Is automation the silver bullet for customer retention?
Embarking on an endless digital paper trail is unlikely to be your preferred method for customer service. While we have thankfully evolved from the days of needing to send a letter in the post – which would eventually receive a written response asking for further documentation (not to mention the inevitable test of your patience) – we still occasionally have to contend with frustrating email responses with a customer service team that take days, if not weeks, to resolve. Frankly, there may be some people who are still waiting.
Believe it or not, it used to be much worse. When the telephone was the primary option for customer service, you would be passed around departments until someone could help. Not only was this unproductive and time-consuming, but it also left the customer feeling rather powerless, relying on the good graces of someone, somewhere, to provide assistance.
The evolution of customer experience (CX)
Although these scenarios may sound a little ‘old-school’ today, these types of customer frustrations sparked innovations. They led to the advanced and diverse customer service tools we’re familiar with now. They paved the way for live chat agents, CX via social media, online chatbots, and more – often tools we now take for granted as a quick way to contact companies when we have an issue or query.
CX innovation has accelerated rapidly since 2020, as business and consumer expectations evolved dramatically during the Covid-19 pandemic. Now, finding the best way to engage and respond to customers has become a top business priority and a key business challenge. Not only do customers expect the highest standard, but companies are prioritising superb CX to gain the ‘edge’ over the competition. Overlooking this could come at the cost of lucrative business opportunities.
Prioritising customer retention
The current economic climate – particularly the fluctuating levels of inflation and the rising cost of living – has forced businesses to prioritise their efforts in retaining existing customers more than ever before. The cost of acquiring a new customer is extremely high, and in a challenging economy, keeping existing customers becomes the essential first step before focusing on attracting new ones.
According to Workato’s 2024 Automation Index, automation in customer support has grown by an astonishing 226%, with 30% of all automated processes dedicated to enhancing the customer or employee experience. It is not surprising given the compelling benefits: it will dramatically speed up the process of fielding customer inquiries, track issues diligently, and allow the customer service team to assign the correct issues to the appropriate group of people at the company more quickly.
Moreover, the Index reported customer retention as the fastest-growing priority when companies introduced orchestration into their processes. For these companies, investing in orchestration is a way to enhance the customer experience, ultimately enabling them to protect their customer base for the future.
Unpacking the benefits of CX
Generative AI orchestration is one of the most common choices for enhancing efficiency across all stages of CX, and the use cases are arguably infinite. It can support a range of common CX tasks, from managing returns and refunds to delivering superior customer support via service desks and chatbots. It can also evolve to not only support the business today but adapt to future business needs with ease.
Since Gen AI burst onto the scene, it has transformed the way businesses operate. Key benefits include its 24/7 availability and ability to analyse complex customer data and interaction history to generate more personalised responses that reflect the company’s voice and branding. Additionally, with its capability to react to a variety of cultural nuances, Gen AI can ensure that responses are both personalised and appropriate, enhancing its overall performance.
With careful integration and management, Gen AI is poised to become a natural partner in the workplace, allowing employees to collaborate with it to meet business goals. At the same time, Gen AI can relieve the team’s heavy workload and minimise valuable time spent on administrative tasks. However, it should never be a substitute for humans, and 11% of orchestrated processes from the Automation Index include humans ‘in the loop’, emphasising the integral relationship between the two; teams work in collaboration with AI rather than being replaced by it.
Interestingly, those who use Gen AI most successfully tend to turn to a unified enterprise orchestration platform, which allows businesses to manage, deploy, and oversee Gen AI solutions that can integrate smoothly with existing processes. This means that teams can focus on managing processes, safely in the knowledge that customer data remains secure.
Planning CX for the future
The goal of transforming CX into a faster, more personalised service – leading to higher customer satisfaction and ultimately increasing customer loyalty – is naturally attractive to any business that wants to remain competitive. As technology continues to evolve at pace, organisations must consider whether overlooking its value will cost them their customers in the long run.
It is also worthwhile to consider the internal benefits which are likely to multiply over time. If Gen AI is brought in as a supportive partner to human teams, employees will be able to prioritise their attention on business-critical issues or the most complex customer queries. Many companies report a positive effect on team stress and morale, as the burden of admin is reduced. Embracing a solution that offers Gen AI capabilities within one platform will allow CX teams to bring new energy to their work for customers with the speed and power they require.
