The Future of Call Centers

With the advent of LLMs (Large Language Models) like ChatGPT and the growing popularity of visual engagement tools like Grypp, the future of call centers looks bright and promising.

Imagine this:

  • 90%+ of the most basic call center interactions are completely automated, with AI agents assisting customers with the most repetitive, low-leverage tasks (like password resets, directions, and account statements)
  • Complex, high-leverage conversations are seamlessly escalated to a smaller number of highly trained agents, assisted by an AI copilot, predictive analytics to personalize recommendations, and cutting-edge engagement tools to improve customer experience.
  • Customer-agent interactions will no longer just be text and voice. Agents and customers will communicate with visuals, seamlessly using tools like co-browsing, video streaming, and virtual showrooms to substantially improve every interaction.
  • Every facet of the customer experience will improve – from zero time spent on hold to having their issues resolved on the first call, every time.

This isn’t just a rosy picture. These trends are already baked into the cake, so to speak.

According to CX Today, 51.8% of all contact centers are already building their business strategies around AI, with another 30.4% working on a new AI plan. 

And according to a Forrester Research report, visual engagement like co-browsing and video streaming is already the most popular tool for contact centers behind email and phone

But how exactly will these trends impact human agents, contact center processes, and ultimately, the customer?

Let’s explore the future of contact centers.

How the Role of Human Agents Will Evolve

Long gone are the days when call center agents simply answered the phone. Today’s agents are evolving into highly skilled, multi-tasking, customer experience superheroes. 

And guess what? 

They’re going to be even more important in the future.

While many tasks will undoubtedly be outsourced to AI algorithms (and should be) – customers have made it very clear over the last few years that there is simply no replacement for a human agent.

The Human Touch

According to a recent study by UJET Research:

  • 80% of customers said using chatbots increased their frustration level
  • 63% of customers failed to resolve their needs with a chatbot and had to speak to a human
  • 54% of customers believe that speaking to a live agent is faster and better for their overall experience

So while you shouldn’t abandon your chatbot rollout – it is very clear that most consumers expect human agents to be accessible. 

And depending on your industry, making it too difficult to reach human agents could spell disaster for your customer retention. 

High-Skill, High Leverage Work

As customer expectations grow and as technological adoption accelerates, call center agents will need to become ever more skilled.

First, soft skills are going to come at a much higher premium. 

Things like creativity, empathy, and genuine connection will be very difficult (if not impossible) to replace with AI, and so they will likely become the primary value of human agents.

Secondly, with new technologies come new hard-skill requirements. 

Customer service agents of the future will need to be well versed at interacting with AI systems and using new visual communication tools like Grypp to solve customer problems.

And that means that brands that are serious about customer service will need to invest in attracting, retaining, and training the best talent.

The Remote Work Revolution

Here’s an interesting stat—85% of customer service agents want to work full-time at home

While remote work may not be for everyone, there’s no denying its importance.

This is especially true as customer service becomes an even more high-skill role. 

Higher skill requirements will mean that customer service agents will have more leverage than ever before. And ignoring one of their most important requirements (working from home) will make it difficult to attract and retain talent.

Making Super Agents

AI and automation are set to handle repetitive tasks, allowing agents to handle higher-level customer interactions. Isn’t it exciting to imagine our agents transitioning into these strategic roles?

Predictions

  • The role of the human agent will become more strategic and diversified
  • Soft skills that AI can’t replace (creativity, empathy, and genuine connection) will become more important than ever
  • Hard skills like interfacing with complex AI systems and using new engagement technologies will become increasingly necessary
  • Most customer service agents will be working remotely
  • Attracting and retaining top talent will become a key differentiator for leading BPOs and call centers

Advice for Executives

  • Invest in employee development to prepare your team for more complex customer interactions. 
  • Study the limitations and constraints of any AI systems you are implementing.
  • Ensure that customers can always reach a human agents during pivotal moments in their customer journey (whether they are buying, churning, or dealing with complex problems).
  • And always remember, even in a digital world, the human touch matters.

The Dawn of Conversational AI

As discussed above, conversational AI models like ChatGPT are causing a lot of buzz in the industry. And for good reason.

According to a survey conducted by MIT, 87% of global businesses believe AI will provide them with a competitive edge. And Gartner predicts that AI will reduce call center labor costs by $80B in 2026.

There’s a lot to be excited about here.

But remember – it’s about harmony between human agents and AI, not competition.

AI as a Support Tool

The bottom line is this: AI is here to support, not replace human agents. 

Although the labor savings will be undeniable, according to the same Gartner prediction cited above – only 1 in 10 agent interactions will be automated by 2026.

This means that 90% of interactions will still require a human agent for the foreseeable future.

How does this look in practice?

