The Future of Customer Service: How AI Redefined Customer Experience at Telekom

Customer Service Transformation: The Birth of "Ask Magenta"

The evolution of customer service clearly demonstrates that efficiency, speed, and accessibility are indispensable today. Customers expect immediate solutions without long wait times on hotlines. Deutsche Telekom sets a new standard with "Ask Magenta", a chatbot powered by artificial intelligence (AI). This project illustrates how clearly defined goals and user-centered development can maximize the effectiveness of AI in customer service.

Can AI Really Enhance Service Quality?

Deutsche Telekom needed to modernize its customer service while simultaneously increasing its efficiency. "Ask Magenta" was to be established as a service channel available around the clock. A crucial aspect of concept development was considering employees' concerns about automation through AI.

For this purpose, it was essential to clearly define the goal of using AI: improving customer service, not replacing jobs.

The Way Forward: Solutions from "Ask Magenta"

With this approach, "Ask Magenta" was launched to solve the most urgent customer concerns. From the beginning, we focused on user-centered development by researching and user testing to determine and prioritize customer needs. Realizing a flexible design system based on design tokens allowed for rapid adjustments and expansions to the design—a key element for the chatbot's continuous improvement.

Step by Step: The Development of "Ask Magenta"

1. User-Centricity and Prototyping:
   Through intensive engagement with the target group, we gained deep insights into the needs and expectations of users. Based on this, concepts and initial prototypes were created, which achieved high acceptance among users from the start.
2. Branding:
   In parallel, we developed a product branding that gave "Ask Magenta" a distinctive identity. The goals of "Ask Magenta" were considered in all design elements.
3. Scaling and Expansion:
   In the scaling phase, we expanded the scope of the "Ask Magenta" user interface to integrate additional use cases. This allowed the chatbot beyond pure text communication and support more complex interactions with images, links, maps, and videos. This step was crucial for using AI's capabilities more effectively and user-friendly.
4. Contextual Interaction:
   One of the key innovations was "Ask Magenta's" ability to understand the context of user inquiries and respond accordingly. This contextual interaction is a prime example of how artificial intelligence in customer service can be effectively deployed through precise goal-setting and user-centered development.
5. Technological Development:
   "Ask Magenta" was initially based on predetermined dialogue paths. However, the development of free dialogue management and the later use of large-language-model technology were crucial steps to further increase the chatbot's effectiveness.

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Measurable Successes: The Impact of "Ask Magenta"

"Ask Magenta" evolved from a troubleshooting assistant to a comprehensive service assistant. The results are impressive:

1. Performance:
   Over 5 million business dialogues in 2023, a significant increase compared to the early years.
2. Coverage:
   The chatbot covers around 400 topics, highlighting the versatility and adaptability of "Ask Magenta."
3. Customer Satisfaction:
   An NPS of over 40 clearly indicates high customer satisfaction.
4. Awards:
   Multiple awards confirm the success and innovative strength of "Ask Magenta."
5. Internal Acceptance:
   Initial skepticism among employees gave way to high appreciation for "Ask Magenta." The chatbot's focus on repetitive inquiries allowed employees to concentrate on more complex user inquiries and tasks.

What We Learned About Using AI in Customer Service

The development of "Ask Magenta" showed that AI has enormous potential to improve customer service when used with clear goals and a user-centered perspective. Initial skepticism from both customers and employees could be transformed into acceptance through continuous improvements and demonstration of the added value of "Ask Magenta."

Pioneers in Customer Service

"Ask Magenta" has pioneered the German customer service landscape. Not only has service quality significantly improved, but customer expectations have also been far exceeded.

The Future of Service: AI as the Key to Outstanding Customer Experiences

Integrating AI into customer service is no simple feat. However, with the appropriate experience and a structured approach, enriching customer experiences and making the service more effective and straightforward for users is possible.