer service representative, your role is to provide exceptional support and ensure that customers are satisfied with the resolution.
So, embrace every customer service issue as an opportunity to solve the problem and deliver exceptional customer support. Your dedication and responsiveness will create a positive experience, turning unhappy customers into satisfied ones.
Remember, the help desk is where customer issues are met with efficiency and care. The key to a successful customer service journey lies in how you handle problems and fix them effectively.
Utilise your analytical thinking to devise a solution that best suits your customer's needs. Here are some key questions to help you plan an effective resolution:
Is there enough staff to carry it out?
Who will be involved in implementing the solution?
What is the expected time frame for the solution?
What resources are needed to make it happen?
Who should be informed about the planned solution?
How will the customer be notified about the solution?
Even if you're faced with a case that goes against your company's policy, there is always room for creative suggestions. Take, for example, a customer seeking a refund, which may not align with your policy.
However, consider these alternative solutions:
Inform the customer that you cannot credit the bill, but offer to split the payment into smaller instalments to accommodate their financial situation.
Postpone the account suspension temporarily, allowing the client to continue using the service.
Analyse the customer's account and propose a switch to a more budget-friendly price plan.
Your creativity can turn an unreasonable request into three viable solutions!
But what if you're not the one who can solve the problem?
In such cases, you may need to open a ticket to escalate the issue appropriately. To ensure the ticket doesn't get lost, assign it to yourself and monitor its progress. If the problem remains unresolved after 24 hours, consider contacting the customer to provide an update on your ongoing efforts.
Occasionally, there are situations where the problem cannot be fully sorted. For instance, your company may have stopped selling a particular product, or you may not have a gluten-free option on your menu. However, that doesn't mean you can't offer a helpful solution. If you don't have what the customer needs, guide them to the right source. Let them know where they can find the desired product or suggest alternatives.
Going the extra mile can create customer happiness, even if the solution deviates from their initial expectations.
Here's an example from our experience: My colleague, Justyna, recently chatted with a customer disappointed that our application lacked an in-built screen-sharing and screenshot-making tool. With a composed demeanour, I informed Aline that while LiveChat lacked those features, she could set up an integration for screen-sharing sessions and use a free screenshot tool like Jing. It did the trick! Aline was delighted with the solution, and my mission was accomplished.
Throughout the resolution process, ensure that the customer is at the centre of your focus. Handle customer service issues with attentiveness and empathy, as a positive customer service experience can be transformative. Use a series of questions to fully understand the problem, allowing you to implement the right solution and untangle customer queries effectively.
Finally! The customer has agreed on a solution. You've offered a brief apology for the problem, and now you can fix it and close the case, right?
Unfortunately, it's not always that straightforward.
Sometimes, the solution provided may not address the root cause of the problem. For example, let's say a customer had an issue with the application, and you suggested restarting the device. While this might settle the problem, it's more likely that the customer will return with the same issue, possibly even upset that the initial solution didn't work as expected.
I understand that working in customer service leaves little time for breaks, and now I'm asking you to follow up on your customer's problems. But there are significant benefits to spending a little extra time reaching out to these customers.
Doing so demonstrates genuine care and creates an exceptional customer experience. You ensure that you won't receive calls or chats from furious customers later. You can verify whether your solution worked, giving you confidence for future interactions.
If you find it challenging to make calls or send emails to follow up, don't worry. There are alternative approaches you can take. Some apps allow you to send automatic emails once a ticket is resolved (e.g., LiveChat). You can test and try this feature to save time.
Alternatively, your team can use an automatic survey to gauge customer satisfaction and determine whether the problem was adequately resolved. Platforms like SurveyMonkey and Typeform can be useful in this regard. Alternatively, you can send a simple template asking two questions:
Did we help you solve your problem?
On a scale of 1 to 10, how would you rate your overall experience?
Customers will undoubtedly appreciate these efforts!
