How conversational AI is changing the game in customer service - September 2020

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How conversational AI is changing the game in customer service - September 2020
September 2020

How conversational
AI is changing the
game in customer
service
How conversational AI is changing the game in customer service - September 2020
i

Introduction                                                               Anyone can build a
The COVID-19 crisis has pushed many contact centers into the
                                                                           chatbot, but
spotlight and illuminated their challenges—some have been                  delivering natural
overwhelmed with calls while others have gone eerily quiet. During
                                                                           language
these unprecedented times, organizations are investing in best-in-
class artificial intelligence tools to better scale with demand and        understanding (NLU)
improve customer service—especially now that there’s a way to do it        is a whole new ball
without increasing costs.
                                                                           game.
In the past, you had to hire more agents to improve customer
satisfaction (CSAT), which increased your operating costs.
Conversely, if you reduced the number of agents, your CSAT scores
went down. Now, cloud-based, conversational AI for contact centers
lets you have your cake and eat it too.

Google’s groundbreaking advances in AI, machine learning, and voice
recognition mean that virtual agents can now understand the
nuances of human language and, consequently, your customers’
intent. Customers can ask questions rather than interacting with a
phone tree, getting answers faster. Your contact center staff, freed
from repetitive tasks, can focus on more challenging and higher-value
interactions, reducing attrition and improving operational efficiency.
And all this is done through integration with your existing telephony
infrastructure, to get pilot programs up and running quickly.

In this ebook, we’ll look at the revolution happening in conversational
AI and how this technology, coupled with the security and flexibility of
the cloud, is driving a new era in customer service. You will discover
that anyone can build a chatbot, but delivering natural language
understanding (NLU) is a whole new ball game.
How conversational AI is changing the game in customer service - September 2020
Table of contents

Chapter 1: A new world of conversational AI . . . . . . . . . . . . . . . . . . . . . . 1

Chapter 2: Experience is everything. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Chapter 3: Introducing Contact Center AI. . . . . . . . . . . . . . . . . . . . . . . . . 5
        CCAI's three main components

Chapter 4: Benefits of the cloud. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Chapter 5: Lessons learned from COVID-19. . . . . . . . . . . . . . . . . . . .  10

Chapter 6: CCAI customer case studies. . . . . . . . . . . . . . . . . . . . . . . . . . .  11
        State of Illinois
        Marks & Spencer
        PolicyBazaar
        Ticketmaster
        DPD UK

Chapter 7: New jobs, training, and skills. . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Chapter 8: Next steps . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
How conversational AI is changing the game in customer service - September 2020
1

Chapter 1                                                                The global
A new world of conversational AI                                         conversational AI
                                                                         market is expected
People have been trying to get computers to recognize their voices for   to grow at a
a long time. In 1997 software entered the market to help users dictate
communications instead of type them. It was incredibly frustrating.
                                                                         compound annual
Not anymore. Thanks to advances in speech recognition, AI, neural        growth rate of
networks, and processing power, the voice landscape has radically        almost 22% between
changed. Specifically:
                                                                         2020 and 2025,
    •   Dedicated processing power has facilitated smarter voice
                                                                         according to
        recognition algorithms.                                          MarketsandMarkets.
    •   Voice-enabled consumer devices (smartphones, smart home
        devices, cars, TVs, and so on) and far-field voice recognition
        has made voice recognition ubiquitous—providing an ever-
        growing dataset on which to train recognition algorithms.

    •   AI and ML advances (including BERT, NLU, automatic speech
        recognition [Speech-to-Text], Dialogflow, and Text-to-Speech
        to name a few) have made it possible to not just recognize
        language but to deduce context and build relationships,
        improving the quality of the experience. It’s the first time
        we’ve had a conversational experience that isn’t frustrating
        and is considered to be nearly human.

    •   Fast, cheap, reliable high-speed networks have made it
        possible to offload processing to the cloud, enabling rapid
        “understanding” of peoples’ intents.

