They often say that the movies are a reflection of what’s happening (or about to happen) in our society. That Artificial Intelligence (AI), robots and software have dramatically changed the job market, is without doubt, a fact. Smart automation and the introduction of technology-based protocols to smoothen the work process is quite common across sectors – no matter whether you are looking at manufacturing, technical programming, factory work and just about everything in between. The simple logic has been that technology has made it possible to work round-the-clock, and with consistent efficiency.

However, technology naysayers predict that though technology has reduced human effort, it may reduce the number of jobs as well. In fact, they claim that technology will soon replace humans, especially in IT based jobs. Is that true?  

Read: What are the key skillsets needed in today’s knowledge economy?

Preparing for a New World Job Market 

The idea of disruptive technology is not a new one and in fact comes with every wave of innovation. Economists from Goldman Sachs are quick to point out that all the technological advances we have seen so far has definitely resulted in better productivity. However, there is nothing to show that mass unemployment will happen. What essentially has happened is that automation and technology based disruption has created shifts in the way the economy functions.  

For example, research by the Economist showed that when legal research was automated, the requirement for clerks came down. However, the demand for research went up and this required more clerks who could facilitate the job. Similarly when ATMs where introduced in the US, the number of tellers were reduced. But with the money saved on wages, banks were able to open more branches, requiring more man power.

A recent report by McKinsey & Company assures that automation and robots will not replace jobs. However, most people currently employed will find that parts of their work profiles are now going to be automated. In fact, only about 5% of jobs overall are actually going to see full automation take over. What this essentially means is that the job market will now look at making human roles more productive and jobs available to a specific skill set.

Read: The AI promise – The tale of two sectors

Technology Will Actually Help you Land a Better Job 

Instead of losing a job due to technology, you may find that it helps you find a better one! According to the inaugural report of Stanford’s One Hundred Year Study on AI (AI100), between 2013 and right up to 2018, the USA, UK and Canada have all seen an increase in jobs that require AI skills. Most of the jobs created are in start-ups which work on plugging specific needs in the market. With investors today bullish on AI, the number of companies hiring are on the increase. In fact, since 2000, there are 14 times more companies dealing with AI systems than ever before.

AI will work on helping people find better jobs and matching peoples’ skills to a specific kind of job opening. With AI-powered data analysis increasingly being used in human resources, the chances of getting a job that pays better and utilizes your skill set to the maximum is now a reality.

So How Can Your Career Benefit with Technology? 

Here is how you can prepare to be in an automated world:

1. Adapt along with the Technology: Every organization brings in technology gradually. It is important then that employees work with upgrading and working alongside this gradual incorporation of tech to ensure that they keep up.
2. Help Others: Whether you are a team leader or a developer, you can work towards understanding the technology faster and helping others in your team get there. This enables progress and increases the speed at which newer technologies can make an entry. Your position continues to be strong as you will know best how to incorporate upgraded technology.
3. Work on being creative: Every technology incorporated has scope for improvement, as does the skill set. Understand how the technology works and examine how you can enhance your skills as well as make suggestions for improvement of the technology.

Read: Impact of Big Data and AI in Lead Scoring

For people looking to get involved in the creation of newer technologies, there is no time like now to get into the groove of this exciting new world. With the proliferation of these technologies, there will be an increasing need for more people who understand it and can work on enhancing its abilities.

Are people today comfortable with the idea of Artificial Intelligence (AI) becoming an integral part of their everyday lives? Siri, Cortana, Echo and an ever-growing list of AI-enabled applications seem to indicate that there is a general ease with which people are embracing AI.

Which sectors are most likely to benefit from the AI boom? My bets are on education and healthcare. There’s immense potential for AI to fill the yawning gaps in today’s learning and medical systems. Let’s take a look at how this potential can be turned into a reality:

Education

Market research predicts that the global market for AI in education will post an impressive compound annual growth rate (CAGR) of over 39 per cent by 2020. Thanks to the influx of iPads, mobiles, and laptops into the learning space, the traditional one-size-fits-all approach to education is slowly changing. The need of the hour is to make learning more personalized and teaching more responsive. AI, with its digital and dynamic nature, can be the real game changer.

