Harnessing the power of contextual customer communications

Harnessing the Power of Contextual
Customer Communications
Roland Selmer, Product Lead

About Nexmo
Reinventing communication
Nexmo’s Cloud Communications Platform enables you to develop faster
and easier than ever before
Our Platform
A set of cloud-based communication APIs designed to remove the pain
of integrating with multiple carriers
7 Billion
Phones reached globally
130,000
Developers
5 Billion
API calls annually
99.997%
Platform uptime
1235+
Networks connected
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Nexmo’s Cloud Communication Platform
Messaging API
High deliverability &
low latency globally
Verify API & SDK
Turnkey solution
for phone verification
IoT API (alpha)
Next generation solutions
for connecting IOT devices
and M2M
Voice API
Call control, recording,
conferencing and SIP
Number Insight API
Know your customers,
communicate with context
Phone Number API
Largest global reach,
instant provisioning for
SMS & Voice
Chat App API
Access to chat apps
through one API

About Nexmo

Back to the future
“By 2017, 70% of customer communications will be digital,
contextualized and consumed on demand via multiple channels,
including the web, mobile devices and social media.”
- Gartner (2014)
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What is contextual communication?
66
Contextual communication (n): the bidirectional transfer of
information between two parties where both parties are aware of the
relational, environmental and cultural context of the exchange
(both sides know what the conversation is about)
Copyright © Nexmo, a Vonage Company. All rights reserved

Most customer contact isn't contextual
▪ 76% of consumers view customer service a
reflection of company values
▪ 62% of consumers stop doing business due
to a poor customer service experience
▪ Selling to an existing, happy customer is up
to 14X higher vs selling to a new customer
Source: microsoft.com

Why context is so powerful
▪ Dopamine makes you curious about ideas and
fuels your search for information
▪ Dopamine loops - Dopamine drives discovery,
and when you find what you’re looking for,
you get rewarded, which makes you seek
more
▪ Contextual communication sparks a positive
emotional reaction
8

Sources of customer context
99
Intent
Physical Social
▪ Intent: the goal you’re trying to achieve (e.g.
purchase vs support)
▪ Physical: location, speed, cameras,
microphones
▪ Social: preferred segmentation of your
social graph (e.g. Linkedin vs Facebook,
SMS vs WhatsApp)

Trends in contextual communication
▪ Advanced notifications (e.g. SMS, push
notifications)
▪ Bots (e.g. Slack, Chat)
▪ Chat in apps (e.g. LinkedIn, AirBnB)
▪ Apps in chat (e.g. WeChat, Line)
▪ Humans chatting with each other (e.g.
PSTN, WebRTC)
Source:.msg.ai

Mobile in omnichannel communications
Source: lightspeedhq.comCopyright © Nexmo, a Vonage Company. All rights reserved
▪ 82% of smartphone users consult their phones
on purchases they're about to make in a store
▪ 25% of smartphone users shop in-store for an
item they later buy online
▪ 33% of smartphone users have switched
brands due to information received during a
purchase decision

Omnichannel customer journey
Social
www
Store
Phone
Mobile
1
2
4
3
5
12

Channels vs Experience
“...customers don’t value channels, they value experiences...”
- Peter Nordstrom

Contextual creation loops
1414
Establish identity
Problem Definition
Problem Resolution
▪ Context gets created at the start of
each touchpoint
▪ Transferring to new channels often
results in loss of context
▪ Contextual creation loops lead to a
poor customer experience

Early efforts: new social graphs don't work
▪ Some attempts to create new social graphs
for brands have failed
▪ At its peak, ESPN had 1,696,752 Circles
▪ Some efforts are too soon: Wave

...but leveraging existing ones do
▪ 2015 Uber integrated ridesharing into
Facebook
▪ Blurring the line between networks, apps &
services
▪ Emergence of in-app contextual
communications

Case Study: WeChat
▪ 1.1B+ registered users
▪ 700M+ monthly active users
▪ WeChat Moments ads target based on
location, interest, age, gender, device
and phone network
▪ WeChat contributes to $1.76B in lifestyle
spending in China

Chatbots in your contacts
Source: intercom.ioCopyright © Nexmo, a Vonage Company. All rights reserved
▪ Chatbots can exist in your contacts just like
any other contact
▪ Messaging is convenient because it is uses
NLP, is asynchronous and location-aware
▪ Cards embedded within messages reduce
the friction of checkout

Location context
Copyright © Nexmo, a Vonage Company. All rights reserved Source: intercom.io

Omnichannel evolves

Conversational Commerce
“...pertains to utilizing chat, messaging, or other natural language
interfaces (i.e. voice) to interact with people, brands, or services
and bots that heretofore have had no real place in the
bidirectional, asynchronous messaging context.”
- Chris Messina, Developer Experience Lead at @Uber,
inventor of the #hashtag

Conversational Commerce
Conversational commerce typically uses cognitive computing
technology such as IBM Watson to have a true dialogue with
consumers. These applications can ask shoppers what they
want and allow them to express their needs in their own words.

Cognitive Commerce
▪ Built on deep natural language understanding
and adaptive learning
▪ Joins the dots between unstructured datasets and
build context
▪ North Face: 55,000 total sessions during beta, 2
minutes average session time, 60% clickthrough,
75% of users said they would use it again
23

Context doesn’t move across channels today
Siloed access using different APIs
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IP MessagingPSTN IP Voice SMS

A context aware API
PSTN
SIP
SMS
IP Messaging
WebRTC
Bot
Nexmo API
25

Case Study: mobile banking
▪ Identity defined through passwords or biometrics
(e.g. touchID)
▪ Intent defined through app journey (e.g. business
account)
▪ In-app direct call conveys context to bank
contact center or cognitive AI bot
▪ Contextual communications reduce friction,
improve product engagement and safety
26

Harnessing the Power of Contextual Customer Communications
▪ Focus on the customer experience, not channels
▪ Avoid creating contextual communication loops
▪ Allow customer contact through their social graph not yours
▪ Utilise the power of cognitive computing to scale
▪ Utilise contextual APIs to power your omnichannel communications through
conversations with customers

Thank you
Roland Selmer
roland.selmer@nexmo.com
@RolandFlyBoy

Harnessing the power of contextual customer communications

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