Business Insights

Customer experience and AI: Impact and use cases

April 12, 2024

Role of AI in enhancing customer experience

Thriving businesses depend on exceptional customer experience. Yet, countless companies, from fledgling startups to industry giants, lose money due to inadequate customer service. This has sparked a relentless pursuit of solutions, and a leading contender is the integration of AI.

On the surface, customer experience and AI might seem like adversaries. However, AI’s advancements hold immense potential to revolutionize business operations, particularly by crafting intelligent, personalized, and frictionless customer journeys. Additionally, AI demand forecasting plays a crucial role in understanding and predicting customer needs, allowing businesses to optimize inventory, staffing, and service strategies in advance. While AI may be a fresh innovation, this article delves into its potential ramifications for the future of customer experience.

How AI impacts customer experience

Integrating AI into customer service strategies unlocks a treasure trove of benefits. Here’s how AI can revolutionize the customer experience:

Data-driven decisions

Traditionally, customer service relied on manual data collection and guesswork, leading to time-consuming, outdated insights. AI flips the script by transforming real-time data into actionable intelligence, facilitating data-driven decision making. This empowers businesses to make swift decisions that enhance customer satisfaction. In fact, big data adoption for faster decision-making is soaring, with nearly 99% of companies leveraging it to improve customer experience.

Personalized experiences

AI helps businesses anticipate future needs and tailor offerings accordingly. This seamless integration with customer buying habits goes beyond just analyzing online purchases. AI can study entire online sessions, including browsing behavior and time spent on specific products or pages. This allows companies to curate product recommendations, reorder reminders, and create the impression of a truly personalized experience for each customer. AI also goes a step further by identifying trending products, enabling businesses to optimize inventory and avoid stockouts.

Faster resolutions with AI Chatbots and VAs

AI-powered chatbots and virtual assistants eliminate wait times by providing automated responses to common questions and requests. These intelligent conversation tools can even mimic human interactions, offering a personalized touch. This frees up human agents to handle complex issues while reducing training costs associated with new hires.

Omnichannel engagement with AI

Modern customers navigate a variety of channels, from SMS texts and social media to email and self-service portals. However, managing this omnichannel experience with human agents alone becomes overwhelming. AI-powered messageengagement tools bridge the gap, analyzing customer sentiment across channels to ensure a consistently positive experience. These tools also create a unified brand voice, fostering a stronger connection between brand and the customer.

Improved productivity

Customers care most about getting their issues resolved quickly and efficiently. By leveraging AI-powered customer service, businesses can address a higher volume of inquiries, derive personalized insights, and continuously improve customer satisfaction. This customer focus fosters trust, leading to increased sales potential, market reach, and overall productivity.

Practical use of AI in improving customer experience

We asked three founders who are already using AI in their customer experience workflows and here is what they shared:

Simplifying the medicare process

I’ve dedicated my career to simplifying the Medicare process for thousands and one aspect where AI can significantly enhance customer experience in our industry is through streamlined claims processing. AI can automate and expedite the review of Medicare claims, reducing wait times and increasing accuracy in benefits distribution.

This not only improves efficiency but also greatly enhances client satisfaction by ensuring they receive the support they need promptly and without unnecessary hurdles. Leveraging AI in this way represents a significant step forward in making healthcare management more accessible and user-friendly.

Russell Noga, CEO of Medisupps

As the founder of DealA, a leading online coupon platform, I’ve observed firsthand how AI is transforming customer experience, particularly through personalized recommendations. AI algorithms can analyze the individual online browsing behaviors and purchase histories of customers to recommend products and services tailored to their preferences. It’s like having a personal shopping assistant that knows your taste!

Given that our platform hosts thousands of brands, this AI-driven personalization significantly enhances customer experience by simplifying their search, and ultimately increasing customer engagement and satisfaction.

Oleg Segal, Founder of DealA

In my role at our organization, where we’re passionate about empowering teams to hire smarter with Toggl Hire, AI’s role in enhancing the recruitment experience is a subject close to my heart. AI can radically improve candidate screening by analyzing vast amounts of application data to identify the most promising candidates quickly and accurately.

This goes beyond keyword matching; it involves understanding the nuances of a candidate’s experience and skills in context. Such technology can significantly reduce the time to hire, allowing teams to focus on engaging with candidates on a more personal level. It’s about marrying efficiency with empathy, and AI is at the heart of this transformation.

Alari Aho, founder of Toggl Inc

Conclusion

As real-world examples demonstrate, AI empowers businesses to address industry-specific challenges and revolutionize customer journeys across various sectors, from healthcare to retail and recruitment. With its ability to personalize experiences, anticipate needs, and deliver prompt resolutions, AI is poised to be a crucial factor for businesses seeking to thrive in the customer-centric era.