How Machine Learning Improves Customer Experience

What CTOs in Banking Should Do with AI for Customer Experience A few months ago, I sat with the CTO of a major bank who shared a familiar frustration: “We’ve invested millions in AI, but our customer experience hasn’t improved the way we expected.” I asked a simple question: “Are you using AI to solve real customer pain points, or are you using it because it’s expected?” That conversation led us down a path that many banking leaders are navigating today—leveraging AI not just for efficiency, but to truly enhance customer relationships. AI and the Future of Banking Customer Experience The global AI in banking market is expected to reach $130 billion by 2030, growing at a CAGR of 32% (Allied Market Research). This isn’t just about chatbots or fraud detection anymore; AI is redefining how banks engage with customers at every touchpoint. McKinsey reports that banks effectively using AI can increase customer satisfaction by 35% while reducing operational costs by up to 25%. The challenge, however, is execution—CTOs must ensure AI is seamlessly integrated into both digital and human interactions. How Leading CTOs Use AI for Customer Experience 1- Hyper-Personalization Example: JPMorgan Chase uses AI to analyze customer behavior and provide real-time loan and investment suggestions, increasing engagement by 40%. 2- AI-Powered Virtual Assistants Example: Bank of America’s Erica, an AI-powered assistant, has handled over 1.5 billion interactions, offering personalized financial insights. 3- Predictive Analytics for Proactive Engagement Example: A European bank using AI-driven insights reduced customer churn by 22% by proactively addressing financial concerns. 4- AI-Enhanced Fraud Detection Example: Mastercard’s AI-based fraud prevention has reduced false declines by 50%, improving trust and security. A Real-World Impact: AI in Action One of our banking clients struggled with high customer complaints about slow loan approvals. By integrating AI-driven document verification and risk assessment, approval times dropped from 5 days to 5 minutes. The result? A 30% increase in loan applications and a significant boost in customer satisfaction. The Human-AI Balance in Banking Despite AI’s capabilities, customers still value human interaction. 88% of banking customers want a mix of AI-powered convenience and human support when dealing with financial decisions (PwC). The key for CTOs is to balance automation with empathy—ensuring AI enhances, rather than replaces, the personal touch. The Road Ahead AI is no longer a futuristic concept in banking—it’s a strategic necessity. CTOs who embrace AI for customer experience, not just efficiency, will lead the industry forward. At Devsinc, we believe the future of banking isn’t just digital—it’s intelligent, personalized, and deeply customer-centric. The question is, are we using AI to replace transactions, or to build trust? Because in banking, trust isn’t just a feature—it’s the foundation.

For SaaS companies, customer churn is closely tied to growth. From an industry standpoint, the average churn rate for mid-market companies is between 12% and 13%. With renewal-based revenue models, churn directly affects both topline and bottom line. At Egnyte, AI and Machine Learning have been pivotal in our journey to improving customer retention and reducing churn. We have noted a 2.5 to 3 points reduction in churn rate by deploying AI programs that are actionable for both our customers and CSM teams. AI can offer powerful capabilities to help SaaS companies significantly reduce churn by enabling proactive and data-driven customer retention strategies. Some of these strategies are: 1. Predictive Churn Analytics Machine Learning models analyze vast amounts of customer data (usage patterns, support interactions, billing history, feature adoption, login frequency, etc.) to identify subtle patterns that precede churn. They can flag customers as "at-risk" before they can explicitly signal dissatisfaction, allowing for proactive intervention. It can further assign a "churn risk score" to each customer/ user, enabling customer success teams to prioritize their efforts on the most vulnerable and valuable accounts. The actionable operational data that we received by employing ML is the essence of churn analytics. 2. Hyper-Personalized Customer Experiences AI allows SaaS companies to move beyond generic communication to highly tailored interactions based on user behavior and feature adoption. AI can suggest relevant features, integrations, or workflows that the user might find valuable but hasn't yet discovered. AI can also determine the optimal timing and channel of customer-focused content, such as help desk articles, feature awareness videos, and case studies. 3. Automated Customer Support and Engagement AI can enhance customer support, making it more efficient and impactful. AI-powered chatbots can handle common customer queries 24/7, reducing wait times and providing instant solutions. Advanced chatbots use Natural Language Processing (NLP) to understand complex queries and provide personalized responses. It also helps in online enablement, reducing onboarding costs. While these strategies are already redefining the way CSM and enablement teams service customers, their significance in the cadence of customer retention strategies is going to increase hereon. Enterprises need to use AI intelligently and efficiently and focus on gleaning actionable insights from their AI strategies. #B2BSaaS #Churn #CustomerRetention

