Essentially, the customer journey is a long trail of different customer experiences. And just like life is a journey full of many experiences, you want your customers to have long relationships with your organization, filled with many positive experiences. According to McKinsey, 56 percent of all customer interactions happen during a multi-channel, multi-event journey. And 38 percent of all customer journeys involve more than one channel of interaction. A deeper understanding of the customer path can lead to insights that are 30 to 40 percent more predictive of customer satisfaction and churn.
Most companies struggle to understand their customers' needs and fail to communicate effectively at each interaction during the customer journey. These negative interactions can occur at any stage of the customer journey. In the early stages they result in missed acquisition opportunities and fewer conversions. However, following conversion they lead to uneven customer service, failure to upsell and increasing churn. The challenge is to create positive interactions during every step of the customer journey.
Personalized marketing tops the list of technology-driven actions that executives worldwide are taking to meet their customers' needs. In the US, 70% of retailers see the personalization of the customer experience as their top priority, according to eMarketer. One key prerequisite for personalization is to know your customer, and for that, companies typically turn to customer segmentation. So, how does it usually work? Second, customers are allocated to a segment for targeted inbound campaigns, such as cross-selling on incoming calls, or outbound campaigns, such as email blasts.
"By 2020, 85% of customer interactions will be managed without a human" – Gartner Today's customers live in an omnichannel world. But most companies still force these evolved customers onto engagement paths that are steeped in legacy and instantly feel outdated. Artificial intelligence can be successfully employed to provide an intelligent, convenient and informed customer experience at any point along the customer journey. This will result in re-imagined customer experiences and end-to-end customer journeys that are integrated and more personal, so that they feel more natural to customers. In this post, I will lay out why artificial intelligence is a game changer in CX, take a look under the hood at how AI is applied to CX, and explore use cases for how leading edge companies are already reaping benefits from AI applications in customer experience.
This article is part of CMO.com's March/April series about emerging technology. Rapid digital disruption has sparked a wave of innovation, forcing organizations to drastically rethink how they operate and interact with customers. Power, as we know, has officially shifted to the consumer, who expects seamless buying experiences across all platforms and devices. Pair that with the emergence of data-driven technologies, such as artificial intelligence (AI), and it's clear that improving your business' bottom line requires a data-centric approach--one that complements, augments, and ultimately drives consumer preference and decision-making. In fact, an estimated 95% of customer interactions will be supported by AI technology by 2025.