How AI and data analytics can support vulnerable customers

Well before the COVID-19 pandemic began, the identification and protection of vulnerable customers was a significant focus for companies and regulators. Here James Allen, Chief Risk & Technology Officer for Webelp UK Group looks at the impact it will have, now and in the future.

In these testing times, the identification and protection of vulnerable customers will now assume even more importance as organisations work on proactively recognising customers who need assistance, prior to the predicted surge in demand for financial support - as aids like employee furloughs, payment holidays and credit schemes end.

Worryingly, prior to the outbreak over half of the UK population were already financially vulnerable, with one in six people unable to cope with a £50 increase in monthly bills, according to a survey of Britain’s personal finances by the City regulator. The Financial Conduct Authority’s biggest ever survey of households found that 4.1 million people are already in serious financial difficulty, falling behind with bills and credit card payments, with 25- to 34-year-olds the most over-indebted.

Furthermore, 50% of adults (over 25.6 million people) “display one or more characteristics that signal their potential vulnerability” and just under 8 million are over-indebted.

And this is not limited to the UK, as the 2019 Prosperity Now Scorecard finds that forty percent of American households lack a basic level of savings and don’t have enough savings to make ends meet at the poverty level for three months if their income was interrupted. Almost half (48.1%) of Americans with credit had scores below prime and 20% of households had no credit in the past 12 months and were likely to be without access to it.

Furthermore, a report from the ING Group states that southern European economies like Italy and Spain are especially vulnerable to the economic effects of COVID, exacerbated by the importance of tourism which accounts for at least 13% of GDP and about 15% of total employment. They also have a larger share of vulnerable workers and a higher chance of bankruptcies due to firm size.

However, throughout all this we must remember that vulnerability can be a temporary and fluctuating status, with many causes, including mental health, dementia, changes in employment and personal circumstances, literacy, numeracy and socioeconomic factors.  It is key to use technology to help people on an individual basis, never forgetting that unique set of circumstances they may be experiencing.

Plus, regulators will be keeping a close eye on these new developments, and the pressure may soon be on firms to use all available routes to safeguard customers and prevent the global financial crisis from deepening.

So the question for many global companies has become, in the post COVID world, how do we identify and support customers who are financially vulnerable, without compromising operational efficiency?

And this is especially important for us at Webhelp, as we carry a people-first commitment and our think human value through to the customer base of over 32 clients in the UK, India and South Africa.

It’s clear that data analysis and artificial intelligence (AI) is already changing the way that companies offer support to their most vulnerable customers, and that this may play a part in reshaping the regulatory landscape. While establishing if someone is vulnerable and how best to support them is a very human judgment, at Webhelp we believe that sensitive and careful use of data, using AI to segment, can help direct the right customer support teams to the right people, spotting potential issues before they become a problem.

We combine the very best in technology and skilled people to create the best outcomes, as Chris Bryson, Webhelp Global Data & Analytics Director explains:

“We’re helping clients leave no stone unturned to reveal customer vulnerability. Whether customers tell us directly that they’re experiencing issues, or if they show characteristics of someone who can be vulnerable; using analytics from customer contacts and records helps us and our clients see those signals clearly.

We use our own unique speech and text analytics engine, which is applied to advisor and automated customer conversations. The resulting Voice of the Customer analytics drives constant improvements in the way we measure quality and enhances the overall customer experience.

As a result, we can help our clients to spot vulnerable customers who would otherwise slip through the net. At the heart, it’s about helping our advisors to better support that customer, and working with our clients to ensure they are recognising these signs of vulnerability.”

By using this insight, and access to the best analytical technology, and to the right people to put this in action for the greater good, we can confidently move forwards and create a better financial environment for both clients and customers in the future.

To discover more about customer service models post COVID-19 read our new Whitepaper, a joint publication with Gobeyond Partners, part of the Webhelp Group, on Reimagining service for the new world.                                        This aims to address these crucial questions and is underpinned by our unique industry perspective alongside new research to discover the operating models of the future.

by Webhelp

How AI is changing the retail experience

As part of our #servicereimagined series, Helen Murray, Chief Customer Solutions Officer for the UK Region, looks at how Artificial Intelligence is influencing the retail sector, how it is being used to leverage new customer service models and why brands must evolve to embrace this unstoppable wave, or risk falling behind the curve.

