Customer Service Representatives

Summary

Customer service representatives provide information to customers and respond to questions and complaints.

Quick Facts: Customer Service Representatives
2010 Median Pay	$30,460 per year $14.64 per hour
Entry-Level Education	High school diploma or equivalent
Work Experience in a Related Occupation	None
On-the-job Training	Short-term on-the-job training
Number of Jobs, 2010	2,187,300
Job Outlook, 2010-20	15% (About as fast as average)
Employment Change, 2010-20	338,400

What Customer Service Representatives Do

Customer service representatives interact with customers on behalf of an organization. They provide information about products and services and respond to customer complaints. Some also take orders and process returns.

Work Environment

Many customer service representatives work in customer contact centers. Others work in insurance agencies, banks, stores, or other places that have contact with customers. Most work full time, although part-time and variable schedules are also common.

How to Become a Customer Service Representative

Customer service representatives typically have at least a high school diploma and are usually trained on the job. They must be good at communicating and dealing with people. They also need basic computer and phone skills.

Pay

The median hourly wage of customer service representatives was $14.64 in May 2010.

Job Outlook

Employment of customer service representatives is expected to grow 15 percent from 2010 to 2020, about as fast as the average for all occupations. Employment will increase as consumers continue to demand products and services that require customer support.

Similar Occupations

Compare the job duties, education, job growth, and pay of customer service representatives with similar occupations.

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What Customer Service Representatives Do About this section

Customer service representatives listen and respond to customers’ needs.

Customer service representatives interact with customers on behalf of an organization. They provide information about the organization’s products and services and respond to customer complaints. Some also take orders and process returns.

Duties

Customer service representatives typically do the following:

• Listen and respond to customers’ needs and concerns
• Provide information about products and services
• Take orders, determine charges, and oversee billing or payments
• Review or make changes to customer accounts
• Handle returns or complaints
• Record details of customer contacts and actions taken
• Research answers or solutions as needed
• Refer customers to supervisors, managers, or others who can help

Customer service representatives answer questions and resolve problems. When the customer has an account with the company, a representative will usually open the customer’s file in the company’s computer system. Representatives use this information to solve problems and may make changes to customer accounts, such as to update an address on file or cancel an order.

They also have access to responses for the most commonly asked questions and to specific guidelines for dealing with requests or complaints. In the event that the representative does not know the answer to a question or is unable to solve a specific problem, a supervisor or other experienced worker may help.

Many customer service representatives answer incoming calls in telephone call centers, which are increasingly called customer contact centers. Others interact with customers face to face or by email, live chat, or other methods.

Some workers specialize in a particular mode of communication, such as voice, email, or chat, but others communicate with customers through more than one contact channel. For example, voice agents, who primarily deal with customers over the phone, may respond to email questions when there is downtime between calls.

Customer service representatives work in almost every industry, and their job tasks can vary depending on where they work. For instance, representatives who work in banks may answer customers’ questions about their accounts, whereas representatives who work for utility and communication companies may help customers with service problems, such as outages. Representatives who work in retail stores often handle returns and help customers find items in their stores. Some representatives may help to generate sales leads, sometimes making outbound calls in addition to answering inbound ones, although selling is not their main job.

Work Environment About this section

Customer service representatives work in call centers, offices, or stores.

Customer service representatives held about 2.2 million jobs in 2010. Many customer service representatives work in telephone call or customer contact centers. Others work in insurance agencies, banks, stores, or other organizations that interact with customers.

Some work from home. Although the number of at-home agents is still relatively small, their numbers are growing.

The following industries employed the most customer service representatives in 2010:

Customer contact center workers usually sit at a workstation with a telephone, headset, and computer. These centers may be crowded and noisy, and the work can be repetitive or stressful, with little time between calls. 

Customer service representatives who work in retail stores may interact in person with customers.

Whether they interact by phone, chat, or in-person, customer service representatives may have to deal with difficult or angry customers, which can be challenging.

Companies usually keep statistics on customer service representatives to make sure they are working efficiently. This helps them keep up with their call volume and ensure that customers do not have to wait on hold for a long time. However, this also may put pressure on customer service representatives to handle each call quickly. Supervisors may listen in on or tape calls to ensure that customers are getting quality service.

Work Schedules

Most customer service representatives work full time. About 1 in 5 worked part time or variable schedules in 2010.

Because many call or customer contact centers are open extended hours or are staffed around the clock, these positions may require workers to take on early morning, evening, or late night shifts. Weekend or holiday work is also common.