In customer service, increasing customer success is vital. To achieve this, it's essential to understand the issue at hand fully. When a customer allows you to delve into their concerns, you can identify the right product or service to address their needs effectively.
Remember, customers are likely to encounter complex problems, and they depend on you for assistance. Utilise customer service problem-solving techniques to handle their issues competently and ensure they are satisfied with the outcome.
To excel in issue resolution, customer service reps must have the right skills and authority. Regular training and development programs ensure that representatives are well-prepared to handle various situations effectively.
Additionally, empowering representatives to take ownership of customer issues instils a sense of responsibility, leading to more proactive and efficient resolutions.
Technology plays a vital role in modern customer service troubleshooting. Customer relationship management (CRM) systems help consolidate customer data, making it easier for representatives to access relevant information quickly.
AI-powered chatbots can provide instant support, resolving common queries and freeing up human representatives to handle more complex issues. Data analytics tools allow companies to gain insights into customer behaviour and preferences, enabling them to tailor their services accordingly.
To continuously improve the way problems are solved, companies need to track and measure their customer service performance. Key performance indicators (KPIs), such as response time, resolution rate, and satisfaction scores, provide valuable insights into the effectiveness of customer service efforts.
By monitoring these metrics, businesses can identify areas that require attention and implement targeted improvements.
Curious about how the story of the American Express customer ended? Well, after cancelling the payment, he reached out to customer service again, giving the company one last chance. However, he connected with a different representative this time—a night-and-day contrast from the previous encounter.
Unlike before, this representative was willing to listen. She grasped the situation immediately, empathising with the customer's plight. After reviewing his account and consulting with her supervisor, she astonishingly informed him that his card would be reactivated. The customer was both shocked and elated with this positive outcome.
It's remarkable how two representatives working for the same company in the same customer service team can provide vastly different experiences—one great and the other terrible.
The root cause of the poor experience is challenging to pinpoint. Perhaps the first representative was not suited for customer service, or management failed to train and motivate them adequately. Regardless, the bottom line was that the customer sought help but did not receive it.
Often, solving a customer-service problem involves navigating between company policies and customer interests, as was evident in this case. The first representative struggled to handle such a situation, whereas the second possessed the necessary skills to address the issue effectively.
As we explored in my previous post on problem-solving skills , the golden rule of customer service is to create a fantastic customer experience even when the problem may not directly concern your product. Offering a possible solution exemplifies the essence of customer service—solving problems, not merely telling customers what they want to hear.
The key to success lies in persistence, utilising the advice shared here, and maintaining a positive outlook. Armed with these qualities, there will be no problem you cannot conquer.
LiveChat is a complete customer service platform that delights your customers and fuels your sales
Great customer experience is bigger than just solving customer problems.
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In a recent post, I talked about the importance of feedback loops and how they help us access data and adjust processes based on analytics. In the fourth step of our process we solved the problem, but there is a big difference between finding a solution and actually solving a problem.
Most customer service interactions strive to offer solutions. The issue with that approach is the root cause–what created the problem in the first place–likely has not been changed or eliminated. This means the same problem is likely to surface again down the road. To solve the problem permanently means to use those same feedback loops to alter the way you do business and avoid the same problems in the future.
Let’s take a look at some of the issues that come from providing solutions rather than permanently solving the problem.
Watch On Forbes:
A Failure To Learn
Businesses should see customer service problems as an opportunity to learn and improve, rather than simply as issues to be addressed. In fact, your customers’ expectations and needs can–and should–help drive your business’s innovation. When your organization provides a solution to a customer’s problem but doesn’t address the root cause of the problem, it’s a sign that your organization has failed to learn from the problem. Your organization’s first question when you encounter a customer issue shouldn’t be, “How can we fix this?” but rather, “How can we prevent this from happening again?” The answer to that question is the one that leads to real change and improvement within your company.
Hearing Without Listening
There is a difference between simply hearing your customers’ complaints and really listening to them. It’s a subtle distinction, but also a real and important one. Hearing is a physical sense; listening is different. The latter requires a conscious choice to process the speaker’s words and consider their meaning and implications. This may seem like an overly scientific sentiment, but stay with me.
