10 Ways AI will Improve Customer Experience in 2024?

Artificial intelligence uses in customer experience is increasing because AI technology such as chatbots, digital learning, and machine learning are helpful in delivering fast, personalized, efficient, and proactive experiences at scale. Also, AI analyses customer data and divides the segments based on demographics, behaviors and interests so businesses can deliver personalized experiences and improve sales.

The AI tools such as Chatgpt, customer chatbots, Zendesk and Balto are used in customer support. These tools do not just satisfy customers but help businesses build marketing strategies that lead to increased sales.

Let’s understand in detail how AI will improve customer experience and know the steps to use AI to deliver customer experience. Additionally, you will understand how big companies use AI customer experience.

What is an AI customer experience?

Artificial intelligence in customer experience refers to using AI technology in customer interaction, customer satisfaction, and streamlining business operations. The technologies used in AI are machine learning, predictive analytics, natural language processing, and robotic process automation.

AI helps provide personalized recommendations to customers based on a large amount of data, browsing patterns, purchase history, and the customer’s social media behavior. This in-depth analysis helps businesses understand individual customer preferences and, based on that, provide personalized recommendations.

Why are businesses using AI for customer experience?

Businesses are using AI in customer experience to enhance productivity and efficiency. Also, for various reasons, let’s examine why businesses use AI customer experience.

Scalability

AI can handle a large volume of queries together, which benefits businesses and helps them grow rapidly.

Improve productivity and efficiency.

AI can solve customer dairy inquiries and customer issues. As a result, customer service agents can focus on complex issues. This leads to improving productivity and efficiency in the business.

Data-driven insights

AI can collect large amounts of data together and analyze the customer data. While analyzing, it provides valuable insights into customer behavior, preferences, and interests, leading to improved marketing strategies and personalized recommendations.

Proactive service

AI can predict future customer issues and problems, as businesses can proactively solve the problems.

Personalized experience

AI can analyze the customer data where they came to know the purchase history behavior of customers. As a result, they can provide personalized recommendations to customers.

According to a Forbes report 79% of personalized service is more important than customized marketing.

How AI can improve customer experience

AI can improve customer experience and enhance productivity with digital service. AI has grabbed the attention of businesses in customer experiences because it automates the process. Let’s understand in detail How AI can improve customer experience.

Provide 24/7 support

Everything is digital nowadays, so customers need solutions to their queries immediately. Conversational AI is useful because it behaves like human beings in conversations, solving customer queries at any time, like on weekends or late at night when a customer care person is not working. Also, it helps customer agents to focus on more complex tasks.

AI also helps customer agents provide speedy replies, as AI can generate replies based on the context of the conversation. These features help customer agents teams respond quickly, decrease handle times, and reduce wait times.

Predictive customer service

AI can collect large volumes of data, analyze it, and predict future customer behavior. For example, it may predict that the customer will purchase the dress as the customer’s birthday is approaching. So businesses can proactively reach out to the customer and suggest a dress for the birthday. It will enhance the customer experience with the brand.

Advanced analytics

AI algorithms can handle large amounts of data and insights humans can miss. This analysis helps identify customers’ wants, anticipate future needs, and highlight areas where improvement can occur in customer experience. However, this anticipation creates a risk with generative AI.

The risks, such as privacy infringements, unintended biases in data, and misleading output, impact the decision-making process of the business. Because of these, you need to monitor things to get the benefits of AI analytics while mitigating these risks.

Data based decision

AI helps in gaining deep insight into the data. The deep insights are in the form of identifying patterns, customer preferences, and behaviors in real-time. As a result, businesses can personalize their interactions with customers, providing tailored solutions that give customer satisfaction and loyalty.

Additionally, deep AI insight helps businesses optimize their services or products and build better marketing strategies that align with customer expectations, which satisfies customer experience. This provides long-term success to the businesses.

Voice assistant and natural language processing

Voice assistants such as Alexa, Google Assistant, and Siri are becoming popular. These voice assistants help answer questions, place orders, control devices, and provide personalized assistance based on customer history preferences. The voice assistant is possible because of natural language processing.

