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Recoding the Customer

By embedding artificial Intelligence and the Internet of
Things into their enterprise applications, consumer-facing
organizations can cultivate lasting and profitable customer
relationships with hyper-personalized offers and services
that deliver on the promise of digital.

April 2017
Digital Business


In the age of digital consumerism, customers are always on active on the Web, e-mail,
social media, mobile devices, and tablets. To keep up with this trend and compete effectively
in an increasingly connected marketplace, brands must continually fine-tune their customer
strategies. This requires investing in technology platforms and applications that anticipate
customers needs and understand their behaviors early in the buying cycle. By taking a
proactive stance, companies can spare customers from having to start over when
researching or purchasing a product or service.

This white paper outlines three disruptive technology trends and their applications
artificial intelligence (AI), machine learning (ML) and the Internet of Things (IoT) that are
gaining momentum across enterprise environments. We will discuss how AI and ML
strategies are enabling leading businesses to gain customer mindshare, and reshaping the
customer experience as we know it with informed, hyper-personalized information and
services across touchpoints. Last, we highlight how we are helping companies apply these
advancements to retool the customer experience and achieve long-term, profitable growth.

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Artificial intelligence is already supporting enterprises in areas such as deep learning, natural
language processing (NPL) and neural networks. Machine intelligence, a subset of artificial intelligence,
equips computers with self-learning capabilities without the need for explicit programming when
exposed to new data. According to Gartner research, AI, ML and the IoT are among the top technologies
that will be applied to transform the customer experience across channels, devices, and touchpoints.1

Have you ever wondered how Netflix makes movie and TV show recommendations, how Facebook
prompts friends to be tagged in photos, how Alexa, Siri and Cortana assist us in answering questions
or going about our day-to-day activities? Or how Amazon and Airbnb make personalized product or
lodging recommendations? These are all real-life examples of machine learning in action.

Whether we are searching the Web, driving a car, purchasing a product, automating a task, ordering
dinner from a robot at a restaurant, or using speech recognition on our smartphones we are
benefiting from machine learning. ML uses a customers historic data and behavioral patterns to
create high-quality predictive intelligence concerning their future behavior. IDC reports that
applications with advanced predictive analytics will grow 65% faster than those that do not have this
functionality built in. In fact, IDC predicts that by 2018, most consumers will interact with services
based on cognitive computing.

The IoT refers to everyday things

equipped with sensors that generate
enormous amounts of data based on use
and environmental conditions.
Similarly, the Internet of Things (IoT) is disrupting many industrial business processes. The IoT refers
to everyday things equipped with sensors that generate enormous amounts of data based on use
and environmental conditions. Enterprises across industries are deploying next-generation business
models around the convergence of two or more disruptions, such as artificial and machine intelligence
and the Internet of Things, to segment and analyze the billions of bits of data they generate to
determine what is meaningful. (See Figure 1).

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Digital Business

Next-Generation Business Models


Healthcare Remote patient monitoring/doctor consultation Wearables/ personal
Alerts and diagnostics from real-time patient data medical devices
using pattern recognition and image processing Smartphones
Disease identification and risk stratification Biometric sensors
Proactive health management
Healthcare provider sentiment analysis
Financial Risk analytics and regulation Mobile phones
Services & Customer segmentation Wearables
Predictive personalized communications/offers Sensors
Cross-selling and up-selling
Credit worthiness assessment and risk prevention
(automated assessments)
Insurance management (e.g., Japanese companies
using AI to calculate insurance payouts).
Retail & Personalized suggestions, offers, and alerts Smartphones
Consumer Recommendation engines Wearables
Real-time knowledge of customers context (location, Location sensors,
preferences, etc.) RFID
Customer segmentation by analyzing usage patterns Robots with sensors
Cross-selling and up-selling Specialized devices
Predicting customer ROI and lifetime value Cameras
Predictive inventory planning
Energy & Power usage analytics using real-time data Energy, water, gas
Utilities Seismic data processing meters
Dynamic tariff generation Sensors
Smart grid management
Demand and supply prediction
Transportation Real-time vehicle tracking and optimization for On-board vehicle
logistics and public transport systems gateway devices
Asset management and tracking RFID tags
Autonomous cars Sensors
Figure 1

Cloud-based applications for artificial intelligence have already staked their claim. Salesforce
(Einstein), Microsoft (Azure), SAP (HANA), Adobe and Oracle use machine learning as a core
component of their offerings, along with natural language processing, deep learning, predictive
analytics and smart data discovery, to help their clients transform CRM.

