New study suggests AI widens the success gap between CX leaders and laggards
LogMeIn has announced the results of a new study conducted by Forrester Consulting to determine how customer experience strategies affects overall business success.
The study, Build Competitive Advantage Through Customer Engagement and AI, surveyed 479 global customer engagement decision makers and found that organisations with a more mature strategy – including those who make Customer Experience (CX), an organisational priority and leverage omni-channel and Artificial Intelligence (AI) technologies – see an increase in revenue and conversion at double the rate of other companies. The results also show that as the maturity gap continues to widen, organisations that are falling behind may never be able to catch-up to their more mature competitors.
“Exceptional customer experience is a cornerstone of business success. Better customer engagement leads not only to higher customer satisfaction, but also to greater top-line revenue growth and more satisfied customer-facing employees,” according to the study. Organisations with greater engagement maturity reap benefits, not only more often, but of greater value, than less mature companies.
The Impact of Technology
Emerging technologies like artificial intelligence are also accelerating the divide. Companies with a more mature engagement approach can more quickly adapt and incorporate powerful use cases of AI that propel them forward. 36% of the least mature respondents use AI, but only in proofs of concepts.
Meanwhile 58% of CX “experts” have implemented a holistic AI strategy and roadmap. The comparison between long-term and short-term strategies of these organisations represent a significant set-back for the less mature companies who have not been able to capitalise on the business intelligence that AI-powered technology can provide.
Challenges Facing Less Mature Organisations
The study showed that 37% of less mature organisations rely too much on obsolete technology – especially in the area of digital channel support. Furthermore, poor self-service and automation capabilities are leading to frustrated customers and increased call centre volume – which conversely is not a typical challenge for the most mature of the group who are successfully leveraging these capabilities to create better overall customer experiences.
Additional challenges that less mature organisations run into include lack of visibility into both customer data (37%) and the performance of engagement channels (42%). These limited views inhibit a company’s ability to quickly address weaknesses and understand how to best serve their customers.
For the most mature of those surveyed, 63% saw an increase in NPS as a result of their current customer engagement strategies and reported an average of 8 points higher than their lesser mature counterparts. Further, half of these organisations saw an increase in conversation rates, 56% reported an increase in revenue and 40% saw an increase in order size. Even agent satisfaction increased under the more mature organisations with nearly 50% reporting an increase in overall job happiness.
“With all of the hype around AI’s place in customer experience, it can be hard for companies to separate fact from fiction,” said Ryan Lester, Senior Director of Customer Engagement Technologies at LogMeIn. “The results of this study helped provide some clarity around the importance of continuing to evolve customer engagement strategies. Technologies like AI are creating a significant competitive advantage for leaders and leaving the rest falling irreparably behind.”