What is digital transformation?
Digital transformation or reimagining of business in the digital
age is the process to initiate new or modify the existing business culture,
process, and customer experience to meet evolving business and market
requirements. It starts and ends with how you think and engage with your
customers. In the wave of digital transformation, we moved from paper to
spreadsheets to smart applications only to reimagine our business with an engaging
customer experience by adopting digital technology.
Digital transformation is a complete rethinking of business
processes involving improvised technology like Machine Learning and Deep
learning to accelerate basic business performance. These sweeping changes are radically
attempted in pursuit of new business models as well as new revenue streams,
driven by new customer expectations around products and services.
As technology’s greater power is in complementing and augmenting human
capabilities, Artificial Intelligence is fulfilling this aspect taking a vital
role in the transformation of business processes. AI is beneficial in
accomplishing tedious grunt work, such as collecting data and doing a
preliminary analysis, freeing human claims processors to focus on resolving
complex cases. In essence, advanced robotics and digital bots are doing what
they do best: handling routine cases, analyzing huge data sets, and performing
repetitive tasks. On the other hand, humans are doing what they can do best: dealing
with unsatisfied customers, resolving ambiguous information, and exercising
judgment in difficult cases. This kind of emerging symbiosis between man and
machine is unlocking the wave of business transformation.
How AI is impacting
customer experience:
Can you remember the last time, you restricted yourself from
shopping online or went without checking your mail for a whole day, or did not
respond to a notification on your smartphone? In the last 20 years, the
Internet has brought that vast change in our life that can only be defined as
transformative.
Artificial Intelligence comes into the picture in impacting
our lives in the same way.
AI is leading the transformation that is driving the whole
world towards a digitally connected era. This may be quite innovative for
customer engagement but organizations are facing challenges in adapting to this
new shift toward the AI-driven world. Today’s customers are so accustomed to
receiving the right message at the right time that every business needs to be
well prepared for generating the most relevant and targeted messages, as these
personalized experiences can only determine the rate of success and failure in
this digitally transformed world.
The impact of Artificial Intelligence is not only limited to
any specific industry or business but it’s effective in transforming customer
experience across industries like healthcare, finance, transportation,
manufacturing, retail, and many others.
AI can add value to customer relationships through these 6
levels.
·
Curation of content
·
Right piece of information
·
Personalized and pre-emptive targeting
·
Prediction (machine prediction)
·
Automation
·
Contextual Analysis
Curation of Content
Artificial Intelligence allows access to complete customer
details including their buying patterns, individual preferences, and demographic
data. The best example of this is Facebook. Facebook decides what you will see,
not you, and they curate the content as they know what you will like to see. It
is quite like the old way of Google search where you have searched for
something and google provides you a whole bunch of links related to your
search. Google is also curating its content through AI but it is a lot more
invisible than what is there on Facebook. Based on the customer data,
businesses like Facebook can segment their customers based on personas and
offer personalized products or services to them while topping it up with
cross-selling activities. With AI, any business can segment and address its
customers without being a data scientist.
The right piece of information
AI helps to get the right piece of information that we need
at a specific moment. This can be automated like reminding you over your phone
for the next meeting and calculating the time you may need to spend due to
traffic. Apart from that, there are applications like Google Home and Amazon
Echo where you can ask the question to the apps to get the exact answer instead
of going through zillion links to find out that particular piece of
information. Marketing teams also receive exact information through the
data-driven system for precise targeting parameters based on demographic and
geographic data. By using machine-learning technology, these systems collect
historical consumer information and translate it into comprehensive datasets
for more accurate audience insights.
Personalized and pre-emptive targeting
You may have experienced it on Amazon, Netflix, Flipkart,
and many other E-commerce sites that AI helps predict customer needs and offers
the relevant choices to help customers make the right choice. Artificial
Intelligence provides insights into each customer and helps the business target
them with the offer they would most likely be interested in. This level of
personalization creates loyalty through relevant experiences and assures higher
conversions along with repeat business.
Prediction
AI helps to develop a unique customer experience in real life
from feedback loops i.e. feedback from customers. At scale, digitally, this
requires machine learning systems. AI is used to make predictions to fulfill
the personalized experience for each and every customer. The positive or
negative reaction of the customer provides feedback to enable the system to
adjust its prediction models for the best-enriched experience for each
individual.
In order to deliver this enriched personalized customer
experience, AI at scale helps to interpret the innumerable amount of data. It
is only through this massive scaling and massive feedback loops, that constant
refining of predictions about how to create a natural organic feel to each and
every individual’s experience becomes possible.
Automation
The task of brand management becomes a breeze with
automation. Marketers continuously try to understand the consumer’s opinions
about their brands. AI helps to automate the analysis of all the content across
the Internet regularly to identify critical issues. Similarly, AI is enabling
customers to interact with businesses in real-time through intelligent
chatbots. This allows businesses to provide customers with human-level
interactions without having to manage real humans. Equipped with Natural
Language Programming enabled Artificial Intelligence systems, chatbots
will soon be intuitive and comprehend the context of interactions like humans.
Contextual Analysis
Contextual analysis is the last phase of the AI revolution
that is still a dream world. Till now, AI is able to understand a certain
pattern in our choices and thought processes by gathering data, but when there
is an alteration in our thought system and we feel differently, machine
learning is still unable to comprehend that. For example, being a warm person,
you love happy and fun music; consequently, the recommendation that you receive
falls in the same line. However, on a certain day, if there is a tragedy in
your life and you would like to listen to slow and sad music on that particular
day, AI will be unable to predict that. Hopefully, in the coming years,
Artificial intelligence will be equipped with contextual analysis too.
According to experts, with contextual and omnipresent AI, the relationship
between humans and computers will be more interactive and collaborative.
Conclusion
Artificial Intelligence and digital transformation
complement each other, but a combined effort is required to maximize the
strength of this mutually beneficial relationship. To provide the best customer
experience, digital transformation must include new technologies, new
structures, and a new mind to offer an entertaining and engaging experience to
the digital-age customers.
Under such circumstances, AI must flourish by exploring new
insights and creating personalized experiences to enhance the capabilities of
the marketing departments.
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