What AI can do for Customer Experience
ai & customer experience
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ai & customer experience 〰️
Why do customer experience and AI matter?
Well here's the problem. Right now, most businesses are still running on a model that focuses on customer satisfaction and we're still asking customers to rate us on a scale of one to 10.
But what if we told you that there's a better way and what if we told you that it is going to be critical for your business in the years to come. The reason it's going to be critical is because we have so much data right now. And there are so many different platforms where we can gather data and so we think for companies like ourselves, it's really about how do we start using that data in really smart ways.
One of the things that McKinsey & Company's study recently found is those CX (customer experience) leaders who focused on gaining insights and building customer loyalty, tend to see a 5 to 10% reduction in the bottom line and a 15 to 25% increase in the total. And that gap in the middle is revenue.
So, in years to come what we're going to find is that revenue and reporting ROI on revenue is going to be critical.
The first thing to understand is that the ROI of AI depends on your goals.
So here's the number one way to get more sales with less effort. It's the number one way to increase your sales, decrease your marketing costs and retain more customers. It's the number one thing you must do to grow a successful business.
And it's probably not what you think. The number one thing you can do to grow a successful business is to engage your customers and prospects in a meaningful way. And there are several ways that we can do this in order to improve our business.
Using AI, we want to increase sales and awareness, increase the number of promoters, if you use NPS scoring, increase the number of acquisitions, the acquisition rates that we have from strangers to customers and customers, loyal fans we want to increase engagement and increase CLV (customer lifetime value).
What areas can you reduce costs?
Whilst we focus on increasing revenue, we also want to decrease some of the things that hurt our bottom line: churn (detractors), and campaign costs:
Retention costs
Channel costs
Reactivation costs
Why? Because every dollar that we waste on avoidable things is a dollar that we can't spend on increasing our sales or awareness.
So, what do enterprise businesses need to understand?
In the past, many companies have used a “spray and pray” approach to digital marketing, spending as much as possible on advertising to as many people as possible. But we now understand that this is not always the best way. Instead, we want every dollar spend on online ads to produce an actual ROI, especially when we are reporting back to the boardroom level.
And AI is here, already, to help smart businesses not only increase revenue but also reduce cost - fully optimising the digital marketing you already have.
We call this revenue-driven marketing and it’s a strategy that is being adopted by some of the world’s smartest businesses because of its ability to produce a tangible return on investment (ROI) without compromising brand values.
