The Future Of Customer Experience: AI, Data And Why Listening Is Key

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In the fast-paced world of business and technology, one aspect that remains timeless and crucial is the ability to listen to your customers. In my recent podcast interview with Sam Richardson, Director of Executive Engagement Programs at Twilio, we delved into the future of customer experience (CX) and how businesses can leverage data to listen better and enhance their CX strategies.

Why Listening Matters

From social media to telephony, customers today have myriad ways to interact with brands, and vice versa. However, the challenge isn't just about having multiple channels of communication; it's about truly understanding and responding to what customers are saying. As Simon Sinek famously put it, "Listening is not the act of hearing the words spoken. It's the art of understanding the meaning behind those words."

Sam Richardson shared valuable insights from Twilio’s extensive work in the field, emphasized that good listening is the gateway to better understanding and connecting with customers. "The importance of listening cannot be overstated," Sam noted. "Our research shows that 69% of customers are more likely to buy again from a brand that they feel listens to them."

The Challenges of Modern Customer Experience

Sam highlighted several challenges that businesses face today in delivering exceptional customer experience. Surprisingly, it's not the technology itself that's the biggest hurdle. "People think technology is the main issue, but it's often the people and process aspects that cause the most difficulties," Sam explained.

She pointed out that organizational silos, where different departments like marketing, data analysts, and customer service don't communicate effectively, are a significant barrier. This lack of alignment leads to disjointed customer journeys. "We've all heard about 'omnichannel,' but it's rarely a reality because of these silos," she said.

Another major challenge is data quality. According to Twilio’s State of Personalization report, 61% of organizations are concerned about their data quality. The rise of AI and large language models (LLMs) has only intensified this spotlight on data issues.

Empathy and Emotional Intelligence in CX

One of the most intriguing points Sam raised was about the decline in empathy. "Empathy has decreased by about 40% since the late 90s," she said, referencing research by Sherry Turkle and Sara Konath. This decline is troubling because empathy is critical for understanding and addressing customer needs. Sam suggested that instead of trying to embed emotional intelligence into AI, we should focus on enhancing human emotional intelligence to improve customer interactions.

Transforming CX with Technology and Data

Despite these challenges, technology and data have immense potential to transform customer experience for the better. The key lies in integrating data from various silos to create a unified customer profile. "Having access to all customer data in one place allows for personalized and meaningful interactions," Sam said. In Twilio’s State of Personalization report, 89% of decision-makers view personalization as essential for their success over the next few years.

AI plays a significant role in this transformation. AI-powered tools can analyze customer interactions, extract valuable insights, and assist agents in real-time. Sam emphasized that this technology can free up time for more human, empathetic interactions. "AI has the potential to finally deliver on the promise of giving us more time to connect with and listen to our customers," he said.

Practical Examples from Twilio

Sam shared several practical examples of how Twilio is helping businesses improve their CX. One standout case is Octopus Energy, a UK-based utility company. Octopus uses Twilio’s technology to handle massive volumes of customer queries efficiently. "On some days, Octopus handles 200,000 emails and over 5 million calls," Sam explained. Twilio enables Octopus to manage these peaks smoothly, ensuring optimal service delivery.

Another inspiring example is Age UK, which supports elderly individuals facing loneliness. During the pandemic, Age UK leveraged Twilio’s cloud-based contact center solutions to enable volunteers to work from home, leading to a 240% increase in volunteer numbers. "This flexibility was crucial in maintaining and even expanding their support services during a critical time," Sam said.

The Importance of Good Listening

The underlying theme of our discussion was the critical importance of good listening. Twilio’s report, "Why Good Listening Means Good Business," highlights that 69% of customers who feel listened to by a brand are more likely to buy again. This sentiment is particularly strong among older generations, with 74% of those aged 55-64 saying they would remain loyal to brands that listen.

Listening isn’t just about hearing words; it’s about understanding and acting on customer needs. This requires both human empathy and technological support. Modern voice solutions, for instance, can provide detailed call insights and automate simple queries, freeing up human agents to handle more complex issues with the personal touch that customers appreciate.

Mastering the Art of Listening

As we navigate the future of customer experience, one thing is clear: mastering the art of listening is essential. By leveraging data and AI, businesses can better understand their customers and deliver personalized, empathetic service. As Sam Richardson aptly put it, "Better listening leads to better business outcomes, from enhanced loyalty to increased revenue."

For businesses looking to thrive in today’s competitive landscape, focusing on listening and understanding their customers is not just a nice-to-have—it's a commercial imperative. As we continue to innovate and integrate new technologies, let’s not lose sight of the human element that remains at the heart of exceptional customer experiences.

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For more insights on this topic, including detailed research findings, check out Twilio’s report on the power of voice at?Twilio's Power of Voice .

About Bernard Marr

Bernard Marr is a world-renowned futurist, influencer and thought leader in the fields of business and technology, with a passion for using technology for the good of humanity. He is a best-selling author of over 20 books , writes a regular column for Forbes and advises and coaches many of the world’s best-known organisations.

He has a combined following of 4 million people across his social media channels and newsletters and was ranked by LinkedIn as one of the top 5 business influencers in the world. Bernard’s latest book is ‘Generative AI in Practice ’.