The Role of Transparency and Education in Customer Service

What you'll often hear about customers nowadays is that they are highly educated and often know more about the product they're interested in than the customer service agents they interact with. This happens because customers have easy access to information through websites, search engines, and social media. Their excitement about the product motivates them to learn as much as possible about it.

On the other hand, customer service agents, despite having access to more detailed internal resources, may not share that same level of motivation. For them, the product often lacks novelty, which means they may not dive as deeply into learning about it. This leads to situations where customers ask questions that agents cannot answer. In these cases, if an agent tries to make up an answer, it can erode trust, as educated customers can quickly recognize when information doesn't align with what they already know.

For this reason, it's crucial to build and maintain trust by admitting when you don’t know something. Rather than guessing, the agent can offer to find the correct answer and get back to the customer, either within a few minutes or at a later time. This approach not only preserves trust but shows a commitment to helping the customer.

I experienced this first-hand when shopping for cycling clothes. The employee helping me was new and couldn’t answer my questions. She said, "I'm sorry, I'm new here, but if you don't mind, we'll learn the products together." I was trying to figure out which jerseys were suited for different temperatures. She pulled out the jerseys, placed them on the counter, and we studied the labels together. Rather than being disappointed, I was impressed by her dedication and honesty. This interaction showed me that a lack of knowledge can become an opportunity to build trust with customers.

While customers today are generally well-informed about the products they want, they often lack understanding of other parts of the purchasing experience—particularly how financial tools like credit cards work. Many customers, for example, don’t know the difference between a pending transaction and a completed one, how chargebacks function, or what role the bank plays in the transaction process.

Customers are sometimes shocked to discover that their bank is more of a neutral party than an ally, which they often learn when attempting a chargeback. They may expect to get their money back immediately, only to find that the bank requires them to first attempt a resolution with the merchant. Misconceptions like thinking the police can intervene if a merchant refuses a refund further highlight the gaps in financial literacy.

In this way, while customers are highly educated about what they want to buy, they are less informed about how the tools that facilitate their purchases work. This is where customer service agents, with their frequent exposure to these processes, can step in and educate customers.

Some might argue that if customers become too knowledgeable, they might buy less. However, I believe that if customers understood financial tools better, there would be fewer chargebacks and refunds. Purchases would be more intentional, with fewer cases where the "product is not as expected."

This idea suggests that as customers become more informed, employees must also become smarter—a concept that might seem costly. However, investing in employee education can lead to more creative problem-solving, fewer refunds, and greater opportunities for upselling. Ultimately, companies that cultivate a culture of educating customers throughout the buying experience will gain trust and foster repeat business from loyal customers.