AI for Customer Service: Boost Customer Engagement & Generate Revenues

Quick Summary

Table of Contents

Introduction

AI for customer service doesn’t simply mean robots chatting with humans; it unlocks ample opportunities, such as allowing customers to try on virtually (Myntra & Lenskart), greet them, or make them feel unique with notifications (Zomato & Durex). Besides, you can even go above and beyond by presenting what they want with voice commands (Siri & Alexa).

It’s been noticed that a positive customer experience raises customer satisfaction by 20 percent (source: tidio). Another statistical report study says companies grow by 4-8% faster than their peers by including AI in customer service.

Now that you know which company uses artificial intelligence (AI) for customer service, we’ll begin with the basic concepts of AI. Then, we’ll understand why AI plays a crucial role in the customer service department and how companies benefit from it.

So, let’s take a look at it.

Understanding of AI for Customer Service

Artificial intelligence has become the soul of every industry and its sub-departments. Customer services departments have enormously benefitted from AI since chatbots and virtual assistants have been solving customer queries for a long time, since the inception of online stores and digital shopping.

However, artificial intelligence and other technologies offer much more, such as machine learning, natural language processing, and robotic process automation. AI evaluates customers’ browsing history, purchase preferences, and social media actions and likings. Based on the collected data, AI suggests ways to compel customers to become paid customers. Also, AI has several benefits in customer service; let’s check them out.

Importance of AI in Customer Service

As you have read, different companies using AI for customer service in the introduction means there are benefits and importance of AI, especially revenue-generating ones. Therefore, it also becomes essential to understand before integrating them into your business applications.

1. Customer Service Optimization

Artificial intelligence for customer service lets you know in advance whether the customer will likely escalate issues, the resolution period for those issues, and many other things. Such proactive factors let you be ready and offer preventative steps. As a result, customers will not look for alternatives and will stick to your brand.

2. Churn Rate Reduction

All customers want prompt responses to their queries and results that meet their expectations. Keeping your customers happy assures them of low bounce and abandoned rates.

3. Better Customer Service

AI-powered chatbots for customer service help service agents with information on hand so that they can deliver better services. The customer getting quick information about their queries makes them feel satisfied and continue to avail of the services from the brands.

4. Data-Driven Insights

Since artificial intelligence excels at gathering and evaluating customer data with a promise to fetch valuable insights, it would be great for any business to make decisions and build strategies proactively.

5. No Language Barriers

Customers will no longer have to deal with different linguistics since AI-backed tools translate and answer queries in their native languages. AI for customer service is so advanced that most organizations have started reaping the benefits.

6. Proactiveness

If you want to stand ahead of your competitors, AI is the best tool for you. It puts customers’ needs and challenges on the table, allowing you to respond quickly and prepare for the requirements. As a result, you can keep your customers hooked and loyal to your brand.

These were attention-worthy benefits of AI for customer services. Considering your interest in enhancing customer experience in the age of AI, we have listed how AI impacts the customer service department significantly.

What Change Does AI Bring to Customer Service?

Artificial intelligence offers enormous benefits to those who utilize it. All the brands mentioned in the introduction have lavishly enjoyed the AI benefits. Let’s understand what’s there for your business and target audiences.

1. Software Robots

Software robots are one of the notable innovations of AI that not only support human agents but also ensure that all questions are solved promptly and that no customer is left unattended. AI chatbots for customer service learn and understand human-generated content and answer using natural language processing and machine learning. Unlike scripted chatbots, the new-age ones answer questions, drive users through your digital platform, and introduce new features.

Case Study: Chatbot Integration

Connect with us for customer support AI chatbot development service, and expect a software robot to answer your customer queries in real-time.

Helpful Tip:
Ensure you integrate the chatbot with your customer relationship management software and service database. This will help the AI chatbot for customer service to understand customer behavior with your brand and better process queries.

2. Personalized Recommendations

Based on the customer data collected, any company using AI can recommend products and services to customers, enticing them since they are getting what they are looking for and hooking them with your brand. For example, if the customer wants to abandon their shopping carts, AI won’t allow it; instead, it offers product recommendations based on their purchase preferences or supports products for previous purchases.