Whilst I love a good movie, the fictional relationship with Artificial Intelligence (AI) is not a happy one – and almost universally results in a troubled experience for the human! The silver screen, and latterly the internet, often warns of the dangers of pitting man against machine, but in reality AI has seamlessly, quietly and unobtrusively embedded itself into our daily lives.

AI shares our homes, guides us when we travel, takes our selfie when we socialise and influences our retail and leisure activities, and it may well have become the most indispensable tool of the 21^st century.

Beyond the media tropes, today AI is firmly focused on problem solving, by making millions of decisions at a basic level without human intervention. Machine learning allows processes to adjust to new inputs, and avoid pitfalls based on experience. Essentially it uses multi-layered data analysis to predict patterns and, in some cases, to uncover and direct customer behaviours.

It is much simpler, more benign and much, much more useful to business than its movie counterpart.

Dave Pattman, Director of CX Services at Gobeyond Partners, part of the Webhelp Group, sheds some light on this when he says;

“Whilst AI is everywhere, most experts agree that business is currently using the narrowest point in the definition, by enhancing brand delivery with mathematics, statistics, machine learning, deep learning and big data. However, even in its simplest form AI is making a radical difference, and is visually in our daily lives in our smart home device functions, autonomous vehicles and predictive text.”

 “AI solutions are being developed in a broad range of sectors, and will inevitably be used for common business tasks like auto classification and recommendation services, which will streamline operations and drive revenue. However, the real benefit will come to those business that combine next level AI technology with the right skilled personnel – and use this to stimulate and track consumer emotions!”

But what does AI mean for retailers?

Both physical and virtual retailers could see a benefit of integrating AI into their processes, to improve task management and customer insight. As we reported in our blog on the future of retail post COVID-19, shoppers will be looking for a more experiential real journey, and traditional brick and mortar enterprises will have to work harder to compete. As the storefront.com magazine reports:

“Brands need to reimagine the total in-store experience, and technology is key. In-store technologies must be able to solve business processes and incorporate planning and strategy, rather than just implementing flashy, PR-driven technology. It’s crucial that retailers effectively merge technology and function, which is why AI is at the forefront of in-store tech.”

However, I believe that it is in customer service management where AI has the most significant potential for change, gathering detailed customer patterns and preferences, capturing both short term consumer market fluctuations and informing longer term business planning.

As AI grows more and more prevalent, at Webhelp we are also exploring language processing for the purposes of automation, as Chris Bryson, Webhelp Global Data & Analytics Director explains:

“The direct interaction between customer and machine is allowing us to analyse conversations, at scale, and to make recommendations. We have developed own speech and text analytics engine, which we apply to agent and automated customer conversations.

At Webhelp, this is deployed to drive efficiency in our measurement of quality and to create CX improvements through actionable Voice of The Customer analytics”

When intelligent algorithms are used to process customer and sales data, there is a wealth of actionable and valuable information to be discovered. Intelligent chat bots, voice analytics and word recognition are also changing the game for retail customer service. And, as David Turner, Webhelp CEO for the UK region, Webhelp are at the forefront:

“We have already made significant investments in our digital and automation capabilities to help clients improve customer experience and reduce costs using digital self-service, and leverage technologies such as chatbots to reduce volumes of non-complex and low value interactions. At the same time, we are identifying where human support adds value to digital experiences. Providing guidance and support to customers during high value, complex and emotionally important journeys.”

These technologies are unavoidable, and brands must learn how best to use them to their advantage, as Craig Gibson Chief Commercial Officer Webhelp UK recognises:

“As the urgency for change and transformation intensifies in the post COVID landscape, some pivotal questions will be raised: How different will service look and feel in the future? How will businesses and their operations need to adapt? And how can employers engage and support their colleagues to deliver on new customer promises?”

To discover more about how to leverage customer service models in this new world, I would suggest that you read our new Whitepaper, a joint publication with Gobeyond Partners, on Reimagining service for the new world, which aims to address these crucial questions and is underpinned by our unique industry perspective alongside new research to discover the operating models of the future.

by Webhelp