• Personalized learning 

Did you know that there are software that create customized textbooks and curriculum for students based on their previous performance, helping them master any given subject? Unlike a human teacher, AI-based systems have the ability to analyze large amounts of data in real-time, offer instant feedback, and specified learning parameters to make the whole process more engaging for students.

Also, there are personalized learning cloud platforms designed for the modern workplace. So, employers can now design customizable learning systems with apps, gamification, virtual courses and the like to encourage employees to stay ahead of the curve.

• Educational data mining 

An interesting research published in the journal Frontiers in Computational Neuroscience talks about robotic tutors used in primary school classrooms to detect the emotional state of children (concentrating, distracted or inactive) while interacting with educational software. The idea is to make suitable pedagogic interventions, thereby improving the learning experience.

Education Data Mining (EDM)—a research field concerned with the application of data mining, machine learning and statistics in educational settings—is already being used at several institutions to track and analyze the behavior of students. The ultimate aim is to ensure that students don’t drop out of school or college.

• Intelligent tutoring systems 

Designed with the ability to interpret complex human responses while imparting knowledge on a wide variety of subjects, Intelligent Tutoring Systems (ITS) are known to provide a scientifically sound way of learning new concepts. For instance, the iTalk2Learn system is designed to figure out an individual’s mathematics knowledge, cognitive needs and emotional state, and give feedback as per their performance.

The approach to classroom education becomes more transparent, effective and holistic, when the tutors are involved in a constant dialogue with the students. It’s no longer a one-way street!

That apart, AI applications can also automate basic tasks like grading, marking attendance and making timetables, thereby, allowing teachers to concentrate on their core function. Similarly, chatbots can help streamline the admission processes, while virtual tutors can help students with information regarding career choices.

Check out this whitepaper: The Role of Machine Learning and AI as Major Disruptors in the Education Sector

Healthcare

According to a recent survey in the US, a majority of people are more at ease with AI in healthcare settings than banking or retail. Growth in the AI health market, experts predict, will reach $6.6 billion by 2021. By modest estimates, key clinical health AI applications are expected to save approximately $150 billion for the US healthcare economy by 2026.

Let’s look at some of the most promising areas of AI in healthcare:

• Chronic disease management 

The prevalence of chronic diseases is expected to rise by a whopping 57 per cent by 2020, says the World Health Organization. The key to cutting down on the ever-increasing costs of treating chronic diseases—such as diabetes, cardiac ailments, osteoporosis, kidney disease, etc.—lies in early detection and diagnosis.

AI is already being used to automate image processing tasks, like MRI, CT scans, ultrasound and x-rays, to swiftly and accurately identify signs of disease. Research shows how AI algorithms are also helping doctors to detect a wide-range of conditions, from skin cancer to Alzheimer and depression.

• Virtual health assistants 

Virtual Health Assistants (VHAs) offer a smart way to provide customized monitoring and follow-up care for patients. From helping with timely medication reminders to offering real-time advice on common medical conditions, such as food poisoning and flu, and recommending preventive health screenings, VHAs can significantly reduce the burden on the overstretched healthcare system.

Mundane yet time-consuming tasks, like making the doctor’s schedule, keeping the discharge papers and bills ready, etc. can be easily automated through the use of AI. As healthcare bots learn to mimic human conversations and have empathetic engagement with patients, they will become more valuable. 

• Data management and research 

The biggest benefit of using AI in healthcare will be a scientific way of collecting, storing, sharing and analyzing data. While the Google Deepmind Health project mines the data of medical records to provide better and faster health services, Watson for Oncology analyzes the meaning and context of data in clinical notes and reports to identify the apt treatment plan for a patient.

From identifying patterns in huge data sets to looking for links to diseases, researchers are also eager to tap the potential of AI in genetics and genomics.

That apart, telemedicine (taking the best of medical facilities to remotest of areas) and robot-assisted surgeries (helping surgeons increase precision, flexibility and control for challenging procedures) are exciting applications of AI in medicine.

The last word 

For AI to transcend the theoretical realms into valuable real-world applications, we need to do away with the fear of robots making humans redundant. Because the fact remains that no technology can completely replace the human factor, especially in fields like education and healthcare. Whether it’s making learning more adaptive or medicine more affordable, these two industries can be transformed profoundly by digital technology. The question is: Are we truly ready to join hands with technology to meet the mammoth challenges of today?

