When I talk about customer experience, I usually think of a personalized experience. We all want to feel heard and understood, but how can companies achieve this with hundreds, or even thousands, of customers? This is where machine learning (or Machine Learning, ML) comes in.

Why does the prediction change everything?

Machine learning is not a futuristic concept or a complicated technology that only large companies handle. It's basically the ability to predict. Imagine if a company could anticipate your needs before you express them. It's not magic, it's ML analyzing patterns and behaviors to get ahead of what each customer may required.⦁

This is something we can see on giants like Netflix, which recommends series that you are sure to enjoy, or on Amazon, which suggests products based on what others like you have bought. But it's not just in these areas; ML has applications in every corner of the business, from marketing to fraud detection.

The problem of not seeing the forest for the trees⦁

Although companies recognize the power of ML, they often get lost in a fascination with technology. They see the potential of artificial intelligence, but they don't stop landing it in their processes. The real question they should be asking is: “How can I apply this to improve my relationship with customers?” If we don't find the practical value behind the prediction, we're left with luxury technology, but with no results.

ML, the antidote to information overload*

We all suffer from information overload. Emails that don't interest us, search results that aren't what we want, and recommendations that just don't go with us. Here, ML becomes essential for filtering that information, selecting what is truly relevant to each person. Companies that implement it well achieve a much smoother and more satisfying experience for their customers.

Real cases that go unnoticed*

An example that struck me was how fraud detection also impacts the customer experience. FICO's Falcon system, for example, processes billions of transactions around the world, and thanks to ML, it prevents millions of frauds every year. Not only does this protect businesses, but it also improves customer trust. What's more frustrating than a fraudulent charge on your credit card? Or worse yet, having a legitimate payment blocked from you. Minimizing these problems directly improves the relationship with the customer.2,3

The Cycle of Satisfaction and Growth*

The most interesting thing is how improving the customer experience has a ripple effect. Happier customers are more loyal customers, and loyalty ultimately drives the growth of any company. ML helps to close this cycle, where both the user experience and business results are bettered.

What now?

If something is clear to me, it's that machine learning isn't an extra, it's an indispensable tool for any business that wants to be one step ahead. It's not just about embracing technology because it's what's trending, but about understanding how it can transform the way we connect with customers.

ML isn't complicated, it's a strategy that is available to everyone and that has a direct impact on what really matters: making our customers feel understood and valued.

References

Siegel, E. (2023, March 24). How machine learning can improve the customer experience. Harvard Business Review. https://hbr.org/2023/03/how-machine-learning-can-improve-the-customer-experience ⦁