In the modern retail landscape, businesses are often confronted by the rapid pace and diverse customer touchpoints, making them vulnerable to fragmented customer experiences if not properly managed.
A recent survey from Tata Communications, in collaboration with Harvard Business Review Analytic Services, explored these challenges underlying the impact on customer experience and interaction. While 94% of surveyed global executives believe consistently delivering positive customer interactions is crucial to business success, only 38% claimed their organisations are effective at this.
UpTech Media’s latest exclusive piece with Mauro Carobene, vice president and global head of customer interaction suite at Tata Communications, brought these adversities into the spotlight, citing lack of collaboration across teams, siloed customer data, and fragmented digital tools as among the major barriers that hamper positive customer experience.
“When teams within an organisation do not collaborate effectively, it leads to fragmented efforts and a disjointed customer experience,” said Mauro.
“For instance, if the marketing department launches a promotion without collaborating with inventory or customer service, customers might purchase items that are out of stock, while support teams are unprepared for the influx of enquiries,” he added.
As he remarked, a lack of coordination can result in inconsistent messaging and service delivery, directly influencing the customer’s perception of the brand. Siloed data, on the other hand, can also result in a disjointed perception of the customer journey, hindering the ability to understand and predict customer needs. Similarly, employing digital tools across different functions can create inefficiencies and gaps in the customer experience.
Drawing from these factors, Mauro enumerated three key areas to address the gap between expectations and reality.
First, businesses need to prioritise personalisation. “Customers today expect interactions tailored to their individual preferences and behaviours. With so many options available, they are less likely to engage with brands that offer generic experiences,” said Mauro.
When prioritising personalisation, Mauro stressed the importance of starting with product recommendations followed by targeted promotions. This strategy, according to him, ensures more relevant and curated experiences for consumers.
Secondly, maintaining a consistent experience across all touchpoints is crucial. “Today’s customers expect a uniform experience across channels, but typically within enterprises the functions managing different channels are siloed and don’t collaborate,” said Mauro.
To confront this challenge, Mauro pointed out that businesses can invest in platforms that enable omnichannel experiences. These platforms should be tailored to enhance customer interactions throughout their entire journey rather than in isolated instances.
Ultimately, advancements in AI and real-time technology have raised expectations for immediate solutions.
“Customers now expect quick resolutions, driven by experiences with instant support on various platforms,” asserted Mauro. “AI-led conversations play a pivotal role in meeting these expectations by powering self-service options such as intelligent FAQ responders, advanced chatbots and voicebots, and generative AI solutions,” he substantiated.
As he noted, these tools can tap into customers’ input in real-time, enabling them to deliver precise, contextually relevant responses for instant support complemented by routine queries.
Additionally, he said, “AI-driven systems can handle more complex tasks, such as analysing customer interactions to continuously refine responses, predict needs, and trigger proactive engagement.”
By employing a seamless, automated approach, customers can receive fast, efficient service while human agents can focus on more nuanced, high-value tasks. As a result, the service experience becomes more responsive, scalable, and customer-focused.
In his words, AI-powered agents allow customers to receive context about what happened earlier in the customer journey. This includes suggestions about next steps, insights on the sentiment of the customers, and advice on increasing NPS through best practices.
Interestingly, he also brought up the importance of human participation in these operations. “In many cases, a human is still needed to resolve more complex queries, and that’s where we want to make mindful use of AI by providing agents with a seamless handover from the bot.”
Moving beyond the boundaries of traditional customer experiences
With online retail driving a shift in the way businesses approach customer interaction, offering non-traditional customer experiences presents a competitive edge.
“AI’s ability to analyse customer behaviour and predict future needs addresses the gaps in traditional customer service,” noted Mauro.
In a survey conducted by Tata Communications with HBR Analytic Services, the report observed a significant shift from the traditional, one-size-fits-all approach to customer interactions. This development highlights a transition towards a more technology-driven, personalised, and efficient model.
Predictive analytics, for instance, enables businesses to anticipate potential issues and provide solutions that effectively address them. “AI can anticipate when a customer might require assistance or be interested in a specific offer, enabling timely and tailored interventions that enhance the customer experience,” stated Mauro.
Moreover, he also mentioned innovations like sentiment analysis, customer journey orchestration, and advanced personalisation tools as means for e-commerce businesses to engage with customers on a deeper level.
“By staying updated with these technologies, businesses can continuously enhance their strategies, offering more personalised and satisfying experiences that foster customer loyalty and drive long-term success,” he said.
On the topic of customer loyalty, Mauro believes a positive and memorable experience fosters trust and satisfaction, which leads to repeat business and strong customer advocacy.
“Customers who feel valued and see a brand as reliable are more likely to stay loyal and recommend it to others,” shared Mauro.
For him, organisations need to focus on investing in advanced technology solutions, especially when aiming to improve CX systems and data integration. With AI in various stages of the customer journey, creating a cohesive and engaging experience is now within reach.
As an example, Mauro cited the ability of modern-day chatbots to handle initial customer queries. He then asserted, “AI can continue to assist by providing agents with relevant insights and recommendations. This integrated approach ensures that customers receive timely and personalised support, which is essential for fostering loyalty.”
Additionally, improving employee experience is as critical as enhancing CX. “When employees are equipped with effective technology, they can deliver better service and create a more satisfying experience for customers, which in turn drives loyalty,” stated Mauro.
Staying ahead in the changing customer experience and e-commerce market
Nearing the end of the discussion, Mauro pointed out that satisfaction from digital support often lags behind that of human interactions. This gap, according to him, underscores the need for businesses to embrace while still incorporating human elements as a fundamental aspect.
“While technology plays a pivotal role in enhancing CX, its full potential is realised when it complements human efforts. Effective CX systems and data integration are essential for enabling cohesive and impactful actions,” said Mauro.
Through this approach, a collaborative environment emerges where AI and human agents collaborate for improved interactions and overall satisfaction. “As a region, Asia is also witnessing a rapid rise in mobile commerce. Countries like Indonesia, Thailand, and Vietnam are seeing significant growth in mobile e-commerce sales, driven by high smartphone penetration and a young, tech-savvy population,” shared Mauro.
He concluded the conversation by emphasising the essential role of user-friendliness when it comes to maximising the effectiveness of technology for both customers and employees. “Streamlining workflows and minimising disruptions are key to ensuring smooth interactions. By focusing on usability, businesses can enhance the overall experience for customers and their organisation,” Mauro explained.
To stay ahead of the game, he further said, “Providing timely and helpful support through various channels, such as chat, email, and phone, enhances the overall shopping experience.”