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Customer Service

Back to CX Basics: Why Brands Use BPOs for Customer Experience

Enterprises traditionally see BPOs as a cheaper way to provide customer service, but the biggest benefit is their specialized skills to help build and extend a brand. BPOs can offer operating leverage, expand support coverage, add specialized talent, improve response times, and scale capacity without building internal infrastructure. They also bring expertise from serving many clients, helping optimize processes and lower costs. When selecting a BPO, brands should prioritize industry knowledge and expertise, not just low cost, to find a partner that helps build their brand and where their voice is heard.

Customer ServiceMatt Vartabedian
Where humor fits in customer service

A 2022 Oracle study showed that most consumers prefer fun brands, but most business managers are worried about using humor in customer interactions. Experts believe that the risk lies not in humor itself, but in its inappropriate use. This article synthesizes the views of multiple experts to explore the value of humor in customer service, applicable scenarios, style choices, and corporate culture support.

Customer Service
CX Dive Trendline on Contact Center

A survey conducted by YouGov on behalf of Pegasystems found that 46% of consumers believe AI-driven customer service rarely or never delivers successful outcomes, and nearly two-thirds of consumers lack confidence in generative AI customer service. Although some business executives claim AI customer service is highly effective, consumers still trust human service more, with only 2% of respondents wanting to rely entirely on generative AI chatbots.

Customer ServiceBryan Wassel
Customer service AI implementations have a knowledge problem

The latest Talkdesk survey reveals that although nearly two-thirds of enterprises have deployed AI agents for specific tasks, only about one-third can retain customer context across systems. System fragmentation (45%) and legacy infrastructure (44%) constitute major technical barriers, while compliance (50%) and security (48%) issues are equally prominent. Experts point out that 94% of organizations have not yet adopted AI-assisted knowledge management, and knowledge gaps are becoming the core bottleneck in customer service AI implementation.

Customer Service
Williams-Sonoma AI assistants drive customer engagement — and conversions

Williams-Sonoma CEO Laura Alber stated during the Q2 fiscal 2026 earnings call that the company is leveraging AI to enhance its premium customer service model, improving checkout experiences, product discovery, and personalization. The company's AI assistants, Olive and Otto, have shown early success, with Olive users converting at three times the rate of non-users, and over 70% of Otto's customer interactions resolved without human intervention.

Customer Service
6 examples of how employee experience can shape CX

In customer experience initiatives, the experience of frontline employees is often neglected, but ignoring employees can lead to burnout and high turnover rates. Companies like Starbucks and Target have recognized the importance of investing in employees, enhancing employee engagement through financial incentives, training, and other methods, thereby improving customer experience. This article brings together six related cases to show how employee satisfaction impacts customer service.

Customer Service
McDonald’s CEO blames US traffic drop on poor execution as satisfaction dips

McDonald's saw a decline in US traffic in the second quarter of 2026, but higher average check offset the drop in transactions, with same-store sales up 0.8%. CEO Chris Kempczinski said on the earnings call that the issue lies in execution rather than strategy, and noted that multiple measures have been taken to improve operations and value proposition.

Customer Service
Restaurant gimmicks can drive initial interest but miss on long-term loyalty

Restaurant brands often reinforce brand memory through fixed scripts, singing, dancing, and other 'performance services,' but experts warn that if such strategies rely too heavily on scripts while ignoring employees' genuine feelings, they may backfire. This article examines cases including Chipotle, Cold Stone, Johnny Rockets, Chick-fil-A, Trader Joe's, and Dutch Bros to analyze the short-term customer-attraction effects and long-term retention challenges of 'performance service,' and explores how to achieve more sustainable customer experiences through hiring and empowerment.

Customer Service
Deloitte: Bank AI applications should be task-oriented, not customer-tier-based

Lauren Littlefield, Managing Director at Deloitte Consulting, said in a recent interview that bank customer service centers are one of the most promising areas for AI transformation, but deployment must be cautious, aiming to enhance experience rather than merely cut costs. She emphasized that AI applications should be based on customers' specific tasks and intent, not customer segmentation; she also warned that multi-channel AI based on different knowledge bases could lead to information conflicts, undermining customer trust.

Customer Service

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