What is contact center automation?

Contact center automation refers to the use of AI-powered technology to automate routine customer service processes and repetitive tasks. By automating certain processes in a contact center, an organization’s human agents can work more efficiently and be available to customers with more complex problems to solve.

Automation of routine tasks previously performed by humans can increase efficiency, reduce costs and improve overall accuracy of customer service, which ultimately has a big impact on the overall customer experience (CX). Some of the potential use cases for contact center automation are chatbots, interactive voice response (IVR), robotic process automation (RPA), contact center as a service (CCaaS) and an online knowledge base. These new technologies, like predictive analytics and forecasting algorithms, offer a lot of potential for organizations looking to address growing consumer demand and how those customer interactions play into overall customer satisfaction.

Human agents and virtual agents compliment eachother to provide top-level customer service and both are vital to smooth implementation of workflow automation and operational efficiency. Separately, contact center automation can often implement call center software to manage call routing and call volume.

Customers want an effortless customer experience when doing business with an organization. No matter what the product or service is that they’re buying they want it to be a seamless process. And businesses are finally starting to recognize the importance of artificial intelligence, generative AI and automation tools for great customer service.

A significant number of organizations are already implementing generative AI in customer service, according to a recent IBM Institute for Business Value report¹. The researchers surveyed nearly 1,500 customer service leaders and found 67% are already using the technology. And more than 40% are using gen AI to create test cases for training conversational AI.

Businesses are learning that exceptional customer service is no longer just a priority, it’s a requirement. Customers expect faster, smarter and more personalized experiences regardless of where or how they’re contacting the business. And now it can be done without the need for additional staffing of call centers or customer service departments. The automation tools clamp down on time-consuming tasks and assist callers quicker than ever before.

Research also shows that 97% of customer service providers report that conversational AI has a positive impact on customer satisfaction².

It’s important to note that contact center automation and call center automation differ slightly, though the two are often used interchangeably. However, call center automation is just a subset of contact center automation. For example, a business with an omnichannel customer service approach may choose to automate its contact center, but specific channels—such as phone, website or an app—will then need to be automated as well.

As businesses start to adopt automation into their contact centers, it’s essential to implement it effectively to maximize its potential. These best practices can help businesses address customer needs and resolve customer issues in a more timely manner than ever before.

Before deploying any automated systems, it’s critical to define clear goals and objectives. Whether the aim is to reduce wait times, improve first-call resolution, or cut operational costs, having a clear vision will guide the automation process. It’s important to identify which tasks can be automated effectively, such as frequently asked questions (FAQs), basic troubleshooting, or appointment scheduling, while understanding which tasks still require human intervention. Properly defining the scope helps see to it that automation adds value without compromising on service quality.

Today’s customers interact with businesses across various platforms, including customer calls, live chat, email, social media and mobile apps. A key best practice for contact center automation is to implement an omnichannel automation, where all channels are integrated and managed in a unified system and using one that integrates easily with an existing CRM. This promotes consistency in customer interactions, as automated responses can carry over seamlessly from one channel to another. For instance, a customer who starts a conversation via chat can seamlessly switch to email or voice support without having to repeat themselves and all customer information is already there for the agent.

When bringing in automation software, it’s best to start small by automating simpler, more predictable tasks. A good place to start is by automating routine inquiries like business hours, order status, or FAQs. As the automation solutions proves effective, it can be scaled to handle more complex tasks, such as personalized support or transaction processing. Gradual implementation allows the business to refine processes and identify potential issues early, minimizing the risk associated with large-scale automation rollouts.

AI-powered automation can significantly enhance the customer experience by delivering personalized customer support. By using contact center automation tools an organization can analyze customer data and provide tailored recommendations, resolve issues based on previous interactions, or route customers to human agents if necessary. A personalized approach helps create more meaningful interactions with customers, which can result in better customer engagement and brand loyalty.

Human agents are still pertinent to customer service and must be brought in when there are complex or sensitive issues to resolve. It’s vital to design a smooth handoff process between the automated systems self-service options and the human agent to make sure that the service experience is satisfactory. When automation detects that it cannot fully address a customer’s concern, it should be able to escalate the issue to a skilled human representative without causing delays or frustration. Providing agents with a complete context of the previous interactions will help them respond more effectively and reduce customer effort.

Automation is not a one-time setup and it requires ongoing monitoring and optimization. Businesses must regularly analyze key performance indicators (KPIs), such as response time, customer satisfaction score, handling time, first-call resolution rate and cost savings, to assess the effectiveness of the automation. It’s important to continuously analyze customer feedback to identify areas for improvement. As automation technologies continue to evolve, businesses will need to upgrade systems to take advantage of new features and capabilities. This iterative approach makes sure that the contact center remains efficient and adaptable to the customer journey.

Contact center automation can play a crucial role for businesses in the fast-paced technology-first world today. Contact center automation offers several advantages for businesses looking to streamline their operations and reduce costs with tools like chatbots, AI-driven virtual assistants and self-service portals.

A traditional contact center involves significant labor costs, as human agents are needed to handle customer inquiries. Automation reduces the reliance on human agents for repetitive tasks, such as answering frequently asked questions or processing simple requests. This enables businesses to handle a higher volume of customer interactions without the need to continuously scale their workforce. Over time, this results in substantial cost savings.

