Customer experience as a competitive advantage

Automating customer service is the key to success

Especially in industries where products and services are very comparable (e.g., insurance or electricity providers), customer experience (CX) is increasingly determining a company’s success. This is particularly evident in customer service: those who rely on automation here gain a real competitive advantage.Modern customers expect not only quick responses, but also intuitive solutions – at any time and across all channels. Companies that specifically improve their customer experience stand out from the competition in the long term.

Customer service under pressure: Why automation is crucial now

Customer service is under increasing pressure. Customers no longer just compare within a single industry—they expect the same standard of service from regional providers as they do from international giants such as Amazon. At the same time, the volume of inquiries is increasing. Service agents are often busy dealing with a flood of routine inquiries, which leads to overload and longer response times. The shortage of skilled workers further exacerbates the situation.

Handling a large number of inquiries is not automatically a sign of customer focus or good service. It often indicates inefficient processes that force customers to make multiple inquiries. A high volume of inquiries is therefore often an indication of potential for optimization. Targeted automation can streamline processes, increase efficiency, and improve the customer experience.

Changing customer behavior: New expectations for digital service

Customer expectations of customer service have changed fundamentally in recent years. An intuitive customer experience is no longer considered a bonus, but rather a given. Customers want immediate answers, ideally around the clock—regardless of whether they contact you via email, chat, customer portal, or social media. The multitude of available channels has significantly increased the demands on companies.

At the same time, self-service is expected for simple requests. However, it must not only be available, but also functional and user-friendly. If self-service offerings are not designed to be intuitive for customers or do not function reliably, this quickly leads to frustration and dissatisfaction. Patience for long waiting times or complicated forms is also in short supply.

In addition, thanks to the digital presence of many providers, customers can find alternatives with just a few clicks – and this has a direct impact on loyalty. Those who fail to impress today risk losing customers tomorrow. Companies that improve their customer experience gain a decisive advantage in this area.

What industry leaders do better: Success factors for automated customer service

Successful companies do not view customer service as a cost center, but rather as an integral part of their performance. They focus specifically on a customer-oriented CX strategy in order to improve the customer experience in the long term:

Automation is used to process routine requests more efficiently.
Proactive provision of information (e.g. FAQs, chatbots, voicebots) reduces the need for personal contact.
Media breaks are avoided – the solution is simple and directly accessible.
Freed-up resources are used for individual consulting – with room for empathy.
They think in terms of use cases and processes, not channels.
They continue to develop their service in a data-driven and agile manner—with a focus on genuine added value.
Customer service is part of the product or service—it promotes customer loyalty and referral marketing.

Optimizing CX with automation: First steps to improve your customer experience

How to get started with customer service automation:

Start by automating routine requests:
Analyze which requests occur frequently but have a low degree of complexity. First, think in terms of processes (e.g., meter readings for utilities, damage reports for insurance companies, or mold in the housing industry) and then decide which channel you want to start with (e.g. email or voice). It’s best to learn from similar projects.
Use self-service solutions:
Offer resources such as FAQs or informational articles on your website or customer portal. Expand these with virtual assistants (intelligent chatbots) or voicebots that provide personalized responses. Important: Think from the customer’s perspective, not from an internal perspective. While customer service often speaks in solution language, customers often search for information in problem language.
Targeted use of AI:
Use an AI model that has been developed for your industry. It should be usable across channels – for long-term scalability and rapid implementation. Our guides on AI in customer service for utilities and insurance companies explain exactly what you should look for when choosing a customer service AI.
Offer real-time support for better advice:
Industry-specific AI systems can also support your service agents in real time with the right information and suggested solutions. This eliminates the need for manual research or data entry—employees can focus fully on the conversation and respond to your customers in a targeted manner.
Note: Observe regulatory requirements!
The GDPR and EU AI Act are essential, especially when using AI in highly regulated industries such as utilities, insurance, and housing. Therefore, pay particular attention to the traceability, control, and transparency of AI decisions in automation.

What you need to know about the EU AI Act and GDPR:

EU AI Act: The EU AI Act provides for graduated regulation for AI models. It covers general transparency requirements through to additional obligations for models posing systemic risk. With the EU AI Act, companies must ensure that the AI software they use complies with these guidelines. Particular attention is paid to AI applications in areas involving sensitive and personal data.

GDPR: Automated processes must also comply with data protection regulations. This means data minimization, purpose limitation, and transparent communication about data processing. Particular caution is required with AI-based analyses, e.g., emotion recognition or profiling.

Conclusion: Automation as a strategic lever for a better customer experience

Automation in customer service is not an end in itself—it is the key to a better customer experience. Investing in smart solutions today not only creates efficiency, but also customer satisfaction, loyalty, and differentiation from the competition. Companies that think strategically about CX and use automation in a targeted manner are not only better positioned—they are also future-proof. If you want to improve your customer experience, you should act now.