How SAP is Using AI to Enhance Customer Experience SAP leverages AI to significantly improve customer experience through a variety of innovative approaches and tools. Here are the key ways SAP is enhancing customer interactions: 1. Personalized Interactions - Customer Profiles: AI-generated customer profiles powered by real-time data from the SAP Customer Data Platform enable businesses to deliver tailored and relevant experiences. This includes personalized recommendations and targeted marketing content. - Predictive Engagement: AI's predictive analysis allows businesses to anticipate customer needs and offer proactive solutions, enhancing engagement and satisfaction. 2. Automation of Repetitive Tasks - Role-Based AI Tools: SAP provides job-specific AI tools to automate time-consuming tasks for service, sales, and commerce teams. This includes generating content, summarizing customer issues, and suggesting solutions, which frees up teams to focus on more value-adding activities. - Catalog Management: AI assists in product discovery by automatically extracting and enriching product attributes from images and text, generating product descriptions, and improving search capabilities, which enhances the shopping experience 3. Enhanced Customer Support - Proactive AI Responses: AI models in SAP's Customer Experience portfolio detect questions and suggest responses in natural language, derived from business data. This proactive approach helps resolve customer queries faster and more accurately. - Self-Service Options: AI-powered self-service tools and chatbots provide 24/7 customer support, reducing response times and improving availability. 4. Integration with Business Processes - Embedded AI Features: SAP integrates AI capabilities directly into its products, such as SAP Sales Cloud, SAP Service Cloud, and SAP Commerce Cloud. These embedded features help in generating personalized content, automating responses, and providing real-time insights. - Holistic Data Utilization: SAP's AI solutions leverage data from various sources, including ERP systems, to provide comprehensive insights and enable more informed decision-making, leading to better customer experiences. 5. Generative AI Innovations - Joule AI Assistant: SAP introduced Joule, a generative AI assistant that helps streamline customer service and marketing tasks by providing contextual insights and automating routine processes. This enhances productivity and ensures more personalized customer interactions. 6. Predictive and Preventative Support - Predictive Analytics: AI-driven predictive analytics in SAP solutions help businesses forecast demand, optimize inventory, and plan more effectively. This ensures that customer needs are met promptly and efficiently. By embedding AI across its customer experience solutions, SAP aims to deliver more personalized, efficient, and proactive customer interactions, ultimately driving higher satisfaction and loyalty. #SAP #AI #ZaranTech

🚀 AI can transform customer experience — but only when it's applied with purpose. From customer journey mapping to predictive support, enterprises are turning to their digital consulting partners to embed AI where it drives real business outcomes. Here’s how we are making it happen 👇 🔍 1. Customer Journey Mapping + Use Case Identification We decode friction points and map “moments that matter,” then identify where AI can add the most value — from churn prediction to next-best-action models. 🎯 2. AI-Powered Personalization & Recommendations Using deep learning, behavioral segmentation, and recommendation engines, we help enterprises deliver personalized content, offers, and experiences — at scale. 🛠️ 3. Proactive Support with Predictive AI Predictive models and AI assistants anticipate issues before customers even notice — driving loyalty, reducing support costs, and boosting satisfaction. 💡The real power of AI isn’t just in the algorithms — it’s in applying them where human experience and business goals intersect. 👉 Are you seeing success with AI in your CX journey? Would love to hear your experiences. #AI #CX #DigitalTransformation #CustomerExperience #VPspeak

"Learning to walk again, I believe I've waited long enough"  🎤 "Walk" by Foo Fighters Had a fascinating conversation with a group of CS leaders last week about AI. The dialogue reminded me of how we learn to ride a bike - wobbly at first, but gradually our brain forms new patterns until it becomes second nature. AI learns similarly, and it's transforming how we think about #CustomerSuccess. Here's what's blowing my mind: 🔎 Pattern Recognition: Just like how great CSMs spot customer health issues before they become problems, AI is identifying patterns humans miss. At Gainsight, we recently saw this firsthand when Staircase AI detected brewing sentiment issues in email threads that weren't even copied to our CS team. It caught subtle tone changes that signaled future churn risk. 🎯 Learning from Mistakes: Remember your first customer call? AI also improves through trial and error. One thing we've learned from implementing Staircase is that relationship patterns often hide in unexpected places - casual Slack messages sometimes reveal more about customer health than formal QBRs. 🌱 Unexpected Discoveries: The most exciting part? AI is finding patterns we never knew existed. Last week, our system identified a customer at risk not from negative sentiment, but from a sudden shift to overly formal communication - a pattern that often precedes vendor reevaluation. 🤝 Human + Machine Partnership: The future isn't about AI vs humans. It's about how we work together. Our best CSMs are using AI to analyze thousands of customer interactions instantly, freeing them to focus on building deeper relationships. One CSM told me last week: "AI handles the patterns, I handle the people."But here's what keeps me up at night: Are we moving fast enough? While we debate whether to embrace AI, our customers are already experiencing AI-powered experiences everywhere else. What unexpected patterns has AI helped you discover in your customer relationships?

