How Technology Companies Are Delivering A Wave Of CX Innovation

IBA Group
Mark Hillary

It’s always great to see when the new issue of Intelligent Sourcing arrives. It’s updated all the time online, but there is still something nice about seeing a collection of news bound together in a real magazine. I know that’s old fashioned, but a quarterly business journal is like a collection of thoughts from that time.

The issue is focused on innovation and I contributed a column that you can read if you click the later link to the magazine. Although my article was a focus on Customer Experience (CX) innovation, as I read it again I noticed that so many of the specific innovations I was documenting require technology expertise.

This is quite a change from the days when customer experience was called customer service and involved nothing more than a contact centre full of phones. Handling interactions between customers and brands today is highly complex and operates across a number of channels. Here are some of the key areas shaping CX innovation today as outlined in the Intelligent Sourcing feature:

Customer expectations and journey; interacting with customers today takes place 24/7 across many different channels (including social) and involves thinking about a 50-year ongoing relationship with the customer, not just managing a single phone call.

Technology; almost every emerging technology you can think of is being applied to the customer relationship. To list just a few – Artificial Intelligence, Machine Learning, Augmented Reality, Virtual Reality, Robotics, location awareness, cloud computing, the app store. All these technologies are being shaped and influenced by the way that brands are using them to interact with real customers.

Automation; Robotic Process Automation (RPA) is being extensively deployed as a tool to make customer service agents more efficient. The blend between digital service and human service is now one of the most important areas of research in this field.

Customer-centricity; new companies can design their entire service around what customers want in an age of smartphones. There is no need to copy how a bank or insurance company operates – especially if they designed their processes many years ago. This is having an enormous impact on traditional brands that are being challenged by brand new companies that can deliver services better.

CX and Business Process Outsourcing is often presented as an entirely separate type of business that is unconnected to what IT service companies are doing, but I believe that most of the innovation taking place in CX is being driven by IT. In fact, many of the IT experts are now becoming experts in areas such as RPA and that means they are rapidly becoming CX experts. The market for technology services is changing and CX innovation is creating many of these new opportunities.

Spring issue of Intelligent Sourcing

CX and technology

IT Companies Globally – Your Future Is In CX

IBA Group
Mark Hillary
Customer Experience (CX) has become an important topic for IT companies in recent years. Technology that helped customers used to be restricted to little more than Point-Of-Sale (POS) systems in retail stores, but now there is an enormous industry focused on CX and technology underpins most of these services. For example:

  • CRM; Customer Relationship Management systems are increasing automated and help brands build a better relationship with their customers by having a better understanding of customer needs.
  • ERP; Enterprise Resource Planning has become increasingly important as complex supply chains need products to be delivered just-in-time to the right place.
  • RPA; Robotic Process Automation is allowing companies to automate large groups of processes – especially in the back office.
  • Contact centres; the traditional link between brands and customers is increasingly complex now that omnichannel service is becoming a customer expectation.
  • Data analytics; Big Data and expertise in studying customer behaviour is becoming an important way for brands to personalise the service they deliver.
  • AI; Artificial Intelligence is helping many brands to predict what customers will want, either to help improve the supply chain or to create a more personal service.
  • VR and AR; Many brands are exploring how Virtual and Augmented Reality can help customers locate more detailed information on their products.

This is just a short an immediate list, but the implication is clear. The customer to brand relationship is far more complex than ever before and it is increasingly these technology systems that are providing the ammunition for brands to improve their customer experience. IT service companies and advisors need to be increasingly aware of how important their role now is in creating a great experience for customers.

Many of these technological changes are helping smaller specialist companies to compete with the major players. Look at the Facebook Messenger and it’s automated bot system for one good example. Even a very small brand can configure the system to offer 24/7 customer support using automated bots – something that would have been unthinkable for a small company to offer just a couple of years ago.

Several major technology systems, such as CRM and ERP, have driven large parts of the technology industry in the past, but I believe that now the main driver is CX. Customer expectations on brands are increasing constantly, leading major companies to explore how they can deliver a better service than their competition. Likewise, many of these technologies are moving from just being used by early adopters to being more universally accepted – look at how Ikea now allows customers to view furniture using an AR system before purchasing.
The message is clear for IT experts – CX is going to drive your business for the next decade. Make sure you are tuned into what the CX experts are saying and what the upcoming CX trends are going to be, because many of them need IT expertise and that will not come directly from companies with experience of customer service.