Check out this whitepaper: A Guide to Implementing Digital Transformation in healthcare

The Hyperloop is heading to India

Such headlines capture eyeballs; some skeptical with a raised eyebrow, others jubilant with great expectations, and a glazed look by many with no idea what it means. For a country like India, mass rapid transportation has been but a dream. The advent of metros, low-cost air travel, dedicated freight corridors have no doubt reduced congestion on our roads and railways. But, for the large part, they have not been able to cope with the rising aspirations, burgeoning population, mass migration and rapid industrialization India is facing today.

But, what is the hyperloop? Is it a crazy idea with no real practical applications? Or is it going to change the face of transportation as we know it? And, what does it mean for India?

Hyperloop – Hype or Happening?

The idea, though not entirely new, was first proposed in its modern form by Elon Musk through an open source white paper. The primary challenge that prevents vehicles from moving faster is friction. Whether it is the tires hitting the ground or the plane fighting against the wind, resistance in any form puts limitations as to the maximum speed that can be attained. Ideas have been regularly proposed for quite some time about traveling in a vacuum tube, and some of the earlier transportation systems such as the London Underground did use vac. The problem is that it is near impossible to make a vacuum tube cost effective.

That’s when Elon Musk stepped in and proposed a system of transportation that would be magnetically propelled, by placing smart transportation pods inside a near vacuum tube by using a motorized suction pump. This tube would be insulated from weather changes, have low energy costs and need little maintenance. The tube could be either under or above the ground as situation permits. Where the tubes are above the ground, the idea is to power it with solar energy, making it free of emissions.

While these all seem to be in the realm of science fiction, two companies Virgin Hyperloop One and Hyperloop Transportation Technologies (HTT) are leading the pack in making this a reality. They have signed contracts with numerous governments across the world, including India. Musk himself has indicated that he was disappointed with the slow progress of the hyperloop and might throw his hat into the ring, with the help of his Boring Company.

The India Connection

Of the two major players, Virgin Hyperloop One – which is backed by Sir Richard Branson – has already struck a deal with the government of Maharashtra that proposes to connect Mumbai with Pune in 25 minutes (which is neat for a journey of 160 km). In its study, the company believes it can support about 150 million passenger trips and result in economic benefits worth $55 bn via cost savings through reduced fuel consumption, emissions, accidents and increase in operational efficiency. Similar routes connecting Mumbai, Bangalore, Chennai, Delhi, Kolkata and Thiruvananthapuram have been proposed. And Hyperloop One is not the only player eyeing India either. US-backed HTT has inked an MoU with Andhra Pradesh to build a loop between the new state capital Amaravati and Vijayawada.

It is being predicted that hyperloops in the 21^st century can become what railways were in the 20^th century to spur India’s economic growth. Besides the obvious benefit of moving people and cargo across the sub-continent in a faster and more efficient manner, connecting India’s major cities with its outskirts and rural towns can also ease congestion and reduce overcrowding in cities as people may migrate back to their home towns rather than stay near the city. There is also the added benefit of extending economic advantages to the hinterlands of India, many of which are still stuck in the past.

However, to come back to reality, it must be said that these are only early steps and the development of the hyperloop may take years to become a reality. From regulatory clearances to capital investment, many hurdles need to be crossed before work can begin. The technology has not met up with expectations with regard to top speeds (One Hyperloop’s latest test was able to hit a top speed of 240 km/hr; nowhere close to beat air travel). The cost per kilometer too seems to be spiraling out of control. And the final challenge, when it comes to that, is will passengers be ready to step into one and at what cost?

More to it than Meets the Eye

While the revolutionary nature of the hyperloop and the deals inked and the billions being spent are grabbing the headlines, one aspect which has not yet been explored is the software side of things. The hyperloop will require tremendous software support, especially though IoT based devices to communicate throughout the journey.

For instance, Hyperloop One has unveiled its new mobile application designed to help passengers book a ride. But it doesn’t stop there; it creates an end-to-end experience right from the passenger’s doorstep to her ultimate destination. More so, we see more applications being developed to help with logistics, signaling, navigation, etc. to be developed to make the hyperloop work as a system of mass transportation. Hyperloop One had to team up with HERE technologies to bring out the app, and we expect many more such partnerships in developing the associated technology in making hyperloops accessible to the masses.

