- Big data backed by AI and behavioral psychology can effectively forecast how people will respond to marketing messages.
- The emergence of AI technology has minimized the need for human intervention to resolve customer service issues.
A firm’s success in today’s market is no longer dependent on product or price but more on satisfactory Customer Experience. And when it comes to enhancing Customer Experience (CX), Artificial Intelligence (AI) is a potent tool, helping companies meet modern-day consumers’ demands. Increasingly, businesses are embracing AI to enhance Customer Experience and satisfy the needs of modern consumers.
As per reports, AI has the potential to enhance company profitability by an average of 38% by 2035. AI holds the ability to enhance customer engagement, foster brand loyalty, and increase customer retention. AI can also merge other technologies, including machine learning, deep learning, and natural language understanding, to eliminate communication obstacles and automate consumer interactions.
AI is a game-changer, for sure. But is this technology effective? Would updating your Customer Experience strategy make a difference? Let’s examine some incredible ways AI is helping businesses create a meaningful client experience.
Why Should Businesses Focus on Customer Experience?
Individuals now recognize the distinction between User Experience and Customer Experience. However, the latter is fast becoming the key to unlocking unmatched market possibilities. It has now become important, helping businesses strategize marketing initiatives and better understand customers. Marketing teams are now making sense of insights to provide superior customized experiences.
Here are a few interesting statistics that every business must consider:
- According to Hubspot, customer-centric businesses are 60% more lucrative than non-customer-centric businesses.
- A report by Super Office states that 86% of shoppers are prepared to pay more for an exceptional customer experience. Furthermore, Customer Experience impacts spontaneous purchases, as 49% of shoppers have made impulsive purchases after obtaining a more customized experience.
Role of Artificial Intelligence (AI) in Customer Experience Improvement
AI helps predict customer behavior and needs: Predictive AI is a technology that helps curate experiences for individual consumers. It analyses past purchase history and actions to predict the customers’ interests and sends information when it’s time to repurchase.
Still wondering How AI improves customer experience? Here is the answer: AI provides organizations with copious amounts of real-time user data. AI technologies such as Natural Language Processing (NLP) and Machine Learning (ML) allow organizations to collect and analyze user data in real-time and adapt to changing consumer expectations and behaviors.
AI-powered insights improve decision making: Traditionally, businesses have relied on manual data collection and a few strong instincts to make business decisions. Investing in Big Data and AI is now universal, with leading Fortune 500 companies betting on it.
AI and machine learning allow insights to be powered by data. The former assists businesses in analyzing user behavior to discover patterns, detect problems, or disclose insights that enable them to enhance the interface of their website or app.
Marketing becomes more targeted and effective: AI has played a crucial role in understanding and influencing client behavior. According to 2021 research, tailoring messages to certain personality types can be more compelling and result in increased click-through and conversion rates.
AI and big data are, in fact, complementary. Big data backed by AI and behavioral psychology can effectively forecast how people will respond to marketing messages. In addition, AI can help identify and categorize clients based on their psychological and behavioral profiles.
Offer proactive and personalized customer service: AI technologies such as machine learning and predictive analytics can unearth frequent consumer difficulties and provide insight into what’s driving user problems. When used to implement AI chatbots at client touchpoints, this data enables businesses to customize real-time customer experiences while being proactive. Leveraging AI in customer experience with personalized customer service also improves the brand experience and brand image.
Streamline workflows: The emergence of AI technology has minimized the need for human intervention to resolve customer service issues. This not only furthers the creation of a positive Customer Experience but also streamlines internal processes.
AI can also help prequalify sales leads and guide customers through support inquiries. Furthermore, AI chatbots are able to answer basic client questions and, if necessary, refer them to further online resources. As a result, the customer support staff has fewer requests to investigate, giving them sufficient time to focus on high-priority customers. AI chatbots can also facilitate direct support requests to the right department or give context to an agent before customer engagement.
Future of Artificial Intelligence (AI) in Customer Experience
The rise of AI has been exponential. Many big firms have invested in developing next-generation applications for customer experience delivery, and many more are eager to follow suit. Businesses are beginning to rely on AI for its capacity to increase productivity, decrease costs, and save time.
Here are a few ways in which AI technology can alter the corporate sector and consumer experience:
- It will automate mundane tasks and, thus, allow humans to focus on creative things.
- It will shift the focus of business-customer interactions from one-click to zero-click, resulting in a smooth and enduring experience for the target base.
- Artificial intelligence will eliminate the practice of obtaining biased data, resulting in improved information quality.
Every step of the buyer’s journey can be enhanced with AI. Its capacity to gauge the target audience, their likes and dislikes, and how they shop offers countless opportunities to enhance your organization’s Customer Experience.
AI also holds the potential to make a customer feel understood and valued. This in itself can enhance brand loyalty and help with customer retention to improve cross-selling and upselling in the future. When executed appropriately, AI can make customers feel like they are on top of their choices.