December 2024 | VOL. 29

"Profit is the applause you get for taking care of your customers and creating a motivating environment for your employees."

-Ken Blanchard

Welcome to the December Verde Edition newsletter. It is that time of year when we reflect on the past and think about the future...our goals, hopes, and dreams... both personal and professional. This month we focus on article and blog highlights from the past year and look forward to the future, especially the impact of AI on the customer experience industry.


We want to take this time to thank you for giving our content a place in your busy agenda. We appreciate your support and hope that we have added value to your CX efforts. Sharing what we have learned about the CX industry is a small gesture to serve the industry and you, our readers.


To all, we wish you a happy holiday season and look forward to providing readers with information, data, and case studies that further your CX efforts in 2025 and beyond.


Cheers!

The Verde Group

How AI Is Revolutionizing the Measurement of Customer Satisfaction and Dissatisfaction

Artificial Intelligence (AI) is transforming the way businesses measure and manage the customer experience. In a landscape where customer expectations are constantly evolving, AI is enabling companies to gain deeper insights, react faster, and deliver more personalized experiences. With AI, businesses can move beyond traditional methods of CX measurement, shifting from a periodic, reactive process to a continuous, proactive, and predictive one.


In our new blog post, we discuss how AI is reshaping customer experience management, provide some real-world examples, and share our thoughts on the future of customer satisfaction with AI.

READ THE BLOG

November Poll Results

In November, we asked,

"How empowered are your front-line teams to 'make things right' for your customers when problems arise?"

Serving others is clearly a part of delivering a great customer experience. Empowering front-line employees to "make things right" is key to achieving that goal. Yes, there is some risk and potential cost pressure in providing employees with the discretion to resolve issues on the spot. However, in our 21+ years of collecting and analyzing customer experience data, we consistently see that providing staff with the tools and resources necessary to resolve customer issues to their complete satisfaction results in retained loyalty and revenue. The November poll results point out the fact that 70% of companies simply do not adopt this principle - begging the question, why?

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.

CX INSIGHTS CHAT - SCHEDULE NOW

December 2024 Poll

What holiday wish do you have this year?

What holiday wish do you have this year? Please choose one answer.
I wish for our CX program to continue in 2025.
I wish that our CX insights had more impact on our company.
I wish I had the resources and knowledge to improve our CX program.
Other

2025 and Beyond: FAST FIVE

It's the December Fast Five...

By 2025, AI is set to revolutionize the way businesses interact with customers. From proactive service to advanced emotion detection, AI will play a crucial role in shaping personalized, efficient, and seamless customer experiences. Here are key areas where AI will drive change:

How AI Will Transform Customer Experience by 2025

1. Proactive Customer Service

How It Works: AI will use predictive analytics and real-time data to anticipate and address potential issues before customers notice. For example, AI can detect order delays or service disruptions and proactively notify customers, offering solutions before they experience frustration.

Example: A telecommunications provider could identify a network outage in a customer's area and notify them with an estimated resolution time and alternative solutions, improving satisfaction.

Source: Forrester: AI-Powered Customer Service


2. Emotion Detection and Sentiment Analysis

How It Works: AI will analyze customer emotions by processing voice tone, facial expressions, and text-based inputs. This will allow businesses to adjust their approach dynamically, de-escalating negative emotions or amplifying positive experiences.

Example: AI detects frustration in a customer’s voice during a call, prompting the representative to change their tone or escalate the issue for a better resolution.

Source: Gartner Report on Sentiment Analysis


3. Advanced Data Privacy and Security

How It Works: AI will enhance data privacy by securing sensitive customer information using encryption, anomaly detection, and identity verification tools. Additionally, AI will provide customers with real-time control over their data, ensuring transparency and compliance with privacy regulations.

Example: AI will notify customers about what data is being collected and how it’s used, allowing them to adjust privacy settings on the spot for better control.

Source: McKinsey: AI and Data Privacy


4. AI-Enhanced Self-Service

How It Works: AI-driven tools like chatbots and virtual assistants will enable customers to resolve issues independently through automated self-service options. These systems will leverage natural language processing to provide faster, more accurate answers.