In conclusion, the hyperloop is in a phase similar to what the Internet was in the 90s. There will be bloodbaths as bubbles burst, but in the end the technology will find its feet to carry the world forward.

You may or may not be a fan of driverless cars, but one cannot help but admire the work of designers who make cars smarter and safer. Honda’s Safe Swarm allows vehicles in the vicinity to communicate with each other and pass critical information. Say, there’s an accident. Alerts will be relayed to cars miles back, enabling them to operate collaboratively and intelligently to mitigate traffic.

With connected devices becoming the norm, the next step in technological evolution is interconnected enterprises that are dynamic and integrated, rather than siloed. The idea is to connect customers, partners, and other key stakeholders to anything, anywhere, on any platform. By bringing together operational technologies (OT) and information technologies (IT), interconnected enterprises implement an interconnection-oriented architecture (IOA) approach that facilitates seamless data exchange and digital growth.

The number of interconnected enterprises is expected to grow exponentially in the coming years; essentially, because the major IT strategies that drive growth are all largely interconnection-dependent. Businesses that deploy interconnection solutions are certain to reap the benefits of value creation in terms of revenue opportunities as well as cost savings.

Same, yet different

Artificial Intelligence (AI) is not a new find. Neither is the Internet of Things (IoT). They have been around much longer than other technologies like Virtual Reality (VR) or Augmented Reality (AR). However, recent digital advances have brought these hitherto theoretical and isolated technologies into the practical and interconnected realms of everyday life. That apart, AI, VR/AR and IoT also have the same set of dependencies—relatively sophisticated devices, excellent network connectivity, robust cloud infrastructures, and interconnection among systems, devices, applications and services for optimal performance.

Today, around 40 per cent of the world’s population has an internet connection. In 1995, it was less than one per cent. With high-speed network connectivity comes the promise of accessing data, applications and other services on demand via smartphones, tablets or wearables. Interconnected enterprises are able to deliver real-time performance, regardless of workload, and for less cost.

Similarly, with the availability of scalable cloud platforms, building machine learning into a device is no longer an exorbitant or complex proposition. Also, data is abundant, with billions of diverse, connected devices uploading information to centralized repositories. The challenge today is not to make smart devices that are convenient, but smart devices that are truly powerful.

Brave new world

AI brings a human element to IoT, making it relatable and valuable to individuals as well as enterprises. However, without interconnection, companies will be stuck backhauling data between their users, partners and data centers. Devices, clouds, business and digital ecosystems need interconnection that is close enough to each other and their users to fuel today’s technologies and scale digital business.

Gartner calls this entwining of people, devices, content and services the intelligent digital mesh. It’s all about combining the real world with the virtual world to create an environment that is immersive, digitally enhanced and connected, and delivers optimal outcomes. Let’s take smart manufacturing, also called Industry 4.0, as an example. With interconnected technologies, it has brought in a new age of responsive supply networks and custom-made products and services that strive to unite the digital world with physical action, through novel concepts such as the digital twin.

Similarly, the idea of smart cities has been gaining ground only because of the practical applications of these interconnected technologies. From smart lighting and smart parking services to energy conservation and garbage collection/recycling, the scope of an interconnection-oriented approach is immense.

The digital future

According to researchers at the Massachusetts Institute of Technology, the combination of IoT and AI will translate into enhanced security, seamless and permeating implementation, and outcome-based applications; all of which will be of great value to the industry. As a result, we will have well-designed systems that are built to take into account security, data privacy, interoperability and resilience of all connected devices and services. Businesses stand to gain from these good technologies in their respective industries.

By instilling a degree of self-awareness in physical objects and their digital twins, AI is cultivating another IoT: the Intelligence of Things. Self-learning models (that allow devices to monitor themselves, their users, environments, processes and outputs) help enterprises to identify impending failures, minimize downtime, and optimize process efficiency. What’s more, these models are continually learning and evolving to become better with time. 

And that’s exactly what new-age enterprises need to do to thrive in the ever-changing digital world. Be flexible enough to adjust, adapt, and learn constantly. Because technology, by itself, doesn’t really possess any value. How we use the technology is what makes it valuable. So, the question to ask is: What’s on the to-do list of interconnected enterprises?

