18 January 2023
Under the category
We're curious about the potential impact of ChatGPT on CLM. We explore how this powerful AI tool can revolutionise customer experience.
ChatGPT is currently taking the internet by storm. The “Generative Pre-training Transformer” is being used to create engaging marketing content, help people respond to messages on dating apps and has even been used to write my new LinkedIn bio. However, here at Aurora, we’re obsessed with its potential impact on CLM. In a previous article, we discussed the potential of AI in revolutionising the manual, rules-based work in CLM, increasing efficiency and reducing costs. However, technology like ChatGPT has the potential to overhaul the most human parts of the CLM process – client experience.
ChatGPT’s uses in customer outreach are only limited by the imagination. By connecting to internal company data, Robotic Process Automation and AI, ChatGPT would have the ability to understand a client’s journey status through the client lifecycle and modify its behaviour in relation to this. A newly onboarded client could have welcome packs sent to them and have further questions automatically answered, leveraging ChatGPT’s machine learning. The integration of AI could even allow questions to be preempted based on past customer behaviour, with responses curated to a client’s predicted needs. Natural Language Processing could be used to analyse the sentiment of a client’s communications, measuring against factors within the text of emails, allowing the assignment of priority to a communication based on perceived importance, not just from the meaning of the text itself - but from the way it’s written.
Now, here's the part of the article where I could spend hours researching and formulating an article on how ChatGPT could revolutionise customer experience. However, with two simple steps, I asked ChatGPT to do it for me:
ChatGPT is a pre-trained language model developed by OpenAI that has the potential to significantly improve the customer experience in the field of CLM. The field of Client Lifecycle Management is the process of managing a company's interactions with its customers from the initial contact through to post-sales support. The goal of this holistic approach is to build and maintain long-term relationships with customers by providing a seamless and personalised experience throughout the entire customer journey.
ChatGPT's capabilities include text generation, text completion, and text classification. Its ability to generate human-like text based on a given prompt, or complete a partially written sentence, makes it a powerful tool for automating repetitive and low-value tasks such as answering frequently asked questions, or providing information about a product or service. This can free up customer support staff to focus on more complex or high priority tasks and provide a more efficient and convenient experience for customers.
The increasing importance of customer experience in today's business world has made it more challenging for companies to differentiate themselves and retain customers. Customers now expect more personalised and convenient experiences. ChatGPT's ability to understand the customer's intent and provide relevant information or guidance, as well as its ability to predict customer needs, identify at-risk customers, and proactively reach out to them before they become disengaged, can help companies to improve customer retention and loyalty.
The client lifecycle is typically divided into several stages, which include acquisition, onboarding, engagement, retention, development, expansion, advocacy, and exit. Each stage has its own set of challenges and opportunities. ChatGPT's ability to personalise and optimise the customer experience across various stages of the client lifecycle can help companies to develop strategies that optimise the customer experience and drive business growth.
However, the use of ChatGPT in CLM is not without its challenges. Privacy concerns and the need for human oversight are some of the potential challenges that need to be addressed. Additionally, the use of advanced technology such as ChatGPT requires responsible AI and ethical considerations.
In conclusion, ChatGPT has the potential to significantly improve the customer experience in the field of client lifecycle management. Its ability to automate and improve customer service interactions, personalise, and optimise the customer experience across various stages of the client lifecycle, and predict customer needs can help companies to improve customer retention and drive business growth. However, responsible AI and ethical considerations must be taken into account when using advanced technology such as ChatGPT. Companies should explore the use of AI in their own businesses to improve customer experience.
*Steps used to generate the above included at the end of the article.
In under 2 minutes ChatGPT has created a short, grammatically perfect essay highlighting how it could supplement human intervention to improve customer experience.
But what do we think?
Automated Client Lifecycle Management has been a desire of financial institutions for decades. With the inception of perpetual KYC, automated risk calculations and data provisioning, it seems like the industry has been getting closer and closer to this perfect solution, but never quite arrived. Seamless, automated CLM would allow for reduced costs, increased efficiency, and greater customer satisfaction.
Although with good data and screening integrations, intelligent rules engines and AI, a lot of the client lifecycle can be automated, client outreach has remained an ultimately manual process, acting as the limiting factor of the client lifecycle. However, a well-integrated, industry specific form of ChatGPT could have the potential to solve this problem. By measuring a client's journey through the client lifecycle, from sales to periodic review, almost all client outreach could be pre-empted and automated. Emails, messages, or client portal interactions could be personalised using ChatGPT allowing the required information to be requested and captured without human intervention no matter the maturity of a client’s systems. This could potentially remove one of the most human resource intensive parts of the client lifecycle.
It is important to note that in its current form ChatGPT is by no means perfect. Although it can intelligently create a professionally written piece of text about a complex topic like quantum physics, it is far from having that essential human element required for effective understanding of speech, context and expression. I experienced this exact thing when researching for this article. I asked ChatGPT “show me a recipe, I have potatoes, corn, spinach, chicken and grapefruit,” and it offered me a great recipe for “Chicken and Potato Skillet with Corn and Spinach.” Any hungry human looking through their cupboards to find these ingredients would likely discard the grapefruit or have it for dessert. However, ChatGPT recommended “Stir in the grapefruit segments and cook for another 2-3 minutes”, clearly it lacks the essential human element that knows grapefruit would not compliment this dish.
This is a good allegory for the use of ChatGPT in client outreach. Although ChatGPT is an amazing tool, with the potential to improve the speed, efficiency, and satisfaction of the customer experience - human oversight still remains an essential requirement. ChatGPT might not always be able to provide accurate answers to certain questions and has the potential to generate inappropriate content. Human oversight is important in order to identify these instances and correct them, reducing errors and bias. By integrating AI, ChatGPT, and Natural Language Processing, communication with important clients that have the potential for error or are flagged to show customer dissatisfaction could be routed to humans who have overall control. It is this symbiosis of both human and AI communications that will likely provide the best experience for customers, as well as the most efficient use of resources. By allowing AI and ChatGPT to deal with the vast majority of simple communications, it allows valuable human resources to be used for only the most important client communications. Furthermore, using AI-enabled ChatGPT frees up time for relationship managers to do what they do best – build lasting relationships with clients.
The use of ChatGPT in CLM reminds me of a famous scene in the film Good Will Hunting where Robin Williams is sitting on a bench, days after arguing with the young genius Will Hunting played by Matt Damon. Although Will can explain everything about the most important art ever created by a myriad of influential artists, Robin Williams asks him if he knows what the Sistine Chapel smells like. Just as Will cannot answer this question, ChatGPT displays the same issue – it will be able to answer almost any question with extremely high accuracy, speed, and efficiency. However, it will never be able to build true relationships with clients, the gold standard of good customer experience.
Use of ChatGPT in this Article
Step 1 - Ask for an article plan "write me an article plan explaining how ChatGPT could affect customer experience in the field of Client lifecycle management”?
Step 2 - Summarise the following points into a 3-page article with the aim of explaining how ChatGPT could affect customer experience in the field of Client lifecycle management
Step 3 – Ask “How would you market the following article on LinkedIn using appropriate keywords and hashtags? Transforming the Way We Engage: The Impact of AI on Client Lifecycle Management.”
Step 4 – Ask for any suggested changes to spelling or grammar.