🧠 Is Generative AI Just Cool, or Does It Really Have an Impact? That's the big debate in tech circles these days. A study led by researchers from Stanford University, MIT, and the National Bureau of Economic Research (NBER) sheds light on this question by examining the real-world impact of deploying generative AI in a customer support environment. Their analysis offers empirical evidence on how AI tools, specifically those based on OpenAI's GPT models, are transforming customer service operations at a Fortune 500 software company. The researchers employed a mix of methodologies: a randomized control trial (RCT) and a staggered rollout, encompassing around 5,000 agents over several months. By analyzing 3 million customer-agent interactions, the study assessed metrics such as resolutions per hour, handle time, resolution rates, and customer satisfaction (Net Promoter Score). To understand the AI's impact over time, dynamic difference-in-differences regression models were used. Here is what they found: 1. 𝐒𝐢𝐠𝐧𝐢𝐟𝐢𝐜𝐚𝐧𝐭 𝐁𝐨𝐨𝐬𝐭 𝐢𝐧 𝐏𝐫𝐨𝐝𝐮𝐜𝐭𝐢𝐯𝐢𝐭𝐲: The AI tool led to a 13.8% increase in the number of customer queries resolved per hour, particularly benefiting less experienced agents. 2. 𝐍𝐚𝐫𝐫𝐨𝐰𝐢𝐧𝐠 𝐭𝐡𝐞 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐆𝐚𝐩: AI tools accelerated the learning curve for newer agents, allowing them to reach the performance levels of seasoned employees more quickly. 3. 𝐈𝐦𝐩𝐫𝐨𝐯𝐞𝐝 𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫 𝐒𝐚𝐭𝐢𝐬𝐟𝐚𝐜𝐭𝐢𝐨𝐧: The AI deployment resulted in higher customer satisfaction scores (as shown by improved Net Promoter Scores) while maintaining stable employee sentiment. 4. 𝐋𝐨𝐰𝐞𝐫 𝐀𝐭𝐭𝐫𝐢𝐭𝐢𝐨𝐧 𝐑𝐚𝐭𝐞𝐬: Interestingly, the AI support led to reduced attrition rates, especially among new hires with less than six months of experience. 5. 𝐎𝐩𝐭𝐢𝐦𝐢𝐳𝐞𝐝 𝐖𝐨𝐫𝐤𝐟𝐥𝐨𝐰𝐬: The AI system reduced the need for escalations to managers, improving vertical efficiency. However, its impact on horizontal workflows, like transfers between agents, showed mixed results, suggesting more refinement is needed in AI integration. 6. 𝐂𝐮𝐬𝐭𝐨𝐦𝐢𝐳𝐞𝐝 𝐀𝐈 𝐌𝐚𝐭𝐭𝐞𝐫𝐬: The software wasn’t off-the-shelf; it was a custom-built solution tailored to the company’s needs using the GPT family of language models. This emphasizes the importance of context-specific AI applications for effective outcomes. For leaders, managers, and AI practitioners, these insights are invaluable—highlighting not just the potential of AI, but also the nuanced ways it reshapes workflows, impacts employee dynamics, and transforms customer experiences.So, does generative AI really make a difference? According to this study, the answer is a resounding yes—but it depends on how thoughtfully it is deployed. Link 🔗 to the paper: https://lnkd.in/ejhUfufz

