Happy Friday! ‘This week in CX’ brings you the latest roundup of industry news.

This week, we’re looking at personalisation in focus – with Twilio’s new research on how it could be AI-driven, and how retailers now see it as their greatest challenge. In-store omnichannel strategies are also now a must-have, as well as GigCX for customer service managers.

Key news

  • Sprinklr are utilising social media to see how Brits are currently feeling in the build up to the Coronation this weekend. They set up a new Coronation Dashboard to capture data in real time, aggregated from Twitter, Instagram and News. The findings set out an overview of interest, the King’s overall popularity and how the Coronation sits in public opinion. 61.8% of mentions are negative in sentiment and 38.2% are positive. Sprinklr using their platform to engage with major historial societal events is an interesting move to get involved, we think!
  • Boost.ai have released new research on customer service satisfaction, with some fascinating insights into industry reputation. The research found that 67% of banking customers would leave their providers if they experienced consistently bad customer service. Insurance customers were close behind on 62%. Furthermore, 69% of customers were unwilling to wait longer than 20 minutes to speak to a customer service operator. 81% of respondents said they would switch providers if they consistently had to wait 30+ minutes. However, 61% of people would talk to a chatbot if it meant spending less time waiting for their enquiry to be resolved.
  • Slack have integrated ChatGPT to become Slack GPT. It will enable users to create AI-powered conversation summaries and leverage writing assistance within the platform itself. Customers can also build no-code workflows that embed AI actions with simple prompts at each step.
  • Grammarly are the next company to join in with generative AI. GrammarlyGO is a new tool which uses ChatGPT’s AI model to generate text. With GrammarlyGO, users can draft documents, compose and reply to emails, edit writing for tone, clarity, and length, and ideate concepts or outlines for a project, within the apps they’re working in.

Nine in ten businesses are using AI-driven personalisation to drive growth, Twilio research shows

According to the laest report on the state of personalisation by Twilio, 92% of global businesses are now using AI-driven personalisation to drive business growth. 81% of organisations also believe recent AI technology has the potential to positively impact CX.

However, a disconnect exists between this enthusiasm and the comfort level of consumers. Only 36% of European consumers are comfortable with companies using AI to personalise their experiences. Just 49% trust brands to keep their personal data secure and use it responsibly. 

50% of global companies report that getting accurate data for personalisation is a struggle. 31% of businesses cite poor quality data as a major obstacle in leveraging AI. Reassuringly, 97% of companies surveyed are taking steps to address consumer privacy concerns – demonstrating a commitment to responsible data use. 

As digital natives, Gen Z are both more influenced by personalisation and more willing to embrace AI. In fact, a third of Gen Z consumers already expect AI to be used in their experiences with brands. For example, 72% of Gen Z consumers say that personalised experiences have influenced them to make a purchase. This compares to 66% of millennials, 57% of gen X and 42% of boomers.

Meanwhile, only 15% of Gen Z consumers report being uncomfortable with AI being used to help brands personalise their experiences. This is notably lower than millennials (24%), gen X (34%) and boomers (43%).

62% of business leaders cite customer retention as a top benefit of personalisation. Nearly 60% say personalisation is an effective strategy for acquiring new customers. Consumers also increasingly confirm the value of personalisation – 51% of European respondents say they will become repeat buyers after a personalised experience. 

Personalisation is now retailers’ greatest challenge and driver for success in 2023

Red Ant have released their newest survey on UK retailers. 68% of retailers claim personalised services is their key driver for tech investment in 2023. Personalising the customer experience has overtaken data integration to become brands’ biggest challenge (for 30% of respondents). This year, siloed data came a close second – 23% identified it as their biggest challenge.

On a positive note, 20% of respondents claim their retail budgets have increased in 2023. Reassuringly, 77% of retail tech budgets stay the same as 2022. While challenges remain similar to last year, the developing investment in new technologies, such as AI, indicate that retailers are under pressure to do much more with the same.

