{"id":931692,"date":"2019-05-13T06:45:00","date_gmt":"2019-05-13T13:45:00","guid":{"rendered":"http:\/\/customerthink.com\/?p=931692"},"modified":"2019-05-13T14:25:39","modified_gmt":"2019-05-13T21:25:39","slug":"customer-service-transformation-the-role-of-ai-intelligent-process-automation-ipa","status":"publish","type":"post","link":"https:\/\/customerthink.com\/customer-service-transformation-the-role-of-ai-intelligent-process-automation-ipa\/","title":{"rendered":"Customer Service Transformation: The Role of AI & Intelligent Process Automation (IPA)"},"content":{"rendered":"

\"Transform<\/p>\n

When we think about the most impactful technologies in the last decade, one can argue that mobile and cloud have made the most impact on customer service (CS). The explosion of mobile phones was not just about a change in form-factor, but the emergence of the app economy has transformed expectations in the customer service experience. The growth of messaging and social apps created a sense of urgency towards customer service and a network effect with a need to share positive and negative experiences.<\/p>\n

The growth of cloud as a technology became the foundation of omnichannel experiences wherein customers engaged with a brand from a channel of their preference. Cloud also introduced fast-changing enterprise software delivered as a service (SaaS) for customer relationship and service management. The myriad of applications in the ecosystem for customer service management dramatically changed the process of managing customer service. These systems have now become the systems of record for customer service.<\/p>\n

\"Omnichannel<\/p>\n

Digital transformation for CS leaders means they have to build a single view of the customer across channels, issues, processes, etc. In addition, they are challenged to offer a consistent experience across channels and traverse context as consumers move across channels. Businesses are innovating at a rapid pace, aided by cloud and mobile to address these needs.<\/p>\n

CS leaders, faced with increasing internal pressures and accountability, need to prioritize and improve digital experiences, and explore digital applications to improve operational efficiency. This has increased the complexity of CS leaders\u2019 portfolio and has, at the same time, made the customer service function strategic.<\/p>\n

As we look at the next decade, here are some of the trends and challenges that CS leaders have to plan for:<\/h2>\n

i. Understanding the 360-degree view of customer interactions<\/h3>\n

Customers\u2019 shift to omnichannel support is significant where they simultaneously interact with the brand through multiple channels. Context is transferred not only across channels but through all the interactions a customer has had with your company across sales, marketing, and success. Many customers are inclined towards using a mix of social channels along with email or voice support to get their voice heard with the brand.<\/p>\n

ii. Explosion in customer service data<\/h3>\n

Data related to customers and their service needs is exploding. This includes system-of-record data in CxM systems, content for customer service, data on social channels, environmental data related to business\u2019 products and service, etc. When analyzed appropriately, the insights from these data sources can be converted to systems-of-engagement and systems-of-actions.<\/p>\n

iii. AI to become mainstream in customer service<\/h3>\n

While the last decade has been about trying to find the applications of AI in customer service, it is fast becoming mainstream as a key productivity enhancer for companies worldwide. Gartner reported that 55% of established companies either have started making investments in the potential of artificial intelligence or are planning to do so by 2020.<\/p>\n

iv. Rise of intelligent process automation (IPA)<\/h3>\n

Intelligent Process Automation (IPA) as a concept is the technology for CS leaders to embrace to realize and maximize productivity gains and cost savings. Intelligent Process Automation (IPA) uses Robotic Process Automation (RPA) with the cognitive aspects of AI to automate mundane and repeatable customer service processes. This allows customer service agents to focus on making more human and empathetic conversations with customers.<\/p>\n

v. Single channel to multi-channel to omnichannel<\/h3>\n

With the growth in the number of channels for customer support coupled with the changes in customer expectations, CS leaders now must plan to provide a seamless and integrated experience across all channels simultaneously instead of using various channels independently.<\/p>\n

vi. Gig economy in customer service<\/h3>\n

Companies like Uber, Airbnb, DoorDash, etc. have led to income generation by monetizing any free time, space, and skills, creating an army of freelance professionals. CS leaders have a challenging set of problems associated with the immediacy, high volume and the cost of supporting real-time expectations.<\/p>\n

vii. Growth of social as a channel<\/h3>\n

Social as a channel has emerged with greater prominence and will be tricky to manage as brands gain a lot of influence and advocacy using the network effect. Similarly, a complaint on social media like a tweet or Facebook post has everyone’s attention due to the immediacy and the network effect.<\/p>\n

