In an age where customers want hyper-personalised interactions, cloud technology is slowly becoming a key enabler for organisations that want to provide seamless, tailored experiences. Cloud-based tools are changing the way businesses communicate with consumers by enhancing real-time interaction and giving targeted recommendations.
But how are enterprises employing these technologies to boost CX, and what are the main challenges?
Hyper-personalisation requires utilising data, AI, and machine learning to create personal experiences, and companies are leveraging cloud technologies to accomplish this level of customisation at scale. The cloud’s capacity to handle large volumes of data and deploy AI-driven insights in real-time allows brands to understand customer behaviour and deliver relevant content that is tailored to each customer.
In an interview for CXM, Terry Bruder, senior product manager, digital services at Telus Digital, said that these tools enable companies to suggest complementary services and products that are aligned with consumer preferences, which improves the overall brand experience and drives deeper engagement.
For instance, recent research by Medallia shows that 61% of consumers are willing to spend more for personalised experiences . Companies can leverage cloud-based solutions to analyse consumer data from multiple touchpoints, enabling them to create a unified journey for each client.
“Cloud technology makes possible the collection, storage and analysis of the customer data at the detail and scale required for it to be useful to an organisation,” said Camelia Suciu, director solutions engineering EMEA at Twilio.
“For example, you could group conversations by repeat purchases, product questions, or other common customer queries. This allows you to target specific groups of customers with individual, tailored communications, ” she added.
Overcoming integration challenges
Even though there are many advantages of cloud technology, integrating systems and breaking down existing information data silos brings its own headaches. Firms will face a host of challenges with data integration, platform compatibility, and internal opposition to change.
Bruder emphasised that one of the biggest challenges when integrating cloud technologies is ensuring data accuracy. “If the data within an AI tool, such as a chatbot, is unavailable or incorrect, customers will have an unsatisfactory experience and will end up frustratingly calling an agent,” said Bruder.
“To overcome this, companies should implement comprehensive data governance strategies that involve regular data quality audits, ongoing staff training on data management practices, and employing machine learning to improve,” he added.
Furthermore, companies must prioritise stakeholder engagement to ensure that all teams are on the same page and aware of the technology’s main benefits. This helps mitigate the risks involved with integration while building momentum and confidence within the business.
Data privacy and security
Businesses are implementing a multi-layer security strategy to protect client data, including encryption, anonymisation, and stringent access controls. By employing cloud technology’s built-in security protections, such as enhanced firewalls, intrusion detection systems, and data masking techniques, companies can better safeguard client information while retaining the flexibility required to personalise experiences.
“Companies must adopt a multi-layered approach to data security,” said Bruder.
“This includes implementing encryption for data at rest and in transit, ensuring compliance with regulations, like GDPR and CCPA, and employing a zero-trust security model that requires verification from everyone trying to access the system, regardless of whether they are inside or outside the organisation, ” explained Bruder.
According to Twilio’s State of Personalisation report, consumer trust in brands’ ability to protect and responsibly use personal data remains low, with cloud technologies and CDPs offering solutions for improved compliance and data management.
How does it impact customer satisfaction?
Artificial intelligence driven by cloud technology is expected to be a game changer for increasing consumer satisfaction and engagement. Cloud-based AI can process customer inquiries faster, respond instantly via chatbots or virtual assistants, and make more accurate recommendations.
According to Forrester, companies that adopt AI-driven personalisation experience up to a 15% improvement in customer satisfaction and a 20% increase in sales conversions.
With real-time analytics cloud platforms provide, firms can analyse client interactions and change their strategy accordingly. For example, if a chatbot’s responses do not meet user expectations, cloud-based technologies can detect the problem and make changes to boost accuracy and relevance.
“AI offers numerous benefits to individuals and the businesses they interact with daily. AI can also power messaging bots, which can provide automated responses based on natural language processing (NLP) and intent extraction — suggesting helpful background, answers and advice to common questions,” explained Suciu.
AI-powered tools
Businesses must constantly fine-tune their algorithms and models to improve the efficiency of AI-powered technologies. This means evaluating consumer input, uncovering patterns in encounters, and updating AI systems to reflect these findings.
For example, by using AI-driven chatbots to manage routine inquiries, businesses enable live agents to concentrate on more complex issues, which typically leads to significant improvements in metrics like NPS and CSAT, claims Bruder.
However, humans still have an important part to play. “The repetitive work of a typical contact centre, combined with the fact that there’s lots of data and context to refer to, makes it an ideal environment to support automation. The key is in using it appropriately in conjunction with human agents to keep that human touch,” commented Suciu.
Transforming digital marketing
Cloud technology could potentially transform digital marketing techniques by helping businesses reach and engage their customers. Marketers with access to data analytics tools may better segment their audience, design targeted campaigns, and track their impact in real-time.
Salesforce claims that companies using cloud-based marketing solutions have increased customer engagement by 32% and marketing ROI by 30%.
Cloud platforms provide businesses with the tools to analyse vast amounts of data, which can drive more targeted marketing campaigns. By leveraging AI and machine learning, companies can segment their audiences more precisely to create hyper-personalised marketing content.
Real time analytics enable businesses to adjust campaigns on the fly based on customer engagement metrics, enhancing responsiveness and relevance.
Customer successes
The power of cloud technology is best demonstrated through real-life case studies.
Suciou has shared that Camping World, a US-based outdoor equipment retailer, leverages Twilio Segment to gather data from various online and offline sources, creating a unified customer profile.
With Twilio’s identity resolution feature, they could merge data from multiple touchpoints, offering deeper customer insights.
“They’ve already experienced a 16% decrease in cost-per-lead thanks to cleaner and properly implemented data collection,” added Suciou.
Another example is Grupo Multi, a consumer goods company from Brazil, which won a Premio Cliente SA award for its great customer experience results, powered by Success KPI’s AI-driven platform.
“Success KPI allowed us to break the paradigm of monitoring and follow-up, because with the platform, we were able to monitor 100% of the operation and generate an intelligent dashboard capable of filtering the status and progress tabulations with precision,” explained Amanda Alves, service manager of Grupo Multi.
This allows “Grupo Multi to identify at which stage of the service the attendants need to improve, facilitating specific feedback and continuous improvement of the after-sales service, generating a better experience for the consumer”, she added.
As cloud technology advances, its impact on user experience and personalisation will only increase. Companies using these tools effectively can produce more meaningful and engaging interactions, improving customer happiness and business performance.