Customer Experience (CX)

Customer experience to encompass consumer duty

CX expert Michael Anderson, Vice President, Client Management, at Davies Consulting believes AI is “vexing the C-Suite” and that Consumer Duty must consider more than just age vulnerability when assessing customer experiences.

IAB: What challenges does AI present for your firm and your clients?

Michael Anderson (MA): All sectors and all clients are challenged with trying to understand the impact of AI on them and their customers. This new dimension is vexing the c-suite on where or how to embrace this new technology. We are strong on the opinion it is too early to use AI to serve a customer, but we do see it can be a great force for good in supporting the agent in so many ways. We call this the ‘Digital Shoulder’. The technology is here now, but it’s not a simple ‘plug and play’ solution. Many capabilities need to sit behind it including the quality of the customer data and the effective use of knowledge management.

Another challenge we see is a real demand to move technologies to the cloud, in part because of the need to migrate from legacy platforms that are at or nearing end-of-life, but also because it offers organisations greater freedom in considering the wider technology ecosystem.

Dr. Karim Mansour, Director and Chief Trainer, Tadawul Academy

Michael Anderson, Vice President, Client Management, Davies Consulting

IAB: What legislative or policy changes will impact your work and Consumer Duty?

MA: Specifically in the Financial Services sector, Consumer Duty and Operational Resilience will be front and centre as the banks will have to demonstrate how they are adhering to the respective guidance and legislation. In Davies CX we have particularly focused on Vulnerable Customers, which is a component of Consumer Duty. The latest report from the FCA states: ‘While some firms considered treatment of vulnerable customers within their reviews of products and services, this was lacking in some firms’ documentation. We remind firms that the Duty raises the standard of care to all consumers. Our guidance on the fair treatment of vulnerable customers sets out what firms should do to ensure customers in vulnerable circumstances experience outcomes as good as those for other consumers’. We believe ‘vulnerability’ goes beyond financial vulnerability as there is also digital vulnerability, health, physical, socio-economic, ageism etc. As such, how to better understand and manage all vulnerable customers is a strategic imperative for all sectors.

IAB: What do you expect to see firms doing over the next year to provide a better digital experience for their customers?

MA: We do see a softening in demand; however, the more enlightened businesses have identified Customer Experience (CX) as a key differentiator. We are noting two aspects that will drive improvement in this area. The first is data; the insights derived from data and the subsequent continuous improvements that arise leading to an improvement in overall CX. The second aspect relates to customer expectations. Post-Covid, the importance of a Contact Centre as a ‘hub’ where staff can answer calls from customers directly is maintained, but the need to offer better digital journeys is also a customer expectation. This is leading clients to consider the right technologies to deploy to better manage customers across multiple channels. The deployment of these technologies as cloud-based solutions gives businesses greater freedom and ability than ever before, but only if customer journeys are well thought through and managed accordingly.

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