With these advances, it’s easy to see why demand for this kind of
technology is on the rise: The global conversational AI market is
expected to grow at a compound annual growth rate of almost 22%
between 2020 and 2025, according to MarketsandMarkets.
How conversational AI is changing the game in customer service - September 2020
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Google has invested heavily in these areas, which you can see in voice-enabled search on phones, Google Assistant
on home devices, voicemail transcription on phones, and video search on YouTube, to name just a few applications.
This investment has driven the capability and quality of voice understanding across the board and the ML and AI
behind it. And this innovation is now finding its way into the enterprise market—in solutions like Contact Center AI,
enabling more personalized and intuitive customer care.
How conversational AI is changing the game in customer service - September 2020
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Chapter 2
                                                                          5 business benefits
Experience is everything
                                                                          of high CSAT
According to PWC, 32% of all customers say they would switch to a         Customer satisfaction scores
competitor after just one bad customer service experience. And            reflect the level of service you
nearly half of customers won’t even think about doing business with       deliver to your customers. Studies
you unless you have high approval ratings.                                show that mastering the art of
                                                                          customer service allows you to
Your customers’ satisfaction affects your potential for new business.     charge more. According to
But, even worse for your business, customer dissatisfaction and low       research from PwC, 43% of all
CSAT scores threaten the relationship you have with your existing         consumers would pay more for
customers.                                                                greater convenience; 42% would
                                                                          pay more for a friendly, welcoming
That’s why it’s no longer acceptable to keep customers on hold or         experience. Better CSAT scores
endlessly route them somewhere else. Or worse, not provide them           mean:
with the answers they’re looking for. And yet this is exactly what’s
                                                                             1.   Repeat purchases from
happening when we call in to a traditional, phone-tree-based
                                                                                  existing customers
interactive voice response (IVR) system in most contact centers
today.                                                                       2. More new customers

This IVR technology wasn’t built for the cloud age and has become            3. Lower agent attrition
expensive to maintain and improve. It doesn’t scale up and down to
                                                                             4. Lower operational costs
meet demand or easily integrate with new applications and channels.
Agents struggle to provide good service with higher and higher call          5. A more profitable business
volumes, leading to low job satisfaction and agent churn. Operational
costs are increasing along with longer handle times. And without
good analytics about your customers and agents, there’s no cost-
effective way to actually improve your service.

Low CSAT scores are a given in this environment, which makes it hard
to achieve positive business results. This is why contact centers are
becoming much more than a humble operational function that’s
shipped overseas or tucked away out of sight (and mind). They are
moving to the strategic heart of the business. In a future that will be
heavily shaped by working from home and digital engagement, as
How conversational AI is changing the game in customer service - September 2020
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well as increased awareness of customer requirements, your contact centers' strategy needs to support and even
help define your customer experience. This is not possible without the transformative power of cloud and
conversational AI.
How conversational AI is changing the game in customer service - September 2020
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Chapter 3
Introducing Contact Center AI

At Google, we are turning our advances in AI research into products             Gartner predicts
and solutions for our customers. One of the first of these is AI to
improve the contact center customer experience, called Contact                  that “by 2022, 70% of
Center AI (CCAI).                                                               customer
CCAI lets your customers rapidly obtain information from your
                                                                                interactions will
contact centers by interacting with a virtual agent, or chatbot, that           involve emerging
understands their questions and responds with relevant, helpful                 technologies such as
information. Your customer gets answers faster. Your contact center
staff, freed from repetitive tasks, can focus on more engaging and              machine learning
complex customer issues.                                                        applications,
AI in this context can sound off-putting. And some companies fear
                                                                                chatbots and mobile
bots will make their brand sound, well, robotic. But that was before            messaging, up from
Google’s NLU algorithms made human and computer voices                          15% in 2018.”
practically indistinguishable. Now those who invest in automated
solutions like CCAI are in a better position to succeed. Gartner
predicts that “by 2022, 70% of customer interactions will involve
emerging technologies such as machine learning applications,
chatbots and mobile messaging, up from 15% in 2018.1”

1 Smarter With Gartner, “Top CX Trends for CIOs to Watch,” February 27, 2020,
https://www.gartner.com/smarterwithgartner/top-cx-trends-for-cios-to-watch
6

Figure 1: With CCAI, you can resolve inquiries across all channels, empower agents to respond faster and with greater confidence,
and use data and insights from all chats, calls, and IVR to improve your overall customer experience.

