The traditional contact center is dead: Why you need a modern customer service strategy

Somewhere, a business leader is proudly clinging to a decades-old contact center model, convinced that answering phones and tracking average […]

A smiling female contact center agent wears a headset and takes a call from a customer

Published ·June 18, 2025

Reading time·5 min

Somewhere, a business leader is proudly clinging to a decades-old contact center model, convinced that answering phones and tracking average handle time (AHT) is all it takes to keep customers happy. The reality? The old-school contact center isn’t dead — yet. But if you’re still running operations like it’s 2010 (or even 2022, thanks to GenAI), you’re already falling behind. Customer expectations have skyrocketed, technology has rewritten the rulebook and loyalty is more fragile than ever.

So, if you’re still clinging to the old-school model of a reactive, single-channel support system, your competitors are already a few steps ahead.

What was the traditional contact center model?

It was built for a simpler time:

  • All the work was done on-site.
  • Customers would call, agents would answer and the focus was on solving problems as quickly as possible.
  • Metrics like AHT reigned supreme.
  • Technology was limited to basic phone systems and CRM tools.

Why is the traditional contact center dying?

Customer expectations have skyrocketed. Modern customers typically use eight channels to make contact to engage with companies. They demand personalized, on-demand customer service. They expect you to know who they are, what they need and how they prefer to communicate — whether they’re on their laptop at work or their phone in a coffee shop line. The days of generic service are long gone.

Technology has redefined CX. AI, automation and advanced analytics have transformed how businesses interact with customers. Contact center as a Service (CCaaS) models using cloud-based platforms help ensure a seamless and consistent experience across all touchpoints. Tasks once handled by humans, like FAQs and basic inquiries, are now automated. AI-powered tools can predict customer needs, route inquiries intelligently and even translate languages in real time.

Loyalty is fleeting. One bad experience is all it takes for a customer to move on to a competitor. In a world of abundant options, brands must work harder than ever to build and maintain loyalty. According to a Foundever CX landscape survey, 78% of global consumers would stop doing business with a brand after a single poor CX.

What you should do instead to revive your customer service strategy

The good news — the playbook for modern customer care is already written. Here’s how leading brands are transforming their contact centers to thrive in this new era. But before you can scale more complex and advanced customer service strategies, you have to get the fundamentals right.

Build a culture that empowers employees

Forget rigid protocols. Culture is the foundation of exceptional customer service. Empower your team to make decisions that prioritize customer satisfaction. Consider these four questions to help employees make good decisions for your business:

  1. Revenue: Will a decision I’m making for the customer cost the company extra money? Most of the time, the correct answer is no. That said, sometimes it’s okay for it to cost extra. The employee needs to know how far they can go.
  2. Retention: Will a decision I’m making for the customer cause them to want to continue to do business with us? Obviously, the correct answer is yes.
  3. Reputation: Will a decision I’m making for the customer enhance the reputation of the company? The answer is yes.
  4. Referrals: Will a decision I’m making for the customer make them want to refer the company? I hope so! Of course, the answer should be yes.

Embrace omnichannel strategies

Your customers want seamless transitions between channels and devices. Companies that use omnichannel strategies retain an average of 89% of their customers, while companies that don’t have such strategies retain only 33%. An omnichannel approach ensures customers don’t have to repeat themselves or start from scratch.

  • Invest in technologies that integrate all touchpoints.
  • Use AI to provide smooth handoffs between bots and human agents.
  • Continuously analyze and optimize customer journeys.

Leverage data to drive decisions

Data is your secret weapon. Every customer interaction is a goldmine of insights waiting to be unlocked.

  • Use AI-powered analytics to identify pain points and optimize processes.
  • Track key metrics like CSAT, NPS and CES to gauge success.
  • Analyze unstructured data, such as call transcripts and agent notes, to uncover trends and opportunities.

Invest in scalable technology

Your tech stack should grow with your business and adapt to changing customer needs. Look for tools that:

  • Integrate seamlessly with existing systems.
  • Automate repetitive tasks to free up agents for high-value interactions.
  • Provide advanced analytics and reporting capabilities.
  • Leverage in-house proprietary tech and partnerships for tech.

The value of the right CX management partner for your customer service strategy

For companies looking to modernize their customer experience while staying efficient, choosing the right CX management partner is key. Here’s what to look for:

Cost efficiency and budget certainty

  • Predictable costs: Transparent pricing models eliminate hidden fees, allowing for accurate financial planning.
  • Long-term savings: CX solutions should optimize costs over time, improving ROI.
  • Budget control: A cost-efficient strategy ensures financial stability while enabling growth.

Expertise and specialized support

  • Industry-specific solutions: A partner with sector-specific expertise ensures strategies that align with your unique business challenges.
  • Operational excellence: Best practices and continuous optimization help you achieve high performance.
  • Continuous improvement: Leveraging the right technology ensures your brand stays competitive and innovative.

Scalability and flexibility

  • Seamless growth: Ensure your CX infrastructure is built to scale.
  • Rightshoring and AI-shoring strategies: Optimize global operations for cost savings and efficiency.
  • Flexible operations: The ability to scale up or down ensures responsiveness to business needs.

Risk mitigation and compliance

  • Regulatory compliance: Ensure your CX partner meets all necessary regulations to reduce risk.
  • Security assurance: Protecting customer data is non-negotiable.
  • Proven reliability: Working with an established provider reduces operational risks.

Trusted partnership and commitment

  • Strategic alignment: Customer support should be an asset, not just a cost center.
  • Outcome-based partnerships: Ensure your CX partner is invested in delivering results.
  • Long-term success: A future-proof strategy anticipates challenges and keeps your operations resilient.

The new customer care playbook

The traditional contact center may be on life support, but that doesn’t mean your customer care should be. Today’s contact center has evolved into a dynamic, omnichannel, data-driven ecosystem that prioritizes seamless experiences and empowered employees. The brands winning in customer service aren’t just keeping up with expectations — they’re setting them.

Ready to raise the bar for next-gen customer service? Read “The new customer care playbook: 5 imperatives you need to build brand loyalty and stay ahead.”