Example: A customer facing internet connectivity issues could use an AI-powered self-service tool to troubleshoot the problem with step-by-step guidance based on past solutions.

Source: Accenture: The Future of Self-Service


5. Integration of AI Across Channels (Omnichannel)

How It Works: AI will unify customer interactions across various touchpoints—online, offline, in-store, and on mobile. By linking customer data from multiple sources, AI will provide a seamless, personalized experience across channels.

Example: A customer can start a chat on social media, continue it in an app, and walk into a store where the assistant is aware of their preferences and prior interactions, ensuring a cohesive experience.

Source: Salesforce: AI and Omnichannel


By 2025, AI will drive hyper-personalization, proactive support, and seamless omnichannel experiences, enhancing customer satisfaction and loyalty. However, as AI’s role grows, businesses must balance this technology with ethical considerations around data privacy and transparency, ensuring responsible and customer-centric use of AI.

FORBES BUSINESS COUNCIL:

20 Effective Practices For Encouraging

Repeat Client Business

The Forbes Business Council recently published an article about the necessity of forging long-term relationships with existing customers, including 20 tips to encourage repeat client business.


The Verde Group founder and CEO and Forbes Business Council member, Paula Courtney weighs in with #5 - Maintain a Constant Pulse On Customer Needs and Expectations.

"Many entrepreneurs often tend to overlook the benefits of tapping into their existing customer base. Continually seeking out new clients on a continuous basis does contribute to business growth, but it can also become a costly and time-consuming endeavor over time.


Existing or repeat customers play an important role in providing businesses with a reliable stream of revenue at a lower cost. While entrepreneurs are increasingly focusing on this audience, knowing how to effectively build and maintain strong relationships with current customers requires a strategic approach."


To help, 20 Forbes Business Council members discuss practices for building and maintaining relationships with clients to encourage repeat business. Read on to hear which strategies proved fruitful for them and their businesses."

Read the Forbes Business Council Article

2024 Milestones - A Look Back

As we reflect on 2024, we thought it would be interesting to take a look at some of our "most populars." So here they are, in no particular order: Our top newsletter poll of the year, blog post, LinkedIn post, podcast, and conference.


NEWSLETTER POLL - The Verde Edition June newsletter included results from our May newsletter poll question, "What do you believe are the perceived risks of using AI to improve your customer experience?" Interestingly, only 17% of companies that responded see a potential lack of a personalized touch as a concern. This may be a blind spot for companies investing in AI and something worth monitoring by CX insight teams. See all the results in The Verde Edition HERE.

BLOG POST - Our #1 blog post of the year is "Why Innovation Has Not Solved Customer Friction". Data suggests that despite significant technological advancements and increased investments in CX resources, the percentage of customers experiencing a problem during their most recent interaction with a brand has largely remained unchanged. Find out why HERE.


LINKEDIN POST - CEO Paula Courtney explains the Verde Group's E-A-B model in this video clip from the Copenhagen Loyalty Conference. Also on our YouTube Channel, you can view it HERE.


PODCAST - CXChronicles Podcast Chats with Dennis Armbruster. CXC Founder Adrian Brady-Cesana sat down with Verde Group Executive VP Dennis Armbruster for a chat about tackling The Four CX Pillars: Team, Tools, Process & Feedback, with tips & best practices that have worked across Dennis' own customer-focused business leader journey. Listen HERE.


CONFERENCE - Verde Group Founder and CEO Paula Courtney served as a keynote speaker at The Loyalty Conference in Copenhagen, Denmark, "the definitive conference on Loyalty and CX measurements." The annual conference focuses on friction points in the customer journey, effective CX measurement, and the financial significance/impact of CX. This year, Paula spoke on enhancing financial outcomes with Verde Group's Revenue@Risk®, a strategic CX model focused on actionable insights and reducing customer friction.


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The Great CX Challenge - A Verde Group White Paper

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

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