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IMPACTING HOW COMPANIESRUN, COMPETE AND THRIVE,AND ELEVATING THE CUSTOMEREXPERIENCE TO NEW HIGHS,ARTIFICIAL INTELLIGENCE (AI)WILL TRANSFORM BUSINESSACROSS ALL INDUSTRIES TO ANEXTENT NOT SEEN SINCE THEINDUSTRIAL REVOLUTION.The potential of these new technologiesis enormous. Accenture research revealsthat by 2035, AI will double economicgrowth rates in 12 developed countriesand, and boost labor productivity by upto 40 percent1.More and more companies are harnessingthe power of these new technologiestoday. Take “chatbots”, for example.A wide and growing range of specialpurpose intelligent bots are driving ashift in how products and services aredesigned, delivered and consumed.We’re seeing companies use themto engage with both established andpotential customers via messagingplatforms, enabling in-message purchasesand other calls to action as they do so.And within the business itself, bots arebeing deployed to bring unprecedentedoperational efficiencies by augmentinghuman capabilities.2 AT YOUR SERVICE: EMBRACING THE DISRUPTIVE POWER OF CHATBOTS

MESSAGING DRIVESTHE CHATBOT CHARGEA chatbot is a digital service that can hold naturalsounding conversations with human beings with the aim ofaccomplishing particular tasks, such as answering questionsor enabling product purchases. Powered by a set of simplerules and varying degrees of AI, these bots conversewith real people via messaging apps such as FacebookMessenger and Telegram.And those conversations – and theplatforms which support them – arenow key for consumers. Not so long agomobile applications and social mediapresence were the must-have capabilitiesfor any forward-looking brand. But textinghas continued to be a staple of mobilecommunication. And now consumers,and younger age groups in particular,are rapidly switching their attention tomessaging platforms.Messaging apps now have the largestnumbers of active users, having overtakensocial media apps in 2015. For example,Facebook Messenger has a one billionstrong user base, while Telegram’s isalready over 100 million (worldwide,over 50 million people spend an average50 minutes a day on messenger apps2).Able to exploit the network effects of theirplatforms, these apps have far betterretention, too: 12 months after download,they show a retention rate almost six timeshigher than the average for apps3.As fewer and fewer other types ofapp are downloaded – nearly threequarters of all smartphone usersdownload fewer than three apps eachmonth, and almost half download nothingat all – brands are coming to realize thatthe app business is a tough business.The good news? The consumer shifttowards messaging platforms, and thenew functionality those platforms areoffering, can present extraordinary newopportunities for business. And chatbotsare going to be an essential componentin exploiting them.3 AT YOUR SERVICE: EMBRACING THE DISRUPTIVE POWER OF CHATBOTS

CHATBOTS:THE RIGHTSOLUTIONAT THE RIGHTTIME FORTHE TRAVELINDUSTRYWe know that nine out of 10 consumersglobally want to use messaging to interactwith businesses.4 And in customer support,as the telephone loses its primacy asthe preferred channel of communication,mobile apps, social media and webchats are taking over. This shift pointsto an explosion in the global market forchatbots. Already estimated at over US 1billion, the market is forecast to be worthUS 1.86 billion by 2020 and is set to triplein size in a decade.5Few sectors stand to benefit so muchfrom chatbots as the travel industry.Faced with unprecedented competitionfrom traditional rivals and disruptive newentrants, airlines, airports and hospitalitycompanies urgently need to grow theirbusiness across a shifting and increasinglydemanding (and connected) customerbase. To stand out from the crowd,they also need to provide excellentcustomer service.4 AT YOUR SERVICE: EMBRACING THE DISRUPTIVE POWER OF CHATBOTS

Chatbots can bring travel companies game-changingopportunities for rethinking the passenger experienceand developing new channels of customer interaction inthree key areas:REDUCINGSTRESSThe travel experience can be verystressful. Of course, parts of thejourney are enjoyable, but certainstages can be the exact opposite.Late for their flight, an airline customerneeds to know how long they’ll have toqueue to pass through security. Arrivingat their destination, they’re unsure whereto change money, pick up a taxi or meettheir driver. Or at the hotel, they’re findingit hard to locate the best neighborhoodrestaurants, or access certain in-roomservices. At every point, chatbots can beused to minimize stress. Because mostpeople already have a messaging appdownloaded on their smartphone, they’reclose at hand. And they’re available 24/7.There’s no need to make a call and wait inline for customer service.INSTANTRESPONSECustomers are becomeincreasingly demanding.They expect their travel company to beinstantly available in all the micro-momentsthat matter throughout their journey. And ifthey’re not, they quickly become frustrated.If that means responding to a query at3am, it’s obviously much more efficient forthe travel company to do so via a chatbots,rather through a 24/7 call-center.EXTENDINGTHE SERVICEBy using chatbots, companies canextend their footprint across thetraveler’s journey.With open APIs, it’s easy to create avertical platform for linking to additionalservices (Airbnb or Uber, for example)from a vertical platform.Accenture is already working with itspartners in the industry to leveragethe opportunities that chatbots offer.A great example is Carla, a FacebookMessenger chatbot that we developedrecently for Avianca Airlines.5 AT YOUR SERVICE: EMBRACING THE DISRUPTIVE POWER OF CHATBOTS