The customers of today expect instant, 24/7 support. Automated systems, such as chatbots and IVR systems, allow businesses to provide immediate assistance even outside of regular business hours. These tools can quickly address basic inquiries and offer real-time responses, improving customer satisfaction scores (CSAT) and impacting customer journey maps. Additionally, automation technology like sentiment analysis can help an organization understand how a customer is feeling and extract meaningful insights.

A contact center can fluctuate in size depending on a number of factors. For instance, contact centers often face spikes in customer demand due to factors like product launches, season sales, or crises. Automation allows businesses to scale their own operations quickly without needing to hire and train additional agents. AI-powered systems can handle thousands of interactions simultaneously, ensuring that customer service levels remain high even during periods of high traffic.

Automated systems collect vast amounts of customer interaction data, which can be analyzed to provide smart and valuable insights. Businesses can use this data to identify common pain points, improve their products and services and refine their contact center strategies. Automation also enables better tracking of performance metrics, such as response time, resolution time and customer satisfaction rates, which can be used to further optimize operations and workflow. New technology can also manage data entry and simplify the process reducing the risk of human error.

By automating routine tasks, human agents are freed up to focus on more complex, value-added interactions. This not only boosts productivity but also improves job satisfaction for agents, who engage in more meaningful work rather than repetitive, low-level tasks. Automation also helps reduce burnout by minimizing the volume of monotonous tasks.

Chatbots are one of the most common forms of contact center automation, providing immediate responses to customers 24/7. The chatbot can handle simple inquiries, such as product availability, order status, pricing and FAQs without the need of agent assist. An example is if a customer requests the ETA of an order, the bot can access the order data in real-time and provide an update in a matter of seconds. This automation tool reduces wait times for customers and the risk of human error.

Case study: Camping World implemented IBM® watsonx Assistant™ to create a human centered solution to handle customer assistance. As of March 2022, customer engagement increased by 40% and Camping World saw wait times drop down to 33 seconds.

The IVR systems allow customers to interact with automated menus to resolve common issues without speaking to a live agent. For example, when a customer is on the phone with customer service the IVR system can help route calls to the appropriate department or agent based on customer input, cutting down on misdirected calls. A call center may specifically have auto dialer technology which can automatically dial customer phone numbers.

Case study: Humana’s old IVR system was transferring too many calls to human agents. The company then partnered with IBM to create a Provider Services Conversational Voice Agent with Watson. The solution has been able to handle inquiries at about a third of the cost of the existing system and it has also had a higher overall response rate—almost double that of the previous automated IVR system. 

Self-service portals give customers the ability to resolve issues independently, such as managing account settings, troubleshooting common problems, or processing returns. Customers can access these portals through a website or mobile app, saving both the customer and the business time. By automating routine tasks and providing customers with control, businesses can streamline processes and limit customer queries.

Case study: American Airlines wanted to provide faster, convenient customer service to their customers and enlisted IBM to help. Just four and a half months into the project the Dynamic Rebooking app was released to production in eight airports. American now has an app that is easy to to use and modify based on customer feedback. 

Automation technology can streamline appointment scheduling, confirmations and reminders. Customers can book, reschedule, or cancel appointments through an automated system that uses predictive technology, reducing the need for agent involvement during routine scheduling. In addition, automated reminders can be sent through email, text or voice and reduce no-show rates.

AI-driven automation can be used to automatically create, categorize and prioritize support tickets. When a customer submits an issue through email, chat, or other channels, the system can use natural language processing (NLP) to understand the problem, assign it to the appropriate team and even suggest potential solutions. This speeds up the resolution process and helps make sure that tickets are handled efficiently.

Case study: Vodafone Ireland partnered with Expert Labs to redeploy its virtual assistant TOBi on the latest watsonx Assistant platform. The new platform had genAI capabilities and proved to be beneficial as there was a clear improvement in turnaround time for creating new conversational journeys and a jump in containment rates. 

Knowing what the customer wants before they have to ask for it is not an uncommon school of thought amongst businesses. Automation tools can be used for proactive outreach to customers to do just that. For example, businesses can automatically notify customers of system outages, shipping delays, or product recalls before they reach out for assistance. Proactively informing customers about potential issues or change can improve satisfaction by reducing frustration and providing timely, relevant information.

Case study: The City of Helsinki and IBM Consulting® worked together to build and run 10 virtual assistants, including a “multi-chatbot” that combines virtual assistants from several healthcare and social services organizations into one. The virtual assistants were built to help citizens take advantage of services in the Helsinki capital region.

Automated systems can be used to engage and qualify leads before passing them to human sales agents. Chatbots could, for example, be used to engage potential customers on a website or social media platform by asking questions about their needs and providing product recommendations. Based on the customer’s responses, the system can assess whether the lead is a good fit and either provide additional information or escalate the conversation to a human agent.

Case study: When COVID-19 hit watch retailer TAG Heuer, IBM and Salesforce had already been working to build out the company’s e-commerce arm. The lockdowns accelerated their work immensely, especially the focus around personalization. The company made it through the pandemic and in 2020 saw triple digit growth. 

Customer feedback is crucial to understanding how well a customer service workflow is functioning and how satisfied a customer is with the organization. After a customer interaction, automated surveys can be sent through various channels, such as email, SMS, or even within the IVR system. These surveys can automatically capture satisfaction scores, net promoter scores (NPS), or detailed feedback about interactions and agent performance. Businesses can gain valuable insights to improve customer service and refine outdated processes.