These trends mean that if it’s not already, AI is going to be a vital part of your customer relationships and therefore
important to get right. Beneath the surface of CCAI’s intuitive UI is Google’s innovation in ML and natural language
processing.

CCAI has three main components:

➊     Virtual Agent provides your customers with 24/7 access to immediate and personalized conversational self-
      service. It automates basic interactions and provides handoffs to human agents for more complex issues
      through real-time understanding. Your customers get answers faster and your agents have more time to work
      on more complex customer interactions of higher value.

      Quality is critical in this context. Everyone selling a chatbot says they can do speech-to-text recognition, and
      they claim all kinds of accuracy numbers. The reality is that the quality varies drastically.
7

    At the heart of Contact Center AI is Dialogflow, a popular development suite for creating conversational
    interfaces for websites, mobile applications, messaging platforms, and smart devices. You can use it to build
    interfaces (such as chatbots and conversational IVR) for natural interactions between your customers and
    your business. Dialogflow provides customers with Google Cloud Support and a service level agreement (SLA)
    for production deployments.

    Figure 2: Dialogflow has seen continuous growth since its inception.

    Multiple studies have found that people who use AI to accomplish concrete tasks respond best to multi-turn
    dialogue, the ability to ask multiple questions or engage in dialogue instead of issuing a series of single,
    separate commands. The latest version of Dialogflow, called Dialogflow CX, is optimized for large teams
    building bots within a single enterprise where collaboration and deployment processes must be followed. It’s
    great for contact centers that deal with complex (multi-turn) conversations, and it’s truly omnichannel—you
    build it once and deploy it everywhere—both in contact center and digital channels. Dialogflow CX also
    includes a new visual builder to create, build, and manage virtual agents.

➋   Agent Assist provides live agents with continuous support during their calls, enabling them to be more agile
    and efficient, and to spend more time on more difficult conversations. It transcribes calls in real time, identifies
    customer intent, provides real-time, step-by-step assistance (recommended articles, workflows, and so on),
    and automates call dispositions.

    For customers in regulated industries, Agent Assist can remove the risk of agents providing inaccurate
    information (which happens due to high agent turnover and limited training) and it can surface the latest
    discount information, deals, and special offers, which can be hard for agents to keep track of as this
    information changes frequently.
8

    The latest update for this product is Agent Assist for Chat, a
    new module for Agent Assist that provides agents with
    continuous support over chat in addition to voice calls, by
    identifying intent and providing real-time, step-by-step
    assistance. And if you’ve seen the Smart Reply and Smart
    Compose capabilities in Gmail, this functionality is in Agent
    Assist for Chat too.

➌   Insights uses natural language processing to identify call
    drivers and sentiment to better understand your customer
    interactions and improve call outcomes. In the past, obtaining
    analytics on calls meant managers had to sample a few
    conversations, listen, take notes, and make a lot of
    assumptions. CCAI Insights gives you a view of the entire
    activity across all contact centers in near real time. You can
    capture calls and transcribe, model, store, query, and visualize
    all contact center data to make informed decisions about your
    business. Data is one of the greatest assets of the modern era
    and Insights is a tool to help you make the most of it.

    For contact center executives and other business stakeholders,
    understanding the macro trends in the contact center—and
    bringing that data to bear—can help influence various internal
    stakeholders in the marketing, product, and sales organization
    for a client. These trends and analysis can be used to create
    business value initiatives and transform the contact center
    from a cost center into a value creation center.
9

Chapter 4
Benefits of the cloud

For many organizations, the pandemic has accelerated the need for a
digital operating model. Projects that were “nice to have” are now
essential. From cloud-based remote work and business continuity to                Cloud benefits at a glance:
creating better online customer experiences, there’s no time like the
present to accelerate digital transformation. Because of this, experts            •   World-class security by
at Gartner called spending on cloud services a “bright spot” in 2020,                 design lowers risk
growing 19%. “Cloud-based telephony and messaging and cloud-
                                                                                  •   Reduced operational
based conferencing will also see high levels of spending growing 8.9%
                                                                                      burden frees up
and 24.3%, respectively,” according to Gartner1.
                                                                                      developers