Reduced operation costs

AI in customer experience can reduce operation costs by automating tasks, eliminating the need for additional tools, training, or staff, and deflecting interactions through self-service.

Sentiment analysis

AI analyzes customer reviews, social media posts, emails and other sources to understand the sentiment behind the words. This helps businesses to understand how customers feel and think about products or services. As a result, improvement could take place in areas where needed.

Customer segmentation

AI helps segment the data based on various segments, such as preferences, demographics, and behaviors. It allows businesses to deliver personalized experiences that improve the outcome. Also, it helps businesses to provide highly targeted marketing campaigns and improve the relevance of their messaging.

Omni channel experience

AI can combine multiple data sources, such as online platforms, mobile apps, in-store interactions, and social media channels, creating a seamless user experience. This allows users to switch effortlessly between these channels and continue their activities without interruptions.

Personalization recommendations

Artificial intelligence uses machine learning algorithms to analyze customers’ past behavior, preferences, and interests of customers. The AI system recommends a product or service that satisfies customers when this pattern is recognized.

For example, a customer usually purchases non-fiction books, and AI recommends a book to the customer, which then satisfies the customer and leads to sales for the business.

This way, AI and customer experience work together.

Steps to use AI for delivering better customer experience

We know AI is improving customer service in the business with technology, data, and human insights. Let’s see the steps to use AI to deliver a better customer experience.

Design a customer experience strategy

Before understanding how to use AI in the customer experience business, business people have to understand their customer experience, vision, and strategy. Once businesses know the vision, tell the team about your business expectations and design a strategy.

Plan and analyze the customer journey

Businesses have to analyze their customer journey from pre-sales to customer support. Depending on that, they need to plan things and deliver an AI-based Omni channel customer experience.

Understand the AI solution

Understanding which AI solutions will be implemented in your business is essential. The implementation depends on business needs and expectations. The different AI solution forms are virtual assistants, computer vision, recommendation engines, predictive search engines, sentimental analyzing tools, etc.

Decide to buy or create an AI solution

When it is decided which AI solution will integrate into your business. The next step is to choose to buy or create an AI solution. Businesses can create AI solutions if they have qualified an in-house team or partner with an excellent artificial intelligence company. But if businesses don’t have time and a qualified team, then go for the option of buying AI solutions.

Track and monitor success

Once businesses integrate AI solutions in business or buy AI solutions in business, you can’t sit ideally; you must track the performance and how AI satisfies the customer. If things are not working, businesses can make adjustments to the strategy.

These are the following steps to implement in the business to deliver better AI customer experiences.

3 best AI customer experience examples

You know how AI is improving and delivering a better customer experience. Let’s look at how famous brands are using AI in their business.

Amazon

Amazon is one of the brands known to deliver the best customer experience. It has also adopted AI personalization product recommendations in its eCommerce shopping experience.

The personalization product recommendations help Amazon analyze customer behavior, purchase history, items in the wishlist, and items in the cart and get to know what other customers are buying. This personalized ai solutions satisfies the customer and increases Amazon’s sales.

Starbucks

Starbucks is using the AI tool Deep Brew to enhance its customer experience. The tools help in predictive analysis and machine learning to personalize marketing messages, manage store-level inventory, and give customers loyalty to Starbucks. For instance, tools help predict customer orders based on location, customer last order, weather, and other factors.

Sephora

Sephora is a cosmetic brand that uses a Virtual artist app to enhance customer experience. The app uses augmented reality, allowing customers to virtually try various makeup products on their faces to make the right purchase decisions. Also, it is fun for customers to try multiple makeup products without applying them to their skin.

Revolutionize customer experience with ViitorCloud

AI has revolutionized the customer experience in today’s digital world. The revolution has impacted various industries, where continuous enhancement of digital assets with technology is being done. The technology used in AI for customer service experience enhances personalization and improves efficiency and engagement.

When you are ready to use AI in customer experience, Viitorcloud will help you as it has a deep understanding of customer requirements and expertise in AI services. Firstly, we understood the client market, developed market and interaction strategies, and delivered AI services to the clients.

Connect with our expert today to develop AI power customer service that improves your business’s productivity and efficiency.

Frequently asked questions