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CX Automation: A Must for Digitally Native Brands

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Natalie Elmquist

Digitally native brands, or DNBs, exist primarily or entirely online. Think direct-to-consumer favorites like Warby Parker and Harry’s, and even marketplace retailers like eBay and Amazon. The founder of Bonobos, another widely recognized digital-first company, first coined the term back in 2016, defining a DNB as a brand born online with a “maniacal” focus on the customer experience.

DNBs are growing at an impressive rate — three times the pace of the entire e-commerce sector. McKinsey reports the faster-growing DNBs are expected to generate $50 million to $1 billion revenue within four to eight years. 

As modern consumers have grown accustomed to getting what they want, exactly when they want it, DNBs are well-poised to deliver precisely this experience. However, DNBs face challenges. By nature, their markets move very fast. They have to keep pace, scale rapidly, operate with zero downtime, and minimize churn despite this breakneck pace. The key to achieving this is having a stellar customer experience (CX). 

DNBs = Tech Believers

Leveraging the bleeding edge of tech is in the DNA of DNBs. They have made it to where they are by being disruptors in their fields, employing technology to reinvent processes, products and experiences. 

DNBs rely on technology daily to:

  • Put users at the heart of product development by listening to insights from those on the front lines of their business
  • Harness machine learning (ML) for the personalization that powers the experiences that users now expect
  • Leverage data to unlock business advantages, such as determining their most profitable customers or products, or assessing supplier or employee performance
  • Provide the very best security to keep their data and processes safe 

This puts DNBs in a powerful position. The next step? Translate this comfort with, and enthusiasm for, powerful tech into the customer experience (CX) space.

The CX Challenges of Being a DNB

DNBs are bold, disruptive, exciting and technologically advanced enterprises. However, the nature of their operations introduces special challenges — especially on the CX side of things. 

Digitally native brands have digitally native users — and these users are demanding. Millennials and Gen Zers are used to shifting between different communication channels and platforms, and flicking between various touchpoints. These users expect personalized digital experiences that have minimal friction or wait time. 

Hence, the most successful digitally native brands, according to McKinsey, are those that enjoy “intense customer loyalty” as a result of predicting “consumption patterns” quickly and accurately, and delivering personalization that “delights the consumer.” 

All well and good. But providing this level of CX is difficult for DNBs for a few reasons:

  • More than any other type of business, they need to constantly keep pace with advancements in cloud, data and AI technologies — making it easy for attention to drift away from CX
  • They need to engage tech partners with relevant technical skills to increase net value, creating another attention drain 
  • DNBs have to achieve maximum scalability, meaning any operational challenge is constantly growing in size 
  • They operate with zero downtime; their CX has to be “always on”
  • They are growing as fast as possible, making it easy to lose sight of fundamental technical principles
  • They are under constant pressure from industry giants, making customer retention a constant challenge

CX Automation: Key to DNB Success

Faced with these challenges, DNBs need to approach CX the same way they approach every other aspect of their core business: they need to embrace the very best in automated technology. 

With a platform like yellow.ai, DNBs can leverage the power of conversational commerce through dynamic AI agents that can engage customers in human-like discussion. With CX automation, DNBs are able to leverage machine learning (ML) and natural language processing (NLP) to achieve hyper-personalization. The latest iteration of ML and NLP help CX automation systems to fully learn and understand intent, mood, needs and wants of customers. 

Dynamic agents can handle a majority of common inquiries and then hand them off to human agents when necessary. This allows DNBs to scale their support, without losing the human touch. This is crucial, as PwC reveals that 82% of American consumers desire more human interaction from their experiences with brands. 

The benefits of an automated approach to CX are numerous:

  • DNBs can meet customers where they are, via a complete, omnichannel presence and integrated view of customers/prospects
  • Deflect call center volume and automate customer support conversations, freeing up human agents
  • Brands can increase mindshare by sending out proactive notifications on offers, merchandise, subscription plans, etc.
  • Enhance ease of purchase through sharp messaging, quick availability of products and seamless payment options
  • In the post-purchase experience, brands can very easily track orders and shipments, and gain loyalty/reward points
  • DNBs gain data-driven insights on customers’ shopping behavior, which leads to better segmentation and targeting

All of this adds up to increased operational efficiency, as a central, integrated view of all CX information can be queried instantly across the org. Routine tasks happen automatically, allowing employees to focus on business-critical tasks. All of this makes scaling — the key imperative for DNBs — much easier!

DNBs Are Already Committed to Excellent CX

Most DNBs are already in an excellent position to take the next step with their CX. Why? Because they are naturally committed to their users. They were founded in a digitally savvy mindset, with a passion for solving problems better than anyone else. They already use the best tech, and they always want feedback. By their nature, they are committed to new solutions and new approaches. 

And most of all? Successful DNBs got where they are by focusing on customer centricity, and maximizing traits like convenience, ease of use and a feeling of connection. These are all ingredients that are central to a sophisticated CX model.

An automated, human-AI hybrid approach to CX is a natural fit for DNBs. CX automation enables digitally native brands to deliver high-quality, hyper-personalized experiences at every interaction, channel or platform — with infinite scaling potential built in. 

yellow.ai helps digital-first brands create personalized customer experiences at scale with dynamic AI agents that automate conversations across voice, chat and web channels.

Companies like Zalora and Domino’s are using yellow.ai to:

  • Automate 60% of their customer support conversations, freeing up human agents
  • Eliminate customer support wait times with scalable AI agents
  • Deliver 24/7 self-service in any language across and through any channel 

Interested in seeing what we can do for your company? Request a demo to learn more.

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Natalie Elmquist

Natalie is a Senior Content Marketing Manager who is helping build our yellow.ai presence in North America through brand storytelling.With more than a decade of marketing experience, Natalie has spent the last 6 years working for high-growth B2B SaaS companies. Her marketing passions involve all things content, persona, and SEO-related.

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