When you hear a customer’s complaint, you may nod and smile, but once they’re gone or you’ve offered a temporary solution, you likely move on without giving the interaction a second thought. But when you listen to a customer’s complaint, you go deeper. You’re asking yourself, “What is this person really saying he or she needs in the long run?”
Often, customers complain about a singular thing–slow shipping on a particular order, for example–when they actually have a different overall need: wanting to get their order as quickly as possible. To solve problems in the long run, listening to customers and not just hearing them is crucial.
The Problem Of Instant Gratification
We live in a society that thrives on instant gratification, like my example of customers wanting to receive their orders as quickly as possible. The need for instant gratification often extends into customer service interactions. When a customer presents an issue, our instinct is to provide the fastest, most immediate solution possible, in the hopes of soothing the customer’s complaint and keeping their future business. However, when organizations take this quick-fix approach to customer service, they often fail to realize they haven’t addressed the root cause of the complaint in the first place. As a result, the problem itself is not fixed. This need for instant gratification may be what keeps organizations from achieving critical growth and success.
How Businesses Can Adapt
So, how do you take your business from providing temporary solutions to solving long-term problems? First, take a moment to realize that your customers’ complaints are the purest form of product development research. When your customers identify a problem, they’re not posing a what-if scenario or hypothetical issue–it’s a real problem, and it offers a chance for your organization to respond in a way that eliminates the issue and promotes organizational growth and innovation.
Understand The Root Cause
When customers present complaints, companies must not simply look to offer a solution. They must instead focus on the root cause and fix it. For example, say you receive a customer complaint about a defective product. A temporary solution would be to simply send the customer a new, functional product free of charge. However, that doesn’t explain why the customer received a defective product in the first place. By reflecting on why this happened, you can potentially identify root issues, such as problems in manufacturing, sales, or product testing. Once addressed, your company can work to prevent similar issues in the future.
By seeking permanent, long-term solutions rather than quick fixes, your company will improve its reputation—and its bottom line.
Additional resources on this topic:
Why Brands Need More Continuity Between Marketing, Sales, and Customer Service
Competing on Customer Experience: Your Best Bet for the Win
Big Data: Solving Business Problems One at a Time
Create a problem statement to understand your customer's point of view. The Customer Problem Statement template helps you focus on what matters to create experiences people will love.
Trusted by 65M+ users and leading companies
The customer problem statement template helps you focus on what matters. You can figure out how your product or service meets your customers’ needs, allowing you to create experiences people will love.
Use this template to create a problem statement outlining the problems that your customers face. The statement helps you understand the experience you want to offer your customers, and it can also help you target a new audience when creating a new product or service.
As part of the Design Thinking methodology, the problem statement is essential to put yourself in your customer’s shoes and gain empathy when building services or products, tackling the real issues behind your customers’ needs.
Remember: It’s important to validate your customer's problems by running user research. This template is a way of crafting your problem statement, not analyzing your customer profile or needs.
A strong customer problem statement should provide a detailed description of your customer’s current situation and help you analyze the different stages of your customer journey map . Consider how they feel, their current situation's financial and emotional impact, and any other important details about their thoughts or feelings.
Using Miro's customer problem statement template is easy. There are five quadrants in the template with different propositions. Answer each of them to create your problem statement:
Who is this person? Are they a young working professional? Are they retired? Are they a CEO? Anything that identifies your customer and what problems they might face.
This is where you place your customer’s action. Do they have a financial target they want to reach? Are they trying to live a healthier lifestyle? You need to know what they want to achieve so you can figure out how your product or service will help them reach this goal.
Now you need to think about what’s stopping your customers from achieving their goals. Do they have a restricted budget? Are they struggling to prioritize their spending? Whatever it is, figure it out so you can better understand their challenges.
