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Ready or Not, Non Human Customers are coming
Ready or Not, Non Human Customers are coming

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Introducing Machine Customers or CustoBoTs

As artificial Intelligence is becoming advance and autonomous, a puzzling new scenario is emerging, Machines behaving as customers. From recipient of customer service to initiating own customer interaction and transaction, this role reversal is presenting unique needs and expectations to businesses.

A machine customer is a non-human economic actor who obtains goods and/or services in exchange for payment.

For thousands of years, customers have been individual humans, families, or organizations. (Look at the Image, in 1919, Ford Model T and turn into essentially a sandwich vending machine. Customers could walk up and have their choice of fully prepared sandwiches, fruits, and a cup of coffee to start the day.) 

Customers

 

But soon, intelligent software and hardware machines will start to act as customers.

 

Gartner reports.

  1. CEOs believe that by 2030, up to 20% of their companies’ revenue will come from machine customers.
  2. In fact, by 2030, at least 25% of all purchasing decisions will be delegated to machines.
  3. By 2027 50% of people in advanced economies will have AI personal assistants working for them every day

Case Study 1:

With HP's Instant Ink, your printer basically becomes its own customer. The printer keeps track of how much ink you're using and automatically orders more before you run out. You just pay a monthly fee based on your printing habits instead of buying new cartridges all the time. It's way more convenient because you never have to think about ordering ink - the printer handles that for you automatically in the background. It's an early example of smart, connected devices acting as customers on our behalf to keep essential supplies replenished seamlessly.

Case Study 2:

Now consider this, your washing machine could just reorder laundry detergent when you're running low. With Amazon's Dash, that's a reality. Smart home appliances like washers, dishwashers and refrigerators can all be set up to automatically reorder the supplies they need through Amazon's service. For example, your smart fridge tracks how many filters you've used and automatically orders a new one to arrive before you need it. It's basically giving your appliances the ability to act as customers and restock themselves, so you never have to think about ordering staple household items again.

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The below picture explains two potential case examples of Machine Customers
Two potential case examples of Machine Customers

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There are more machines connected to each other than humans. Coming years, Machines will develop own purchasing power, making optimized selections from competing products. This shift calls for a radical rethinking of sales, marketing, and service strategies to engage with these AI-driven entities effectively. Machine customers will operate based on rules and logic. Machines don’t have emotions. They will behave logically and rationally based on their programming.

Steps that need to be taken to be equipped in the Machine Customers era.

1. Build intuitive voice interfaces and conversational AI for machines to easily interact and place orders

2. Optimize user flows and checkout experiences for machine capabilities rather than human users

3. Enable frictionless digital payment methods like tokenized accounts or cryptocurrency for machines

4. Ensure robust security protocols to verify legitimate machine identities and prevent fraud

5. Implement 24/7 AI-driven chatbots and support flows designed specifically for machine inquiries

6. Identify key decision-making criteria and goals for different machine customer types

7. Establish your brand as a machine customer experience leader

PS: Share your thoughts in the comments.

Source:

  • Gartner
  • CMSWire,
  • Nasscom research
  • CIO dive

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Madhumay
Deputy Manager - Research

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