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Generative AI: Redefining the Equation of Volume-Cost in Customer Service

Generative-AI_-Redefining-the-Equation-of-Volume-Cost-in-Customer-Service

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Generative AI. In the world of economics, there are fundamental principles that we rarely question or debate. We accept, without hesitation, that the forces of supply and demand influence prices, that money holds value, and that economies of scale can drive down the cost per unit. These principles form the bedrock of economic understanding.

But what about the world of customer service? Is there a fundamental principle that governs how businesses address the ever-growing volumes of customer communication? Indeed, there is. When customer volumes surge, companies typically respond by increasing their human resources—agents tasked with handling inquiries and ensuring customer satisfaction. It’s a straightforward equation: more customers being served with a high level of service means more agents are required.

More customers + better customer experience = (customer agents)²

Is this still true today? 

All signs indicate that we live in transformative times, where every fundamental equation has the potential of being forever changed, defying some basic laws of economics. The introduction of generative AI technologies such as ChatGPT, disrupts that long-standing balance. 

But now, there’s a new equation in play—one that challenges the status quo and redefines the relationship between customer volume, human resources, and satisfactory service. With the emergence of AI-powered chatbots like ChatGPT, businesses can rewrite the equation of customer service and communication. These intelligent virtual agents possess the ability to transform how companies address growing customer volumes while achieving economies of scale.

Automation sways the balance of the equation

Autonomous, channel-agnostic customer engagements have significantly transformed the landscape of customer experience. Agents can now handle a multitude of customer inquiries simultaneously across various channels, including chatbots, messaging, social media, and more. According to Drew Kraus, VP Analyst at Gartner, “Efforts to increase the use of digital channels and improve automation rates using analytics are driving customer service technology spending, despite economic headwinds.” He hits the nail on the head, highlighting the impact on both service and upselling aspects.

Using autonomous, self-serve customer journeys, basically automating up to 90% of repetitive inquiries, companies shift the focus of the human agents into transforming every customer interaction into an opportunity for growth. Human agents are now primarily involved in handling complex issues  and can create upselling opportunities. 

This paradigm shift has liberated companies from the constraints of the persistent equation, ushering in the era of autonomy. In fact, Gartner predicts that implementing a “Connected rep” strategy in Customer Service functions will improve Contact Center efficiency by 30% by 2026. A great opportunity with great rewards awaiting. 

However, without the assistance of CommBox, setting up all the necessary digital channels can be quite demanding. It requires implementing multiple systems and orchestrating their functions to seamlessly work together. It also entails writing scripts for bots, addressing potential caveats, building engagement flows to involve human agents at the right time, and training agents to shift their focus. No small feat, to be precise.

But we live in exciting times, as  a giant leap forward hits. A game-changing capability, to revolutionize the setup process and help us  redefine the equation.

Generative AI – Redefining the Equation

What if you could effortlessly access all of the above and more, with just a click of a button? Imagine end-to-end process choreography, seamlessly managing increasingly intricate and personalized customer engagements. Picture self-serve customer journeys that possess such intelligence that they proactively adapt and shift based on each customer’s intent. Think about the innate potential for your automated, digital AI bots, as they learn and improve with every customer interaction and case resolved.

You already have a wealth of valuable information on your website, encompassing various product and service options, policies, and more. Your support pages, FAQ, and agents’ scripts are already prepared and waiting to go. By leveraging generative AI-based technologies, you can swiftly “scan” or “upload” all your available materials, flows, and previously resolved processes, both successful and unsuccessful, in a matter of seconds. This vast and invaluable knowledge base can be automatically utilized in just a few clicks.

Your digital support channels are continuously updating,  learning from each customer interaction, and evolving to become exponentially more relevant and intuitive for your customers to navigate.

The AI-powered bots can automatically assess the most effective path for successfully resolving nearly any customer inquiry, self-managing the process to achieve optimal resolution. Moreover, they can provide operational insights and recommendations for the next best actions across your organization, seamlessly involving every relevant department precisely when it’s needed.

Undoubtedly, the equation has changed.

Can I have one to go…?

Generative AI holds tremendous promise, offering customers independence and freedom through self-service on any channel, at any time, and from anywhere. Like with any technological revolution, there may be hesitations and skepticism, but such is the nature of every revolution. Whenever I consider how I manage my entire work and personal life from the palm of my hand, I’m reminded of Steve Ballmer confidently dismissing the iPhone’s potential for significant market share.

However, the reality is that the ease of implementation, genuine omnichannel customer engagement, undeniable positive impact on customer satisfaction and Net Promoter Score (NPS), and the satisfaction of agents facing customers who genuinely need their assistance is truly overwhelming. Not only that, each customer interaction has the potential to generate additional revenue, as you automate and incentivize already eager agents, redirecting their focus and effort towards lucrative, interesting, and rewarding customer engagements.

Want to experience CommBox for yourself? Request a demo to see what our customer communication platform can do for you.

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