Customer support quality has been declining despite increased AI spending. The key issue? Businesses are using AI in isolated, cost-cutting ways instead of strategically integrating it to enhance customer experience. To turn this around, companies need to shift to a data-centric approach that focuses on desired outcomes, like improving customer satisfaction (CSAT), and utilizes AI alongside human expertise. Key areas for AI deployment include chatbots, AI agent assist, agile scheduling, quality assurance, and advanced analytics. However, the success of AI in customer support relies on human expertise for training, optimization, and handling complex interactions. ModSquad's SourceUp framework blends data, AI, and human support to drive better outcomes and cost optimization.
Customer support is critical to business success, yet despite growing investments in AI technology, the quality of customer experience continues to decline. According to Forrester’s latest Customer Experience Index, customer experience quality has dropped for three consecutive years, highlighting a significant gap between AI adoption and customer satisfaction. So, what’s going wrong?
Many businesses are using AI in isolated, cost-cutting ways, which does not align with customer expectations for seamless, high-quality, multichannel support. To reverse this trend, businesses must rethink their approach to AI—moving from tactical, isolated deployments to a more strategic, holistic approach that focuses on customer experience and long-term goals.
The key issue is clear: businesses are failing to use AI strategically. Instead of enhancing customer journeys, AI is often deployed simply as a cost-cutting measure, which customers can easily recognize. A strategy focused on isolating AI for efficiency or automation rather than enriching the customer experience leads to dissatisfaction and declining quality scores across all customer experience metrics—effectiveness, ease, and emotion.
To create meaningful change, businesses need to shift to a data-centric foundation. This approach begins by identifying the desired outcomes, such as a target Customer Satisfaction Score (CSAT), and working backward to understand the AI and non-AI requirements. Rather than focusing on individual tasks or technologies, businesses must ensure that AI is integrated with a broader, more flexible staffing model.
Key steps to establish this data-driven approach include:
Once you have a data-centric foundation, AI can be strategically deployed across several impactful areas:
Despite the impressive capabilities of AI, human expertise is still crucial for maintaining high-quality customer support. AI cannot entirely replace the nuanced judgment, emotional intelligence, and expertise humans provide in complex customer interactions.
Humans play a key role in several areas:
ModSquad’s SourceUp framework exemplifies this holistic approach. Built on three core pillars, it integrates data, AI, and human expertise to deliver superior customer support outcomes:
Strategic AI in customer support is not just about cost-cutting—it's about enhancing the overall customer experience. By taking a data-driven approach, deploying AI in targeted areas, and integrating human expertise throughout the process, businesses can improve customer satisfaction, reduce costs, and deliver superior support across multichannel journeys.
If you're ready to harness the power of AI in customer support, consider SourceUp as the framework for a more integrated, effective approach.