Welcome to the Juice Newsletter: EP 8!

Welcome back to the Juice Newsletter! I’m Brian, Head of Growth & CX Insights at Kustomer, and this week we’re diving into some critical questions for CX leaders. Are we truly meeting our customers where they want to be met, or are we simply choosing the channels that are easiest for us? As we explore the latest insights on AI’s impact on customer service and the importance of human interaction, you’ll find valuable takeaways to help you navigate the evolving landscape of CX. Let’s get started!

CX INSPIRATION

Is your brand meeting customers where they want to be met, or are you funneling them into the channels that are easiest for you?

I came across a thread in a slack community about removing phone support because of the difficulty and strain it becomes to answer phone calls.

As brands expand their reach and adopt new technologies, it’s tempting to streamline customer support into a few of your favorite channels. Whether it’s removing phone support to cut costs or pushing customers to self-service FAQs due to overflowing email queues, the traditional strategy has often been to focus on a few channels and excel at them.

But with the rise of AI, that strategy is shifting.

AI is giving brands the power to be everywhere at once, offering personalized support across multiple platforms. Heather Kunert from Comrad pointed this out in her interview:

“We stand out by giving great support, and we improve customer loyalty by offering chat, phones, email, forms, FAQs—everything to customize the experience for each customer.”

With this power comes responsibility.

CX leaders must ensure their operations can handle this level of complexity. It’s time to invest in your CX operations, ensuring they are equipped to manage and optimize these diverse customer touchpoints.

CX SPOTLIGHT

Klarna Proves AI Efficiency!

Earlier this year, Klarna made headlines by announcing that its new ChatGPT powered AI assistant, was doing the work of 700 human customer service agents. At the time, CEO Sebastian Siemiatkowski expressed his excitement over the AI’s ability to resolve customer queries faster, reduce repeat inquiries by 25%, and communicate in over 35 languages—all of which contributed to an estimated $40 million in profit improvement for 2024.

Fast forward to the latest update, and Klarna has doubled down on its AI-driven strategy. The company recently reported that the AI assistant has not only maintained its performance but has also led to significant changes in the company’s workforce.

Over the past 12 months, Klarna has reduced its active positions from 5,000 to 3,800, largely through attrition rather than layoffs. Siemiatkowski anticipates that the headcount could eventually drop to 2,000, as AI continues to handle a growing share of the workload.

The efficiency gains are undeniable—average revenue per employee has surged by 73%, and the company swung to a first-half adjusted profit of ~$66 million. However, this rapid shift also raises important questions about the future of customer support jobs and the broader implications of AI on the workforce.

While Klarna’s strategy has proven profitable, it also underscores the delicate balance between embracing AI for efficiency and managing the human impact of such technological advancements.

INTERVIEW INSIGHTS

Last week, my colleague Caroline Dangson had the pleasure of interviewing Heather Kunert, Head of Customer Experience at DTC company Comrad, during our latest CX Weekly Live session titled:

“Making Every Interaction Exceptional.”

Heather shared how she transformed Comrad’s customer experience, driving a 26% increase in Average Order Value (AOV) and boosting the return customer rate by 40%.

Here are three key takeaways from their conversation:

1. Cater to your Diverse Customer Base
Heather emphasized the importance of recognizing the many needs of Comrad’s customer base, which ranges from young athletes to elderly individuals with specific health concerns. This wide range of their ICP requires a tailored approach to customer support, ensuring that each customer receives the right guidance and product recommendations. Say goodbye to the days of one channel customer driven support.

2. Integrate your Technology Stack for Efficiency
Heather highlighted the role of Kustomer in streamlining Comrad’s customer service operations. With integrated tools like Shopify for order management, Loop for returns, and Okendo for reviews, her team can access all the necessary information in one place. This holistic view allows agents to focus more on the customer rather than navigating multiple systems, significantly enhancing their efficiency and the overall customer experience.

3. Prioritize Human-Centric Service
Despite the advancements in technology, Heather’s approach remains deeply rooted in human empathy and understanding. She shared how her team is empowered to spend as much time as needed with each customer, whether that means resolving a complex issue or simply listening to a customer’s story. This commitment to making every interaction count is a key factor behind Comrad’s impressive customer loyalty and AOV growth.

GOLDEN NUGGETS

Must-Read Posts:

• Sweden’s Klarna says AI Chatbots help shrink headcount
• I can’t decide whether I want this AI customer service chatbot Rickrolling users to actually be real… but I’m still here for it
• Target Launches AI Chatbot to Support Staff, Enhance Customer Service

BRAND SPOTLIGHT

Unveiling the 2024 AI and Customer Service Index

Next Friday, don’t miss our next CX Weekly Live on LinkedIn, where I’ll be joined by Gabe Larsen, CMO of Kustomer, to explore brand new findings from Kustomer’s 2024 AI and Customer Service Index.

This survey of 1,200 U.S. consumers reveals how AI is transforming customer service, what consumers really think about AI agents, and why the human touch remains irreplaceable.

Gabe and I will dive deep into the data to uncover:

• How comfortable are consumers with AI handling their customer service needs?
• Despite advancements in AI, why do consumers still value human touchpoints?
• What are the potential pitfalls of AI in customer service, and how can brands navigate them effectively?

This is a must-watch for anyone looking to implement AI effectively in their customer service strategy. Watch now and gain valuable insights to stay ahead of the curve.