Embracing Technological Transformation: Reshaping Customer Interactions

In the current competitive operational interruption climate, technology can no longer be ignored as a critical player in the area of customer interactions. As such, as business development executives managing a dynamic environment, it is important to recognize the features, benefits and potential problems associated with technological tools. This article aims at discussing the phenomenon of technologization of communication wilh customers, outlining its vectors, advantages, and disadvantages based on the analysis of the number of pilot international cases.

Technological Elements Related to Customer Interactions in Retail Banking

Personalization: They also noted that Accenture established that 91% of consumers want brands to provide more personalized experiences (1). This way, technology helps leading companies to monitor the client base and adjust their communication strategies according to customers’ tendencies and preferences, thus achieving better client relationships and appreciation.

Automation: According to McKinsey, the use of automation can help boost customer service interaction rate by up to 80 percent while also helping manage and resolve queries and complaints more effectively and rapidly (2).

Data Analytics: Forbes also notes that according to a survey, 65 percent of companies termed deploying data analytics as critical in managing customer needs. In this manner, analytical data offer strategic business clues that help various entities to predict their customers’ behavior and, in effect, their future actions.

Omni-channel Integration: According to Harvard Business Review , firms with solid forms of omnichannel strategies have a customer retention rate of an average of 89%. Integration across the channels guarantees an automatic continuity of successive interaction without compromising the pattern of communication irrespective of the customers’ channel shift.

AI and Chatbots: According to Gartner, it is estimated that the AI technology will be used in approximately 70 percent of all interactions with customers by the end of 2022 through features like the chatbot or specific learning machines. Automated interactions through the use of Artificial Intelligence based chatbots deepen the richness of the live advise given during the real world.

Advantages of Technological Transformation

Enhanced Customer Experience: According to Salesforce, 84% of customers prefer to be treated accordingly, meaning that they appreciate when companies customize their treatment based on their preferences. The result is that technology helps in the flow and quality of interaction that in turn contributes to high satisfaction levels among the customers (3).

Improved Efficiency: Studies show that digitized organisational models reveal that digitally transformed organisational models enhance the value delivery capabilities of firms by, 1. tip respondents were five times more likely to report revenue growth than bottom-tier participants. Automation and the use of AI means that many functions are handled decreasing the workload for people to focus on major projects.

Data-Driven Insights: Further, the McKinsey analysis shows that the data-driven companies have a broader and much higher chance of winning and maintaining their customer base. It also helps the consumer and the business understand what steps should be taken next through the insights which can be provided as recommendations.

Global Reach: Global ecommerce sales are expected to $6 by 2022 based on eMarketer estimates. 4 trillion by 2024. This results in the ability to move past physical borders in marketing and selling through the use of technology.

Competitive Edge: On the same note, Harvard Business Review is keen to note that customer centric business entities record 60% higher profit margins. The use of technology is a chief means through which organizations can differentiate themselves through the interactions they have with their clients.

Disadvantages and Challenges

Security Concerns: According to a study by IBM, the average cost of data breaches is $3. 86 million. As technology is used widely in many firms, it makes it mandatory for firms to have strong security systems to enhance the protection of information.

Depersonalization Risks: The segment of ‘Consumer attitudes’ reveals that 59% of the consumers is of the view that companies are becoming inhuman. If automation helps in increasing efficiency, it may lead to failure in fulfilling some of the psychological aspects of customers.

Technical Glitches: According to salesforce, 57% of customers have abandoned their loyalty to a brand and company as they have moved to other companies with better treatment. The technology may fail to work as expected thereby altering the flow of communication which results in customers feeling annoyed.

Digital Divide: According to WB data there is a table which says 3. Here it is critical to remember that a whopping 7 billion people have no use of the internet. The inequalities in the access to socio-economic services may hinder technology usage, thus confining some groups of people to non-harmonious interactions with others.

Algorithmic Bias: MIT has pointed out that algorithmic bias favor certain members of the society in a way that reinforces the disparities. Using extreme amounts of algorithms to help in the decision-making process can be damaging as it is prejudiced, and this affects customers.

International Case Studies

Amazon: Provides mapped solutions for individual tipping point shopping scenarios and optimized order fulfillment.

Disney: Aeroevac MagicBand is a valuable tool for developing and improving visitors’ experiences throughout the parks and services offered to them.

Netflix: Delivers relevant content for the users based on advanced algorithms and techniques, and thus increases users’ loyalty level.

Airbnb: Generate trust and hassle-free reservation across the global using communication technology for peer-to-peer transaction.

Apple: Siri is an example of how AI layer outperforms itself to offer logical customer care regardless of the devices in use thereby cementing a human –device interface.

Embracing the Future

For business development executives, it important to understand and acknowledge the change that technology is bound to bring to the ways that customers engage. Therefore, if the advantages offered are nurtured, the challenges are managed, and the experiences of successful similar individuals or firms are adopted, engagement, satisfaction and loyalty can improve. Flexibility and creativity will be major factors in managing the emergence of new markets to ensure an increase in customers’ demands in different parts of the world.

References :

  1. Accenture
  2. Mckinsey
  3. Salesforce

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