The world of customer communication is set to enter a new era. And that’s before we even talk about Apple’s Vision Pro. The increasing change of pace in brand-customer relations means that customer experience strategies must adapt too. In the past years, businesses have enabled seamless customer engagement across several digital touchpoints, including messaging, voice, email, and video. but stitching together all these fragmented communication platforms has become increasingly complicated, costly, and ineffective.
That’s where Communication Platform as a Service (CPaaS) comes in. From a chatbot assisting customers on retailers’ websites to patients confirming a doctor’s appointment using SMS messaging, the cloud-based technology facilitates immediate, two-way interactions between brands and customers. CPaaS also allows seamless engagement across various platforms, and the organisations that offer this service are a step closer to fostering customer satisfaction and building loyalty. But CPaaS is evolving as innovative technology like AI and virtual reality continue to mature.
Gartner predicts that by 2025, CPaaS solutions will be used by 95% of global businesses – up roughly 35% from current adoption. But technology alone is not going to do the job by itself. The ways customers communicate are changing rapidly, and today, the digital realm is over-saturated with messages. Simply improving from a technology standpoint is not enough. It is also crucial to understand the trends shaping CPaaS and predict what customers might demand in the near future.
Experiment with new extended realities
New emerging technologies constantly disrupt the marketplace and customer experiences in the digital world where innovation is king. Recently, tech companies have attempted to seize the growing opportunity of a new technology that continues to mature in the marketplace – the metaverse. According to Gartner, 25% of people will spend at least one hour daily in the metaverse for shopping, work, education, or entertainment by 2026.
Regardless of the industry, digital realities will likely redefine the possibilities of customer experiences, making the metaverse a viable option for marketers. With tech giants like Apple and Meta entering the market with their virtual reality (VR) headsets, different brands have already experimented with metaverse tools to visualise products in 3D. For instance, retail buyers with a headset can comprehensively understand items before purchase by virtually trying out products or exploring interactive virtual stores.
The jury is still out on whether this reiteration of new extended reality devices will succeed in pushing VR and AR from more niche markets, such as gaming, into the mainstream. However, what is clear is the growing trends and maturity of the technology. Even in its infancy, Statista predicts the extended reality-powered metaverse ecommerce market is expected to grow at an annual growth rate of 37%, reaching a projected market volume of $507bn by 2030. To successfully engage customers, those standing at the forefront of CPaaS development should therefore keep an eye on the increasing demand for VR and AR.
Use AI to generate quicker real-time communication
Despite worries about AI replacing the workforce, the field of communication is all about humans. Embracing AI in CPaaS shouldn’t induce the fear that communication will become less human. Instead, adopting AI empowers professionals to deliver personalised customer experiences faster. For example, AI-enhanced CPaaS can enable quick data analysis and real-time responses to frequently asked questions. Another benefit is boosting customer engagement through predictive and personalised interactions thanks to AI-driven knowledge-based systems based on consumer data.
That said, it is important that brands and marketers implement AI in a way that builds consumer trust. A data governance platform study unveils that 74% of consumers rank data privacy as one of their top values. The strategic use of AI within CPaaS requires a delicate balance between integrity and efficiency. Protecting clients’ privacy boundaries while leveraging AI’s capabilities to drive better results is the answer to enhancing the essence of human-centric customer interactions and building trust in the technology.
Attune to the demands of younger generations (Gen Z)
Looking forward, the adoption strategy of CPaaS will be significantly influenced by the preferences of future consumers. Businesses must consistently inquire about the channels favoured by younger demographics and the type of customer experiences they desire. For instance, companies must adapt to emerging trends like Apple Vision Pro and AI tools to effectively engage Gen Z while diversifying communication platforms to include social media channels such as TikTok.
A critical issue facing CPaaS is the lack of personalisation, which is increasingly vital as younger generations become more demanding and inclined to disregard generic messaging. While AI chatbots can enhance communication, they should not replace human interaction, particularly as younger consumers can often discern AI-generated texts.
A robust CPaaS strategy facilitates reaching any target audience seamlessly and replaces outdated reliance on traditional channels. With new innovations shaping communication trends, success in CPaaS lies in staying attuned to these developments and providing flexible solutions that align with evolving consumer expectations.