This is the root cause of their problem. If they’re struggling to prioritize their spending, what’s the reason behind it? Find out the cause of the impediment to better understand how they’re feeling.
As a result of all the previous points, your customer feels a certain way. This is where you can fully address how your product or service will solve this problem for them. Will you offer your product at a discounted price? Or provide additional services? You’ll be able to figure out the best course of action with this statement.
The template can be used to craft a problem statement for a new product or to help guide the development of an existing one. Here are just a few of the benefits of filling in the customer problem statement template together with your team:
Provide clarity: To find a solution, you need to identify the problem. Creating a concise problem statement gives you the clarity you need to figure out the problem and how to address it.
Better understand your customers: When you use the customer problem statement template, you think about your customer’s thoughts and feelings. You’ll increase your likelihood of creating something valuable for them because you understand them better.
Improve your product or service: The customer problem statement allows you to identify the best areas of improvement with your product or service. You’ll know what your customers are experiencing, their challenges, and how you can find a common solution to improve your product or service.
Enlighten your team: A problem statement shows team members why you offer a particular product or service. They can see firsthand what challenges your customers face and how your product solves them. Problem statements will also help you keep your team on track to reach a common goal and align their efforts.
There are various situations where using a customer problem statement is helpful. Let’s outline a few examples to demonstrate:
When you’re aware of a problem: If you know that your customers have a problem, you can use the statement to better understand it. As a result, you can tweak your product or service to address this problem and provide customers with a better experience.
When you want to improve your product or service: Crafting a problem statement is a great way to identify how to improve. You’ll get a deeper understanding of what your customers want, and you’ll make sure that any changes you make provide them with something they want.
When you’re entering a new marketplace with a new product or service: To make sure you fully understand your buyers and what they want from your product, use a customer problem statement template to guide you. You’ll be able to anticipate their problems before you launch and make any amendments to your product ahead of time.
It's not always easy to write a successful customer problem statement. To help keep you on the right track, here are some tips and tricks you can follow:
Don’t mention your product or service in the statement itself. You’re focusing on the problem, not the solution.
Articulate the status quo. Remember, that’s what you’re trying to disrupt.
Think about limitations your potential customers may have.
Target a specific group with whom you can build empathy.
Provide measurable outcomes. This makes it easier to come up with metrics you can use to track your progress.
Use a template. You’ve got a lot of information to condense into one sentence, so it’s helpful to have a template in place. That way, you know exactly what you need to include, and you won’t veer off-topic.
Remember to use your template when creating the customer journey map .
“Customers find it cumbersome to carry their textbooks around and risk forgetting textbooks when they need to bring them to class. This makes them feel ill-prepared for their lesson”
This customer problem statement hones in on your customers' challenges and elaborates on the problem. It doesn’t mention your product or service. Instead, it specifies what’s particularly difficult for your customers and what’s the consequence of it.
This makes it clear what their problem is, and that’s the information you need. With this statement, you can now address this problem.
On the contrary, a poorly-written customer problem statement would be:
“Customers need this product because it would allow them to access their textbooks on their phone.”
This customer problem statement focuses too much on your product and not enough on the customer problem. It tells you why your product is convenient, but it doesn’t provide enough detail about the problem.
To make this an effective problem statement, you’ll need to take a step back and refine your focus. Think about what the actual problem is and go from there.
The five elements of a problem statement are: “I am,” “I’m trying to,” “But,” “Because,” and “Which makes me feel.” Following these directions, you can find out what problem your customer is facing and how they feel about it. As a result, you can figure out how best to solve their problem with your product.
To craft a problem statement, start by running user or customer research to discover their pain points and needs. Afterward, summarize your findings and concisely build your statement using Miro’s ready-made template. The problem statement is about customer problems. Keep any mention of product features or your service solution out of the statement. Lastly, write a problem statement that truly highlights your customer experience and shows how you can measure the success of your solution.