Tech giants such as Apple, Amazon, Google, IBM, and Facebook are on an acquisition mission to beef
up their AI and ML capabilities. For instance, Google has upgraded its image search and recognition
capabilities to identify individuals or objects in photos on the Web. Meanwhile, Apple is investing
heavily in artificial intelligence in areas such as self-driving autonomous vehicles, deep learning,
image recognition and processing, and voice control. It is also enhancing its mapping technology with

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a full-featured AI navigation system. It may not be long before Siri and other iOS apps find a place in
autonomous vehicles.

Figure 2 highlights the latest developments available to forward-thinking businesses.

Artificial Intelligence for Enterprise Applications


The latest addition to Salesforces Customer Microsofts Cortana Intelligence will

Success Cloud Platform, powered by machine soon add powerful AI and ML
learning. capabilities to MS Office productivity
Leverages data from different sources to applications and Microsoft Dynamics.
transform CRM. The cloud-based software enables
Sales: Predictive lead scoring, opportunity natural and contextual interaction
insights, and automated sales activities. using machine intelligence and AI
Services: Predictive routing of cases. algorithms for vision, speech,
Marketing: Predictive customer language, and knowledge.
segmentation; analysis of website visits; social
media posts; e-mail; personalized product
Figure 2

The Rise of AI & ML Startups

As shown in Figure 3 below, numerous startups are using artificial intelligence and machine learning
to transform the customer experience in a variety of ways.

Future-Forward Innovators

Real Life Analytics Riminder

Sends targeted advertising using plug-and-play This service is disrupting the HR industry and
AI dongles on digital screens in real time at the job-seeking process by applying deep
shopping centers and subway stations. learning to internal and external data to help
Real-time facial recognition customizes talent managers and recruiters attract relevant
content according to viewers levels of talent and pinpoint top potential candidates.
engagement and demographics.
FinTecs Ltd. DataRobot
This fraud-detection and surveillance company Automates data science processes by
is developing new business models for lending, integrating with ML algorithms (R, Python,
fraud detection and robo advisers using AI/ML. Spark, H2O) for predictive decision making.
Tamr Darktrace
Uses ML in traditional enterprise areas, such as Employs ML to monitor network traffic for
procurement, for predictive procurement and anomalies/attacks/suspicious activities, and
media analytics. better respond to potential cyber threats.

Figure 3

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Machine learning is already delivering consistent, gratifying customer experiences across digital
channels in key areas such as sales, marketing, and customer service.

Sales people are constantly on the move, and rely on their mobile devices to stay connected to their
company and their customers. Given the enormous amount of data (structured, unstructured, and
semi-structured) generated by various systems across different channels (social media, e-mail and sales
CRM tools, for example) sales leaders are challenged to qualify leads and identify the right opportunities
to engage and win. So how does machine learning help improve sales productivity and efficiency?
Figure 4 offers some insight.

Improving Sales Productivity

Enhance Sales Operations Improve Lead Qualification

Machine learning offers powerful capabilities in In most sales activities, lead qualification
predictive analytics enabling enterprises to is a major area that can drive up
analyze data from every point in the sales process customer acquisition costs. Sales teams
(apps, e-mail, CRM systems and social media) and often spend a lot of time and effort
develop actionable recommendations such as: contacting the wrong prospects.
Improving sales forecasting (predicting credit With natural language processing,
companies can add real-time virtual
risk, customer churn, win/loss rate, etc.).
assistance to their initial lead-
Automating account management and lead-
qualification efforts and correctly
identification activities, such as closing deals
classify leads as interested, not
and enhancing sales operations.
interested, or needing nurturing. This
Pin-pointing missed revenue opportunities.
frees sales teams to focus on the most
Applying ML algorithms to the sales pipeline to
promising opportunities while lowering
increase win rates and further improve sales
acquisition costs.
Uncovering new up-sell and cross-sell
Figure 4

