AI and Personalization: The Key to Future Customer Experiences
Customer experience (CX) has become a central focus for businesses wanting to retain their customers and strengthen their competitiveness. At the same time, technologies like Artificial Intelligence (AI) are evolving quickly, offering new ways to improve and personalize customer interactions. In 2024, AI is playing an even bigger role in creating smooth and engaging experiences. Companies that successfully use this new technology are well-positioned to accelerate their growth.
The Value of Getting Personalization Right
According to McKinsey, 71% of customers expect personalized interactions from businesses. Companies that don’t meet these expectations risk losing up to 75% of their customers over the course of five years. It’s no longer just about segmenting customers by demographics, it’s about using advanced tools and data to understand each customer’s unique preferences and behaviors. Although this has been widely recognized for some time, many companies still face challenges in fully embracing it.
Personalization doesn’t just affect revenue. By creating relevant interactions and offers, companies can also improve their Net Promoter Score (NPS) and strengthen long-term customer relationships. This boosts brand credibility and customer loyalty, which are essential for businesses to grow in an increasingly competitive market.
Automation and Personalization
Automation is another key factor in creating a smooth and efficient customer experience. McKinsey states that automation can enhance personalization by delivering the right message at the right time without feeling intrusive or impersonal. It also frees up employees to focus on tasks that require human interaction and creativity, instead of repetitive tasks that can (and should) be automated. This is also something that has been recognized for a long time, even before AI became what it is today. However, the difference we see today is that automation and AI (especially generative AI) affect all parts of the organization. Whether it is sales, marketing, customer service, or finance – automation with the help of AI can be a game-changer.
Wiraya and Ikano Bank: Streamlining Customer Communication Through Automation
At Wiraya, we have seen the importance of combining personalization with automation to improve customer communication. Through automated, interactive phone calls and SMS, Wiraya enables Ikano Bank to reach their customers in a way that is – not only more relevant – but also leads to better results. This resulted in +40% of customers taking action based on communication.
Read more: Ikano Bank wanted to improve payment rates and work more efficiently in assisting customers who miss paying their invoice on time
Read more: New communication strategy to meet customers on their terms and increase KYC collection
The Risks of Failing at Personalization
Despite the big benefits of personalization, McKinsey warns that companies that don’t adopt these strategies risk losing customers and market share. If businesses fail to meet customer expectations, they risk losing up to 75% of their customers over the course of five years, highlighting that personalization is not just a competitive advantage but a necessity for survival in today’s market.
The Future of Customer Experience: Personalization as a Driving Force
With the exponential growth of available data and constantly changing customer expectations, it’s clear that personalization will play a crucial role in affecting customer experience moving forward. Companies that use customer data responsibly and strategically, while automating repetitive processes, will not only improve customer satisfaction but also increase their profitability.
As McKinsey says, personalization is no longer a choice for businesses—it’s a requirement. Companies that embrace this and invest in the right technology and strategies will be well-prepared for future challenges, while those that fail risk falling behind.
Learn more: Step-by-step learn how you can map your customer journeys
