How AI Can Improve Customer Experience

AI and customer experience are increasingly being intertwined in businesses, with the intention of helping companies set themselves apart from the competition. However, as more and more businesses integrate AI into their customer experience, it has become crucial for your business to use it in order to keep up.

In this article, we’ll explain AI customer experience and how to use this advanced technology to improve your consumers’ experience.

What is AI customer experience?

AI customer experience is the utilisation of Artificial Intelligence (AI) technologies to improve and customise interactions between companies and their consumers. This can encompass various aspects of AI, from natural language processing to predictive analytics and machine learning, and all of these different applications can help businesses deliver personalised experiences to boost customer satisfaction and loyalty.

Our team are well-experienced in building AI assistants for customer experience, utilising Large Language Models like ChatGPT and OpenAI to benefit your business. Let’s find out how below.

How does AI improve customer experience?

There is no one-size-fits-all answer when it comes to using AI to improve the customer experience. Let’s explore the different ways businesses are currently using AI to improve the customer experience and what methods you can implement in your own company.

• Personalisation

One way that artificial intelligence can elevate your customer service is through personalisation. AI can use machine learning algorithms to scrutinise your past customers’ actions, interests, and preferences, helping it detect patterns and apply these details to create relevant product or service recommendations.

For example, if one of your customers has been browsing a specific laptop brand, an AI system could offer them suggestions of other products by the same brand, as it is likely that this will interest them. This personalised method enhances the overall shopping experience but may also escalate the number of sales in the long run.

• Predictive analytics

AI and customer experience go hand in hand when it comes to predictive analytics. AI algorithms can analyse huge sets of data and predict consumer behaviours and preferences based on this. By predicting customer needs in advance, your company can proactively address risks, provide useful recommendations, and deliver a seamless customer experience that exceeds expectations and keeps shoppers coming back for more.

• Chatbots

With natural language processing, automated chatbots can improve customer service by handling standard inquiries and support requests without human intervention. They are developed to understand and respond to human language, enabling communication with real-life shoppers. Since chatbots can provide people with assistance on a 24/7 basis, this can enhance response times, decrease wait times, and boost customer satisfaction.

For example, voice assistants like Alexa and Siri are becoming increasingly popular. They work to revolutionise customer service, being able to place orders, control other electronic devices, answer specific questions, and offer customised assistance based on their user’s preferences.

• AI in CRM systems

AI can improve the customer experience by enhancing CRM systems. It can automate tasks like data entry and follow-up reminders, providing insights and predictions to enable departments to concentrate on leads that are most likely to convert.

• Omnichannel engagement

AI allows companies to deliver consistent experiences across different channels, whether this is their website, social media accounts, or messaging apps. This means that consumers can enjoy a seamless experience regardless of how they choose to interact with your business.

• Decrease mistakes

AI customer experience services can process a lot more data than humans can, meaning they can quickly detect small errors before they become significant issues. Furthermore, AI agents don’t become tired of repetitive tasks, reducing the chance of mistakes later. Armed with impressive data-processing capabilities and an ability to analyse more data, AI can offer context for informed decisions.

By making good decisions and reducing errors, your company may also be able to cut considerable costs and time in the long run, saving your employees from having to undergo gruelling error correction.

• Fraud detection

AI algorithms can improve your company’s security by identifying and preventing fraudulent activities in real-time, including identity theft and payment fraud. By tightening security measures, AI can also improve the customer experience by instilling confidence and trust in your customers.

• Segmenting customers

You can use AI to improve the customer experience through customer segmentation. Whilst a business manager can segment customers manually, AI can do this task more productively by analysing huge amounts of data quickly and precisely, detecting patterns that may not always be obvious to humans. Algorithms continuously adapt based on new data, which can ensure customer segments are refined over time and kept relevant.

By segmenting your audience based on demographics, psychographics, and other aspects, you can deliver the customised experiences that your consumers are looking for, including highly targeted marketing messages. This may increase overall conversions.

• Decrease employee burnout

With AI customer experience technologies on hand, you can relieve your human employees from having to do repetitive and mundane tasks, decreasing their workload and avoiding burnout. This can boost productivity and morale in the long run, helping them deal with customer queries more effectively.

Industry examples of AI improving customer experience

Now that you know how AI can improve customer experience, let’s take a look at it in practice from some leading global brands.

Amazon

Amazon is well-known for successfully introducing AI customer service chatbots into its eCommerce company. The chatbots complete tasks such as product recommendations and order tracking, helping provide a seamless experience by providing real-time updates and information without customers having to wait for a response from a human employee. This saves the company money and allows its resources to be allocated more efficiently.

The chatbot can be deployed across various Amazon channels, whether customers need assistance on the mobile app, website, or anything else. Furthermore, as this AI assistant leverages machine learning and natural language processing on a daily basis, it can enhance its responses over time, continuously learning from different customer interactions.

Macy’s

This leading American department store has started using AI to improve the customer experience. Its customers can now navigate its shops and find specific items and employees much more efficiently. This mobile phone-based assistant can also provide customised answers to questions and tell you where facilities are available in the shop.

By relieving human employees of more simple tasks, they are given the time to deal with issues that are too complicated for AI to handle, thus contributing to a more productive and seamless customer experience.

Integrate AI and customer experience with McKenna Consultants

At McKenna Consultants, we can help you use AI to improve the customer experience, and we’ve even generated our very own artificial intelligent assistant (also known as Ziggy). Whether you need help creating an AI assistant for your platform or other services, please get in touch with us today to start a conversation about AI and customer experience.

Additionally, take a look at our blog to learn about our other areas of expertise.