The customer problem statement template can significantly benefit your product development process. It helps by providing a strategic direction for your team to focus on the most critical challenges your customers face. By defining the problems in detail, your team can align their efforts, resources, and creativity toward effective solutions. This, in turn, streamlines the development process and ensures that your final product meets the genuine user needs, thereby increasing its chances of success in the market.
Yes! Whether you operate in the tech industry, consumer goods, healthcare, or any other sector, understanding your customers' problems is crucial. Our template is customizable and can be tailored to suit the unique challenges of various businesses. Whether you're launching a new product, enhancing an existing service, or improving customer satisfaction, this template provides a structured approach to problem identification and resolution.
Get started with this template right now.
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Pique their curiosity. Get them excited. Inspire them to keep reading, diving further into your proposal details. That’s what a good executive summary has the power to do—and why it’s a crucial opening statement for business plans, project plans, investment proposals, and more. Use this template to create an executive summary that starts building belief, by answering high-level questions that include: What is your project? What are the goals? How will you bring your skills and resources to the project? And who can expect to benefit?
Business Management, Strategic Planning, Prioritization
If you need a little more than a basic to-do list, then you’d probably benefit from a Priority Matrix. The Priority Matrix template is designed to help you determine which tasks are critical so you can focus on the most urgent needs. In a 2x2 matrix, input your priorities based on whether they must be completed with high or low urgency and are of high or low importance. Applicable to project management and personal management alike, use the Priority Matrix template to improve business processes, create efficiency, remove blockers, and reduce operational waste.
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The Six Thinking Hats by Dr. Edward de Bono was created as an alternative to argument, it is designed to help teams explore and develop ideas collaboratively. Use this template to boost creative thinking and get different perspectives so you and your team can make better-informed decisions.
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Product canvases are a concise yet content-rich tool that conveys what your product is and how it is strategically positioned. Combining Agile and UX, a project canvas complements user stories with personas, storyboards, scenarios, design sketches, and other UX artefacts. Product canvases are useful because they help product managers define a prototype. Creating a product canvas is an important first step in deciding who potential users may be, the problem to be solved, basic product functionality, advanced functionalities worth exploring, competitive advantage, and customers’ potential gain from the product.
Ideation, Operations, Strategic Planning
T-Charts can help you compare and contrast two different ideas, group information into different categories, and prove a change through “before” and “after” analysis. T-Charts are visual organizational tools that enable you to compare ideas, so you can evaluate pros and cons, facts and opinions, strengths and weaknesses, or big-picture views versus specific details. Designers and content creators can use T-Charts to turn possibilities into actionable ideas. T-Charts are useful for discussing differences and similarities with your team or clients and can help you to reach a decision together.
Desk Research, Product Management
A user interview is a UX research technique in which researchers ask the user questions about a topic. They allow your team to quickly and easily collect user data and learn more about your users. In general, organizations conduct user interviews to gather background data, to understand how people use technology, to take a snapshot of how users interact with a product, to understand user objectives and motivations, and to find users’ pain points. Use this template to record notes during an interview to ensure you’re gathering the data you need to create personas.
A faulty software update issued by security giant CrowdStrike has resulted in a massive overnight outage that’s affected Windows computers around the world , disrupting businesses, airports, train stations, banks, broadcasters and the healthcare sector.
CrowdStrike said the outage was not caused by a cyberattack, but was the result of a “defect” in a software update for its flagship security product, Falcon Sensor. The defect caused any Windows computers that Falcon is installed on to crash without fully loading.
“The issue has been identified, isolated and a fix has been deployed,” said CrowdStrike in a statement on Friday . Some businesses and organizations are beginning to recover, but many expect the outages to drag on into the weekend or next week given the complexity of the fix. CrowdStrike CEO George Kurtz told NBC News that it may take “some time for some systems that just automatically won’t recover.” In a later tweet , Kurtz apologized for the disruption.
Here’s everything you need to know about the outages.
Late Thursday into Friday, reports began to emerge of IT problems wherein Windows computers were getting stuck with the infamous “blue screen of death” — a bright blue error screen with a message that displays when Windows encounters a critical failure, crashes or cannot load.
