Feb 23, 2025 (News On Japan) - As businesses seek new ways to enhance customer service, virtual avatars are emerging as a viable solution. These digital representations of human staff are gaining traction in various sectors, from hospitals to insurance consultations and even retail tourism. By improving service efficiency, addressing labor shortages, and facilitating multilingual interactions, avatars are reshaping customer experiences.
To explore this trend, a Nikkei commentator visited several locations where avatar-based customer service is being implemented and examined its potential and challenges.
At the headquarters of Advance Create, which operates the insurance consultation service Hoken Ichiba, avatars are being used to facilitate discussions about insurance policies. Traditionally, insurance consultations involve face-to-face interactions, but certain questions—such as age or health history—can be difficult for customers to answer when speaking directly to a human consultant. The introduction of avatars has helped ease these psychological barriers, leading to a significant improvement in contract completion rates.
The system remains human-driven, with staff members controlling avatars on-screen. The avatars mimic human expressions, including blinking, and can display documents alongside consultations, making interactions smoother and more accessible. The company reports that policy contract rates have nearly doubled compared to conventional in-person consultations.
Initially, avatar-based consultations were introduced to assist veteran sales representatives less familiar with digital tools. However, younger employees, being digital natives, have also found avatars to be an effective and approachable tool.
Beyond individual consultations, the use of avatars is expanding to customer service in retail. On Awaji Island, Pasona operates an avatar service center with around 40 operators managing customer interactions for over 100 contracted companies and municipalities. A single operator can handle multiple locations simultaneously, offering efficient service coverage.
A significant advantage of avatars is their ability to provide customer service remotely. Operators can view real-time camera footage from stores without being physically present, allowing them to assist customers with inquiries, recommend products, and even adjust their voices to match their assigned avatar characters. This feature has proven particularly effective in increasing sales of local souvenirs and specialty products.
The business implications of avatar customer service extend further. By combining avatars with AI-driven automation, companies are developing advanced systems that integrate artificial intelligence with human oversight. AI can gather and analyze customer information, while human staff focus on personalized product recommendations, thereby optimizing service quality amid labor shortages.
The adoption of avatars is also spreading to convenience stores. According to a report by Nikkei MJ, Lawson has begun testing avatar-assisted customer service, leveraging technology developed by a team at Osaka University. By enabling remote interactions, avatars could help address staffing shortages, particularly for late-night shifts.
Japan's familiarity with animated characters has contributed to the acceptance of avatar-based interactions, reducing resistance among consumers. Some customers even find it easier to share personal information with an avatar than with a human representative. This psychological ease is advantageous for businesses, as it can lead to higher engagement and increased sales.
As companies continue to refine the technology, the integration of AI and avatars is expected to play a key role in shaping the future of customer service. By balancing efficiency with personalization, businesses can enhance service experiences while navigating labor challenges in the digital age.
Source: Television OSAKA NEWS
