Nobody said transformation was going to be easy
Join The Loyalty Surgery, October 16th & 17th in London for two days of discussion, case studies, insight and innovation
Those tasked with creating and growing a strong and loyal customer base are faced with massive challenges. Customer behaviour, needs and wants are under constant change, and while technology is, in principal, offering solutions, the implementation of new communication methods is fraught with dangers.
Chatbots are idiots!
Artificial intelligence is already in use in the lives of most of us – from Uber car share systems, online help desks, media preferences and suggestions, including the BBC and Netflix. But 54% of online US consumers think that interactions with customer service chatbots will negatively impact the quality of their lives, reports Forrester’s latest research, with a prediction of chatbot backlash this year. One customer called the virtual assistant of a business he was dealing with a “virtual idiot”!
Over a quarter of digital projects fail
The findings from research earlier this year, suggest that an overwhelming majority of businesses are undergoing digital transformation.
Almost two-thirds (62%) of businesses are in the process of implementing a digital transformation project with better customer service, cost savings and improved staff productivity named as the top three drivers. A further 18% have a digital transformation plan in place already, while 11% are thinking about it in the short term, reports digital services company Econocom.
You don’t understand me!
A lack of understanding of technology is named as the top reason for a failed digital transformation project by 51% of businesses, suggesting that better guidance is required around the technologies on offer. Almost four in 10 (39%) businesses said that selecting a solution that was not fit for purpose was the reason for project failure, further highlighting the requirement for stronger guidance around the available solutions. Lack of skills (31%) and lack of budget (23%) were also cited as barriers to success.
We don’t have the budget!
With such an appetite for transformation, businesses need to invest in the right technology, yet 44% of businesses have concerns over spending a large amount of money in a lump sum, 40% say they are afraid of making the wrong technology choice, while 38% state Brexit is holding them back.Pressure to deliver
At the same time, IDC has predicted that spending on CX technologies will reach $641bn within just three years. This marks a 20.75% increase on 2019’s projected total of $508bn.
Sudarshan Dharmapuri, SVP Products, IMImobile: “The figures from IDC are further evidence of the growing importance that organisations are placing on customer experience (CX). In fact, recent research we conducted found that almost all (98%) of CIOs feel under pressure to deliver the CX expected by both customers and the wider business. It’s interesting to note that the use cases that will see the fastest spending growth are AI-driven engagement, omni-channel interaction management and ubiquitous commerce. Especially for large consumer-facing enterprises with fragmented, legacy IT environments, integrating such technologies and new communication channels remains a significant challenge.
Warnings from regulators
Mike Davies, VP Business Partners at Quadient said: “Businesses are increasingly being punished for poor customer experience. On the one hand regulators are beginning to take a tougher line, with Ofgem recently banning two electricity providers from taking on new customers due to slow, ineffective customer experience. The spectre of GDPR fines is also looming in the background, with financial penalties already handed out to businesses which miss-handle customer data. On the other hand, customers are increasingly turning their backs on businesses that don’t meet their expectations, and it’s easier than ever for them to do so thanks to regulators’ efforts to make switching easier across industries such as banking and utilities.
Join us at The Loyalty Surgery, October 16th &17th to discuss and debate “Loyalty in Transition” and to hear suggestions from the experts on how to make the journey easier.