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Customer Experience MAKEOVER

Dr. Jing Yuan Zhao
21 Jun 2022

Data and AI are transforming the customer experience, from massively increasing our understanding of customers and markets, to empowering self-service and offering relevant personalized experiences.

Regardless of industry, AI applications across the customer journey are everywhere. Thanks to advancements in AI technology, such as deep­­ learning, applied natural language processing, and federated learning, organizations are seizing more AI opportunities to enhance customer satisfaction, strengthen loyalty, and reimagine their business.

The good news for organizations is that customer AI adoption is significantly increasing. According to a research report by the Capgemini Research Institute, 54% of customers in 2021 had interactions enabled by AI-based technologies, such as chatbots, digital assistants, and facial recognition, through which they engaged with organizations, compared to 21% in 2018. 

Thanks to a team of 25,000+ data and AI professionals and 9 AI Centers of Excellence around the globe, Capgemini can build specific and disruptive use cases and accelerators, thus offering a very strong competitive advantage. This lets our clients raise brand awareness through leveraging audience profiling and a look-alike model, drive customer engagement by using content personalization and audience-optimized search, drive customer purchases and increase customer lifetime value by using personalized recommendations and dynamic product listings, and motivate customers to promote the brand by leveraging a rating and review targeting strategy.

Our data, AI, and analytics team has been enabling one of the world’s largest luxury cosmetics companies to elevate their customer experience by harnessing Capgemini’s “Data-driven Customer Experience” offering. This solution is supported by a set of Capgemini’s capabilities to arrive at a holistic view of the consumer, with the collaboration of our partners in cloud service and marketing technology. It is amazing to see how, by leveraging AI technology and an efficient data exchange hub, the organization has become capable of building a holistic, orchestrated, dynamic, interconnected customer journey. Moreover, it is better able to profile customers into targeted audiences based on their customer journey and create shopping intent in real time. This is further enhanced by enriching and personalizing the customer experience by integrating with various channels (e.g., CRM, messaging, social media and display ads, etc.). AI and data provide a powerful foundation for the data-driven transformation of the customer experience for this world leader in hair and skin care, make-up, and perfumes.

How did we do this?

At Capgemini, we are aware that customer behaviors, markets, and competition are constantly changing, so we focus on four key components that can help reap substantial benefits of AI and data-driven customer experience for our clients: 

  • Build unified, trusted, and actionable customer data to unleash the potential

Ever-increasing amounts of customer data are generated, from anonymous ad impressions to known customer purchases, all the way through to product usage and customer service, from internal enterprise data systems to external ecosystems. Organizations need to build data systems with a scalable architecture that enables a holistic, orchestrated, dynamic, interconnected customer journey. It helps them create a 360° view of the customer and unlock rich, actionable insights in real time, deliver a truly data-driven and personalized customer experience seamlessly across channels and devices, and increase customer satisfaction while anticipating and predicting their behaviors and needs.

  • Prioritize and scale AI use cases to deliver tangible business value

The recently published research shows that organizations that have been able to scale AI successfully, in other words, “AI-at-scale leaders”, achieve significantly higher benefits. Eighty-eight percent of “AI-at-scale leaders” implemented use cases to understand customer needs and expectations and 71% implemented use cases to augment employee capabilities with tools to facilitate customer interactions. Organizations need to identify the high-priority AI use cases, implement them at scale, and continuously monitor model performance and business impact to amplify outcomes.

  • Build an ethically robust AI ethics system to gain more customer trust in AI

It is crucial to be transparent about how customer data is collected, stored, processed, and analyzed. According to a Capgemini Research Institute study, more than two-thirds of customers expect organizations to provide transparent and fair AI outcomes and take ownership of AI algorithms when they go wrong. It is the way to earn customers’ lasting trust and loyalty.

  • Set up and grow a collaborative data ecosystem to create the next generation of value

According to the Capgemini Research Institute’s Data sharing masters report, organizations have improved customer satisfaction by 15% by engaging in data ecosystems. If you only analyze internal customer data, you may miss out on opportunities to get a complete understanding of your customer, attract potential customers, and identify new markets. Organizations need to have a forward-looking data sharing strategy, starting from a small-scale implementation with a view on data enablers and behaviors, followed by scaling to a higher level, while proactively addressing ethics, trust, and regulatory requirements will ensure lasting benefits.

Capgemini has been working with the clients across functional teams and initially implemented the Data-driven Customer Experience in Taiwan and South Korea, with more countries in APAC coming up in 2022 across multiple brands and markets.

If organizations want to leverage data and AI to transform the customer experience and create competitive differentiation, business leaders and stakeholders must view AI and data as a strategic imperative rather than just another trend.