Friday, May 22nd, 2020 | 12 min read
This article was written by Louis Columbus from Forbes
Bottom Line: This year’s hard reset is amplifying how vital customer relationships are and how much potential AI has to find new ways to improve them.
The hard reset every company is going through today is making senior management teams re-evaluate every line item and expense, especially in marketing. Spending on Customer Experience is getting re-evaluated as are supporting AI, analytics, business intelligence (BI), and machine learning projects and spending. Marketers able to quantify their contributions to revenue gains are succeeding the most at defending their budgets.
Fundamentals of CX Economics
Knowing if and by how much CX initiatives and strategies are paying off has been elusive. Fortunately, there are a variety of benchmarks and supporting methodologies being developed that contextualize the contribution of CX. KPMG’s recent study, How Much Is Customer Experience Worth? provides guidance in the areas of CX and its supporting economics. The following table provides an overview of key financial measures’ interrelationships with CX. The table below summarizes their findings:
The KPMG study also found that failing to meet customer expectations is two times more destructive than exceeding them. That’s a powerful argument for having AI and machine learning ingrained into CX company-wide. The following graphic quantifies the economic value of improving CX:
Where AI Is Improving CX
For AI projects to make it through the budgeting crucible that the COVID-19 pandemic has created, they’re going to have to show a contribution to revenue, cost reduction, and improved customer experiences in a contactless world. Add in the need for any CX strategy to be on a resilient, proven platform and the future of marketing comes into focus. Examples of platforms and customer-centric digital transformation networks that can help re-center an organization on data- and AI-driven customer insights include BMC’s Autonomous Digital Enterprise (ADE) and others. The framework is differentiated from many others in how it is designed to capitalize on AI and Machine Learning’s core strengths to improve every aspect of the customer (CX) and employee experience (EX). BMC believes that providing employees with the digital resources they need to excel at their jobs also delivers excellent customer experiences.
Having worked my way through college in customer service roles, I can attest to how valuable having the right digital resources are for serving customers What I like about their framework is how they’re trying to go beyond just satisfying customers, they’re wanting to delight them. BMC calls this delivering a transcendent customer experience. From my collegiate career doing customer service, I recall the e-mails delighted customers sent to my bosses that would be posted along a wall in our offices. In customer service and customer experience, you get what you give. Having customer service reps like my younger self on the front line able to get resources and support they need to deliver more authentic and responsive support is key. I see BMC’s ADE doing the same by ensuring a scalable CX strategy that retains its authenticity even as response times shrink and customer volume increases.
The following are six ways AI can improve customer experiences:
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