Helpful Tip:
Integrate data collection and analysis systems in your AI-backed personalized recommendation tool. Also, promise transparency to customers by letting them know how you will utilize the data.

3. Voice Recognition

Voice commanding systems are highly preferable to typing since they consume energy and time. As per the report, the data supports the above statement; according to Palocreative, around 71% of consumers prefer voice-based search systems over type-based. Plus, with voice-based commands, one can type broken English and still get the expected results.

Helpful Tip:
Deploy voice AI for customer service tech to streamline customer services and allow your best human agents to contribute to strategic-level tasks.

4. Multilingual Support

One of the best ways to connect to your customers is by communicating with them in their native language, and AI makes it possible. With multilingual capabilities, your customers would love to speak since they receive responses in the language they understand.

Helpful Tip:
Before incorporating AI for customer service enhancement, ensure you fetch your customer profile and understand their native languages. This will help you deliver better customer service and experience.

5. Intelligent Ticket Routing

It is a system that utilizes artificial intelligence to automate ticket routing to the appropriate agents and departments. AI analyzes customers’ challenges, the product for which the query is raised, urgency (through sentiment analysis), and other similar details that trigger and require immediate action.

Helpful Tip:
Ensure you continuously train and learn your AI system, which helps it better analyze and route tickets. Keep reviewing misrouted tickets, adding new categories and tags, and collecting agent feedback.

6. Self-Service Portals

AI in customer service management includes self-service portals that instantly answer customer queries and questions. The portals use machine learning and natural language processing, eliminating the customer-serving agent’s dependency. You can expect rich features, such as user-centric FAQs, search bars, and informational guides, which are constantly updated promptly based on user feedback.

Helpful Tip:
Do not clutter the self-service portal; keep it simple and intuitive. Be clear and concise with the content. Also, ensure the search functionality works appropriately and offers results that closely or exactly match your user’s query.

7. Automated Language Translation

If you expect an AI-backed system that translates languages and allows you to cater to customers globally. You can expect accurate translation of customer queries and responses using natural language processing.

Helpful Tip
Ensure your AI model is regularly updated with new dialects and languages to enhance effectiveness. Besides, you can even integrate a feedback mechanism system so that your customers can give ratings for the translation.

Conclusion

Frequently Asked Questions (FAQs)

Can you share real-life examples of AI for personalized customer experiences?

Real-Life Examples of companies that use AI for customer service, especially personalized customer experiences:

Netflix: The streaming giant leverages AI to personalize content recommendations for each user. By analyzing viewing history and ratings, their AI suggests movies and shows you’re likely to enjoy, keeping you engaged and subscribed.

Spotify: Like Netflix, Spotify uses AI to curate personalized playlists and recommend new music based on your listening habits. This level of personalization helps users discover new favorites and keeps them returning for more.

Sephora: The beauty retailer utilizes AI chatbots within their mobile app. These chatbots can answer product questions, recommend personalized makeup routines based on individual preferences, and even offer virtual consultations using augmented reality technology.

US Bank: This central bank utilizes AI to analyze customer data and predict potential financial needs. Proactive AI can then suggest relevant products or services, like a new savings account or credit card, directly benefiting the customer and boosting customer satisfaction.

Is it worth investing in AI for customer service?

Yes, the future of AI for customer service is quite investment-worthy since it offers ample opportunities, like:

Increased Efficiency: AI chatbots can handle routine inquiries 24/7, freeing up human agents for complex issues and reducing wait times.

Personalized Experiences: AI analyzes customer data to tailor support and recommendations, increasing customer satisfaction and loyalty.

Proactive Support: AI can predict potential issues and offer solutions before they become problems, exceeding customer expectations.

Data-Driven Insights: AI analyzes customer interactions to identify trends and areas for improvement, allowing you to refine your approach to customer service continuously.

How can generative AI be used to improve customer experience?

Generative AI can create personalized customer content, like dynamic FAQs that adapt based on past interactions or automatically generate customized product recommendations in chat conversations.

Will chatbots powered by conversational AI for customer service fully replace human customer service agents?

Conversational AI for customer services handles routine inquiries and provides essential support. However, complex issues or situations requiring empathy and nuance will likely always benefit from a human touch. AI is best seen as a tool to empower and support human agents, not replace them.