Posted On: June 12, 2020 | 8 mins read
Knowledge is Power is a well-known old wise saying. But the question arises that how much wisdom the saying possesses in the new, dynamic, volatile, rapidly changing world. More than ever in the past, as we can see that the world is changing rapidly and a huge amount of data (2.5 quintillions (2.5*1018) bytes of data created each day according to a Forbes report dated May 2018) is being generated, it is important not only to gather data but also to process it into information through knowledge management platform. The relevant and objective part of the information is knowledge which helps us in drawing conclusions.
So now as we have understood the difference between information and knowledge and the importance of knowledge in modern times, we are in a better position to understand knowledge management and why knowledge management platform is required.
Knowledge management is the process of
precious information generated by the organizations in their daily operations. It involves capturing responses to frequently asked questions and documenting them in formats that can be understood easily by the customers, like images, videos, charts, etc.
The next question arises about
There are two kinds of answers to this question, a simple short answer, and a detailed long answer.
The short answer is that if we want to order food online and every time we have to start from scratch by comparing different apps which one is the best, installing the app, register on the app by entering details, search for the food we want to eat randomly on the app, then deciding to order the food from a particular restaurant and finally entering details to do the payment, it would be quite a tedious and time-consuming task.
Instead, if we install the app just once after comparison and the app keeps a record of our past orders and payment details, our task will be made much easier and experience of the app will be much better leading to higher ratings of the app.
Then comes the long answer,
As it is universally known that being self-dependent is very crucial for growth of an individual and organization, KM tools do the same task for customers. How do they do that? They do it by responding to the questions of customers in real-time and giving them the option of DIY (Do It Yourself) customer service. Do the customers want that to happen? Yes, is the answer as customers have again and again stated in surveys that they’d prefer to find an answer themselves, rather than pick up the phone to call support as it makes them feel empowered and confident about themselves.
Through knowledge management tools, best services are available to customers, leading to satisfied and happy customers. Satisfied and happy customers then keep coming back to purchase more, both in terms of quantity and frequency as compared to other customers. Not only that, but they also act as brand advocates by sharing their joyful experiences with their friends, relatives, and acquaintances.
Also a research by Gartner (world’s leading research and advisory company) states that 89% of businesses are expected to compete mainly on customer experience which clearly implies that there is a lot of value addition in businesses by the use of knowledge management systems.
It’s more expensive to have a customer support representative interacting with a customer than a chatbot doing the same. According to Forrester (a leading American market research company), a chat with a live customer support agent can cost $6-12 per interaction, while an automated interaction can cost as little as 25 cents.
So the knowledge management platform can help a company to be more cost-effective which is currently the need of the hour in the times of the COVID-19 crisis.
Unlike customer support representatives who might not be available all the time to help the customers (This may be due to a number of reasons like there might be a huge number of calls already at certain busy times leading to full occupancy and inability to take further calls), a chatbot is available 24*7 to help customers in solving their problems. No matter what time of the day or the night, when the customers will be needing help, the knowledge management system will be there for them.
So with knowledge management platform, whenever customers face a problem, they can find out ways to solve it and then continue their work, quickly without much delay and destroying the momentum.
Knowledge management platform can act as a competitive advantage for a company which can help them in converting their leads into consumers. According to a survey, 70% of people expect that the website of a company should include a self-service application. By providing these resources to the customers the company can not only meet the expectations of the customers and help them complete these repetitive tasks, it will also allow them to spend more time focusing on more complex activities.
It’s much faster and easier for customers to search for their own answers in a knowledge database than to contact customer support. The customers do not always want to talk to a human to get their questions resolved. If they can search online and find the answers they need, they don’t have to wait in a phone queue.
Thus, knowledge management platform helps in reducing the average wait times as the simpler problems can be solved by the customer themselves with the help of chatbot while complex questions can be solved by the customer representatives.
Providing answers to the most frequently asked questions to potential customers of the company can help to convert them into actual ones. A knowledge management platform identifies the most searched terms and visited articles telling the company what the customers want to know. Also, putting the FAQs on the home page of the company’s website might even offer answers to the questions which customers didn’t even know to ask in the first place.
Customers viewing FAQs on a company’s website has increased from 67% in 2012 to 81% in 2015. This shows the increasing importance of FAQ’s in business and that is why one can see more and more companies putting FAQ on their websites.
With so many good reasons in favor of knowledge management platform, it must hopefully be clear by now why KM tools are required by the companies. That being said, it’s also important to note that it is not a one in all solution to all the problems, and requires a lot of work to get it right. But if the companies get it right, they can reap the benefits in satisfied customers and bigger profit margins.