Exotel, a leading name in customer engagement solutions, in partnership with Grant Thornton Bharat and the Internet and Mobile Association of India, has released an insightful whitepaper titled AI-Driven Customer Experience: Balancing Personalization, Privacy, and Automation. This whitepaper, unveiled at the prestigious Indian Digital Summit 2025 in New Delhi, highlights how Customer Experience as a Service is becoming a game-changer for India’s digital economy.
The whitepaper underscores how businesses can leverage CXaaS to enhance customer engagement, streamline operations, and unlock value in sectors like BFSI, retail, and e-commerce. With the CPaaS market anticipated to reach $35 billion by 2026, the findings are a timely resource for organizations aiming to stay competitive in a rapidly evolving landscape.
Highlights from the Whitepaper
- E-Commerce Growth at the Forefront:
- India’s e-commerce market is growing at a CAGR of 30.11%, driven by increasing internet penetration and demand from Tier II and III cities.
- Customers in these markets, which now account for 65% of e-commerce growth, are seeking better omnichannel and personalized experiences.
- Rising Expectations of Personalization:
- Globally, 82% of consumers value personalized interactions despite concerns about data privacy.
- In India, 72% of customers are willing to share their data with brands they trust, presenting opportunities for businesses to build deeper connections.
- Key Drivers for CXaaS Adoption:
- Rising operational costs, customer attrition, and the push for automation are compelling businesses to rethink their customer engagement strategies.
- 61% of global consumers abandon brands after poor experiences, emphasizing the need for seamless customer journeys.
- Sector-Specific Insights:
- BFSI: Fraud detection improved by 20% through AI-powered CX solutions.
- E-Commerce: Enhanced CX increased customer satisfaction scores by 18% and reduced cart abandonment rates by 12%.
- Retail: Integrated CX strategies drove a 40% rise in conversion rates.
- The Role of AI in Scaling CX:
- Virtual agents now handle 60% of customer interactions, providing 24/7 support and cutting costs by up to 35%.
- AI-powered tools are transforming customer service by improving self-service resolution rates, enhancing personalization, and enabling businesses to manage peak demand efficiently.
- Balancing Personalization and Privacy:
- Privacy-preserving AI technologies, such as federated learning, are critical to building trust while enabling data-driven insights.
- Consumers increasingly expect transparency in data usage, with 70% of customers requiring clarity on how their data is handled.
“Customer expectations are changing faster than ever, with people seeking more personalized, transparent, and seamless experiences. Delivering exceptional customer engagement is no longer optional—it’s a key driver of growth and loyalty. This whitepaper offers practical insights and a clear roadmap for businesses to reimagine customer journeys, adopt innovative approaches, and build trust while creating meaningful value,” said Shivakumar Ganesan, CEO and Co-Founder of Exotel.
Dharmender Jhamb, Partner & Industry Leader FS Consulting, Grant Thornton Bharat, said, “The whitepaper emphasizes the importance of ethical AI deployment, transparent data usage, and seamless integration across touchpoints to meet the rising expectations of digitally empowered consumers. Sector-specific insights demonstrate how leading organizations have successfully leveraged CXaaS to deliver exceptional results, including improved retention rates, measurable ROI, and operational scalability.”
A Roadmap for India’s Digital Economy
As India’s digital economy continues its exponential rise, surpassing $1 trillion by 2030, CXaaS will be a cornerstone for business competitiveness. By aligning cutting-edge technologies with the needs of a digital-first consumer base, businesses can unlock growth opportunities across Tier I, II, and III cities.