APRIL 2024 | VOL. 21

“How AI is developed and used will have a significant impact

on society for many years to come.”



~Sundar Pichai, Google CEO

Elevating Customer Experience Research and Insights with AI:

A Verde Group Perspective

In today's dynamic business landscape, most companies are exploring the advantages and risks associated with the power of AI. The Verde Group is no different. As a leading customer experience research and consulting company, we are embracing the transformative power of artificial intelligence to rethink how we deliver unparalleled insights and value to our clients. Here’s our perspective on the pros and cons of investing in AI and a few examples to consider as you explore improving your CX using the power of this emerging technology:

Positive Impacts:

Personalization of the Experience: AI clearly enables companies to gather and analyze vast amounts of customer data, allowing them to personalize products, services, and marketing efforts. This addresses a challenge we see in many projects. Case in point, in a recent CX strategy project we found that 40% of customers indicated that our client did not use data to personalize their interactions with them. This led to a 120% increase in a customer’s likelihood to purchase a competitive brand.

Efficient Customer Support: AI-powered chatbots and virtual assistants can handle routine customer queries, freeing up human agents to focus on more complex and business-building opportunities. This can lead to faster response times and improved overall customer support experiences. The benefit of quickly resolving a customer’s problem when they contact you about their issue is profound. Verde Group has consistently found that in nearly all cases, the loyalty loss due to CX friction is completely regained, if not enhanced, when a business solves the problem quickly and to the complete satisfaction of the customer.

Predictive Analytics: AI algorithms can predict customer behavior and preferences based on historical data. In addition, Verde Group has found that by flagging “Most Damaging Problems” in a customer database, organizations can use AI agents to proactively and appropriately intervene to address the issue before it occurs. This allows companies to anticipate customer needs and shape relevant recommendations and value propositions.

Automation: AI-driven automation can streamline processes such as order fulfillment, inventory management, and marketing campaigns. This efficiency can result in cost savings and faster delivery times for customers.

Negative Impacts:

Good Intentions Gone Bad: Expediting claims and resolving issues quickly and effectively is something Verde Group supports fully. However, AI solutions simply can’t get it right all the time. So what are the safeguards? Example: In February 2024, Air Canada was ordered to pay damages to a passenger after its virtual assistant gave him incorrect information at a particularly difficult time. The customer consulted Air Canada’s virtual assistant about bereavement fares following the death of his grandmother in November 2023. The chatbot told him he could buy a regular price ticket from Vancouver to Toronto and apply for a bereavement discount within 90 days of purchase. Ultimately, the airline rejected the reimbursement claim due to inaccurate information shared by the AI-powered chatbot. This resulted in a lawsuit which was won by the plaintiff.

Bias and Fairness: AI algorithms can inadvertently perpetuate biases present in the training data, leading to unfair or discriminatory outcomes. Companies need to actively mitigate bias and ensure AI systems make decisions fairly and ethically. A study published in Science revealed that a healthcare prediction algorithm, used by hospitals and insurance companies throughout the U.S. to identify patients in need of “high-risk care management” programs, was far less likely to flag Black patients. The study found that the algorithm used healthcare spending as a proxy for determining an individual’s healthcare need. But according to Scientific American, the healthcare costs of sicker Black patients were on par with the costs of healthier white people, which meant they received lower risk scores even when their need was greater.

Cost and Implementation Challenges: Implementing AI technologies can be costly and complex, requiring significant investment in infrastructure, talent, and training. Companies must carefully weigh the costs and benefits before embarking on AI initiatives.

Knowing AI can be a disruptive force is one thing, understanding and applying this massive capability to the betterment of your business and the relationship with your customers is another.

We look forward to being a part of the AI revolution and will continue to monitor progress, especially as it relates to improving the experience customers have with brands of all shapes and sizes.

March Poll Results

In March, we asked readers to rate the value their organizations place on the CX data they generate. We applaud the 36% of readers who work in organizations that find the CX data they generate of extreme importance. However, 64% of those surveyed remain challenged in positioning their insights effectively, ultimately resulting in diluted import and impact. As we’ve stated in our past several newsletters, THE KEY is for CX practitioners to ground their CX insights in the financials of the business. Our experience suggests that CX insights will be invaluable to the C-Suite when they clearly show a connection between the presence of specific experiences and the impact those experiences have on purchase decisions or cost to serve.

We are here to help. To learn more about how we can help take your CX insight program to the next level, CLICK HERE.

READY TO TALK? Book an intro session with Dennis Armbruster, Verde Group Executive VP, to discover how you can enhance the impact of your CX program. We want to help you find methods to anchor your customer insights firmly within your business framework, driving stronger ROI and increasing executive buy-in. We want to learn more about your current challenges.

April 2024 Poll

As we delve deeper into the impact of artificial intelligence on market research and customer support, we are eager to understand how widespread the adoption of AI technology is among our professional community. Please share whether your organization is currently utilizing AI to improve customer service. Your insights will help us shape future content and discussions.

Are you using AI technology as a tool to improve

your organization's customer service?

We appreciate your input and look forward to discussing innovative ways to enhance customer experience using technology.

In conversations with leading CX practitioners, we hear over and over again that they’re frustrated despite mountains of data being generated. They’re searching for ways to increase the meaning and importance of their work, and to make a difference in the outcomes of their business enterprise.

We have a solution. Explore the data that suggests we need to be paying more attention to CX friction over satisfaction in our new white paper: The Great CX Challenge: Financially Linking the Impact of Customer Experience Insights

Photo by Christian Wiediger on Unsplash

The Verde Group originally posted this blog in November 2018. Now 6 years later, does Amazon continue to make us lazy shoppers? The answer is undoubtedly, yes. It is well known that the COVID-19 pandemic changed shopping habits, dramatically increasing online shopping of all consumer goods. However, online shopping trends didn’t change after the pandemic. It is currently predicted that there will be an 8% increase in e-commerce sales worldwide in 2024. Knowing this, an e-commerce retailer’s actions to improve the lazy online customer experience are vital to growth.

So, with consumer shopping behavior changed for the foreseeable future, what potential risks lie ahead? In a 2021/2022 study conducted by Verde Group, where we explored CX friction and WOW experiences for over a dozen named brands, including Amazon, we found that there are clear advantages and challenges facing retailers that linger today. Read on:

April 2024's Question:

Question: Dear Verde Group, is there a way for my organization to more effectively guide our investment in AI when it comes to customer experience management?

Answer: In one word, YES! As you may know, the Verde Group methodology focuses on identifying the specific experience most damaging to your financial top and bottom lines. By having a strategically and financially prioritized list of CX friction points, organizations can pinpoint where and how to deploy AI technology. By doing so, they will have solved issues for the moments that matter most to the business and customer loyalty and can avoid the broad deployment of an AI solution that may result in unforeseen outcomes.