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Marketing organizations key role is to establish, sustain and extend customer relationships. As more
customer information becomes available through big data, machine learning will become an essential
element of customer-focused marketing campaigns. Among the top challenges marketers face include
lead generation, ROI measurement, and generating personalized offers/messages in real time by
utilizing customers personal data, demographics, historical purchase patterns, and social sentiments,
for example. (See Figure 5).

Applying Machine Learning to Marketing

Customer ML algorithms analyze customer behaviors in real time and use personas
Segmentation (fictional groups that reflect the buyers associated with a companys marketing
and sales efforts) to create effective, highly personalized interactions.
Personalized Leading e-commerce companies such as Netflix and Amazon use ML
Recommendations algorithms to recommend TV programs, movies, and other products based on
individual customers preferences.
Optimized User Marketing organizations can use ML techniques to determine where and how to
Channels reach customer segments and tailor ads and marketing communications
Reduced Customer ML uses data from previous customers to target others that are most likely to
Churn & Predictable generate churn. ML-based customer segmentation may thus be used to target
Buying Behaviors
customers for retention offers.

Figure 5

As more customer information becomes

available through big data, machine learning
will become an essential element of
customer-focused marketing campaigns.

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Digital Business


Practicing the Art of the Possible

Todays digital frontrunners are using artificial and machine intelligence to predict customer behaviors and revamp
customers experiences. For example:

Facebook uses machine learning to post relevant content and ads based on the things you liked, groups you joined
and pages you follow. Have you ever wondered why only certain people appear in your News Feeds? ML algorithms
run on your News Feeds and analyze the types of content you prefer.

Google uses a machine-learning artificial intelligence system, RankBrain to help process, organize, and refine its
search results.

Amazon sends periodic e-mails when a product you searched for is available at a lower price, as well as product
recommendations that may be of interest to you. All of this is the result of machine learning.

TripAdvisor uses ML through different phases of the customer experience to track member habits, build segments
based on behavioral patterns, and push suggestions/offers at the most likely time of purchase. The company
follows up with an e-mail or ad prompting members to complete the booking process.

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Customer Service
Regarding customer service, we see human-assisted virtual agents like chatbots taking over traditional
call center IVRs to route customers to the right agent or queue and improve the overall quality of
customer service. AI technologies such as natural language processing and speech recognition support
contact center agents during live customer-service interactions by looking up relevant information and
suggesting how best to respond. Another AI technology, conversational voice interfaces such as
Amazons Alexa and Apples Siri, provides the ability to conduct a natural conversation with the user and
suggest the next best action. Additionally, intelligent/predictive ML algorithms and AI analytics are being
integrated with high-volume customer data and transactions enhance enterprise areas such as the call
center, technical support, interactive troubleshooting, self-help, and interactive sales and customer
activities to serve customers better.

One of the biggest service-related challenges that enterprises face today is to maintain consistent, high-
quality customer service across channels and devices. Figure 6 highlights how ML can make this happen.

How Machine Learning Applications Enhance Customer Service

Automate Uses virtual assistants, or chatbots, to automate routine tasks that would
Routine otherwise require a live agent to reset passwords, address account issues, and
Tasks provide sales support.
Frees the live agent to focus on handling more complex and revenue-generating
tasks, which helps to improve top and bottom-line performance.
Improve Employs ML to classify and route incoming tickets to the agent team queue with
Ticket the best capabilities to respond to the customers questions/issues.
Routing &
Uses natural language processing to clearly understand what the customer is
saying and route the call to the appropriate agent. This reduces call durations and
increases the likelihood of first-call resolutions.
Predict Predicts customer purchase patterns and positively impacts satisfaction indices in
Customer real time across service channels, such as phone, chat, e-mail, IVR or social media.
Behavior &
Enables agents to look at the CSAT meter and fine-tune the conversation instantly,
or escalate to another team.
in Real Time
Empower Using ML search algorithms, most relevant content can be made available at the
Customers customers fingertips across different channels, enhancing self-service and
through improving omnichannel experiences.
Reduces the number of calls made to the IVR or any other channel. By integrating
this capability with predictive ML analytics, companies can uncover new insights
into customer behavior and send out targeted. personalized offers through
various channels.
Figure 6

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Today, we are helping enterprises in various industries apply machine

learning and the Internet of Things to dramatically improve the
customer experience.