 

In today’s interview, Mukund Krishna, CEO of Suyati Technologies and a key member of the Kerala Committee for NASSCOM’s 10,000 Startups Initiative, speaks with the Directors and Founding members of FTL Technology Systems – Hareesh Panicker & Soney Jose. FTL specializes in offering consumers safe & simple solutions for all their online financial transactions.

 

Hareesh Panicker is a seasoned Banking and Telecom industry specialist donning multiple roles in his long career at some of the biggest names in these industries. Soney Jose brings with him around 23 years of solid expertise in the BFSI sector. Find out more about their journey in building FTL Technology Systems, the challenges they overcame, and how they transitioned into entrepreneurs from corporate executives.

 

Setting business goals is important, but merely defining a list of them may just not cut it if you want to ensure success. How do you translate and break them down into everyday activities? This is where clearly defining the Key Result Areas (KRAs) of your business will help.

KRAs, when aligned with the broad business goals of the company, provide the critical framework that will impact your success. This will enhance the productivity of the company and lead to increased levels of employee satisfaction. As a CEO, I have seen how KRAs can impact both; here are some reasons why.

KRAs and Enhanced Business Productivity

Randall Rollinson and Dr. Early Young in their book Strategy in the 21^st Century say:

KRAs is a strategic factor that is like scaffolding or framework that help break down your vision and goals into specific factors that will drive your business success.

KRAs help in improving communication across different departments and teams and outlining their responsibilities. They communicate the latest business goals and strategies to employees, ensuring that their goals are aligned with that of the company’s. Well-defined KRAs enable the business and its workforce to focus more effort and time on areas that yield the most ROI.

KRAs can vary from business to business, but the primary ones are profitability, employee satisfaction, customer and engagement.

LinkedIn is an excellent case study to show this. In the article The Management Framework that Propelled LinkedIn to a $20 Billion Company, setting key result areas is mentioned among the primary reasons for the company’s success.  These OKRs (Objectives and Key Results) are used to connect and align employees to the company’s mission. CEO of LinkedIn, Jeff Weiner, pushes the team to challenge themselves with key results, and guides them through weekly meetings to keep up with their progress on their key results. 

Read: Employees are the new influencers!

KRAs And Employee Satisfaction

Setting KRAs help employees focus on their goals, which increases productivity and gives them a sense of accomplishment. Apart from that, employee satisfaction and engagement in themselves are important KRAs that business owners must focus on.

A study conducted by Gallup says “The average working population ratio of engaged to actively disengaged employees is near 2:1. Only 30 percent of American workers are engaged at work. The cost of this disengagement results in a whopping 450 billion to 550 billion dollars per year, leading to employee absenteeism, workplace accidents, and higher health care costs.”

Jeremiah Bird of Reward Gateway, says that active employee engagement can be achieved by “the alignment of an individual employee with the goals and vision of the business.”

Contrary to popular beliefs, increments and salary hikes do not contribute to employee satisfaction, but perks like the following do:

• Taking care of employee health and wellness
• Encouraging a work-life balance
• Creating a positive and conducive work environment
• Rewards and recognition programs
• Employee learning and career growth opportunities
• Fostering employee relationship and bonding
• Encouraging off-the-box thinking
• Open communication
• Warm and welcoming new-recruit onboarding

Tying KRAs With Long-Term Business Goals During Hiring

Building a great team is integral to success. Paying more attention in the recruitment and selection process is a critical factor in meeting the long-term goals of the business. Assess the goals and attitudes of potential employees. Ensure that they are in line with the KRAs that will be assigned to them. This is vital to the overall business growth strategy and will save you a whole world of trouble that a misfit could bring.

Manager Foundation’s Keith Tatley says, “While on the surface cultural fit may not seem like a critical factor in the hiring process, it is arguably one of the most important selection criteria.”

When you create a result-driven culture with carefully picked employees, it brings your team together and helps them work together in achieving the strategic goals of your business. This will further assist them in becoming more productive, leading to both employee satisfaction as well as business growth.

Read: Building a Happier Workforce with AI

It All Boils Down to Smart KRAs

Aligning the KRAs of your company to enhance productivity, improve employee engagement and satisfaction, and ensure smart hiring keeping the long-term business objectives in mind, will help you achieve your business goals.

While defining KRAs ensure that they are clear, measurable, and can be modified to suit the changing business goals of your organization. What are some of the KRAs that are working for you?