Still, moving to the cloud raises concerns over security and privacy,             •   Easy collaboration
but these issues are gradually being overcome as customers realize                    improves productivity
the cloud offers security capabilities that are not even possible in
private data centers.                                                             •   AI and data analytics
                                                                                      tools identify issues and
Furthermore, innovation is rapidly shifting to the cloud, with new                    insights faster
companies employing a cloud-first approach to product design. Some
                                                                                  •   Pay-as-you-go pricing
technology and business innovations are only available as cloud
                                                                                      lowers the cost to test
services—for example, those in the Internet of Things and AI sectors.
                                                                                      new ideas
Just know that if you’re not trying out these capabilities, your
competitors probably are.                                                         •   Scale up and down with
                                                                                      market demand
Integration with existing systems matters a lot when moving
                                                                                  •   Fully managed services
applications to the cloud. For that reason, we’ve done the work to
                                                                                      based on best-of-breed
make sure that CCAI is well integrated with all major telephony
                                                                                      open-source software
contact center equipment and applications. This means you can
integrate CCAI with your existing workflows and start seeing results
within three to six months. Our partners include Avaya, 8x8,
AudioCodes, Cisco, Five9, Genesys, Mitel, SignalWire, Telia, Twilio, and
Voximplant. We also provide an API management platform, Apigee, to
connect legacy systems with new digital services. The upshot? You
get the best of Google Cloud AI to go along with the investment
you’ve already made in your existing contact center.

1 Gartner Press Release, “Gartner Says Global IT Spending to Decline 8% in 2020
Due to Impact of COVID-19,” May 2020.
10

Chapter 5
Lessons learned from COVID-19

Days into the COVID-19 crisis, contact centers at healthcare providers,
unemployment offices, financial services (loans, payments, and
mortgages), airlines, and retailers were overwhelmed with calls: Can I
cancel my flight? Do I need to wear a mask? How do I get benefits?
With call traffic skyrocketing in some cases and staff overwhelmed
and unable to hire and train the number of human agents needed to
keep up with the influx of calls, customers said they wished they had
AI already implemented to help them scale with demand. But
standing up a new solution could take months—a luxury they didn’t
have.
                                                                          Google Cloud's
We created a way to quickly build and implement a customized CCAI         Rapid Response
virtual agent to respond to customer questions about COVID-19 over        Virtual Agent
chat, voice, and social channels.
                                                                          program cut the time
This Rapid Response Virtual Agent program cut the time it takes to go     it takes to go live
live with CCAI by more than 90% and provided basic relief to contact
                                                                          with CCAI by more
center agents.
                                                                          than 90% and
Within two weeks, instead of the typical three to six months, we          provided basic relief
enabled customers to stand up an AI-powered contact center. We
have continued delivering systems at that rate, for free or at a low
                                                                          to contact center
cost, with the ability to make them even more robust. Over time, these    agents.
systems will cater to new use cases and be able to answer more
complex or common questions.

None of this would have been possible without the cooperation of
many partners, in particular our telephony equipment partners and
large-scale systems integrators. When the need was clear, everyone
showed up and did what needed doing, rapidly developing
integrations for additional products and versions, waving standard
fees and working toward a common goal of delivering what might be
called a minimum viable innovation—a rewarding basis on which to
build.
11

Chapter 6
CCAI customer case studies

The following case studies are a small window into the exploding growth of CCAI and the success our customers are
having with this solution. Talk to us if you’d like to speak to CCAI customers in your industry.

State of Illinois
Challenge                                               How Google helped
With rising levels of unemployment due to the           Using CCAI helped the IDES answer inquiries and
COVID-19 lockdown, Illinois Department of               dramatically reduce processing times for
Employment Services (IDES) was processing an            unemployment claims.
unprecedented number of unemployment claims. In
the space of 5 weeks spanning March and April,          In partnership with Google, Quantiphi, Cisco, and
513,000 new claims were entered, which is higher        Presidio, a 24/7 service was developed on the IDES
than the total number of claims made in the entire      website to provide immediate assistance to those
previous year, or during the 2008 recession. The        filing claims. This included a CCAI web chat bot that
IDES contact center was overwhelmed with phone          responded to frequently asked questions, as well as
calls from people saying either they could not get      a voice agent that provided additional support to
through, or they waited on hold for hours.              people who were filing claims.