In light of these trends and challenges, it is important that CS leaders understand how to get ahead in the next decade and use technology as a way to transform customer service and their careers.<\/p>\n

So, what does this mean for CS leaders?<\/h2>\n

The two most transformative and impactful technologies are AI & Intelligent Process Automation (IPA). Let’s start by describing what these mean in the context of customer service needs and their impact in the coming decade.<\/p>\n

Artificial Intelligence (AI)<\/h3>\n

AI is simply the concept of machines learning from past interactions, data & results and mimicking human actions and decisions. As it relates to customer service, it is easy to imagine some customer needs that machines can \u2018learn\u2019 from existing data and improve with time. Also, the cognitive output from AI can be used to automate repetitive and mundane tasks that a machine can be trained to mimic using RPA.<\/p>\n

Intelligent Process Automation (IPA)<\/h3>\n

Businesses driving automation in their processes frequently run into buzzwords like Robotic Process Automation (RPA) and Intelligent Process Automation (IPA). RPA refers to software that can be programmed to do basic tasks across applications and systems just as human workers do. The software robot can be \u2018taught\u2019 simple repetitive workflows representing processes with multiple steps and applications, such as taking received forms, sending a receipt message, checking the form for completeness, filing the form in a folder and updating a spreadsheet, and so on.<\/p>\n

Intelligent Process Automation (IPA) is a combination of AI and Robotic Process Automation (RPA). It essentially is a software that mimics the behavior of a user and is being used in mainstream business scenarios, primarily for process automation. The range of applications could be from collecting and combining simple data and making contextual decisions to drive a process, to providing automated responses from within a process.<\/p>\n

The cognitive aspect of AI is used to understand the intent that triggers the execution of processes and also to contextually provide templated responses at different phases of the process. This type of automation is ideal for several customer service scenarios like refunds, warranty, exchange, order processing, tracking, invoicing, payment update, inventory look up, etc.<\/p>\n

Every business has processes that the customer service professional has to perform to resolve cases. There are some repeated customer service needs that require follow-up through processes touching multiple systems, decision points, and approvals. These are particularly labor-intensive, such as new business applications handling, policy change administration, claims set-up and various finance and accounting activities. Intelligent process automation (IPA) of these repeated tasks reduces reliance on multiple systems, reduces errors and improves productivity, efficiency and effectiveness of customer services.<\/p>\n

The potential for using AI & Intelligent Process Automation (IPA) in customer service is huge but the usage of these technologies has been low till date. We must ask – why has this been the case? The problem lies in the fact that CS leaders have been bombarded with buzzwords like Deep Learning, Neural Networks, Natural Language Processing, Chatbot, Virtual Assistants, etc. that has the CS leaders confused and fearful about where to start and how to go about it.<\/p>\n

Where do CS leaders start?<\/h2>\n

To successfully create a concrete plan and implement AI & Intelligent Process Automation (IPA) in customer service, the logical place to start is across these 2 dimensions:<\/p>\n

1. Understanding the mix of product type & channel for implementing AI-based offerings<\/b>
\n2. Creating a business case for AI-based solutions<\/b><\/p>\n

Let us discuss both options in further detail below.<\/p>\n

1. Mix of product type & channel for implementing AI-based offerings<\/h2>\n

CS leaders need to first pick the optimal channel where they can implement AI between Voice, Chat, and Email. The advancement and success of AI technologies across product types and these channels differ and it’s important to understand where your organization can get the best ROI.<\/p>\n

Let us look at some types of AI-based product offerings and what channels are applicable and best suited for them below.<\/p>\n

A. Self-Service:<\/b> It is said that the best form of customer service is no customer service. CS leaders must, therefore, focus on the help center as the first point of entry for self-service. Self-service technologies that serve digital channels across web, email, and chat can reduce incoming case volumes by as much as 20-30% if implemented well across all channels. Implementing AI-based solutions in the help center can deliver a high ROI as a significant number of these cases can be resolved at a fraction of the cost. Self-service AI can be implemented in two ways \u2013 as a submission form or as a conversational form.<\/p>\n