COMPANIES WORLDWIDE ARE STRUGGLING TO ALIGN THEIR CUSTOMER SERVICE OPERATIONS WITH THE REQUIREMENTS OF THIS NEW LAW .
The penalties for companies that fail to comply can be as high as EUR 100,000 ( approximately USD 108,000 ).
The biggest question that businesses and CX leaders face , is , how will the Spanish government enforce these new rules ?
Will officials come down with a hammer on companies ?
Or are the large fines simply in place to act as a deterrent and to encourage companies to make changes ?
Will the Spanish government , or regulatory bodies , set up monitoring mechanisms , and conduct periodic audits ?
Or will it require companies to submit reports to ensure compliance ?
Will enfocement also be through customer complaints , in which customers can report violations , which regulatory bodies can investigate ? That remains to be answered .
A wider discourse is required in Spain yet there is a limited amount of information available at this time .
But one thing is for sure . Large businesses will be nervous and will likely be in communication with members of the Spanish government to figure out a smooth transition .
As for enforcing companies with contact centers and agents located outside of the country , Spain can ensure that its laws are applicable to any company operating within its market .
And that is regardless of where their contact centers are located .
UNEARTHING THE IMPACT
This reform is particularly relevant for American companies , given that the U . S . is the top investor in Spain .
The U . S . has issued 58.1 % of non-ETVE ( Spanish international investment company ) investment flows to Spain .
The U . S . and Spain also have a strong trade relationship , with exports and imports rebounding strongly after the COVID-19 pandemic ( Source : U . S . Department of Commerce , Office of Technology Evaluation ).
Other large investors are Australia and France , Switzerland , the U . K ., Mexico , and Japan . ( Source : Government of Spain ).
Companies worldwide are struggling to align their customer service operations with the requirements of this new law .
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They will have to increase their investments in people and technologies where they serve them both in and out of Spain .
Compliance may require a significant revamp of existing systems and processes , pushing companies to rethink their strategies and implement immediate changes .
Until the law comes into effect in 2024 , it ' s impossible to determine the ripple effect in other European countries .
But call center wait times is a growing problem everywhere , and a 2023 study in the U . K . found that customers hanging are left waiting for up to 85 minutes .
However , despite the challenge , the law also presents a golden opportunity for businesses to restructure their customer service to provide superior , personalized experiences .
COMPANIES WORLDWIDE ARE STRUGGLING TO ALIGN THEIR CUSTOMER SERVICE OPERATIONS WITH THE REQUIREMENTS OF THIS NEW LAW .
NEW-GENERATION CX : A PROFOUND TRANSITION
As we progress into an increasingly customer-centric world , the importance of high-quality , personalized customer service cannot be overstated .
Over time , customers have come to expect superior levels of service .
They seek swift and relevant responses to their queries , exhibiting a preference for interactions that are not just transactional but engaging and meaningful . They should and may not have to wait for their governments to act .
A COMPREHENSIVE OVERHAUL : FACING THE CHALLENGES
To meet the requirements of the new Spanish law , and potentially other countries ’ future similar laws , companies will have to scrutinize their existing customer service frameworks thoroughly .
An internal audit of the existing customer service infrastructure , including hardware , software , personnel , and processes , will be a critical first step .
Next , businesses must critically assess the data and insights gathered from the audit . The assessment will help identify gaps and opportunities , which will then inform managers of the strategic changes that need to be implemented .
These changes could range from deploying new technologies like artificial intelligence ( AI ) and automation , to increasing the customer service workforce , or both .
AI AND THE FUTURE OF CUSTOMER SERVICE
The new Spanish law could mark a pivotal moment for the future of AI in customer service for several reasons .
• Businesses must reassess call routing in customer service operations , ensuring that systems are capable of connecting customers to the right agent .
• The focus of technology investments will need to shift from call deflection to fulfilling customer requests and offering better service . Interestingly , statistics show that if a bot can provide quicker service than a human , it becomes the preferred medium of resolution .
• AI technology will need to augment its support for live agents by providing real-time insights and relevant data during calls , thereby enhancing efficiency and meeting the three-minute resolution window requirement .
• Serious consideration will be given to transforming legacy IVRs into AI-driven conversational IVRs to help defray additional live agent costs . Several of the most widely used contact center platforms , such as Google , AWS , and Genesys , have plug-ins through partners to transform existing IVRs into a better call routing system .