Since publishing our Customer Contact 2.0 report in late 2022, the customer contact landscape has undergone a substantial transformation. The rapid development of artificial intelligence (AI), particularly in natural language processing (NLP) and generative AI, has reshaped the customer contact landscape in ways that seemed futuristic just one year ago. This prompted us to revisit and update our research, resulting in our new Customer Contact 3.0 report.
Let's discuss some key developments that we explore in the report:
The Rise of Voice AI
Traditional Interactive Voice Response (IVR) systems, with their rigid menus and robotic voices, are becoming obsolete. In their place, sophisticated Voice AI solutions are emerging that can engage in natural, contextual conversations.
PolyAI, with a total of $90m raised is at the forefront of this revolution. Its AI-powered voice assistants understand complex queries, allow interruptions, and even change topics mid-conversation - just like a human would. This technology enables brands to automate complex tasks that previously required human intervention, from troubleshooting technical issues to resolving billing errors.
While IVR still has its place for simple customer interactions, Voice AI is emerging as the best-in-class solution for businesses handling high volumes of complex calls.
2. Real-Time Agent Assistance
AI isn’t just about automating customer interactions; it’s also about empowering human agents to provide better customer service. This is crucial given the high turnover rates in contact centres, which can range from 30-45% globally. Cresta and Cognigy are leading in this space, offering AI co-pilots that support agents in real-time during customer interactions.
These systems understand customer conversations across voice and chat, coaching agents throughout each interaction. They flag important themes, suggest responses, and help agents determine the best course of action. The result? Faster resolution times, more consistent service quality, and improved satisfaction for both customers. Importantly, this technology can help reduce the stress on agents, leading to improved retention rates.
3. Bridging the Gap Between Online and In-Store
We’re seeing an increasing integration of sales and support functions. Salesfloor, for instance, lets online shoppers chat, video call, or book appointments with in-store staff. This approach recognises that every customer interaction is an opportunity not just to solve problems, but to build relationships and drive sales. It's shifting the perception of customer contact from a cost centre to a revenue generator.
4. Proactive Support Through Advanced Analytics
We're moving from reactive to proactive customer support, thanks to advanced analytics and AI. Platforms like Chattermill and Sentisum aggregate data from various customer touchpoints - from support tickets to social media comments - to identify emerging issues and sentiment trends in real-time.
This insight allows brands to spot potential problems early, often before they become widespread. Companies can then update their FAQs, adjust their products or services, or enhance their customer communication to address these issues proactively.
By addressing issues at a systemic level, brands can prevent many negative experiences from occurring in the first place, improving overall customer satisfaction and reducing support inquiries.
Looking Ahead
The future of customer service has arrived, bringing with it intelligent, proactive, and highly personalised interactions. AI and advanced analytics are rapidly reshaping the customer contact landscape, becoming a competitive necessity for brands and retailers.
Successful implementation of these technologies offers significant advantages in customer satisfaction, operational efficiency, and revenue growth. However, the businesses that truly thrive will be those that effectively balance cutting-edge technology with the human touch that remains crucial to exceptional customer experiences.
To dive deeper into these trends and discover the innovative companies leading the charge, explore our new Customer Contact 3.0 report. We examine these technologies in depth, highlight key players in the space, and offer insights on how to leverage these innovations to create outstanding customer experiences in this new era of customer contact.
If you'd like to learn more, get in touch.
