Applications of AI that will Make You Rethink Your CX Strategy

CX Strategy

Artificial intelligence (AI), also called machine learning, has hugely impacted the digital world. AI is based on the process of mimicking the human intelligence process by the creation of algorithms into the computer process. Businesses have completely reinvented the customer journey while taking the CX benefits to a new level by incorporating AI. However, to achieve this, three key components are required:

  • Computational systems
  • Advanced data management
  • AI algorithms

The amount of data that both humans and machines generate is far more than humans can absorb and interpret. Due to the large quantity of data available, the complex decision-making process has become even more difficult. 

This is where artificial intelligence comes in. Since computers are highly efficient in calculating combinations and permutations to arrive at the best decisions, AI is the most logical evolution of machine learning and is becoming the foundational future of business and decision-making processes.

AI customer experience has emerged as one of the most massive and dominant trends in the customer experience strategy. A good customer experience leaves a positive response which makes a customer come back in the future. 

The better and more efficient the experiences, the more likely companies can turn a first-time customer into a long-term loyalist. Through AI, businesses can augment customer experience. AI incorporated CX technologies leverage deep learning and natural language understanding to automate even the most minor interactions that can make up a user’s experience.

For instance, AI augments customer experience through an AI-powered chatbot. It can function digitally through various messaging platforms and other voice assistance systems. Various chatbot statistics show that the most significant benefit of an AI customer support system is eliminating long waiting hours, which is present only with human support.

Furthermore, since helping customer service works more efficiently by automation, it leaves human agents to focus on more complex and challenging issues. As a result, happier customers become regular customers in the long term, thus reducing the overall customer service cost.

58% of the consumers use AI to save their time, while the other 56% said they use it to save money
Gartner

AI can enhance CX in several ways. First, it streamlines the entire process and improves the overall automated support to simplify everyday tasks and work. The more time a customer saves, the more likely it is that they will purchase a product and the money held makes them return to your business again.

Role of AI in Customer Service

Companies visit employ artificial intelligence can create a much better user experience in the following ways:

AI

1. AI for Hyper-relevant Digital Advertisements

Ads have become more intrusive nowadays than two to three years ago. Of course, there is no denying that ads are not going anywhere, but the experience certainly is up for a change. It is seen that people generally do not prefer advertisements that are irrelevant to the customers and want to filter out the obnoxious ones.

Most brands and companies harness AI to show hyper-relevant advertisements, address this challenge of digital advertising, and make them less intrusive. Machine learning can help companies anticipate if a person is likely to click on an ad based on their online behavior and audience segmentation. 

For example, predictive targeting can help a company to adapt advertisements for an individual customer and recommend products in their advertising based on several algorithms and signals.

AI can help customers discover more relevant products and streamline their user experience in a much better way. It is mainly driven by 80% of consumers purchasing a brand that offers personalized experiences. 

For example, Netflix uses AI to crunch vast amounts of data and present a different home screen to every viewer based on personalization and previous history. The recommendations are mainly based on their past viewing behavior and the overall audience segmentation. 

3. AI Helps Customers Find the Best Available Price

Artificial intelligence also helps customers find the best price to feel confident while buying a product. This is mainly based on predictive intelligence around various price fluctuations. For instance, several startups rely on AI to provide an excellent CX. In addition, companies offer various flight recommendations based on highly accurate price predictions while uncovering other price drops and exclusive deals relevant to travelers.

4. Assist Customers 24*7

AI offers instant resolutions to simple queries such as flight status, refund policy, and much more. Some advanced customer service even integrates back-end systems like CRM to provide personalized solutions to infinite customer issues. This allows the customer’s reps to utilize their time on more critical matters like complex customer situations.

Top 5 AI Applications That Enhance CX

AI

1. Machine Learning

There is no denying that machine learning has a significant role in customer service and customer service is no longer only the domain of humans. Machine learning algorithms help a model respond to any given data and specify how a model should learn the mapping for the entire process. For instance, the algorithm determines the way data should be transformed from output to input and vice versa. Therefore, machines with artificial intelligence are increasingly being used to help the human support agents to keep the customers happy.

For example, In Starbucks, Machine learning enables to recognize the customers as they enter the shop. This allows the baristas to check the customer’s ordering history, making it easier to make recommendations for new drinks that the customer might enjoy.

2. Voice Assistants and Chatbots

Chat and virtual assistants are some of the most commonly used machine learning applications in the customer service industry. Chatbots are used almost everywhere to accurately identify the right tag for every conversation using natural language processing. Therefore, the more conversations a chatbot has, the more correct its response will be in the future. For example, you can allow your customers to navigate themselves by searching through your website and connecting with your business through voice assistant technology.

3. Internet of Things (IoT)

IoT Stands for the Internet of Things, an application system that companies use for providing a personalized experience, proactive customer service, better customer insights, and increased customer engagement through various data collection and transmission. Data is collected across multiple touchpoints based on different environmental factors, which further transmits through Wi-Fi or Bluetooth to a data analysis platform, where it is then stored in a cloud system. 

For instance, several innovative home security systems use IoT technology to provide users with seamless and high-end security.

4. Location-based Computing

Location-based computing systems is a general term that denotes the software services that use specified geographic data and information to offer services and information to their users. For example, location-based computing has a huge role in providing a personalized experience to the customers in the customer service sector. Tracking systems and location-based advertising is yet another example of location-based computing.

5. Virtual and Augmented Reality

Augmented and virtual reality helps businesses provide an amazing customer experience with various simulations for real and imagined environments using various three-dimensional graphics and audio systems. Augmented reality also brings different simulated objects into the user’s world, whereas virtual reality brings the user to a simulated world.

These applications are based on head-mounted displays, haptic controllers, and earphones. Various companies use these kinds of augmented and virtual reality in different sectors such as industries, healthcare, gaming, entertainment, media, and much more.
 
For example, Virtual shopping malls are gaining a lot of popularity. They are an online shopping 3D mall where the customers can virtually navigate the shop through 3D technology.

Wrapping Up

AI has become the future of customer service, which is beneficial since customer data processing without artificial intelligence is highly complicated. Customer service is one of the most critical aspects of a successful business that has made AI one of the most attractive technologies. Using machine learning for customer viewing can eliminate this complex processing process.

Virtual and augmented reality is another highly beneficial and top-of-the-line technology that can help companies enhance their CX. Voice assistance and chatbots are the best solutions for customer service.

There is nothing better than Conversational AI and AI-driven technologies to find and access every small link in the buying decision chain of a customer. Moreover, AI has different solution packages ready, enterprise-ready, and responsive to various CX initiatives. As a result, most leading enterprises have started investing in sophisticated technologies to augment their customer experience.

Shambhavi Sinha

Shambhavi Sinha is working as an SEO expert at Ameyo. She also likes to write tech-based stuff. Her aim is to provide knowledge to users by sharing the knowledge about the latest trends about contact centers.