The outages were first noticed in Australia early on Friday, and reports quickly came in from the rest of Asia and Europe as the regions began their day, as well as the United States.
Within a short time, CrowdStrike confirmed that a software update for Falcon had malfunctioned and was causing Windows computers that had the software installed to crash. Falcon lets CrowdStrike remotely analyze and check for malicious threats and malware on installed computers.
At around the same time, Microsoft reported a significant outage at one of its most used Azure cloud regions covering much of the central United States. A spokesperson for Microsoft told TechCrunch that its outage was unrelated to CrowdStrike’s incident .
Around Friday noon (Eastern time), Microsoft CEO Satya Nadella posted on X saying the company is aware of the CrowdStrike botched update and is “working closely with CrowdStrike and across the industry to provide customers technical guidance and support to safely bring their systems back online.”
CrowdStrike, founded in 2011, has quickly grown into a cybersecurity giant. Today the company provides software and services to 29,000 corporate customers, including around half of Fortune 500 companies, 43 out of 50 U.S. states and eight out of the top 10 tech firms, according to its website .
The company’s cybersecurity software, Falcon, is used by enterprises to manage security on millions of computers around the world. These businesses include large corporations, hospitals, transportation hubs and government departments. Most consumer devices do not run Falcon and are unaffected by this outage.
One of the company’s biggest recent claims to fame was when it caught a group of Russian government hackers breaking into the Democratic National Committee ahead of the 2016 U.S. presidential election. CrowdStrike is also known for using memorable animal-themed names for the hacking groups it tracks based on their nationality, such as: Fancy Bear , believed to be part of Russia’s General Staff Main Intelligence Directorate, or GRU; Cozy Bear , believed to be part of Russia’s Foreign Intelligence Service, or SVR; Gothic Panda , believed to be a Chinese government group; and Charming Kitten , believed to be an Iranian state-backed group. The company even makes action figures to represent these groups, which it sells as swag .
CrowdStrike is so big it’s one of the sponsors of the Mercedes F1 team , and this year even aired a Super Bowl ad — a first for a cybersecurity company.
Practically anyone who during their everyday life interacts with a computer system running software from CrowdStrike is affected, even if the computer isn’t theirs.
These devices include the cash registers at grocery stores, departure boards at airports and train stations, school computers, your work-issued laptops and desktops, airport check-in systems, airlines’ own ticketing and scheduling platforms, healthcare networks and many more. Because CrowdStrike’s software is so ubiquitous, the outages are causing chaos around the world in a variety of ways. A single affected Windows computer in a fleet of systems could be enough to disrupt the network.
TechCrunch reporters around the world are seeing and experiencing outages, including at points of travel, doctors’ offices and online. Early on Friday, the Federal Aviation Administration put in effect a ground stop, effectively grounding flights across the United States, citing the disruption. It looks like so far the national Amtrak rail network is functioning as normal.
Given that the problem stems from a company, there isn’t much that the U.S. federal government can do. According to a pool report, President Biden was briefed on the CrowdStrike outage, and “his team is in touch with CrowdStrike and impacted entities.” That’s in large part because the federal government is a customer of CrowdStrike and also affected.
Several federal agencies are affected by the incident, including the Department of Education , and Social Security Administration, which said Friday that it closed its offices as a result of the outage.
The pool report said Biden’s team is “engaged across the interagency to get sector by sector updates throughout the day and is standing by to provide assistance as needed.”
In a separate tweet, Homeland Security said it was working with its U.S. cybersecurity agency CISA, CrowdStrike and Microsoft — as well as its federal, state, local and critical infrastructure partners — to “fully assess and address system outages.”
There will no doubt be questions for CrowdStrike (and to some extent Microsoft, whose unrelated outage also caused disruption overnight for its customers) from government and congressional investigators.
For now, the immediate focus will be on the recovery of affected systems.
