“By 2025, as many as 95 percent of all customer interactions will be through channels supported by artificial intelligence (AI) technology.”
– Microsoft
In recent years, AI technology has become a revolutionary, transformative concept that has changed the way industries operate.
If we go back to the late 1940s and early 1950s, computers were initially created to execute commands but could not store them nor act intelligently. Fast forward to today’s age of “big data” and AI applications can be found nearly everywhere thanks to its ability to streamline various work processes.
While AI technology is deployed across almost all business sectors, it has been incredibly successful for businesses that require more customer interaction. Salesforce believes that deploying AI for Customer Relationship Management will increase global business revenues by $1.1 trillion by 2021.
Implementing AI-managed systems such as chatbots, smart assistants, and automated responses have been proven to improve user satisfaction. A recent study by IBM indicated that 33% of users are more likely to increase their satisfaction due to a more personalized experience offered by AI.
Read on to learn the game-changing benefits of adopting AI technology for customer service:
Quicker Response Rate
An article by AI Magazine revealed that 75% of customers believe it takes too long to reach a human agent via customer service. A poor experience can lead to abandoned carts and missed sales opportunities. To improve the timeliness of response rates and eliminate the hassle of calling customer support, chatbots are a powerful online support tool that mimics a human agent to answer customer queries promptly. For example, H&M, the famous fashion retailer, enables clients to make entire purchases through bots available on their Kik messaging app.
Advanced chatbots use sophisticated machine-learning (i.e., Siri or Google Assistant) to understand complete sentences and provide real-like conversations. Implementing this software allows for better resource management, as customer service representatives no longer need to spend time answering simple questions; they can shift their focus to more complex queries.
Data Storage
Most AI software does not require continual programming; they are designed in such a way that information is collected automatically without having to invest additional time and resources. With capabilities to track and store valuable data on customers, businesses can obtain in-depth insights to understand their customers’ behavior in more detail and automate marketing activities to maintain their attention and overall improve the customer journey.
Consider the example of Netflix. When a user logs in, they are instantly welcomed by entertainment recommendations. Such user experience is possible through AI-powered analysis. Suggestions are initiated thanks to data collected from what movies and TV shows have already been watched, repeatedly viewed, or left incomplete.
Natural Language Processing
As aforementioned, AI-powered chatbots are a robust software option that can be used to interact with customers. Contrary to rule-based chatbots that reflect robot-like mannerisms, the more advanced chatbots aren’t so different from live agents. They can use natural language processing to generate appropriate responses to specific tasks and resonate with users, often emulating personal and empathetic replies.
With AI chatbots available to the customer 24/7, they can help prevent customer inquiries from escalating into complaints. Thanks to an almost instant response time for chatbots, this function removes long waiting periods for customers looking to get a quick reply to their queries and feel like they are genuinely being listened to. In-built AI intelligence allows businesses to program accurate, customized feedback for each type of customer interaction. If queries become too tough for the automated system to answer, only then will they need to be escalated to live staff.
Other benefits and considerations
Hiring a team of customer service agents is a timely and costly investment that requires ongoing training, quality assurance, and management to ensure the organization is represented correctly. When adopting AI technology, the one-time investment will eradicate the reoccurring high costs and also can help to reduce human errors with standardized guidelines.
The constant refinement of customer journeys should not be undermined. Every interaction your customers have with your brand can determine your overall business performance. Delivering excellent customer experiences can result in higher customer loyalty and satisfaction that drives positive word-of-mouth marketing. If you are looking to increase brand value by improving your customer service, find out here.
While investing in AI technologies can come at a high initial cost, the benefits by far outweigh the expenses in the long term. Most businesses can only grow as fast as staff allows. Saving time and automating processes will enable human workers to tackle complex tasks and focus more on strategy with the vast amount of data collected. Having the extra bandwidth, therefore, will allow companies to scale up to serve more customers faster.
Are you a customer-centric organization that is looking for new ways to boost customer satisfaction? Get in touch today for a consultation to learn how we can help transform your customer experience and win more conversions.
