Cogito Leverages Human Behavior to Nudge Customer Relationships

Introduction

We've all experienced frustrating customer service calls, often starting with a negative mindset due to poor hold music or echoes. Customer service and sales agents are tasked with building relationships, but the demanding nature of their job can lead to burnout. Cogito, a spinout from the MIT Media Lab, aims to address this by using AI to provide real-time feedback to agents, subtly guiding them towards better conversational habits.

How Cogito Works

Cogito's technology analyzes conversations in real-time, focusing on various metrics such as dialog speed, pauses, interruptions, volume changes, and tone. It compares this data against established norms for specific call types and industries to provide tangible, actionable recommendations to agents. This approach is designed to be a gentle nudge, improving performance without being overly critical.

Applications and Impact

While primarily focused on phone-based communication, Cogito's real-time conversation analysis has significant growth potential. Beyond call centers, the DARPA-backed startup is applying its technology to non-commercial sectors. For instance, the U.S. Military Academy at West Point is collaborating with Cogito to offer cadets real-time feedback on their negotiation skills.

The intersection of qualitative behavioral analysis and quantitative lexical analysis is seen as a key area for future advancements in speech analysis. As datasets grow and algorithms improve, we can expect more sophisticated applications, such as enhanced propensity modeling integrated with omnichannel data.

Cogito is already working with large companies like Aetna, Humana, and BlueCross BlueShield, involving hundreds of employees. Early results show a 15% decrease in average call time and a 10% decrease in the average number of callbacks, indicating significant efficiency gains and improved customer satisfaction.

The Human Element and Behavioral Nudging

Cogito's CEO and co-founder, Joshua Feast, emphasizes that while many data analytics solutions excel at quantitative analysis, they often fall short in influencing real-world practices. The success of behavioral nudges relies heavily on accurate data and a low margin for error. Mishandled recommendations, especially when used for employee evaluation, can lead to disengagement and strained relationships.

Feast believes that the competitive nature of large corporations in the American entrepreneurial ecosystem drives their willingness to adopt new technologies. He notes that managing product development is more challenging for him than gaining access to potential clients.

While the idea of behavioral nudging might seem condescending, it can be highly beneficial in the right context. For example, if a customer service agent needs to speak louder due to a customer's hearing impairment, they don't need a reminder about rapport. However, if an agent fails to recognize an unusual conversation pattern, Cogito's service can provide informative feedback rather than criticism. This is likened to automotive safety features that alert drivers to deviations, which, despite potential annoyance, can be life-saving and appreciated.

Funding and Focus

Since 2007, Cogito has raised $7.5 million, with a significant portion ($5.5 million) coming from a Series A round in 2015 led by Romulus Capital. Feast acknowledges the market's size but stresses the importance of a clear focus. Cogito is collaborating with Salesforce and aims to deploy its product primarily for healthcare and insurance agents.

Topics Covered

The article touches upon several key areas:

Advertising Tech
AI (Artificial Intelligence)
Cogito
Customer Experience Management
Customer Relationship Management
E-commerce
Enterprise
Marketing
Nudge
Omnichannel
Startups

Cogito Leverages Human Behavior to Nudge Customer Relationships