Reinventing the operating model for businesses to deliver better CX: Data monetization and AI as the major drivers

COVID-19 has changed the world’s perspective towards businesses focusing on customer behaviour and experience, which has had a dynamic transformation. With these changes in place, the customers are more aware of the brands and their digital channels for a cohesive experience. The brand's activities and policy changes during this pandemic have proved to consumers which brand is more trustworthy, reliable, and transparent in modifying their products and services to benefit the customers at large. This has directly impacted the brand’s image providing space for understanding the Customer Experience (CX).

However, understanding and gaining the best CX for your brands/businesses are no mean tasks. Based on the recent research findings by the Customer Contact Week’s (CCW) Digital Market Study, post-pandemic, 59% of the customers acknowledge that their experience plays a massive role in choosing which brands they are willing to support. Also, a whopping 66% of the customers mentioned that they are likely to switch their buying to the competitor brands after one or two bad experiences from their chosen brand; an extremely high rate that impacts the brands due to the CX. The CX that affect the brands include dealing with unprepared, or disengaged brand agents for any product-related issues, long waiting time, etc., has seemingly improvised to a great extent. Yet, it is not eradicating the crucial problem of delivering better CX.

So, the question is, how do brands that sustained their businesses made their way to gain the best CX? 

The right way is to reinvent the businesses operating model that could win in the digital world with Data & Analytics. Data should be the driver to win the CX race and can be done by leveraging AI to deliver stellar CX with greater value and Return on Investment (ROI) for the businesses.

Reinventing your operating model

In the wake of this pandemic, more customers have shifted their focus towards embracing the digital transformation, while the businesses have confirmed yet again that adopting a customer-centric strategy has improved their CX. Post Covid-19, 87% of the companies believed they provide customers with a better experience using digital networks. Also, 82% of the customers have claimed to be more comfortable using the digital channels in recent research.

A successful digital transformation might need the businesses to know how the CX works with automation and customers’ data, to deliver a better CX. Brands should focus on reinventing their operating model, as it will change the fundamental understanding of the term “service” and transforms it for both B2B and B2C businesses. To work on reinventing, the businesses should start with visualizing the new generation operating model that focuses on the customer journeys and the internal processes. In a transition towards a better operating model, organizations typically use these five capabilities/approaches shown below:

Instead of improving the existing process, the companies should focus on reimagining the entire process with a focus on the CX, which can lead to unlocking a massive value for the businesses. To reimagine the process, getting to know and using the AI, data, and analytics as leverage can help gain a huge transformation in the CX.

Leveraging Artificial Intelligence in CX

The world’s economy is facing a pivotal moment as AI enables businesses to transform this buzzword into a reality for long-term economic potential. Applying AI applications to streamline and customize the business's products and services while also increasing the company’s ROI is no longer an alien thing. It is an evolving reality that can be made possible by focusing on the key drivers of AI for delivering a new age CX. An AI application can process a vast amount of data generated daily in a strategic manner. The process of data gathering, analysing, performing intelligent data searches, interpreting the even most complex data patterns, and performing actions based on those learning has become feasible at an unimaginable rate and speed. 

Advanced AI technologies such as RPA, NLP, etc., ensure that they deliver an increasingly humane and personalized CXs. It allows businesses to win the trust of their customers with customized recommendations, promotions, and quick customer service using improved emotional intelligence.

There are 4 ways an AI can help increase the brands' interaction with their customers in improving the CX:

1. Through predictive behaviour analysis the AI analyses a large amount of data to provide real-time actionable insights to predict and guide through the further interactions between the brand and the customer.

2. The AI facilitates in better understanding the customers by anticipating their behaviour and delivering relevant content and improve the customer journey with the brands.

3. The hyper-personalization through AI and real-time data helps deliver the customers with specifically curated content, product, or services enhancing their interaction with businesses.

4. The AI chatbots provide personalized assistance to the customers enabling them to connect instantly with the brands while also saving them time and cost for the companies.

According to International Data Corporation, by the year 2025, almost 90% of businesses will adapt to AI-enabled apps and processes. From the business perspective, adopting AI led technology in the business process will enable creating an extensive and better CX. The future of digital transformation using AI will be mainly moving from a business-centric approach to a customer-centric approach with an emphasis on data and analytics that help shape the world of digital transformation.

Data monetization: To drive digital transformation

Organizations are required to monitor and measure the business performance and always understand their customer behaviour. The only way to survive this ever-changing new age of digital transformation is by enhancing the CX, and the only feasible solution is to leverage the use of data and analytics. A well-implemented data and analytics solution can help businesses to distinguish themselves from their competitors. On contrary, if this information is left unattended, it might create a huge gap leaving them to stay behind in the fiercely competitive market. With a robust operating model in place, the businesses can turn their valuable data into a valued asset that helps with their ROI.

Data monetization is on the scene for quite some time, but seemingly grabbing the attention recently and is on the rise. Data monetization is used by businesses to get creative in all ways possible to enhance their CX using the AI technologies that are available to gain 3 major benefits:

1. To improve their CX

2. To create a competitive advantage

3. To increase their value and services by driving maximum revenue

According to the BARC Survey, they have found that 17% of companies have already established data monetization while 12% are currently building prototypes and 10% are still developing a concept for the initiative.

However, the study also unearths that, it is seemingly the larger companies that use these data monetization services compared to the smaller and medium-sized businesses. The varied percentage for the companies that have adapted to the data monetization initiative is given below:

Also, Forrester’s research article showed that high-growth companies with an annual revenue rate of 10% and more are highly likely to share or sell their data than the low growth companies with 0%-4% revenue growth. These findings suggest that the businesses that use the data for monetization has a better competitive advantage and drive more digital business transformations than the others.

According to the report from ResearchandMarkets.com, the Asia Pacific (APAC) region has a high potential to growing the AI market size compared to the Global Digital Transformation for the period 2020 and 2025.

The AI segment is expected to have rapid growth in the forecasted period which greatly enhances the CX aiding the organization to have increased productivity and sales in the APAC region. With the increase of the Mobile workforce and Bring Your Device (BYOD) trend in the APAC region’s educational sectors, it is forecasted to enable the increase in digital transformation adoption which eventually fuels the growth of the digital transformation market.

In a nutshell

With a fast-paced growing business environment, companies are forced to consider implementing better strategies to help sustain their business amongst their peers. If they haven’t already had a plan, they should start creating one right away. Digital transformation offers businesses to engage with their evolving customer base and deliver products and services to their expectations gaining seamless CX. Transforming your businesses towards a digital platform can be quite intriguing. However, the above-given ways to reinvent your operating model with the help of AI, Data, and Analytics will help you ease through your way towards a stellar Customer experience.