Chapter 01
Why the back office matters more than ever
The grace of the swan depends entirely on the unseen effort of its paddling. Long viewed as the silent partner to the front office, the back office is a collection of operational processes, administrative support and behind-the-scenes tasks that keep the customer-facing teams moving. While customers engage with your front office, their experience is shaped by what happens behind the scenes.
They don’t separate front office from back office. They only know whether your company delivered. They expect orders to arrive on time, invoices to be accurate and refunds to be processed without delay. When those expectations aren’t met, they have more options than ever for taking their business elsewhere.
Only 33% of organizations use the same KPIs for both contact centers and back offices, meaning that 67% don’t measure the performance of their back-office staff as closely as their contact center employees.1
The link between operations and customer experience
For many organizations, the front office receives the bulk of investment. Sales, marketing, and customer service teams are equipped with the latest tools and training to engage customers and resolve issues. But without a strong back office, these investments can fall flat.
The back-office operational infrastructure that enables your customer-facing teams to fulfill their commitments to customers includes functions such as order processing, invoicing, payments, claims management, customer account management, IT support, billing and more. When back-office processes are efficient, customer service agents have access to the data they need to provide quick and precise answers to queries. And this is where we can see a clear connection between the back office and the customer experience of your brand.
According to recent research, improving customer experience is just as important for back-office departments as increasing efficiency and cutting costs.
Top goals driving back-office activities
Imorove customer experiences
Improve efficiency
Reduce cost
Reduce complaint and customer follow-up calls
Improve employee engagement
Ensure compliance
Increase employee productivity
Source: NICE, “Webinar: Use workforce engagement as the glue to deliver seamless CX.”
Neglecting the back office is a strategic risk. In a marketplace where agility is a competitive advantage, gaps can put your brand at a significant disadvantage. The top operational challenges impacting back-office activities include:
- Visibility challenges due to data silos, inaccessibility and a lack of real-time data. Information is often stored in various systems or formats, making it difficult to access and analyze comprehensively to pinpoint potential inefficiencies and areas for improvement.
- Productivity issues and a lack of consistency in how processes are managed. These are typically rooted in complex processes, difficulty in measuring performance and a lack of visibility into employee activities. As such, quantifying tasks could be a challenge as back-office roles often involve a wide range of different activities, making it difficult to define standard metrics.
- Legacy technology persists in back offices due to a combination of factors. These include the high cost of replacing, a lack of expertise in newer technology, and the risks of disrupting critical workflows, data loss, downtime and integration issues that can arise from implementing new systems.
Industry examples
Where the paddling makes the difference in shaping CX
In each of these industries, operational efficiency is directly tied to customer satisfaction, and yet the back office often remains underfunded, under-optimized and disconnected from the customer journey.
Banking and financial services: A customer’s positive interaction with a bank’s front-line staff means little if a loan application takes weeks longer than promised due to outdated back-office workflows.
Insurance: Customers expect claims to be handled quickly and accurately. Delays or errors in policy administration, data entry or document processing can erode trust.
Retail and e-commerce: The sleekest online checkout process won’t save the customer experience if the back office can’t ensure timely fulfillment or manage returns efficiently.
Technology: When customers request a replacement device or software license, slow transaction processing or inaccurate account updates can derail adoption and increase churn.
Telecoms: For internet service providers, new customers expect a seamless start. Delays in account setup, service activation or number porting can sour the relationship before it even begins.
Media: Subscribers expect instant access to content. Billing errors, delayed account activations or slow resolution of service inquiries can lead to cancellations and negative reviews.
Healthcare: Inaccurate patient records, delayed insurance claims or slow scheduling responses can impact care delivery and patient satisfaction — sometimes with serious consequences.
Utilities: Missed meter readings, delayed payment processing, or errors in service transfers can frustrate customers, especially during outages or when emergency support is needed.
Biggest challenges insurers face when completing daily processes2
Availability of skilled staff
Process complexity
Lack of automation
Speed of manual processes
Volume of data
A CX differentiator and lever for growth
A well-run back office is a growth enabler. When viewed this way, the back office moves beyond a support function to a strategic asset. Organizations that recognize this and act on it are better positioned to adapt to market shifts, outpace competitors and meet rising customer expectations.
In reality, the back office is where many impactful improvements can be made to benefit your business and CX:
- Improve speed-to-market for new products and services.
- Deliver consistently, building customer trust and loyalty.
- Free up internal resources to focus on innovation and strategic initiatives.
- Reduce operational costs while improving quality and accuracy.
1 Source: NICE, “Webinar: Use workforce engagement as the glue to deliver seamless CX.”
2 AutoRek, “Insurance industry outlook,” autorek.com.
Ebook
Back-office advantage: Driving customer success through operational excellence
