AI’s true superpower lies in accelerating human capability and individualizing the customer’s experience.
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The promise of artificial intelligence (AI) in customer experience has been clear: create more personalized interactions, reduce friction and build stronger relationships with customers. Yet despite large investments in AI technology, customers still don’t trust that their data is being used properly. The disconnect isn’t with the technology itself. It’s how companies are implementing it.
Rather than using AI to replace humans, the most successful brands are discovering that AI’s true power lies in accelerating human capability and individualizing the customer’s experience.
I recently sat down with Chris Koehler, chief marketing officer at Twilio, for an episode of Amazing Business Radio. Twilio helps brands create world-class customer experiences across all digital channels. Yet, even with the emphasis on digital, Koehler was quick to point out that AI will not replace people. It will help them be better at what they do. With that in mind, let’s dive into five lessons we can take away from the interview:
- Personalization Is Nice, but Individualization is Better
Personalization is something customers want and appreciate. In my annual CX research, we found that nearly eight out of 10 customers (79%) say a personalized experience is important to them. Personalization of the recent past included experiences that used a customer’s name and recommended products based on prior purchases.
According to Koehler, that is just segmentation. The next big opportunity takes personalization to the level of individualization, the ability to use AI to create one-to-one experiences, messaging and offers that are tailored to individual customers. A company may send out 100,000 emails, and almost every one has something unique to the individual customer who is receiving the message.
The Lesson: Most companies are still talking about “personalization,” but those that can move into true individualization will win the loyalty and business of their customers.
- AI Is an Accelerant, Not a Replacement, For Human-to-Human Connections
I’ve interviewed many executives, and all have said that AI will not replace humans. However, it will change the way we work and many of the responsibilities of our jobs. And while it may eliminate some jobs, it will also create new jobs. Koehler agrees and says, “AI is an accelerant, not a replacement.” In fact, Koehler says AI, when used the right way, will give people superpowers.
The Lesson: AI’s greatest value isn’t cutting costs by replacing people. It’s about doing what technology does best, automating repetitive transactional tasks so humans can spend more time solving complex problems, expressing empathy and building relationships with customers.
- Frictionless Service Is a Competitive Weapon
It’s simple: The company that is easiest to do business with will win. That was the theme of one of my books, The Convenience Revolution, which focused on how to be the easiest company possible to do business with. Koehler agrees and says, “Simplifying and removing as much friction as possible is the key to creating a great experience.”
The Lesson: Find a way to cut effort, save your customer’s time and eliminate putting them through unnecessary and redundant processes, and you’ll be much closer to earning that customer’s loyalty.
- Be Proactive. Don’t Wait for Customers to Come to You
Koehler shared an experience from an airline that canceled his flight. He received an automated message that included a generic “sorry” and automatically booked him for a flight the next day. Had it been a solution that worked for him, he would have been delighted, but it didn’t, and he wasn’t. The message would have been appreciated much more had it included a line such as, “If this solution is not acceptable, please reach out to us at (the phone number) and talk to one of our amazing agents.” The idea behind the proactive message was good, but the execution was off.
The Lesson: When there are customer service issues, whenever possible, contact and inform the customer before they call you. Anticipating a customer’s needs and issues is a simple and powerful way to positively surprise the customer.
- Trust Is Earned Through Actions
My usual focus on trust in the customer experience has to do with promises kept. Koehler’s comments were focused on how customer data is shared, and he shared a finding from Twilio’s State of Customer Engagement Report. “Only 15% of customers fully trust a brand’s use of data and AI.” Customers are tired of sharing data and getting little or no value for it, and on the contrary, receiving spam and marketing messages with little relevance.
The Lesson: Trust isn’t about promising not to abuse a customer’s data. It is earned when a company uses data to make things easier, faster and more personal. If you promise to create a great experience with a customer’s data, prove it whenever you interact with them.
Final Words
Technology can either push customers away or bring them closer. The difference isn’t in the AI. It’s how you use it. Used the wrong way, it causes friction and puts distance between you and your customers. Used properly, it makes doing business with you better. Individualization, AI, frictionless experiences and any other strategy you can think of are nice-to-haves in your arsenal of customer experiences. But, without customers trusting you, the effort to do any of this will yield short-term results.