The contact centre — a technology-driven strategic asset
Contact centres are the core on which many firms deliver their customer experience. The landscape has changed dramatically in recent years, and this transformation is set to continue. Traditionally seen as a cost centre, the modern contact centre has evolved into a pivotal component of customer experience strategy. This shift was accelerated by the COVID-19 pandemic, which forced rapid digital adoption and highlighted the importance of efficient, adaptable, and customer-centric service models. Over the past couple of years, we have seen how technology has played a pivotal role in enhancing customer and agent experiences while driving operational efficiency for our clients.
As the contact centre continues to evolve, organisations that can adapt and innovate will be best positioned to succeed. Those that thrive in this new environment can balance technological innovation with a human-centric approach to customer service to ensure that technology meets the needs of both the business and the customer.
Recent contact centre technology developments
1. Cloud-Based contact centres
The move to cloud-based contact centre solutions such as Amazon Connect has been one of the most significant changes in recent years and a real game-changer. Cloud platforms offer greater scalability, flexibility, and cost-efficiency when compared to traditional on-premise systems and allow businesses to quickly scale operations up or down in response to fluctuating call volumes. This flexibility not only supports business continuity but also allows organisations to tap into a global talent pool.
Cloud solutions also facilitate integration across channels, enabling customers to seamlessly choose their preferred channel.
Capital One successfully migrated its contact centre operations to Amazon Web Services (AWS) cloud, resulting in improved scalability, reduced costs, and enhanced ability to implement new technologies quickly. This move enabled Capital One to handle a 400% increase in call volume during the COVID-19 pandemic without service disruptions (Source: AWS Case Study).
2. Artificial Intelligence and Automation
Increasingly, Artificial Intelligence (AI) and automation are transforming how contact centres operate. AI-powered chatbots and virtual assistants now handle a significant portion of customer inquiries (circa 70% according to several sources), providing instant, 24/7 support. They can handle routine inquiries, freeing human agents to tackle more complex issues. Gone are the days of the awkward and often unhelpful bots that we all remember from times past. Now, Natural Language Processing (NLP) allows today’s bots to understand and respond to customer queries more naturally and importantly more accurately and helpfully. Moreover, AI-driven analytics provide deeper insights into customer behaviour, enabling more contextualised interactions and a proactive level of service.
Bank of America launched Erica, its AI-powered virtual assistant, in 2018 and since then has handled over one billion client interactions. Erica can understand context and intent, allowing it to handle complex queries and even provide proactive financial guidance. According to Bank of America, Erica has helped drive a 20% increase in digital banking engagement (Source: Bank of America Annual Report 2021).
3. Omnichannel Engagement
Contact centres have expanded beyond voice calls to incorporate email, chat, social media, and messaging apps, with advanced platforms integrating these channels seamlessly. They serve as the bridge between various customer touchpoints, seamlessly connect a customer’s online experience with offline support, or link different departments within an organisation to resolve complex issues.
A study by Aberdeen Group found that companies with strong omnichannel customer engagement strategies retain on average 89% of their customers, compared to 33% for companies with weak omnichannel strategies
Customers today expect seamless, consistent experiences across multiple channels, whether they engage via phone, email, social media, or live chat. Contact centres have adopted omnichannel communication strategies, integrating various platforms into one unified system. This approach not only improves customer satisfaction but also provides agents with a holistic view of each customer” history and preferences, allowing for more contextualised and coherent customer interactions, regardless of the channel.
Disney has mastered omnichannel customer service with its MagicBand technology. This wearable device integrates with Disney’s My Disney Experience app, allowing guests to access their hotel rooms, enter parks, and make purchases. The integrated system provides Disney’s customer service team with a 360-degree view of each guest’s experience, enabling personalized support across all channels. This initiative has contributed to a 70% reduction in guest wait times at popular attractions (Source: Disney Parks Blog).