There was a time when people equated ownership with success. Big cars, big homes, big offices. Today, the trend is to own less, experience more. Call it the millennial mindset, if you will! From ridesharing and apartment loaning to coworking and peer-to-peer lending, the sharing economy is fast becoming the norm.

Also known as collaborative consumption, the sharing economy is based on the shared production or consumption of goods and services.  An increasing number of consumers today are comfortable with the idea of booking a cab on Uber, renting an apartment on AirBnB, and setting up their laptops in a coworking space. From transportation, accommodation and household amenities, to education, healthcare and financial services, collaborative consumption is disrupting many industries.

This new ecosystem of entrepreneurs and businesses is changing the way we live.

Sharing economy – What an idea! 

The sharing economy works on the premise that access to goods and skills is more important than owning them. Experts agree that the sharing economy involves either the recirculation of goods, increased utilization of durable assets, exchange of services, or sharing of productive assets.

While coworking spaces like WeWork offer entrepreneurs and telecommuters the freedom to rent a desk or an office without the overhead cost of renting a traditional workspace, players like TaskRabbit, Care.com and Upwork have revolutionized the freelance market. In the fashion space, startups like Poshmark and threadUP offer an online platform to sell ‘gently used’ clothing, while there are innovative enterprises like Le Tote that encourage consumers to borrow clothes, instead of buying them. Did you know that there also online communities (NeighborGoods, for instance) that allow people to share resources, such as tools and kitchen appliances, with their neighbors?

Tech advantage – social media and mobile technology 

The growth of the sharing economy would not have been possible without the development of information and communications technologies. For collaborative consumption is, essentially, about using data effectively to provide services to people when and where they want them. Social media and mobile technology have played key roles in development of the sharing economy. How else can Airbnb or Uber cater to millions of consumers across the globe, tapping into the common resources?

The most interesting aspect of the sharing economy, perhaps, is that these companies are not the actual service providers. They merely act as facilitators, making the transaction possible, easy, and safe for the provider as well as the user. And that’s where the tech advantage comes in most handy.

Read: Digital Transformation: Don’t overthink it – Get Started!

 

Win-win situation – for suppliers and consumers 

A win-win proposition for both suppliers and consumers, the sharing economy has significant benefits for the entire ecosystem – from better utilization of existing resources and improved reach to the consumers, to the lower costs and convenience of on-demand services.

A paper co-authored by Princeton’s Alan Krueger – the former Chairman of President Barack Obama’s Council of Economic Advisers – based on Uber’s internal data finds clear benefits for “driver-partners” which has created:

• New financial opportunities created for tens of thousands of workers
• Lower prices for consumers compared with the traditional taxi cab dispatch system
• Boosted demand for ride services, which, in turn, has increased total demand for hire-drivers, potentially raising earnings for all workers with such skills.”

Similarly, peer-to-peer lending enterprises, like Lending Club, allow people to lend one another money, at much lower interest rates and fees than traditional credit cards or bank loans. It helps investors earn solid returns, while borrowers get more competitive rates.

Experts believe that the sharing economy has provided an impetus to employment as well as helped in social mobility, by empowering a new class of micro-entrepreneurs to redefine success. That apart, there are many who believe that the unorganized services sector has witnessed greater transparency and accountability in business, courtesy the rise in collaborative consumption.

Fundamental challenges – trust and security 

Given that these enterprises are just connecting providers to users through the platform, with limited control over the services provided, there are concerns regarding trust, security and consistency in quality of service.

Most sharing platforms try to combat the trust issue by building a self-policing community.

They demand profiles of both parties and feature a community ratings system.

Amidst controversies regarding the need for strict regulations to control enterprises like Airbnb and Uber in several parts of the world, Amsterdam became the first city to pass the so-called “Airbnb friendly” legislation in 2014. Similarly, in London, regulations limiting short-term stays were scrapped, making it easier for Airbnb and others to operate in the city. The British government has even launched an initiative to make the UK the “global centre for (the) sharing economy.”

Read: Speeding up Enterprise Digital Transformation with IoT

The future 

A 2016 report by PwC predicted that the sharing economy presents Europe with a €570 billion opportunity by 2025 (€28 billion in 2016). Another study by the McKinsey Global Institute in the same year found that up to 162 million people in the US and Europe (20-30 per cent of the working age population) are already involved in some form of independent work in the sharing economy space.

