Optimizing multi-channel cost and customer experience through Omni channel contact strategy

Many organizations have maintained call centers as their primary service channel. With the rise of digital technology, they have also introduced digital self-service options due to their lower costs and faster problem resolution.

However, having multiple service channels has its own set of issues:

1. Transitioning from offline to digital channels can lead to several issues, including customer dissatisfaction, increased costs until the transition is fully efficient, and negative sentiment due to the shift from assisted to self-service.
2. When channels are not integrated properly, sharing information of customer information across them, can lead to higher operational costs and dissatisfaction for customers as they might have to repeat the same problem across channels.

Customer reactions to this transition vary based on demographics, their affinity for new technology, the ease of use of self-service systems, and product fees. If not handled properly, this can result in disengagement from loyal and high-revenue customers, with long-term impacts on profitability.

An effective solution is to implement an omnichannel strategy, where customers are gradually transitioned to self-service channels in a phased manner, taking into account their past preferences and potential revenue impact.

This solution employs micro-segmentation based on four key principles of transition:

1. Revenue potential of the customer
2. Digital affinity score of the customer
3. Customer sentiment from recent interactions
4. Ease of solving a customer problem through new technology in the customer lifecycle

Each customer is evaluated on these metrics, and specific micro-segments are encouraged towards self-service, ensuring minimal impact on profitability.

This solution is designed for organizations that:

1. Seek to lower costs by implementing self-serve channels while maintaining high customer satisfaction.
2. Have progressed significantly in their customer service journeys and have comprehensive data on customer interactions across all servicing channels.
3. Intend to meet self-service objectives within a specified timeframe through a scientific approach utilizing data science.

Reducing complaints can lead to several benefits:

1. Lower cost:
   Strategically moving customers will ensure reduced costs over time.
2. Minimal revenue impact:
   By maintaining the right oversight of projections and expected outcomes, the organization can plan to minimize the impact on revenue targets.
3. NPS/VOC/CSAT & loyalty:
   Customers tend to favor organizations that help them maintain a positive experience. A well-executed transition strategy can achieve this without harming customer sentiment and brand image.

The solution incorporates the following characteristics:

1. Customer profitability segments (if not already present, they need to be created)
2. Digital usage data with timestamps
3. Email conversation data
4. Contact center data, including topics
5. Customer sentiment evaluation data (beneficial if available; otherwise, implementing a sentiment analysis solution is suggested for improved outcomes, but not mandatory)

Customer segmentation can be achieved using various objective and non-objective algorithms. An objective approach segments customers based on a specific metric, whereas a non-objective approach uses a combination of metrics.

The choice of approach depends on the customer’s requirements. For identifying populations based on multiple metrics, a non-objective segmentation is appropriate. If a particular metric is of greater importance, an objective approach should be taken.

The approach will be tailored according to business needs and data complexity.

The most effective algorithms used are:

1. K-means clustering
2. Decision trees
3. Random forests

1. On-prem ( on customer systems or on DeepQ-AI Environment)
2. On hosted cloud space ( Customer or DeepQ-AI Environment)
   ( deployment is subject to data availability in the same environment, or feasibility of seamless data transfers within secured environments)

1. Final outputs could include a strategy to transition customers into different channels in a phased manner, along with its impact on PnL.
2. PowerPoint summaries or automated Excel files.
3. Interactive dashboards.