The major problem here is that CrowdStrike’s Falcon Sensor software malfunctioned, causing Windows machines to crash, and there’s no easy way to fix that.
So far, CrowdStrike has issued a patch, and it has also detailed a workaround that could help affected systems function normally until it has a permanent solution. One option is for users to “reboot the [affected computer] to give it an opportunity to download the reverted channel file,” referring to the fixed file.
In a message to users , CrowdStrike detailed a few steps customers can take, one of which requires physical access to an affected system to remove the defective file. CrowdStrike says users should boot the computer into Safe Mode or Windows Recovery Environment, navigate to the CrowdStrike directory, and delete the faulty file “C-00000291*.sys.”
The wider problem with having to fix the file manually could be a major headache for companies and organizations with large numbers of computers, or Windows-powered servers in datacenters or locations that might be in another region, or an entirely different country.
In a statement on Friday, CISA attributed the outages to the faulty CrowdStrike update and that the issue was not due to a cyberattack. CISA said that it was “working closely with CrowdStrike and federal, state, local, tribal and territorial partners, as well as critical infrastructure and international partners to assess impacts and support remediation efforts.”
CISA did note, however, that it has “observed threat actors taking advantage of this incident for phishing and other malicious activity.” The cybersecurity agency did not provide more specifics, but warned organizations to stay vigilant.
Malicious actors can and will exploit confusion and chaos to carry out cyberattacks on their own. Rachel Tobac, a social engineering expert and founder of cybersecurity firm SocialProof Security, said in a series of posts on X to “verify people are who they say they are before taking sensitive actions.”
“Criminals will attempt to use this IT outage to pretend to be IT to you or you to IT to steal access, passwords, codes, etc.,” Tobac said.
It’s easy to understand why some might have thought that this outage was a cyberattack. Sudden outages, blue screens at airports, office computers filled with error messages, and chaos and confusion. As you might expect, a fair amount of misinformation is already flying around , even as social media sites incorrectly flag trending topics like “cyberattack.”
Remember to check official sources of news and information, and if something seems too good to be true, it might just well be.
TechCrunch will keep this report updated throughout the day.
TechCrunch’s Ram Iyer contributed reporting.
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A technical issue related to a US-based cybersecurity firm named CrowdStrike caused computers running Microsoft software across Australia and abroad to glitch on Friday.
The global outage impacted a raft of Australian companies and government agencies, causing many computers to attempt to restart and display a blue-screen error message.
Here's what we know so far.
CrowdStrike is a US-based cybersecurity firm that helps companies manage their security in "IT environments" — that is, everything they use an internet connection to access.
Its primary function is to protect companies and stop data breaches, ransomware and cyber attacks.
It includes among its main customers global investment banks, universities and even the Australian betting agency TAB Corp.
The cybersecurity environment has changed rapidly in recent years due to the increased presence of threat actors targeting big business, including Ticketmaster, Medibank and Optus.
As a result, more and more companies are turning towards firms like CrowdStrike to protect their customers' information.
One of the company's main products is CrowdStrike Falcon, which is described on its website as "providing real-time indicators of attack, hyper-accurate detection and automated protection" from possible cybersecurity threats.
CrowdStrike Falcon is used by thousands of companies across the world to protect data, and a software update released on Friday caused a global outage of Microsoft products.
Earlier this week, CrowdStrike announced an update of its Falcon product, saying it would provide "unprecedented speed and precision" to detect security breaches.
In a statement posted to its website following the outage, a CrowdStrike spokesperson said it was likely an issue with the Falcon product that caused the incident.
The company was founded by former McAfee employee George Kurtz in 2012.
Its ownership structure is a mix of individual investors, institutions and retail.
The company's stock is broken down into two large investor categories. About 40 per cent is owned by institutional investors, and about 57 per cent is owned by public companies and individual investors.
The investor with the largest share is The Vanguard Group, a US investment fund, with about 6.79 per cent of the company.
The question of who owns CrowdStrike was part of a discredited conspiracy theory after the company investigated Russia's role in the 2016 US elections.