      3.2 million                               140,000+                                     99.9%
  inquiries handled by the                 inquiries a day handled                  of clean claims are now
    chat bot in the first 2                  by the virtual agents                   answered in a timely
           weeks                                                                            manner

We’ve had digital transformation projects like Contact Center AI on our
vision roadmap for a while, but now that we’ve proven how quickly we
can deploy the virtual agents, we realize we can accelerate our digital
transformation strategy.”                – Brandon Ragle, Chief of Enterprise Applications, Illinois
                                                                               Department of Innovation & Technology
12

Challenge                                                   How Google helped
The British multinational retailer receives millions of     To improve routing accuracy, give customers more
customer calls per year about thousands of                  self-service options, and increase analyst visibility
different topics. Understanding, routing, and               into customer journeys, Marks & Spencer used text
responding appropriately to each and every one is           intent detection functionality in Dialogflow
critical for customer satisfaction and operational          Enterprise Edition as the heart of an inbound call
efficiency.                                                 handling strategy based on CCAI.

    Reduced in-store call                                 Freed                                    Saved
        volume by

             50%                                          100+                                  +10 sec
   Routed more than 7 million                   employees to focus on                       Average Handle Time
    calls through Dialogflow                    other high-value tasks
                                                                                            With automated call
                                                                                          disposition, advisors no
                                                                                          longer had to record the
                                                                                         Reason for Contact (RFC)

Marks & Spencer achieved 92% customer intent accuracy in
13

                                                         About
                                                         India’s largest online insurance aggregator; company
                                                         today hosts over 80 million visitors yearly, and records
                                                         nearly 150,000 transactions a month.

Challenge                                                How Google helped
Scouting around for auto, health, home, or other         Policybazaar is one of the earliest CCAI adopters.
insurance plans can be a trying experience for           Now when customers reach out for guidance,
anybody. That’s a pain point online insurance            Policybazaar greets them with a virtual agent built
aggregator Policybazaar.com aims to eliminate with       using Dialogflow, a core component of CCAI. Since
the help of an AI-infused contact center.                implementing Virtual Agent, Policybazaar has
Policybazaar sought a way to provide better              reported top-line growth that it associates with the
recommendations and optimize the insurance               ability to deliver improved recommendations and an
shopping experience for customers.                       exceptional customer experience.

Though their chatbot, Policybazaar is now...

           Closing                                   Totalling                              Experiencing

           +13K                                      +$2M                                       30%
      sales per month                        additional monthly                            MOM growth
                                                   revenue

Contact Center AI is by far the best platform for text-based
conversational chatbots. With it, we derive all the benefits of machine
learning without restrictions on the front end."
                                                                          - Ashish Gupta, CTO & CPO, Policybazaar.com
14

Ticketmaster is the world's top live-event ticketing company. Founded in 1976, they sell more than 500 million tickets
annually in 29 different countries. Recognizing the ever-increasing accuracy and power of natural language
processing, Ticketmaster turned to Dialogflow's conversational technology to provide faster and more personalized
services for ticket buyers.

Challenge                                                  How Google helped
Provide faster and more personalized                       Ticketmaster used CCAI to power a customer service
services for ticket buyers.                                virtual agent for event discovery and orders via the Google
                                                           Assistant. The company is also experimenting with
                                                           integrating telephony/IVR systems.

Dialogflow helped our team
get a conversational
experience up quickly
without spending a lot of
hours coding...we feel we've
created something that
does sound pretty close to
human."

 - Patrick Jackson, Ticketmaster software engineer
15

                                                     About

                                                     Leading parcel carrier, shipping over one million packages
                                                     every day. Has more than 10K staff at 91 locations, and
                                                     500 staff across 4 call centers.

Challenge                                            How Google helped

Every day, DPD UK delivers and collects over one     DPD leveraged Dialogflow & Chatbase to train and
million packages across the country. The             fine-tune models based on intent, rather than
company's parcel tracking app was getting 100,000    decision tree. DPD also used Google's best
new users every month, and keeping up with chat      practices to design ways of presenting responses to
demand was becoming a real problem.                  users, which might include maps, images, or
                                                     prompts, as well as chat responses.