In fact, of the 72% of retailers who claim they have already adopted AI and data analytics, 24% of these have ambitions to increase adoption. This is despite the biggest barriers to AI adoption being lack of strategy (for 26% of respondents), and costs (for 23%). The complexities of regulation and compliance were a significant barrier to adoption for 18% of respondents. Among these challenges to embrace AI featured a not-insignificant company culture (9%) and data requirements (8%).

This survey highlights the shift in retail tech priorities towards personalisation and the customer journey/experience, leaving omnichannel strategy ranking in fourth place. This raises concerns around whether retailers have done enough in the year since Red Ant’s 2022 survey. In this, just less than a quarter of retailers confirmed that they have ‘a well-established omnichannel strategy that works with collaborative tools and platforms and goes beyond multichannel’.

“Retailers must make sure they have their omnichannel strategy nailed, otherwise they risk not making effective use of any AI strategies and investments. They’re right to still prioritise data integration and to ensure seamless and frictionless customer journeys and experiences. Once this is in place, that’s the time to invest in AI, ChatGPT tools and other new technologies that can support store associates and give meaningful business insight based on customer data.” 

-Sarah Friswell, CEO at Red Ant 

In-store omnichannel strategies are greatly desired  

A new study by M-Cube has found that 86% of retail leaders believe having a strong in-store omnichannel strategy is important for success. The study surveyed 250 retail leaders in the UK to understand the importance of omnichannel retailing and its impact on businesses.

It found that 76% of businesses believe omnichannel retailing is key to success in the next five years. 62% of retail leaders also prioritise omnichannel capabilities over other strategic initiatives. 59% believe that physical stores will remain important in the omnichannel world, with 21% saying this importance will grow. In fact, since implementing omnichannel strategies, 69% of businesses have seen an increase in sales or revenue. 

According to the survey, the biggest challenge when implementing omnichannel capabilities is achieving a consistent customer experience across channels. Ninety percent of retail leaders believe maintaining a consistent customer experience across all channels is important.Despite these challenges, the majority of businesses (72%) feel confident about the successful implementation of omnichannel strategies. Ninety-two percent of retail leaders believe that incorporating digital signage into omnichannel solutions will be important, with 39% of retail leaders saying AI and machine learning will play a key role.

“The importance of omnichannel retailing is only set to grow, retail leaders must prioritise omnichannel capabilities to stay competitive in today’s market. Customers make purchasing decisions for a multitude of reasons, so businesses need to make sure they are doing everything they can to make sure they are standing out. This starts with creating powerful experiences across all channels.”

-Alexios Blanos, UK Business Director at M-Cube

83% of customer service managers have added, or plan to add, GigCX talent in the next two years

Limitless research has revealed that 83% of customer service managers have already added – or plan to add – gig talent to CX operations within the next two years. This is a significant increase from 2022, where the figure stood at 72%. 

The survey of 400 respondents in the UK and U.S., also found that customer service managers using GigCX increased by 149% since 2022. 65% of those surveyed see gig in customer service as a great model for customer service. In the same period, those that “know very little” about GigCX or had “never heard of” GigCX decreased by 43%. 

Over half believe brand reputation is critical and embedded into the way organisations hire, train, and coach. 44% identified empathy as the most important factor. Additionally, 65% think prospective customers would be more likely to buy a product if they could speak with a fellow customer before purchasing.

80% of contact centres have increased their budget for direct hiring or outsourcing in order to meet staffing minimums.The majority have increased their budget by more than 10%. The survey also revealed that the greatest cause of concern regarding service staffing in 2023 is the demand for flexible working (29%).

“Businesses are still dealing with the same challenges as they were during the pandemic. Prioritising flexibility and adaptability are still crucial to the success of customer service. The pre-pandemic working models that many companies relied on are no longer effective in a world where change is the only constant. By embracing a GigCX model, brands can unlock new levels of agility, while also creating a more resilient workforce that can adapt to any challenge.”

Roger Beadle, CEO and Co-Founder at Limitless

Want to learn more? Here are our top articles exclusively on GigCX:

Thanks for tuning into CXM’s weekly roundup of industry news. Check back next Friday for the latest updates of the week!

Post Views: 406
CXM News