4. Enhanced Data Analytics
A study by McKinsey found that companies that use customer analytics comprehensively report outstripping their competitors in terms of profit almost twice as often as companies that do not (Source: McKinsey).
Data analytics has become crucial in optimizing contact centre operations. Advanced analytics tools can analyse customer interactions to identify trends, predict future behaviours, and highlight areas for improvement. Tools can track and analyse customer interactions, providing valuable insights into trends, pain points, and opportunities for improvement. Real-time analytics enable managers to monitor key performance indicators (KPIs) and make informed decisions to enhance service quality and operational efficiency. These insights help in staffing decisions, training programs, and developing contextualised customer experiences.
Delta Air Lines uses advanced analytics to predict customer issues and proactively reach out to customers. This approach has led to a 10% reduction in customer complaint calls and a 5-point increase in Net Promoter Score (NPS) (Source: Delta Air Lines Innovation Report).
5. Voice Analytics and Biometrics
According to Opus Research, the voice biometrics market is expected to triple from $700 million in 2015 to $2.1 billion by the end of this current year (Source: Opus Research).
A relatively new technology we see beginning to be used is voice analytics technology which has made significant recent strides, allowing contact centres to analyse tone, and sentiment, and even detect potential fraud.
Barclays implemented voice biometrics in its contact centres, reducing average call times by 20% and significantly improving security and customer satisfaction. The system has prevented over £10 million fraud attempts since its implementation (Source: Nuance Case Study).
Watch out for more technologies coming
- Hyper-Personalisation: AI and machine learning will enable contact centres to tailor interactions based on a customer’s past behaviour, preferences, and even current mood.
- Augmented Reality (AR) Support: AR technology is set to transform how contact centres handle complex technical support.
- Emotion AI: Advancements in emotion AI will allow systems to detect and respond to customers’ emotional states more accurately.
- Blockchain for Enhanced Security: Blockchain technology may be adopted to secure customer data and transactions.
- 5G and IoT Integration: The rollout of 5G networks will enable faster, more reliable connections, supporting high-quality video interactions and real-time data processing.
Creating a Contact Centre Technology Strategy
As contact centres evolve, organisations must be strategic in adopting new technologies. Here are some key considerations:
1. Invest in the Right Technologies
While it may be tempting to adopt the latest technologies, it’s crucial to invest in tools that align with your business goals and customer needs. A thorough analysis of your current capabilities and future needs will help in selecting technologies that provide the best ROI.
2. Focus on Employee Training and Development
The shift to more advanced technologies means contact centre staff need continuous training and development. Upskilling employees to work with AI tools, data analytics, and omnichannel systems is vital. Additionally, soft skills training in areas like emotional intelligence and communication remains crucial, as these are irreplaceable by technology.
3. Maintaining a Customer-Centric Approach
Even with the best technology, a successful contact centre strategy is always customer-centric. This means not only responding to customer needs but anticipating them. Personalisation should be a key focus, leveraging data analytics to tailor interactions and empower agents to provide proactive solutions.
4. Ensuring Compliance and Security
As data breaches become more common, ensuring compliance with data protection regulations (such as GDPR) is not just a legal necessity but also a critical component of maintaining customer trust. Organisations must prioritise data security in every aspect of their contact centre operations.
5. Scalability and Flexibility
The ability to scale operations up or down in response to market demands is crucial. Cloud-based solutions offer the flexibility needed to quickly adapt to changes in customer behaviour or external factors like a global pandemic.
Success lies not just in implementing new technologies, but in using these tools to create more meaningful, efficient, and personalised customer interactions.
As organisations navigate this evolving landscape, they need to be cognisant that the goal is to create value for their customers. This means staying agile, continuously learning, and always putting the customer at the centre of their strategies. By doing so, they can turn their contact centre into a powerful engine of customer satisfaction and business growth.
Aligning the needs of the customer and agent with business priorities could mean that your contact centre can become a true differentiator for your business. With the right attention and focus, the future of contact centres will be bright and full of possibilities which means happy companies and smiling customers.