In other words, it’s time to embrace collaborative consumption as central to the future of work across the globe. Are you ready?

Question: Does Customer Experience affect Brand Recall and Brand Loyalty?

Answer>: Google It!

“I’ll PayTM it to you.” “I’m Ubering.” All these are not just teen lingo. Brand names have now become synonymous with customer experience that they are no longer proper nouns but used as a verb. While it was believed that brand recall and brand recognition came with time, newbies like PayTM and Uber prove that customer experience can get you there faster and more effectively.

How did Google, Uber and PayTM do it?

Brand Recall, Brand Recognition and Brand Loyalty

Before we dive deep, here’s a quick primer on what some of these words mean:

Brand recognition: When you see the unique purple packaging on a bar of chocolate, you immediately recognize the brand as Cadbury. You recognize a Benz car by its emblem. Brand recognition is identifying a brand through its packaging, logo, identity, ads etc.

Brand recall: When you think of taking a cab, do you think of Uber? If asked to name an antacid, is it Gelusil? Brand recall is a measure of how well the brand is associated within its product category or industry.

Brand loyalty: This is your real competitive advantage. What will get your customers heading straight to your product again and again?  That’s brand loyalty.

Customer Experience and its Role in Achieving Brand Recall and Loyalty

A recent study on the impact of brand awareness and customer experience on brand loyalty, brought out the different aspects involved in a customer’s purchase decision. It proved conclusively that a good customer experience seals the deal and brings in brand loyalty.

A good customer experience touches on nearly every point of the sales and marketing cycle.

• The product experience – The feelings evoked in consumers when there is a physical contact with the product.
• The shopping & service experience – This is based on the interaction of a consumer with the store’s physical environment (website and ecommerce portal if it is an online purchase), the sales and customer service personnel and the store’s policies and practices.
• Consumption experience – This is the personal experience of consumers when consuming the product.
• Brand experience – This is the overall experience of the customer with the brand, which includes brand design, packaging, advertising and the emotions and behavioral response of a consumer when he interacts with the brand.

An unsatisfactory experience for the customer on any of these points “leaves a bad taste,” as it were, and the customer is left with a negative image of the brand. A consistent positive experience however, does just the opposite and contributes to effective brand recall.

This is where brand awareness programs can help. The same study mentioned above shows that just as important as it is to deliver a good customer experience, the experience in itself also depends on brand awareness.

Consumers’ brand awareness plays an important role in the decision-making process (Keller, 1993). It has been shown that brand familiarity can increase consumers’ confidence in the purchase and enhance their attitude toward the brand.

Aren’t we all guilty of approaching a product with an unfamiliar brand name with skepticism, which usually works to ruin the product experience for us? Increasing brand awareness and enhancing customer experience work in tandem to create a positive brand image for the customer. A consistently great customer experience increases brand recall and brand loyalty.

Case in Point: PayTM

The reasons for PayTM’s resounding success was brought out in an interesting blog on Finextra.

To summarize, here are the key points:

1. Viral Distribution by encouraging non-users to register and receive money
2. An aggressive and direct merchant acquisition drive
3. Ease of Payments without repeatedly having to sign in and sign out
4. Cashbacks as incentives
5. Wallet preloads on the fly without user intervention

Classic Branding: Coca Cola

Let’s take a lesson from Coca Cola. It is one of the oldest brands we know and yet it keeps evolving, never slacking on its brand awareness efforts. Despite the knowledge that soda isn’t good for you and fierce competition from other brands, Coca Cola has made itself relevant through the years by creating a brand that is an experience, an idea that is relatable and which makes consumers feel good about themselves.

Their focused efforts date back as far as 1887 with a coupon initiative where 10% of all products were given away for free with the goal of increasing brand awareness. Posters, festoons and more were given to retailers to ensure the brand name stuck. Some of their more recent efforts include the “Share a Coke” campaign that continues creating a personalized experience for consumers worldwide. From regularly featuring influencers to the massive volumes of consumer generated content on their social media, Coca Cola continues enhancing customer experience through its brand awareness efforts. The 3.4 million followers on Twitter and 107 million fans on Facebook are a resounding testimony to this.  

In conclusion, working on enhancing customer experience is the way to go if you want to achieve brand recall and loyalty. I would love to hear your thoughts on how you are doing this for your business.