In retail stores, customer service representatives may have to work evenings and weekends as these are peak times for customer traffic in stores.

Because of the part-time possibilities, this occupation is well suited to people who want or need a flexible work schedule. Also, many companies hire additional employees at certain times of the year when higher call volumes are expected.

How to Become a Customer Service Representative About this section

Customer service representatives must respond to customers in a friendly and considerate manner.

Customer service representatives typically have at least a high school diploma and are usually trained on the job. They must be good at communicating and interacting with people. They also need basic computer and phone skills.

Training

Customer service representatives are typically trained on the job. Training usually lasts about 2 to 3 weeks, although it can last as long as several months. This training generally focuses on the company and its products, customers’ most commonly asked questions, and the computer and telephone systems the representatives will be using. New workers may handle easier questions or complaints and receive extra supervision and support. An increasing number of customer service representatives receive training in a classroom setting and also through shadowing another customer service representative.

Some customer service representatives are expected to update their training regularly. This is particularly true of workers in industries, such as banking, in which regulations and products are continually changing.

Education

Customer service representatives typically have at least a high school diploma. Some workers may need some college education or an associate’s or bachelor’s degree, as employers increasingly demand a more skilled workforce.

Licenses

Customer service representatives who answer questions about insurance or financial services often need a state license. Licensure requirements vary, but usually include passing a written exam. Some employers may provide training for these exams.  

Important Qualities

Communication skills. Customer service representatives need strong listening and speaking skills to clearly and accurately respond to customer inquiries and concerns. They must listen carefully to customers to understand their needs and concerns to be able to resolve the call as efficiently and effectively as possible. Workers who interact with customers by email, live chat, or other non-voice contact channels must write well, using correct grammar, spelling, and punctuation.

Customer service skills. Customer service representatives must respond to questions and complaints in a friendly and professional manner.

Interpersonal skills. Customer service representatives interact with many different people. Creating and maintaining positive relationships is an essential part of a customer service representative’s job.

Patience. Workers must be patient and polite, especially when dealing with difficult or angry customers.

Problem-solving skills. When addressing customer issues, customer service representatives need to analyze situations, investigate problems, and determine solutions.

Pay About this section

The median hourly wage of customer service representatives was $14.64 in May 2010. The median wage is the wage at which half the workers in an occupation earned more than that amount and half earned less. The lowest 10 percent earned less than $9.40, and the top 10 percent earned more than $23.71.

The median hourly wages of customer service representatives in the industries employing the largest number of workers were as follows:

Most customer service representatives work full time. About 1 in 5 worked part time or had variable schedules in 2010. Because many call or customer contact centers are open extended hours or are staffed around the clock, these positions may require workers to take on early morning, evening, or late night shifts. Weekend or holiday work is also common.

Job Outlook About this section

Employment of customer service representatives is projected to grow by 15 percent from 2010 to 2020, about as fast as the average for all occupations.

Providing quality customer service is important to nearly every company. In addition, because companies are expected to begin placing greater emphasis on customer relationships as a way to differentiate themselves from competitors, the need for customer service representatives is projected to increase.

Employment also will increase as consumers continue to demand products and services that require customer support. When a new product is introduced in the marketplace, additional customer service representatives will be needed to answer questions and resolve problems related to its use.

Technology has tempered growth of this occupation to some degree. For example, some technologies, such as Internet self-service or interactive voice-response systems, help customers get the assistance they need without having to interact with a representative. Routing of calls or emails to those representatives who are best able to respond to a specific inquiry will also help make workers more productive, thereby reducing the need for customer service representatives.

However, technology also creates new opportunities for job growth. For example, online banking might reduce the need for in-branch customer service representatives to handle banking tasks for account holders, but it also might increase the need for customer service representatives to help those account holders with using the web site.

The number of contacts with customers is expected to continue increasing, especially with the greater use of social media, live chat, or other means of communication. These increased communications will help spur demand for workers who interact with customers through these channels.

Customer service representatives are projected to grow 46 percent in telephone call centers, much faster than the average. This growth is due in part to industry growth, as many firms continue to hire call center firms that specialize in handling customer contacts.

Outsourcing, the practice in which companies shift call centers and customer service representatives to other countries, will also continue. However, new jobs will be created in the United States as well, as some companies recognize consumers’ preferences for U.S.-based customer support.

Job Prospects

Job prospects for customer service representatives are expected to be good. Many job openings will arise from the need to replace workers who leave the occupation.

There will be greater competition for in-house customer service jobs—which often have higher pay and greater advancement potential—than for those jobs in the call center industry.

Contacts for More Information About this section

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