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How to Reduce Costs through CX Transformation
In this series on the customer journey execution gap, we’re looking at how customer journeys are being reshaped by new technologies and behaviors, and how the speed of that change is challenging the best efforts of brands. In the last article in the series, we looked at how the twin prongs of data—in the shape of contact strategy and Voice of Customer data—can start to help you close the gap.Â
We’re going to zero in on two elements of transformation that can take cost out of the equation. Firstly, looking at how to manage contact demand by optimizing channel strategy, enabling advisors to focus their efforts on the high-value, high-reward interactions. Then we’ll look at operations transformation and the potential for innovation to transform the contact center to make it as efficient and effective as possible.Â
Why Your Contact Strategy Should Inform the Future Operating ModelÂ
When looking at operations, it’s important to begin with an analysis of contact demand. That gives an idea of where the volume of contact is coming from.
This first step helps identify where demand currently resides in the existing customer journey. Grouping contact types into themes, such as contacts that should be eliminated, nurtured, or automated for example, then informs channel strategy. Â
The next step is starting to plan that future channel strategy and operating model that treats the remaining volume in the most efficient way possible. This takes into account the best use of channels, as well as driving adoption of those channels, improving self-service, and use automation, all of which we’ll look at in this article.Â
Technology is going to be a big part of rethinking operating model design. Often technology like generative AI is positioned primarily as customer-facing, but it’s going to be used to support a customer service advisors and their colleagues as much as talk to customers.Â
At Concentrix, we believe that the best customer experience is forged in a blend of the best of human and technology. Let’s look now at some of the ways technological transformation offers the potential for cost reductions while closing the customer journey execution gap. Â
How Generative AI Can Work Hand-in-Hand with Human Talent
Historically in customer service, there has been a front office and a back office, where advisors keyed something into the system, triggering an action that created a task for somebody in the back office to complete. But now generative AI-powered bots can understand what it is that the advisors want to do and transact that end-to-end so that in effect the bot becomes the back office worker.Â
It helps to think about how this level of technology might complement human talent in the customer journey at three different stages:Â
In front. The first stage is the “in-front” task which replaces the advisor with a machine. Speaking to a bot powered by generative AI, that not only understands what we said but what we meant, is now going to be increasingly accepted as part of the customer experience mix.Â
Alongside. Next up, we talk about automation “alongside” the advisors: these are solutions that can boost the performance of an advisor during a customer interaction by listening to the conversation and proactively recommending responses, answers, and content to make the advisor more effective. This liberates the advisor to have better-informed conversations with customers and offers them a richer customer experience.Â
For example, real-time speech transcription can automatically detect when certain products or processes are being discussed, and proactively display the relevant knowledge articles or workflows to the advisor in the conversation, reducing handling times and improving the customer experience.Â
Behind the advisor. Finally, “behind-the-advisor” solutions can automate transactions and processes that have been triggered directly by the advisor or customer. It also introduces opportunities for automation to improve the efficiency of shared services that support frontline operations, which might include Finance, HR, Resource Planning, Reporting, etc.Â
Helping Your Customers to Channel ShiftÂ
Proactively helping your customers channel shift can also be a powerful cost-reduction exercise. For example, this might include empowering them to self-serve, where the desire to do so has been identified in your contact strategy. We work with clients to unlock the value that’s being wasted through poor operational design. Â
For example, at Concentrix, we worked with a large UK retailer to evaluate their contact center demand drivers. One of the main areas we reworked as a result was its very popular “Contact Us” website page. The page was very basic, simply giving instructions on how customers could call or chat, with limited information on FAQs.Â
Instead, by restructuring the page around an order journey and each stage’s highest demand drivers, we redesigned the Contact Us page, optimizing it for demand reduction by offering a range of routes through, from self-service options to buying guides and contact channels.Â
As part of the work, we helped the retail brand pivot to digital, by replacing phone numbers and email addresses with digital self-serve options. In practice, this meant that where customers used to be presented with the phone number for each store, now they were presented with the option to chat live with an advisor directly from their Google search results. Â
Following the redesign, over the next six months call volumes fell by 40% while virtual assistant interactions rose by 326%, drastically reducing cost-to-serve.
How Technological Innovation Can Transform Customer ServiceÂ
So far we have looked at how technology can hold the key to rerouting customer demand. Next up let’s discuss operational transformation to handle the remaining high-value volume of contacts.Â
Let’s take the travel sector as an example of what can be achieved. It transcends countries, cultures, and languages—with the must-have requirement being highly effective, global multilingual customer service. Â
Traditionally, getting multilingual customer service right has been an incredibly complex challenge, resource-heavy, and requiring operational hubs across multiple countries, often across a variety of voice and digital channels. Â
At Concentrix, we work with numerous clients in the travel sector to help them achieve multilingual customer service success. Previously travel companies may have struggled to, or indeed chosen not to, recruit advisors for less widely used languages, instead offering customers a “closest match” alternative language and therefore a downgraded customer experience. Â
Servicing digital inquiries in the customer’s native language shouldn’t be an aspirational aim, it should be the standard offering of any company within the travel sector with a global footprint. Â
Our solution, Polyglot, translates customer interactions in digital channels from one language to another in near real-time with quality-checking human interventions. This means advisors can engage with customers in any location worldwide—and in any language—to resolve the enquiry promptly.Â
There are three key benefits that the service offers brands looking to deliver a multilingual customer service strategy:Â Â
- Overcome language barriers
- Strengthen operational resilienceÂ
- Create opportunities to growÂ
Technology like this lifts the language barriers, deploying AI to offer the translation skills to manage any digital customer interaction – and remove the recruitment conundrum. Â
Why Changing Demographics Also Hold the Key to Customer Service TransformationÂ
Finally, we’ve seen how changing technology can help reduce costs through operational transformation. But what about changing demographics too? A recent survey from a UK phone network revealed that nearly half (47%) of 16-24-year-olds let phone calls go to voicemail or reject them because they prefer to text (compared with just a fifth (18%) of over-55s)Â
Now while there are dangers in demographic generalization, there does appear to be a generational trend away from voice to non-voice communication with brands. Anecdotally at least, the idea of anyone under 25 phoning a company appears to be an entirely alien concept for most.
What if Gen Z and many millennials’ expectations around text-based communication open up a lot of opportunities for technology solutions? Helping those customers to get speedy effective answers through non-voice channels could potentially help to reduce costs. Â
Technical challenges like machine translation then become easier because there’s no transcribing of live audio from speech to text, then text from one language to another language. If it’s working solely in the customer’s own written language, the margin for error is greatly reduced.Â
Discover how we can help you to strengthen your contact strategy and implement cutting-edge technology to improve your customer experience.