It’s often said that exceptional customer experience is the only sustainable platform for competitive differentiation. Businesses either thrive or fail based on their customer experience; and winning hearts and minds has never been more critical or difficult.
In the post-pandemic digital age, customers have very high expectations and their needs can change quickly, all whilst the competition is fierce, and switching to alternative products and services can be near instant.
It is a relentless and constant battleground, to the extent that a recent Gartner study found that over 80% of organisations expect to compete mainly on customer experience (CX) in the coming years. To win, firms must be at the leading edge of customer experience, which is no mean feat.
Especially when, we are entering a new epoch for the industry, as we move impersonal digital experiences into the realm of AI-powered intelligent digital experiences.
Since the 1950s, we’ve built software to enhance the efficiency, accessibility, and scalability of delivering services. This often involved automating human touchpoints, sidelining the people who deeply understood, empathised with, and problem-solved for customers.
While software bolstered revenue growth, bottom lines and expanded market reach, it came at the cost of the intimacy, warmth and personalisation brought by a trusted bank manager who knows your family history or the record shop expert who understands your tastes.
However, recent breakthroughs in AI enable us to enhance customer experiences by reintroducing this personal touch without compromising scale and efficiency. This is the promise of intelligent digital experiences.
Intelligent digital experiences sit somewhere between evolution and revolution. They are a natural progression based on an advancing view on human behaviour and motivation, the rapid progression of consumer digital technology and the revolutionary effect that advances in AI technology promises.
They enable an improved understanding and deeper, more personal connection with customers through the injection of deep insights, supporting users on engaging and outcome-based journeys, delivered frictionlessly over digital channels and connected ecosystems.
And perhaps most tantalisingly for executives, they promise the panacea of top and bottom line business outcomes. They are a critical revenue driver in the battle to attract and retain customers, and at the same time they will deliver next generation customer self-service and service automation, driving down cost to serve and improving profitability.
There are three components that define intelligent digital experiences, and encapsulate the tightly-interconnected and mutually reinforced capabilities that come together to deliver them.
Intelligent digital experiences are:
Using human-centred design to understand the needs of users, map out jobs to be done, and create seamless experiences and visually compelling products is not new. It’s really table stakes for modern digital platforms, certainly at the leading end of the market. Although, many experiences still fall short of this mark.
The real edge is applying behavioural science to understand human behaviours and motivations. This takes user understanding to the next level by understanding their deeper needs and using techniques such as gamification and nudge theory to guide them toward positive outcomes.
Managing Director - England
Firms have been focussed on building a more holistic view of the customer for years – breaking down silos, developing 360 customer models, leveraging 3rd party data and experimenting with AI/ML in creating models such as Next Best Action.
The edge now comes in two areas: the ability to leverage the rapid progress in Generative AI and the use of real-time context data and behavioural biometrics from digital devices such as mobiles, wearables and sensor technology to generate instant insights that drive personalised and adaptive journeys.
Chief Innovation Officer
The final piece is the digital technology itself, and this can cover everything from web, mobile, wearables, IoT devices and more. Mastery of the technology as both the distribution mechanism of the intelligent digital experience, and the real-time data capture mechanism that is needed for personalised and adaptive journeys, is the critical final piece of the puzzle.
Industries and firms are becoming increasingly connected, and the edge now lies in the ability to master experience delivered across interconnected digital ecosystems.
Managing Director - England
These 3 components are all interconnected and self-reinforcing. For example, a deep understanding of a user’s needs helps us design the best experience, but this also needs to be data and insight-driven to understand and adapt to real-time circumstances. An expert understanding of the capabilities of digital technology to take full advantage of modern consumer devices. User engagement drives more real-time data capture, deepening our understanding to drive even more informed experiences, and the cycle continues.
Revolutionising clinical trials
Disrupting the SME banking market
Empowering people with wealth and later life management
Customer experience is the biggest competitive differentiator in industry today, and the firms that establish a winning position will be those who are best able to understand their customers goals, needs and outcomes and who can create intelligent digital experiences that deliver personalised and seamless experience across all digital channels and connected ecosystems.
At Waracle, we have been at the leading edge of customer experience innovation for over 15 years. We partner with clients in highly regulated industries to help them to create competitive advantage through market-leading intelligent digital experiences.
If you need help defining, designing of engineering intelligent customer experiences, get in touch with us today!