Artificial Intelligence and Customer Experience
Artificial Intelligence (AI) is rapidly transforming the way companies interact with their customers. It has been a hyped-up term for a long time and has become a reality now. In recent years, companies have invested in AI customer services in order to improve efficiency by decreasing call processing and complaint resolution times. Many big companies have adopted AI to deeply understand the customers, drive customizations and provide personalized customer experiences.
Customer experience is the ultimate brand differentiator. Product, pricing, and branding levers are ineffective if the brand is lacking the personalized experiences. According to a study, industries with large customer service like travel, hospitality, retail, customer goods, IT, telecommunications, personalization of products, and customer care are using AI the most. AI has rapidly moved from technology fiction to mainstream across mentioned industries.
Here is how AI influencing CX these days.
Meet customer needs and expectations better
With increased competition in the market, recent studies have shown that one-fourth of consumers say that their expectations are higher than a year before. More than two-thirds of consumers want faster service with convenient shopping options. This means you have more potential to impress your customers. This is where AI can help. When implemented correctly, AI can allow you to discover patterns and identify the customers who need your product or services the most. This helps you focus more on what matters the most and meet your customers’ expectations.
AI can help you process incoming calls and find out which service representative will be able to respond appropriately. It decreases the customer wait time to reach an agent, your calls can be routed directly to the right person.
Data insight and advice generation
Using the customer data to extract the actionable insights that inform the customer conversation in real-time, across all touchpoints is becoming possible using AI. Banks are now creating ‘decision hubs’ powered by a portfolio of statistical models and fed by readily available customer data. It creates the next-best-conversations that are context, channel, and customer-aware. Decision hubs are initially built to maximize sales effectiveness and designed to support a diverse set of business goals such as retention, acquisition, compliance, and cross-sell.
Chatbots and conversational AI bots
Chatbots refer to natural language text interfaces used as an alternative to navigating a browser or app to fulfill certain tasks. Chatbots and AI-powered bots are used as virtual assistants. Conversational AI uses natural language processing and natural language understanding in order to enable dynamic dialogues between a customer and a machine. The AI-driven bots interpret sentiments and context. The dialogues can be in the form of voice or text, but both require a seamless transition to a person when conversation exceeds the ability of technology to provide satisfactory results.
Artificial Intelligence is very useful in many ways in back-, middle- and front-office applications. Conversational AI is influencing CX in a variety of ways. Specific technologies including natural language processing (NLP), natural language understanding (NLU), natural language generation (NLG), and predictive or propensity modeling of various types. These technologies are not used separately but are combined to support AI-driven applications to improve customer experience.
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February 18, 2022
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