Talk of the UK economy came to an initial halt this week as the world watched for confirmation of the next US president – although not for long.
And by Thursday, the Bank of England provided an opportunity to refocus on home soil as it announced its second interest rate cut of the year, down to 4.75% from 5%.
This week’s rate cuts will be welcome news to smaller businesses. Lower borrowing costs and increased consumer spending are hopefully in sight, but not before some short-term challenges – namely, the incoming National Wage increases and changes to NI which will represent a squeeze for many service-led businesses.
However, I hope that some future benefits may come from these adjustments for businesses and customer service as a profession. Attracting talent and ensuring the customer-facing workforce is well-paid and adequately invested in should be in everyone’s interests in the longer term.
Undoubtably, many businesses will need to stomach the difficult decisions that significant changes like this require. In this case, that means continuing to invest in and prioritise the service offering.
Some of the conversation will inevitably turn to technology, including the utilisation of AI, which can offer a way of making skilled and properly trained people far more effective at serving customers.
Approaching AI – a complementary service solution
Arguably, when it comes to deciding if, how, where and when to implement AI, considering the long-term outcome and the impact on the customer is critical. Our research demonstrates the importance of designing the customer experience through the eyes of the customer. We know that the current manifestations and uses of AI will not be a panacea to all of our productivity issues. And failure to consider its benefits beyond immediate cost savings can ultimately strike a blow to both service and profits.
Therefore, organisations should be cautious of becoming over-reliant on AI amidst a short-term rush to cut costs. AI certainly has its place and, when used properly, is a powerful tool to enhance the service experience – enabling service professionals to get on with the vital task of delivering excellent service, or understanding customer preferences better and seeing more impactful customer outcomes. They can better focus on getting things right first time and ensuring we achieve better productivity and effectiveness through bringing AI, people and data together will change the service landscape irrevocably.
To achieve this, businesses should consider three crucial elements. The first is asking the right questions about how you’re going to implement AI, how it’s going to be used, and why you need it. Having a clear roadmap for implementation, purpose, and outcome is essential.
Second, the merits of AI must be considered in terms of its effectiveness, not just efficiency savings. If it can fulfil its specific role effectively, AI has the potential to raise not just service standards, but drive efficiencies too.
Third, AI is best treated as a tool, not an alternative. For service-led businesses, customer service is often your core proposition that shouldn’t be “outsourced” to an inferior solution.
The bigger picture: enhancing service standards
Considering this, it was interesting to see AI feature in last week’s Budget, as the Government prepares to publish its roadmap for capturing the opportunities presented by AI to enhance growth and productivity and better deliver service for the public.
For me, this is the mindset that all leaders and service-led businesses must adopt. Our focus must always remain on improving the standards of the customer experience across the UK, no matter what tools we have at our disposal.
By making the necessary decisions in the here and now, such as investing in service staff and training or the thoughtful implementation of technologies like AI, businesses can prepare for the future and ensure they’re able to deliver long-term growth not just for themselves but the economy, too.
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