Customer Experience 2.0

Shoaib Syal  has around two decades of experience (based out of Karachi, Pakistan), in the Domestic and International (B2B) telecommunication industry across the areas of Strategy, Sales, Business Development, Innovation, Product Development, Budgeting/Forecasting, Information Technology, Project Management, HR, Administration, Customer Services, Service Delivery/Operations, Solutions, Managed Services and Supply Chain Management.

A. Embracing Technology to meet Hyper Scaled Customer Expectations

The future of customer service is certainly going to be heavily influenced by technology, as customers' expectations continue to evolve and demand for more efficient and personalized services increases.

Embracing technology to meet changing customer expectations is no longer a choice but a matter of survival for businesses to stay competitive in today's fast-paced digital ecosystem.

Here are some ways in which technology will shape the future of customer services:

1. Leveraging AI and automation: AI and automation can help businesses streamline their customer service operations and improve response times. A study by Gartner predicts that by 2023, customers will prefer to interact with businesses via AI-powered chatbots and virtual assistants rather than humans in 70% of cases. This is because chatbots can provide quick and accurate responses 24/7, freeing up human agents to handle more complex issues.

2. Personalizing the customer experience: With the help of technology, businesses can analyze customer data to personalize their interactions. A study by Accenture found that 91% of customers are more likely to shop with brands that recognize, remember and provide relevant offers and recommendations. This can be achieved through personalized emails, push notifications and loyalty programs.

3. Utilizing social media: A study by Sprout Social found that 90% of customers have used social media to communicate with a brand and 89% of social media messages to brands go ignored. By leveraging social media listening and engagement tools, businesses can respond quickly to customer queries and complaints.

4. Omnichannel customer service: Omnichannel customer service ensures that businesses are available to customers wherever they are, whether it's through social media, email, chat, phone, or in-person. According to a study by HubSpot, 80% of customers expect companies to respond to their inquiries within 24 hours, regardless of the channel used.

5. Data analytics: Businesses can use data to predict which customers are at risk of churning and offer them personalized discounts or promotions to retain their loyalty. Data analytics can also be used to optimize customer service operations, such as reducing wait times, improving first contact resolution rates and identifying areas for process improvement.

6. Machine learning: Businesses can use machine learning to recommend products or services based on a customer's past purchases, or to personalize marketing messages based on their interests and behaviors.

7. Augmented reality and virtual reality: AR can be used to provide customers with step-by- step instructions for product assembly or repair, while VR can be used to provide immersive product demos or virtual tours. According to a study by PwC, 25% of customers are willing to pay more for a personalized and immersive experience, such as a VR product demo.

8. Emphasis on customer experience: In the future, customer service will not just be about resolving issues or answering questions, but about providing a seamless and enjoyable customer experience. According to a study by Salesforce, 84% of customers say the experience a company provides is as important as its products and services.

B. Delivering Personalized Experiences at Scale

Today's customers expect businesses to understand their unique needs/preferences and to deliver personalized experiences. A recent study found that 80% of customers are more likely to do business with a company that offers personalized experiences. Another research has shown that personalized experiences can increase customer engagement and revenue, as well as reduce churn and customer acquisition costs.

So, how can businesses deliver personalized experiences at scale? One key enabler is data. By collecting and analyzing data about customer behaviors, preferences and demographics, businesses can gain insights into what their customers want and need and use that information to personalize their experiences. Let us look at some examples of businesses that are using personalization to improve the customer experience:

1. Amazon: Amazon is a leader in personalization, using customer data to recommend products, suggest related items and personalize search results. By analyzing customer purchase history and browsing behavior, Amazon can offer personalized recommendations that are highly relevant to each individual customer. According to a study by McKinsey, "35% of Amazon's revenue comes from its recommendation engine.

2. Netflix: Netflix uses customer data to personalize the user interface, recommend content and even create new shows. According to an article by Forbes, "Netflix is known for its highly sophisticated personalization engine, which recommends movies and TV shows based on the user's past viewing behavior. This personalization has helped Netflix to increase customer satisfaction, with 75% of Netflix viewers saying that they regularly watch shows recommended to them by the platform.

3. Starbucks: According to a study by Segment, 44% of customers say that they are more likely to become repeat buyers after a personalized shopping experience with a particular company. Starbucks offer personalized rewards and promotions to customers through its mobile app. This helps to drive repeat purchases and increase customer loyalty.

4. Hilton Hotels – Hilton’s website shows that they have over 115 million members in their loyalty program and over 6,400 properties in 119 countries.

"Technology is transforming the way companies provide customer service, enabling them to deliver more efficient, effective and personalized experiences."

C. Drift in Customer Service Careers

According to a report by McKinsey, up to 800 million jobs could be automated by 2030, with customer service jobs among those most at risk. As customer service jobs evolve, new skills and capabilities will be needed. For example, customer service representatives may need to become more proficient in using technology and analyzing data. They may also need to develop skills in empathy and emotional intelligence, as human interaction becomes increasingly important in customer service. Additionally, as AI and automation become more prevalent, new job roles may emerge, such as AI trainers and virtual assistants.

In conclusion, technology is transforming the way companies provide customer service, enabling them to deliver more efficient, effective and personalized experiences. However, it is important for companies to balance automation with a human touch, and do that wisely by ensuring scalability. Companies that can find this balance will be best positioned to succeed in the years ahead.