How AI is Transforming Customer Experience

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By William Hanks

In recent times, the way artificial intelligence (AI) is developing has become a major technological trend. Because of its disruptive character, it offers a vast potential for a wide range of applications. AI appears to be revolutionizing customer experience (CX) among its many other promises.

Companies nowadays are well aware of how important a positive client experience is to their bottom line. For this reason, they are trying to integrate AI to offer a knowledgeable, helpful, and intelligent CX at every stage of the customer journey.

AI is transforming customer experience

According to an IDC (International Data Corporation) projection, by 2019, artificial intelligence (AI) or cognitive computing will be used to support 40% of digital transformation projects. By 2020, 85% of customer interactions will be handled remotely, according to a different Gartner study.

AI has enormous potential because it can process and analyze vast amounts of data from various sources, including human behavior and emotions. This ability to help generate more meaningful CX is what gives AI its strength.

We are already seeing how AI is influencing a number of different sectors and industries. Examples of how AI can completely change our contemporary way of life include Amazon Alexa/Echo, Google’s “Siri” personal digital assistant, and Tesla’s self-driving vehicles.

Businesses now require three essential skills to successfully integrate AI into the consumer experience: data unification, real-time insights, and business interaction.

AI is transforming customer experience

Discover the ways in which artificial intelligence revolutionizes customer interactions for the better:

Improved CX with chatbots and AI-powered virtual assistants

Making things automated, quick, and easy to use is the biggest influence artificial intelligence can have on user experience. For instance, chatbots are AI-driven virtual dialogue tools that are employed in a variety of customer engagement contexts. They have been specially designed to mimic human communication and offer prompt, customized responses.

This can successfully remove needless hiccups and mistakes in customer service, particularly when addressing client complaints. Businesses can save money by resolving extremely repetitious client concerns with automated solutions, which will also cut down on the amount of time service representatives need to receive training.

Also, organizations can more efficiently distribute information across several platforms to target the correct audience with the use of AI-powered virtual assistants.

For instance, Facebook’s Messenger Bot engages customers in brief dialogues to assist them in finding what they’re looking for. When combined with machine learning, artificial intelligence (AI) can aid with lead generation marketing to boost revenue in addition to facilitating customer conversations.

By ensuring that potential clients are targeted for the appropriate platforms, it can identify favorable leads to sales.

Predictive personalization

The endeavor and capacity to forecast user behavior based on past interactions is known as predictive personalization. By organically incorporating predictive personalization into consumers’ daily lives, AI is now successfully enhancing CX. With this AI-driven personalization, users will perceive that each interaction or product is tailor-made just for them.

Online purchasing will benefit greatly from predictive personalization, as data gathered from customer behavior during online sessions is examined. It encompasses the duration of time spent on websites, pages, products, transactions, completed forms, searches, and so on.

Businesses will be able to determine each customer’s unique needs by analyzing and interpreting this data, making the appropriate product recommendations, and having it delivered to their homes. Consequently, customer experience exchanges will be more seamless and efficient across a variety of channels thanks to AI-infused processes.

AI-enabled analytics for crucial customer insights

AI may be extremely helpful in giving businesses meaningful insights by integrating intelligence with marketing automation, customer relationship management, and other vital operational tools. By assisting staff members in making wise decisions, they may empower them and enhance customer engagement through the integration of validated insights.

Businesses may utilize tools like text analytics, machine learning, and facial recognition software to understand what their customers see, choose the appropriate message, and deliver it instantly. Customer journey analytics with AI support can find a lot more business opportunities by sorting through a much broader and more complex data environment.

AI is transforming customer experience

Visual, voice, and text engagements

Businesses will be able to assess emotions and sentiments in many forms of communication with the use of visual engagement in addition to voice and text sentiment analysis. The visual engagement technology driven by AI examines facial expressions during in-person and video chat interactions.

To interpret emotions, this enhanced processing will take advantage of speech biometrics as well as subtleties present in vocal cords and phone call modulations. These AI-based algorithms assist businesses in figuring out how to route messages and gauge customer happiness. This will enable them to convey good messages and raise lifetime values, which will encourage repeat business and enhance profitability.

Dramatic shift in decision-making

More realistic metrics, such as return on investment, new business prospects, diseases treated, etc., will be used to gauge the performance of AI. All of these accomplishments will be possible only through a paradigm change in how decisions are made.

A decision-making metric is now possible because to the strength of big data, AI, and machine learning. Decisions cannot always be made solely based on instinct and gut feeling. Instead, data should support judgments. Hence, AI helps firms to make wise selections in a variety of areas, including customer service and product review procedures. The financial services, health, and automobile industries are undergoing a radical shift in their approaches to making decisions.

PwC, a well-known audit and tax consulting firm, recently assembled enormous volumes of data from US financial data, the US Census Bureau, and other publicly licensed sources to build a large-scale model for 320 million US consumers’ financial decision-making.

On the other hand, the automobile sector has created a number of AI applications, ranging from supporting decision-making in marketing and sales to designing vehicles. In actuality, AI modeling and simulation offer a solid understanding of evolving consumer behavior, which is essential for making the best short- and long-term marketing decisions.

​Final thoughts

Artificial Intelligence is here to stay because of its boundless potential for the future. Companies already know that in order to quickly and efficiently provide high-impact customer experiences, AI-driven customer journey analytics will be a basic necessity.

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