            32%                                     70%                             App-based
     of queries handled                     of queries could be                 chat requests means no
                                           handled immediately                    security questions
16

Chapter 7
New jobs, training, and skills

One of the concerns some people have when they hear about AI is job
elimination. So far at least, that’s not what we’re seeing in the market.
Our customers that deploy CCAI are freeing up agents to work on
more complex and interesting work with customers. This trend is
supported by research on the topic that says AI will replace certain
tasks performed by humans, but not the humans themselves.

As we’ve seen with prior technology shifts, workers are often capable
of moving into completely new jobs, especially with the appropriate
training. During the Industrial Revolution, for example, farmers
became factory workers, factory workers became factory managers,
and so on.

UK retailer Marks & Spencer (M&S) saw this trend play out when they
rolled out CCAI. The company was able to move 100 contact center
agents into their stores to work directly with customers.

Working with tools like Dialogflow and and other conversational
interface development suites requires a new way of thinking and
working in customer service. Improving digital skills is a key part of it
and a major challenge for enterprises globally. We are partnering with
companies like Groupe Renault, to provide coworking, training, and
enablement sessions with Google teams to help foster these new
skills. As companies make the leap into digital operations in their
contact centers, some of the new roles they are hiring for include:
conversation designer, conversation architect, VUI (voice user
interface) designer, and ML engineer of conversations.

Just a few years ago, these jobs were unheard of and there will be
many more that we haven’t thought of yet. This is a useful beginner’s
guide to conversational design, and here are more learning resources
in this field for teams making this transition.
17

New jobs in AI might surprise you

Landing a job in AI is not what Mira Lynn had in mind when she set about improving her employer’s customer service
offering. A technical writer in customer support, Lynn saw a gap in the way her employer, a hosting provider and the
world’s largest domain name registrar, was responding to customer issues. She noticed bots appearing on the
customer service scene in 2016 and started playing with them in her own time.

She quickly discovered Dialogflow and found it fascinating. “The language and words you use are actually turned
into conversation…we are interacting with customers much more than in a help article—philosophically, it’s so
exciting,” she said.

Lynn liked that Dialogflow provided her team of conversational designers’ independence from engineering
development cycles. Contact center agents, otherwise known as “Guides,” at the company wanted to maintain
autonomy over the language and how the chatbot delivers the words. Her digital care team’s charter is to provide
guidance, human and digital. Weaving the two together is very important. As is routing customers to the right source,
whether that’s a human or virtual agent.

“It [Dialogflow] allows us to move quickly and flexibly to iterate and respond to customer needs. Our agility has
allowed us to provide a customer and Guide-first experience, giving our customers the right answers in the mode
that they choose, while also enabling our Guides to better serve them,” said Lynn.

Now a manager for conversational AI overseeing a team of three conversation designers, this is a pivot from her old
job and a new role in today’s economy. Lynn’s advice was to develop the needed skills, study the market and make
connections. She said finding the people she needs as they keep growing is a challenge. The job titles are not
established roles and the job requirements are still emerging, making it difficult to know what to look for in
candidates. Training internal people has been a successful strategy so far. Two of her designers have screenwriting
degrees and are working with JSON payloads to talk between bots. “It’s been really wild,” she said.
18

Chapter 8
Next steps

It’s still early days for conversational AI, but we believe it’s important to start experimenting with conversational
computing now to help you adjust to this new era. Here are some questions to ask that might help you determine
how conversational AI will impact your business.

    •   How can I offer the same levels of customer service, or better, when agents work from home?

    •   What interactions can I automate while providing the same or better levels of customer satisfaction?

    •   How should I enhance my digital channels?

    •   Can I extend access to the necessary tools and secure networks for remote workers?

    •   Which skills and jobs make sense in the world of conversational AI and what does this mean for my existing
        agents? What training and skills will be important?

    •   How can I improve customer satisfaction without driving up costs?

    •   Of my content, what should be discoverable by Agent Assist?

Customer service organizations using CCAI are still focused on their core function: handling and addressing
customer issues. But by bringing best-in-class AI to the customer experience, they are more competitive. They have
found new ways to deliver value to their customers, employees, and business partners, deepening their relationships
across the board.

Take the next steps: Deliver exceptional customer service and increase operational efficiency using artificial
intelligence. Learn more about Contact Center AI.
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