Former US president Donald Trump made reference to the conspiracy theory in a call with Ukrainian President Volodymyr Zelenskyy in 2019.
"I would like to find out what happened with this whole situation with Ukraine, they say CrowdStrike. I guess you have one of your wealthy people," he said.
"The server, they say Ukraine has it … you or your people, and I would like you to get to the bottom of it."
Developer websites have already begun posting workarounds for the issue, and CrowdStrike the company offered a solution on its members-only platform until the incident resolves.
CrowdStrike CEO George Kurtz released a statement on X on Friday evening, saying the outage was caused by a "defect" in a content update for Microsoft users.
He stressed it was not caused by a cyber attack.
Earlier, Reuters said those who phoned the company were met with a pre-recorded message.
"Thanks for contacting CrowdStrike support. CrowdStrike is aware of reports of crashes on Windows … related to the Falcon sensor."
Advertisement
Airlines, hospitals and people’s computers were affected after CrowdStrike, a cybersecurity company, sent out a flawed software update.
By Adam Satariano , Paul Mozur , Kate Conger and Sheera Frenkel
Airlines grounded flights. Operators of 911 lines could not respond to emergencies. Hospitals canceled surgeries. Retailers closed for the day. And the actions all traced back to a batch of bad computer code.
A flawed software update sent out by a little-known cybersecurity company caused chaos and disruption around the world on Friday. The company, CrowdStrike , based in Austin, Texas, makes software used by multinational corporations, government agencies and scores of other organizations to protect against hackers and online intruders.
But when CrowdStrike sent its update on Thursday to its customers that run Microsoft Windows software, computers began to crash.
The fallout, which was immediate and inescapable, highlighted the brittleness of global technology infrastructure. The world has become reliant on Microsoft and a handful of cybersecurity firms like CrowdStrike. So when a single flawed piece of software is released over the internet, it can almost instantly damage countless companies and organizations that depend on the technology as part of everyday business.
“This is a very, very uncomfortable illustration of the fragility of the world’s core internet infrastructure,” said Ciaran Martin, the former chief executive of Britain’s National Cyber Security Center and a professor at the Blavatnik School of Government at Oxford University.
A cyberattack did not cause the widespread outage, but the effects on Friday showed how devastating the damage can be when a main artery of the global technology system is disrupted. It raised broader questions about CrowdStrike’s testing processes and what repercussions such software firms should face when flaws in their code cause major disruptions.
Here’s a visual explanation for how a faulty software update crippled machines.
Share of canceled flights at 25 airports on Friday
50% of flights
Ai r po r t
Bengalu r u K empeg o wda
Dhaka Shahjalal
Minneapolis-Saint P aul
Stuttga r t
Melbou r ne
Be r lin B r anden b urg
London City
Amsterdam Schiphol
Chicago O'Hare
Raleigh−Durham
B r adl e y
Cha r lotte
Reagan National
Philadelphia
1:20 a.m. ET
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An update by cybersecurity firm CrowdStrike led to a major IT outage on Friday, impacting businesses around the world.
The wider problem with having to fix the file manually could be a major headache for companies and organizations with large numbers of computers, or Windows-powered servers in datacenters or ...
CrowdStrike Holdings Inc.'s chief executive officer said that the company has identified the update that crashed Windows systems around the globe and that "a fix has been deployed."
The company said the outage was not caused by a security incident or a cyberattack. Kurtz, in his post, said the issue was identified and isolated, and engineers deployed an update to fix the problem.
The global outage impacts a raft of Australian companies and government agencies. Here's the latest on the company reportedly responsible.
Tech staff at affected companies were faced with a choice: walk around to each machine and remove the bit of flawed code, or wait and hope for a solution from CrowdStrike. The problems cascaded ...
Brown says workers there are used to occasional problems like slow-loading medical records, so at first, it didn't raise any alarms. But shortly after 10 p.m. local time, the computer abruptly ...