3 Ways to Transform Service and Outpace Rising Expectations with AI

In customer service today, the pressure is on like never before. It’s a trend reflected in the 2024 State of Service report and the conversations I have with customers every day. Customers demand more, case volume is up, and service is expected to contribute more significantly to revenue. 

There’s a need for scalable and efficient solutions, and, luckily, technology is stepping in to help. Here are three ways high-performing service organisations are creating effortless service experiences with generative AI and automation, and how you can, too.

1. Meet your customers where they are, when they want

The data is clear: high-performing organisations provide service across more channels than underperformers, meeting customers at their point of need and on their channel of choice. But in Australia and New Zealand (ANZ), the top three channels are still the traditional and expensive methods of phone, in-person, and email. Clearly, there’s room for improvement to make service more convenient, efficient, and cost-effective.

To optimise your service delivery, start by understanding the demands of your customers and their preferred channels for resolving them. While self-service is popular for straightforward inquiries, favoured by 61% of customers, it’s not always the best fit for more complex issues. 

Aim to diversify your channel strategy to include a mix of real-time and asynchronous options that reflect your customers’ daily communication styles. With platforms like WhatsApp and SMS now the norm in our personal lives, customers are used to communicating in ways where they don’t always expect an immediate reply and can continue the conversation when it suits them. This habit is bleeding into business, with a growing preference for asynchronous channels for non-urgent service inquiries. 

AI and automation can also help you offer smarter self-service channels like AI-powered chatbots and even deliver proactive service experiences. Together, self-service and proactive service can deliver a great customer experience and deflect cases before they’re even created. Take Australia Post’s SMS delivery updates, for example. Historically, over 65% of inbound inquiries were for “where’s my parcel?”. Now, automated messages proactively let customers know where their parcel is so they don’t have to reach out.  
Telstra is another company getting its channel strategy right. Through its T22 transformation strategy, Telstra has shifted to digital channels and enhanced self-service capabilities with messaging in the MyTelstra app. This move has reduced servicing calls by 71% and given customers real-time visibility of their orders and support cases.

2. Think beyond cost-saving to revenue generation

When we released the first State of Service report in 2014, revenue generation wasn’t even a top 5 initiative. But today, leaders realise that agents and mobile workers interact with customers more than anyone else in the organisation. Their roles have expanded to include driving incremental revenue growth. We’re seeing the rise of the “ambiguous agent,” with the lines blurred between service and sales. Over a third of agents and more than half of mobile workers report that they are upselling often — and it’s a lot easier for them to do so with the help of data and AI. 

As businesses take greater notice of the added value service can offer, budgets and headcounts are set to grow. In ANZ, 69% of service professionals anticipate increased budget, while 67% expect more headcount in the coming year.

To sell effectively, agents and mobile workers need to deliver personalised and trusted customer service. This is possible when data is integrated across all support channels, as well as sales, e-commerce, and marketing, providing a comprehensive and real-time view of the customer. Data is proving to be a differentiator for service organisations — 80% of high-performers provide an integrated view for their agents, compared to fewer than 50% of underperformers. 

While AI is often embraced for time-saving and cost-reduction (9 in 10 service professionals in ANZ organisations with AI agree), it’s also helping shift the perception of service organisations from cost centres to revenue generators. AI can suggest contextually aware “Next Best Offers” to agents based on detailed customer histories and recent interactions. And with AI automating administrative work with capabilities like call wrap ups and case notes, as well as solving simple tasks through self-service channels, agents have more time and focus to upsell and cross-sell.Fisher and Paykel are a great example of a company proving that service and sales are stronger together. By unifying its sales, service and marketing teams around a single view of the customer, Fisher and Paykel provides self-service buying options on every channel. This creates a better experience for customers who can find what they want, wherever they look for it, and it’s proven effective for increasing sales. 

3. Get your data ready for AI and automation

Despite all the hype, AI is not magic. It’s only as good as the data it’s trained on, and one of the biggest challenges in effectively using AI is a lack of data readiness. Data provides the organisational and customer context necessary for dynamic grounding. This process ensures that AI-generated responses are accurate and relevant, building both agent and customer trust in AI. 

In response, 79% of service organisations are increasing investment in data integration next year, and 82% of high-performing organisations are opting to invest in a shared CRM like Salesforce Einstein 1 to help them deliver a truly connected customer experience.

One key strategic recommendation I often share with organisations is to think horizontally about the end-to-end customer experience, rather than thinking vertically, with channels in silos. Instead of choosing isolated “best of breed” platforms for each channel, opt for a “best of suite” platform that brings together all of your channels alongside sales, service, and marketing data to provide customer-centric service. Individual channels are important, but the real power is in how the complete, omnichannel experience comes together. 

Fisher & Paykel again serve as a model here, having integrated their sales, service, marketing, and commerce data to create a seamless customer experience across channels. This integration is the foundation for the 3,300 hours they now save per month with AI and automation, and the 30% of online queries resolved by AI. 

The pressure is on, but service is ready

The pressure may be on, but service organisations have never been better equipped to handle increasing customer demands and business expectations. With these three imperatives for service organisations, all supported by the growing capabilities of AI and automation, we can meet and even exceed expectations to improve customer experiences, grow revenue, and increase productivity. 

Read more

• How Trusted AI Opens Up New Possibilities for Customer Service
• 7 Best Practices to Take Customer Support From Good to Great
• Inside the Sixth Edition of the State of Service Report