Last week, I talked about the possibilities of AI to make work easier. This week, I want to share a clear example of how we are doing that at HubSpot. We’re focused on helping our customers grow. So naturally, we take customer support seriously. Whether it’s a product question or a business challenge, we want inquiries to be answered efficiently and thoughtfully. We knew AI could help, but we didn’t know quite what it would look like! We first deployed AI in website and support chat. To mitigate any growing pains, we had a customer rep standing by for questions that came through who could quickly take the baton if things went sideways. And, sometimes they did. But we didn’t panic. We listened, we improved, and we kept testing. The more data AI collects, the better it gets. Today, 83% of the chat on HubSpot’s website is AI-managed and our Chatbot is digitally resolving about 30% of incoming tickets. That’s an enormous gain in productivity! Our customer reps have more time to focus on complex, high touch questions. AI also helps us quickly identify trends—questions or issues that are being raised more frequently—so we can intervene early. In other words, AI has not just transformed our customer support. It has elevated it. So, here is what we learned: Don’t panic if customer experience gets worse initially! It will improve as your data evolves. Evolve your KPIs and how you measure success- if AI resolves typical questions and your team resolves tricky ones, they will need more time. Use AI to elevate your team's efforts How are you using AI in support? What are you learning? 

Customers whisper their truths in click-streams and foot patterns long before they shout at you in a survey. Every scroll, dwell-time spike, and chat-bot exit paints intent in real time. Leaders who still wait for quarterly survey decks are steering by taillights. Here's an example: Fiserv slashed static questionnaires, layering conversational AI into their feedback program, and increased the amount of detailed feedback they receive by 40%. That's a huge increase in actionability no matter what company you work for. The win clearly wasn’t a new metric. It was, however, a richer signal graph that surfaced unknown pain points in minutes and hours, not weeks. And if you're routing these to custoner-facing teams through your CRM, empowering them to act on feedback quickly, you are closing the inner-loop at scale. In short, you can deliver on fewer surveys and more actionability by focusing on the right things, with the right tools, and with the right people. #customerexperience #surveys #ai

Verizon has implemented several generative AI (GenAI) initiatives to enhance its customer experience and streamline operations. Here's a summary of key GenAI tools and applications: Segment of Me: This tool uses customer data to provide personalized product offers and tailored online experiences, including customized merchandise, copy, and images. Personal Shopper: This GenAI tool analyzes customer profiles to help employees quickly understand customer needs and preferences. It has reduced transaction times by 2-4 minutes and has an 85% accuracy rate in predicting customer preferences. Personal Research Assistant: Developed in partnership with Google, this tool helps customer service representatives quickly access information from Verizon's knowledge base. It's currently used by over 40,000 Verizon reps and is expected to save 20-30% of time on normal tasks. Fast Pass: This tool matches customers with the most suitable customer care representative based on their specific needs, ensuring they speak with someone knowledgeable about their particular issue. Verizon has been implementing these GenAI tools across various customer touchpoints, including retail stores, customer care, and digital platforms. The company aims to simplify customer interactions, reduce cognitive load on employees, and provide more personalized experiences. Brian Higgins, Verizon's chief customer experience officer, noted that the company has a strong workforce focused on GenAI development and numerous partnerships providing new services. Verizon's long-standing work with customer data has positioned them well for these AI-driven innovations. #verizon #5g

This is a gem of a case study about how to apply AI across a business. Singapore Airlines is partnering with OpenAI to apply AI to its business in the following ways, reports A'bidah Zaid Shirbeeni in MARKETING-INTERACTIVE: 1. Personalize the airline’s virtual assistant to intuitively plan personalized travel and offer customers self-service options. Business Benefits:  ✅ Self-service delivers higher revenue impact than the flight recommendation chatbot ✅ Intuition (read: ChatGPT’s new memory) and personalization promote customer engagement 2. Create an internal AI assistant to guide employees on operations and automate routine tasks. Business Benefits:  ✅ Faster decision-making when time is critical ✅ The assistant applies learnings from past issue resolutions and support solves to answer current questions 3. Integrate ChatGPT with operations tools to crunch out complex workflows such as scheduling flight crews while referencing applicable regulatory guidelines. Business Benefits:  ✅ Optimizes planning ✅ Streamlines operations WHY THIS MATTERS: Singapore Airlines’ idea of an “AI-first customer journey” shifts the lens from thinking about AI-first companies toward using LLMs to build better customer experiences. That’s a powerful shift. This is applied AI at its finest - to build better customer experiences. What ideas spring to mind when you think about AI-first customer experiences at your company? ✨ Conversational AI imperatives from Chatbot Europe: https://lnkd.in/edxvM8d3 #ai #cx #ux #chatbot #appliedai #marketing Image credit: MARKETING-INTERACTIVE