CARLA: RELEVANT, EAGERTO HELP AND ALWAYS ONThe watchword for any company planning to introducingchatbots is relevance. This technology is truly breakthroughin the range of opportunities it creates, but if chatbots aren’tproviding customers with relevant conversations, theirusefulness is rapidly destroyed (and customers will simplydelete them).Get it right, however, and the benefitssoon accumulate. We know from recentFacebook IQ research that the convenienceof chatbots brings customers closer.On top of that, messaging makescommerce personal. When questioned,63 percent of people say being able tochat with a business make them feel morepositive about the relationship. Fifty-fivepercent of them are more likely to trustthe business as a result.6The key to chatbot success? Concentrateon one core functionality and make surethe chatbot can do it really well. With Carla,the focus from the outset was on domesticflights. Developed in just six weeks, Carlahas six core functionalities: domesticcheck-ins, itinerary checking, flight statuschecks, weather, simple translations anduser reminders. All of them make thedomestic travel experience less stressfuland more seamless.Carla makes Avianca’s customers’ liveseasier by focusing on their most commonneeds. Speaking with Carla feels like anatural conversation, and tasks can beachieved quickly and seamlessly withoutthe need to download a proprietary app.For passengers who, for example, find theairline check-in process frustrating, Carlaoffers a simple and natural way of receivinga boarding pass via a quick conversationover a familiar messaging platform.In this way Avianca is using Carla todelight its customers at a lower cost andwith minimum effort from its customerrelations teams. Avoiding the challengeof attempting to persuade customersto download a corporate app, it takesadvantage of the pre-installed FacebookMessenger apps that are so commonplace.And, once in use, it keeps on gettingbetter. A complex dashboard measures allinteractions and uses findings to improveconversations.Helping to improve the customerexperience and boost loyalty, Carla will beone of the company’s key differentiators asit positions itself as an innovative airline inthe Latin American market.6 AT YOUR SERVICE: EMBRACING THE DISRUPTIVE POWER OF CHATBOTS

A SIMPLE FIVE-POINTCHATBOT STRATEGYChatbot services have enormous potential. But, as with anynew technology, companies need to carefully consider whatimplementation challenges might lie ahead. Here are fiveproposed principles to keep in mind in getting started:12345Don’t get lost in the crowd. As the number of chatbots is set to explode,how do you ensure yours stands out? What are the discoverability issues?What makes your service essential compared with your competitors?Don’t misunderstand your customers. Ensuring simple interactions andsimple tasks are completed seamlessly is critical. Customers will quickly turnaway from chatbots that can’t comprehend straightforward questions.But even the most advanced chatbots will encounter some complex scenariosthey won’t be able to handle. What are your fallback procedures when thishappens? How quickly can you shift customers to a human interaction?Keep it simple. Completing a task through a chatbot inevitably requires greatereffort from your customers than simply clicking or tapping through a menuon a website or app. So, chatbot interactions need to be as efficient, short andpainless as possible. New user experiences will be required.Keep it consistent. Customers expect a seamless experience across allcommunication channels. A chatbot service needs to be fully integratedinto your mobile and web services. What dependencies does your chatbotservice have? What new communication paths and protocols need tobe established?Keep it secure. As with all customer-facing technologies, privacy and securityare critical. Customers won’t use services they don’t trust with their data.Security issues should be front of mind from the outset.7 AT YOUR SERVICE: EMBRACING THE DISRUPTIVE POWER OF CHATBOTS

WILL YOURINDUSTRYBE NEXT?Of course, the rise ofchatbots isn’t limited totravel companies. Theirdisruptive power is set to beseen more widely across allindustries. There are threeareas in particular wherebusinesses can feel theimpact of chatbots:1. Customer interactions at twicethe speed and a fraction of the costCompanies are under pressure toreduce the cost of customer service.Labor currently makes up nearly twothirds of the total costs of call centeroperations. And with high staff turnoverbringing additional expenses, enterprisesare looking for solutions to increaseefficiency and reduce the volume of callshandled by their staff. Chatbot-basedcustomer support has the potential tobe almost twice as fast as voice-basedsupport over the telephone. And it willcome at a lower cost.2. Helping your sales andmarketing teams work fasterand more effectivelyChatbots are beginning to impact salesteams and marketing campaigns. TakeKit, the business-facing virtual marketingassistant recently purchased by Shopify.It leverages messaging platforms to helpcompanies market their online stores.It’s capable of sending email campaigns,posting updates, and running ads onplatforms like Facebook and Instagram.GrowthBot is another example. It’s a salesand marketing chatbot that professionalscan interact with on Slack and FacebookMessenger, as well as through SMSand social media. It uses Wit.ai’s naturallanguage technology to answer generalquestions about people, brands andtechnologies, and connects to tools likeHubSpot and Google Analytics to replyto web-traffic queries and other businessspecific questions.8 AT YOUR SERVICE: EMBRACING THE DISRUPTIVE POWER OF CHATBOTS