A Chatbot with Natural Language Processing

for Corporate Banking Customers
We developed a proof of concept that demonstrates how The bot processes the query by passing it through natural
corporate banking customers can ask a question and language processing (NLP) and AI engines, then suggests
receive an answer via the banks instant messenger app an intelligent response (the next best action, self-help).
connected to a chatbot. A customer can also query an In some cases, the bot hands the question over to a
AI-equipped conversational voice interface such as Alexa human service rep. Customers can close transactions
or Siri to access their account summary, transaction faster, and agents can work more efficiently.
history, or payments.


Informing Next-Gen Shopping Experiences

By capitalizing on machine learning, the Internet of demographics, and social footprint). For example, beacons
Things, and beacons (small devices that broadcast signals can sense/recognize a customer in a store through the
to nearby smart devices), consumer-facing companies customers smartphone and pass on a message to the ML
can create offers that expose customers to next-gen algorithm, which then pushes contextual information
shopping experiences. personalized store offers, notifications, location details,
and a call to action to the shoppers device. This drives
We created a proof of concept that recommends higher footfalls and enhances the customers experience
next-best offers using ML algorithms on large data sets at every touchpoint both physical and digital.
(consumer spend habits, historical purchasing behavior,

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LOOKING AHEAD: NEXT STEPS IT back office systems/night time data

center operations and batch processing are
Todays enterprise systems generate enormous good candidates for intelligent automation,
volumes of data that can be fed into AI, ML, and IoT which can reduce reliance on IT operations
technologies to analyze meaningful trends and staff.
generate actionable insights. C-level decision
makers must understand the important role of this Customer service functions for inquiries or
technical support can be automated with
treasure trove of enterprise and customer data in
virtual assistants (bots) to encourage
building and maintaining stronger customer
customer self-help.
relationships, providing hyper-personalized offers,
and increasing client engagements. Business processes can be further enhanced
with machine learning algorithms to predict
So how should organizations embark on this
employee/customer churn, track equipment
journey? A good way to start is to look deep into
conditions, and resolve tickets faster by
business functions, operations, and processes,
intelligently routing to the right agent.
and evaluate where these emerging technologies
can be best applied. For example: Machine learning remains a work in progress. As
solutions mature, their impact will be felt in more
Typical enterprise functions include
profound ways across the enterprise. The time is
repetitive business processes that require a
now for companies to weave artificial intelligence
lot of manual intervention often leading to
and machine learning into their strategic agendas
mistakes in order fulfillment, inventory
to enrich the customer experience, streamline
management, shipping, purchasing, and
processes, drive profitable business growth, and
billing. When automated, these tasks are
transform the way they operate and serve
predictable and manageable freeing human
resources to focus on more critical tasks.

Note: All company names, trade names, trademarks, trade dress, designs/logos, copyrights, images and products
referenced in this white paper are the property of their respective owners. No company referenced in this white
paper sponsored this white paper or the contents thereof.




Vyoma Murari is a Senior Marketing Consultant with Cognizant

Enterprise Applications Services Customer Experience
Management Practice. She has eight years of experience
in marketing, branding, market and customer intelligence,
analyst relations and business analysis across CRM, customer
experience and digital platforms. She holds an MBA from
Symbiosis International University, Pune. Vyoma is a certified
Adobe Campaign Business Practitioner and Salesforce Business
Vyoma Murari She can be reached at | linkedin.
Senior Marketing Consultant com/in/vyoma-murari-94a5a846.

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