If today’s trends are anything to go by, AI chatbots will likely automate the most repetitive and simple queries. Things like password resets, account balance checks, or basic informational queries will be prime interactions for automation.

But more complicated interactions like sales, refunds, customer retention, and technical support will still be best suited for human agents. 

This balance will benefit both agents and customers. 

Human agents will also likely leverage AI “copilots” to better support customers (querying sales materials, policies, etc.) in the near future.

Data Insights

Here’s where it gets exciting—AI can help analyze customer data to extract meaningful insights. This could mean more personalized service, trend predictions, or spotting potential issues before they even occur.

As mentioned above, humans will still need to manage the interaction with customers – but they will be much better equipped to do so. 

Prediction

  • By 2025, AI will become a mainstay in call centers, not as a replacement for human agents, but as a tool to improve efficiency and service quality.
  • The simplest and most repetitive customer interactions will be mostly automated by 2026
  • Human agents will still handle the most complex cases, but they will be equipped with an AI copilot to help them easily query documentation and predict customer needs.

Advice for Executives 

  • Be strategic about AI implementation—plan, train, and aim for seamless integration. 
  • Account for your customer’s unique journey, and ensure that the introduction of AI reduces friction instead of increasing it. 
  • Remember, AI is a powerful tool, but it needs a human hand to guide it.

The Continued March of Data Analytics

Although we’re well past the hype of big data (the hype cycle has moved to generative AI) – call center executives shouldn’t sleep on advancements in big data.

AI and machine learning are also being used to great effect for analyzing data and making predictions.

And according to Forbes, advanced analytics can reduce average handle time by up to 40% and boost conversion rates by nearly 50%.

How, exactly?

AI and Machine Learning: The Dynamic Duo of Data Analysis

AI and machine learning are transforming how we analyze data. 

Rather than just looking at historical patterns, these technologies can identify hidden trends, make predictions, and even recommend actions. 

How Advanced Analytics Reduce Average Handle Time

Advanced analytics can significantly reduce average handle time (AHT) in several ways:

  • Predictive Modeling: By analyzing past call data, AI can predict the complexity of incoming calls, enabling call centers to route calls to the most suitable agent. It’s like matching the right tool to the right job, enhancing efficiency and reducing handle time.
  • Real-Time Speech Analytics: AI can analyze customer interactions in real time, identifying key phrases or sentiments that signal a customer’s mood or intent. This helps agents quickly understand the customer’s needs and respond appropriately. It’s like having a translator who can decode customer sentiments.
  • Prescriptive Analytics: AI can also provide agents with real-time recommendations, based on the ongoing interaction, helping them resolve issues faster. Think of it as having a wise advisor whispering in your ear, guiding you through the call.

How Advanced Analytics Boost Conversion Rates

But it’s not just about efficiency. Advanced analytics can also boost conversion rates.

  • Personalization: By analyzing customer data, AI can create a personalized experience for each customer. It’s like walking into a store where the salesperson knows your name, your preferences, and your purchase history. This personalized experience can significantly increase conversion rates.
  • Next Best Action: AI can recommend the ‘next best action’ for agents to take, based on the customer’s profile and the ongoing interaction. It’s like playing a game of chess, where AI suggests the most strategic move to make.
  • Churn Prediction: AI can also identify customers at risk of churn, enabling agents to proactively address their concerns and increase retention. It’s like being able to catch a falling star before it hits the ground.

Predictions

  • Advancements in analytics models will make real-time analysis possible, including sentiment analysis, next best-action recommendations, and churn predictions – all while an agent is on the call with a customer
  • Hyper personalization will become much easier, with an AI-driven analytics engine making product recommendations and customized discounts to maximize conversions
  • Advanced analytics will make it much easier to optimize call center operations by analyzing and predicting call volumes, agent performance, and optimal schedules

Advice for Executives

  • Analytics isn’t as shiny as conversational AI – but it may be even more important to your operations.
  • Good analytics will form the backbone of your strategic decision making

The Rise of Visual Engagement Tools

As the saying goes, a picture is worth a thousand words. So a 30 second 60FPS video is worth 1,800,000 words (or so they say).

According to Forrester Consulting, visual engagement is already the most popular tool for human-assisted interactions behind phone and email. Considerably more popular than chat, SMS, social media, and remote support. 

And this trend is not slowing down.

Visual engagement tools are making customer-agent interactions more dynamic, immersive, and effective – at the same time as customers are growing increasingly frustrated with the limitations of text-based AI chatbots. 

What is it about visual engagement that makes it so effective?

The Power of Visual Processing

According to a study:

  • Our eyes can register 36,000 visual messages per hour
  • Visuals are processed 60,000X faster in the brain than text
  • Visuals improve comprehension by up to 400%

Our brains have evolved to process visual information much more effectively than other types of information. 

It’s no wonder that TV killed radio.

