How Do You Handle Customer Escalations to Provide Exceptional Customer Experience?

When I started using credit cards in the early 2000s, there was no possibility of online payments. You have to drop a cheque at the collection facility for what you owe the credit card company.

12^th of every month was my credit card due date. I had this habit of dropping the cheque on the 12^th of every month for what I owe the company. I did not have the habit of checking my statements in detail, and as long as the bill was approximately close to what I had spent, I used to drop the cheque.

One fine day, I looked at my statement, and there was a component called a late fee. When I looked back at all my previous statements, I saw that every statement had a late fee added to it.

So, I called customer service, and I told them that I was dropping the cheque on the 12^th of every month and that the late fee should not be added to my statement. I was told that the cheque should be cleared by the 12^th of every month, so I need to drop it by the 8^th of every month.

However hard I tried to reason with the agent, I was not able to convince them to reverse it. So, I asked to speak to his supervisor.

After speaking to the supervisor, all the late fees got reversed, and they requested me to drop the cheque by the 8^th of every month instead of the 12^th.

This is customer escalation in a nutshell. Here, the escalation was initiated by the customer (me). Let us spend a moment to define customer escalation.

What Is Customer Escalation In a Call Center?

Customer escalation is a process that occurs when a customer’s issue cannot be resolved at the initial level of support and needs to be transferred to a higher authority. It happens when the problem is beyond what a first-level agent could handle or when customers feel frustrated, unheard, or dissatisfied with the resolution provided.

4 Real-Life Examples of Customer Escalation

Billing Discrepancy

I traveled overseas on a business trip, and I subscribed to the global roaming pack from my mobile service provider. I received the bill a month later, and the cost was way above my expectations.

So, I called customer service to understand the bill and the split-up of the charges.

The agent said that it was in line with my subscription and there was nothing he could do about it. I did not expect him to do anything about it, and all I wanted was an explanation of the bill.

Eventually, he transferred my call to his supervisor, who explained the bill to me, and I was satisfied with the explanation. I made the payment, and now things are back to normal.

Service Outage

I tried transferring money to a family member’s account, but I was not able to do it through my mobile app or the other third-party apps. It kept showing that there was an error in processing my request, and it suggested that I try after some time.

Despite my trying for four hours, it did not happen. I called customer service, and the call was escalated to the bank’s technical support arm. They said that there are some problems with their backend, and I can do the transfer using Internet banking while they fix this issue.

Faulty Product Replacement

I bought a blender online, and the product that was delivered did not function properly. So, I called customer service to ask for a replacement. As the original package in which it came was destroyed, I was told that the replacement would not be possible per their policies.

However, the agent suggested that I talk to their supervisor to see if there is any other possibility of getting a replacement. The supervisor agreed to the replacement and got it done.

Unresolved Technical Issue

I bought accounting software to meet my needs. I couldn’t configure it based on the instructions given in their user manual.

So, I called customer support, and the support engineer took me through the steps to configure it. None of the suggestions worked.

Then, he escalated the call to their technical support team, who understood the issue was in their backend. They rectified it, and I was able to configure the system.

What Are the 4 Types of Customer Escalation?

There are multiple types of escalation. Here are the common types of escalation.

Hierarchical Escalation

When you move an issue up the chain of command, typically from an agent to a supervisor or manager, it becomes a hierarchical escalation. For instance, if I ask for a waiver of an item in my bill, the agent may not have the power to approve or reject it.

Functional Escalation

I called regarding a configuration issue that I am facing with my software. It is only natural for the agent to transfer or escalate my call to the tech support team. Likewise, when your interaction is assigned to a specific department, such as billing, technical support, or legal, it becomes a functional escalation.

Automatic Escalation

Every customer service or support function will have defined SLAs and predefined rules they stick to. For instance, if an issue remains unresolved for more than 7 days, it gets automatically escalated to the higher-ups in the chain. This is called automatic escalation.

Customer-Initiated Escalation

This is one of the most common forms of escalation. Here, the customer who is not satisfied with the resolution provided insists on talking to the supervisor or manager.

What Is the Impact of Customer Escalation on Customer Satisfaction?

It has a direct impact on customer satisfaction. Of the types of escalation listed above, you should certainly try to avoid automatic and customer-initiated escalations.

Besides, high escalation rates increase support costs and workload for higher-level staff. This would become unsustainable over a period.

If handled well, escalations can lead to swift and effective resolution, improving customer trust and loyalty. However, when they are not handled properly, it can lead to frustration and dissatisfaction, which would directly result in poor customer satisfaction scores.

How Do You Avoid Escalations Before They Happen?

What I am listing here is basic housekeeping that every customer experience function must follow to reduce or avoid escalations proactively.

• Ensure agents practice active listening, acknowledge customer concerns, and use empathetic phrases like “I understand how this must feel for you.”
• Train agents to resolve issues in the first interaction to minimize the need for escalation. Equip them with the right tools, training, and knowledge base to handle the problems in the first interaction itself.
• Ensure that your agents provide transparent and precise responses to avoid misunderstandings.  
• Empower agents with decision-making authority and discretionary powers to resolve common issues without requiring escalations.
• Identify and address potential concerns before they escalate by analyzing past complaints and taking preventive measures.
• Maintain an extensive knowledge base that is regularly updated so agents can provide accurate information promptly.

What Are the De-Escalation Techniques That Agents or Front-Life Staff Can Follow?

Here are some pointers that would help maintain better customer relationships and de-escalate the situation easily.

• Agents should avoid reacting emotionally to an angry customer.
• If you use positive language like “Let me see how I can help” instead of “That’s not our policy,’ it can help ease tension.
• Speak calmly and clearly, and this would help customers to regain composure irrespective of the issues.
• Show empathy without necessarily admitting fault by acknowledging the customer’s feelings.
• Rather than focusing on the problem, shift the conversation toward a resolution.
• After resolving an escalation, do check in with the customer, as this will help ensure customer satisfaction and reduce future escalations.

It takes 20 years to build a reputation and 5 minutes to ruin it – Warren Buffet.

A single unresolved escalation can have a long-lasting negative effect on customers. A Harvard Business Review study states that a well-handled complaint resolution is 84% more likely to stay loyal compared to those who had an unresolved issue. 

If you don’t diffuse the situation quickly, it could explode. But what if you could prevent the crisis before it even starts? That’s where proactive service, empowered agents, and de-escalation training come into play.

A well-managed escalation isn’t a failure but a comeback story. As Steve Jobs once said, “Get closer than ever to your customers. So close that you tell them what they need well before they realize it themselves.”

How did you handle your last escalation?