Exploring the Transformative Implications of Generative AI on Customer Experiences

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This blog was kindly contributed by Liam Leighton from StudioSpace agency Deepend - a digital product and experience consultancy that turns human-centred insights into world-class digital experiences. View their StudioSpace profile here.

The recent McKinsey Global Survey 2023 highlighted generative AI as a top priority for more than a quarter (28%) of businesses, with the transformative technology influencing board agendas worldwide – from marketing and sales to product and service. But a large proportion of organisations are seeking a deeper understanding of generative AI before fully embracing its potential. We’ve seen rapid advances and exploration of use cases already, so let’s dive into the all-important realm of customer experience to understand just three of the key implications.

Next Generation Hyper-Personalisation
In today’s highly interconnected world, personalisation is paramount to enriching customer and online experiences. “Hyper-personalisation” is redefining how businesses deliver contextually relevant and timely experiences. Going a step beyond conventional approaches, which utilise basic user information, hyper-personalisation leverages generative AI and machine learning to delve into user behaviour, preferences, and needs, delivering content exactly when and where users need it.

A notable example is Domino’s use of Phrasee, a generative AI tool, to refine email content for their UK and Ireland audiences. This strategy not only bolstered customer loyalty and engagement but also witnessed a striking 57% increase in average click rates and a 26% surge in average open rates for their digital marketing campaigns, overall driving a substantial revenue increase.

Customer Service Co-Pilots
Quality customer service is often contingent on the service agent’s expertise and availability. A generative AI “co-pilot” can act as a valuable assistant, suggesting responses and addressing customer needs expeditiously. Given their current sophistication in understanding intent and building context within conversations. These chatbots have the potential to erase previous stigmas of providing bland and inaccurate responses, thereby augmenting customer engagement and trust.

For instance, JetBlue collaborated with ASAPP to integrate a generative AI solution, automating its chat channel, and enhancing its contact centre’s customer service. This saved an average of 280 seconds per conversation and translated to a remarkable 73,000 workforce hours saved in Q1 2023, enabling crew members to promptly tackle complex customer issues and minimise customer wait times.

Synthetic Design
Generative AI unlocks new frontiers in content creation, spanning image, voice, text, and video generation. While it doesn’t substitute human creativity, it can conserve some of marketers’ valuable time, allowing them to channel their energies into developing exceptional campaigns and content. For example, Canva’s newly launched AI-powered Magic Studio provides a suite of generative AI tools that empower marketers to create diverse forms of content in just seconds.

Where to?
The value of Generative AI is staggering, with estimates ranging from $ 2.6 trillion to $4.4 trillion per year across 63 different business applications. As Michael Chui from the McKinsey Global Institute puts it, “It’s very compelling on a personal level because almost everyone can use it.” There is a tonne of published use cases that demonstrate significant gains and many people across multiple markets are exploring new ways to extract value.

The potential of generative AI to revolutionise industries and enhance customer experiences is clear. Early adopters are already seeing tangible benefits. The key is to identify the right use case for your business. This way, you can lead in innovation rather than playing catch-up when the real value becomes apparent.

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