Revolutionizing the customer service process with GenAI

18

October

2024

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Generative AI offers many opportunities for organizations to make their customer support processes more efficient. While the digital assistant can answer common questions and execute routine tasks, support agents can focus on more complex queries. However, this also brings strategic challenges for companies. To what extent should companies automate customer service processes, and how can they prevent losing the personal touch in these processes?

Introducing HILAI

Our team focused on these strategic issues by proposing HILAI (Human in the Loop AI), an autocompletion feature for customer support agents to combine the advantages of genAI with human interaction for Tidio. Inspired by AI coding copilots like Cursor and Github Copilot, HILAI acts as a customer service co-pilot. It leverages advanced LLMs and NLP to analyze conversation context and proactively suggest responses to customer service agents. Agents can quickly implement these suggestions, maintaining human oversight throughout the interaction.

HILAI’s development is projected to launch in 2025, with a 6-12 month rollout plan. The project is divided into three phases: Development, Testing & Feedback, and Training & Deployment. Key performance indicators will include AHT reduction and CSAT improvement.

Figure 1
Business Model Tidio as-is

Value proposition

Figure 2 describes one of the main challenges companies face when implementing AI tools within their customer service processes. HILAI takes these decisions away from the strategic level to the customer agent who can decide to what extent empathy and customization are needed versus the advantages of AI, based on the context of each conversation. An interviewed company mentioned advantages such as faster response times, more consistent on-brand messaging, and the ability to handle a higher volume of tickets efficiently. However, disadvantages may be agents relying too heavily on AI assistants and the needed human review for generated messages. Summarized, the value proposition of HILAI consists of cost-effective AI-powered customer service with human oversight, enhanced agent productivity and happiness, and reduced ticket handling time.

Figure 2
Digital CX Pyramid

Note. From “AI-Powered Customer Service: Does it Optimize Customer Experience?” by S. Khan and M. Iqbal, 2020, 2020 8th International Conference on Reliability, Infocom Technologies and Optimization (Trends and Future Directions) (ICRITO), p. 593.

Changing Tidio’s business model

The customer service software market is highly competitive, with established players like Zendesk and Freshdesk. However, the industry is experiencing significant growth, fuelled by AI advancements. Tidio’s HILAI is well-positioned to capitalize on this growth by addressing the limitations of existing chatbots and offering a more human-centric AI solution. However, to improve the outcome we suggest some business model changes such as partnerships with companies like Cursor.sh and LLM providers to leverage expertise and resources and an increased focus on customer support and marketing to educate customers about HILAI. 

Conclusion

Although Tidio faces technical and organizational challenges in implementing this product, it represents a significant step forward in customer service. By combining the power of AI with the irreplaceable human touch, Tidio will redefine the customer service experience and strengthen its market position.

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My AI experience: coding without experience

1

October

2024

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My personality is absolutely not a great fit for coding. I do not have the patience and if I get error messages because I forget a ‘,’ somewhere, it drives me mad. However, Generative AI tools have been great to learn and debug coding. I had some basic experience with Javascript but I never used Python before. So when I needed to rewrite Javascript in Python, I used Google Gemini to help me do it. It was a great tool to use and if I did not understand something, it would give me examples and explanations. After this, I was able to quickly learn the basics of Python and increase my coding skills.

Currently, I use it often when I have to code something or debug code. Although it does not always work greatly, it usually brings me in the right direction and gives me tips to improve my coding techniques. Sometimes, when it gets a bit more complicated with different frameworks and APIs, the AI makes mistakes. In those cases, it is unfortunate that it not just tells me that it is not able to solve it but gives a random imaginary coding sample that is useless. In those rare cases, it takes actually more time to use AI tools compared to not using them.

Before, I needed to search the internet for the specific use cases and errors I was facing when something went wrong. And if I could not find it, I had to use Stackoverflow to help me out. However, waiting for an answer takes time and in the meantime, I could not make any progress. AI makes that progress much faster and is able to give personalized responses.

In conclusion, I believe that AI has made coding much easier and even helps people who, like me, do not have the patience to find tiny little mistakes.

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Drop shipping: drawbacks of digital marketplaces

16

September

2024

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The digital economy is booming and it is easier than ever to offer online products. However, ease comes with a price. There is always a group of people who abuse the low-entry barriers to mislead consumers, specifically the drop shipping industry. In this article, I will discuss how drop shipping works and why the current industry is disadvantageous for online marketplaces.

The idea of drop shipping can be advantageous from a consumer point of view: a company acts as an intermediary between the manufacturer and the consumer. This intermediator does not have any products and therefore no costs associated with inventory. This intermediator can provide additional marketing resources and handle customer service.

However, with the high availability of products and suppliers, the entry barriers of this industry are very low, leading to many entrants and therefore high competition. This diminished the profit margins, leading to a need for other strategies. The result: placing low-cost products from websites such as AliExpress on other marketplaces such as Amazon or an independent website for a high premium.


The problem with this is the lack of transparency and misleading the consumer. The consumer buys a product from company A but receives that product from company B. According to research by the Dutch Consumer Association drop shippers generally do not follow the law for online selling and have bad customer service1. Amazon tries to combat these practices with the following policy:

“Drop shipping or allowing a third party to fulfill orders to customers on your behalf, is not acceptable unless it is clear to the buyer that you are the seller of record. When a customer sees packaging and invoices or receipts identifying a seller that is not you nor Amazon, they may be confused about how their order is being fulfilled and who they should contact with any problems or questions.”2

Digital marketplaces have a great positive impact on the search costs for consumers and offer a wide range of products. However, the high amount of drop shippers increase these search costs and leads to negative cross-side effects since consumers will avoid online platforms with a lot of malpractices.

References

  1. Spierenburg, G. (2024, August 27). Dropshippers maken er een puinhoop van [Drop shippers make a mess]. Consumentenbond. https://www.consumentenbond.nl/nieuws/2024/dropshippers-maken-er-een-puinhoop-van ↩︎
  2. Amazon. (n.d.). Amazon. Drop Shipping Policy. Retrieved September 16, 2024, from https://sellercentral.amazon.com/help/hub/reference/external/201808410?initialSessionID=eu%3D262-8033512-2651237&ld=NSGoogle&ldStackingCodes=NSGoogle ↩︎

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