And the same thing is happening with the humble contact center telephone – which is being replaced by a suite of visual engagement technologies like:

  • Co-browsing: Customer and agent browse the same web page, document, or app together – seeing the exact same thing and interacting with the screen in real time.
  • Video streaming: Customers can stream video of their problem, agents can stream video of the solution – or both can simply interact as if they were face-to-face. 
  • Virtual show-rooms: Agents guide customers through a virtual showroom, where they can showcase products and compare them side by side.

These tools are not only helping improve subjective customer experience – they’ve also been shown to massively improve some critical call center KPIs.

Supercharging Call Center KPIs

As anyone with call center experience can attest, voice and text are incredibly limited communication methods. 

In traditional, voice-only call centers, even simple tasks like helping customers navigate through a website can lead to a significant amount of frustration on both sides. Agents have to lead customers essentially blindfolded, never knowing if they’re looking at the same thing or following the instructions correctly. 

This goes double for complex situations like tech troubleshooting.

Visual engagement tools remove the blindfold, so to speak, and allow both agent and customer to show each other, rather than simply explaining in words.

That’s why early adopters of visual engagement solutions have seen a massive improvement to the following KPIs:

  • Conversion Rates: Customers that can see, interact with, and compare a product are much more likely to purchase it on a call.
  • Average Handle Time: Because humans process visuals much faster than audio or text, adding visualization to call center interactions significantly cuts down on the time spent explaining.
  • First Call Resolution: If the agent understands the customer’s issue more clearly, they’re able to provide a solution much more quickly. If customers can see what the solution looks like, they’re less likely to need a follow up. 
  • NPS / CSAT: When customers are able to explain their issues without frustration, more quickly resolve their queries, and interact with an agent with more than just voice – they inevitably walk away happier and more satisfied with their experience.

Combining Visuals With Other Tools

While visual engagement has already proven to provide massive ROI to call centers – the future of visual engagement lies in the strategic integration with other emerging technologies like AI and analytics.

Imagine using predictive analytics to automatically generate recommended products or solutions to a customer in the middle of a call – and then walking the customer through a virtual showroom with all of the recommended products. Or using an AI copilot to find the solution to a complicated problem, and then showing the customer how to do it right on the call.

Call centers that (a) incorporate these tools together, and (b) provide training for their agents to leverage these tools are likely to see a much higher return on their investment.

Predictions

  • Visual engagement tools will be commonplace in the contact center, serving as a primary channel for customer service interactions.
  • Integration of visual tools with AI and machine learning will lead to more proactive and personalized customer service experiences.
  • Advanced visual engagement platforms will enhance remote customer service capabilities, aligning with the growing trend of remote work.
  • Privacy and security measures related to visual engagement will evolve, ensuring that customer interactions remain safe and secure.

Advice for Executives

  • Transition from voice and email to visual engagement as quickly as possible – your customers already expect it, and your competitors are well on their way.
  • Train your customer service agents to effectively use these tools. This will ensure seamless interactions and maximize the benefits of visual engagement.
  • Prioritize privacy and security when adopting visual engagement tools. Ensure you use tools with SOC2 Type 2 and PCI DSS compliancy (like Grypp)
  • Always remember that visual engagement is not just about solving issues faster. It’s about creating memorable and personal customer experiences.

The Contact Center of the Future: A Roadmap

Let’s put it all together now. 

The future of call centers involves a balanced mix of human agents, AI and automation, data analytics, and visual engagement tools. 

It’s an exciting future indeed.

  • Investment in the Future: It’s important to note that 21% of CFOs plan to increase customer service spending and 72% to maintain spending through September 2023, despite economic pressures. Clearly, investing in the future of call centers is a priority.
  • CCaaS Growth: With the global Contact Center as a Service (CCaaS) industry forecast to reach $19.8 billion by 2031, the adoption of CCaaS solutions will undoubtedly play a big part in shaping the future of call centers.
  • Futureproofing Your Call Center: As the call center landscape changes, futureproofing your call center becomes essential. This might involve revising your hiring and training strategies, exploring new technologies, and adapting to new ways of working.

Guidance for Executives 

Futureproofing requires a clear vision, strategic planning, and a willingness to adapt. Stay ahead of the curve by keeping an eye on emerging trends, investing in technology, and putting the customer at the heart of your operations.

And keep in mind – although these advancements are all but inevitable, they will disproportionately benefit companies and brands that take advantage first. 

According to Harvard Business Review, companies that pursue new technologies are more likely to have a major first-mover’s advantage – to lead in revenue growth and market position in their industry. 

So as we embark on this journey into the future of call centers, let’s remember one thing—it’s all about the customer. 

Whatever changes we make, whatever technologies we adopt, they must serve one purpose—to provide an exceptional customer experience.

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