Podcast ¦ Punk CX: Why most brands build chatbots backwards – Interview with Sophie Cheng of Sinch

Key Takeaways

1. Customer expectations for digital communication channels are evolving rapidly, with consumers demanding more choice, immediacy and personalised experiences.
2. Chatbots still rank low in customer satisfaction, despite their critical role in digital customer experience, due to limitations in delivering seamless, contextually aware interactions.
3. Technologies like large language models (LLMs) are improving chatbot capabilities, but scepticism persists, especially among older demographics, due to concerns over transparency and data security.
4. Adoption of AI for customer interactions is increasing swiftly, with 40.2% of consumers now willing to engage with chatbots—up from earlier years.
5. Customers prefer AI-driven interactions for specific use cases like scheduling but remain wary of sharing sensitive or personal data via chatbots.
6. Variation in AI adoption across generations highlights the importance of tailoring approaches—Gen Z is more receptive than Boomers, for instance.
7. Effective chatbot deployment requires integrating customer journey insights, context and relationship history rather than a purely technology-first approach.
8. Many companies build chatbots backwards—focusing on technology rather than understanding and designing around customer needs and conversation flows.
9. A successful chatbot strategy involves prioritising the customer problem first, then layering in preference, context and sentiment analysis.
10. Real customer insights into experiences can be gained by observing users’ behaviours in real-world scenarios, not just through data or dashboards.
11. Transparency about AI use, guardrails around data privacy and accurate responses are vital to building customer trust in chatbots.
12. The pace of AI deployment in customer experience is accelerating, with an emphasis on integrating automation and orchestration around the customer for true transformation.

Key Statistics

• 2,800 consumer responses across 12 countries, complemented by 1,600 responses from business leaders.
• While 42% of consumers are willing to interact with chatbots, only about 30–35% succeed in simple tasks.
• 71% of Gen Z respondents are willing to work with chatbots, compared to just 20% of Boomers.
• Two-thirds of businesses believe their communication is fully integrated, despite consumers experiencing irrelevant and outdated messages.
• 97% of businesses plan to use or are already using AI in customer experience in 2025, up from 63% the previous year.

Key Discussion Points

• Consumer preference for channel choice and seamless, context-aware communication.
• The paradox of chatbots being vital yet underperforming in customer satisfaction metrics.
• The impact of generational differences on AI acceptance and trust.
• The importance of situational use cases where customers are more comfortable using AI.
• The need for brands to focus on customer journey and needs first, before technological features.
• The pitfalls of building chatbots from a technology-first perspective rather than from customer insights.
• The value of involving frontline teams and conversation experts in chatbot design.
• The critical importance of understanding customer context, preferences and sentiment for effective AI deployment.
• The disconnect between perceived and actual integration of communication channels by companies versus customer experience.
• Risks associated with AI, including transparency, privacy and hallucination of responses.
• Examples of successful AI adoption in retail and financial services—e.g., recipe generators and claims processing.
• The real potential of AI to free time and increase strategic focus for marketers and customer-facing teams.

Podcast Description

This podcast offers insights into the evolving landscape of customer experience (CX) in the digital age, with a focus on the role of AI and chatbots. Featuring industry expert Sophie Cheng, SVP of Product Marketing at cinch, it explores customer preferences, technology limitations and the strategic approaches brands must adopt to create more effective, personalised and trustworthy interactions. Through research findings, practical examples and expert perspectives, the podcast aims to guide senior managers, particularly in financial services, on leveraging innovation to enhance CX outcomes.