This is a Guest Blog by Sandeep Agarwal Executive Vice President (EVP), Visionet Systems & Kapil Mehta, Senior Director, Technology Solutions at Visionet Systems
A recent Gartner report noted that 80% of executives already use AI in their strategic business decisions. This is only set to grow as AI, ML, and big data proliferate and leave their mark on every walk of life. In the customer experience context, these technologies hold immense potential in creating seamless, personalised experiences. Done right, AI in customer experience can lower acquisition costs by up to 50% and drive higher conversions and higher satisfaction rates.
At the heart of good customer experience lies the apparently simple maxim of “know your customer”. Accomplishing this calls for collating and using the vast swathes of customer data that every company has, in call logs, purchase records, spreadsheets and social media interactions. With AI and ML tools, companies can draw insights from that data and use it to fashion delightful experiences that attract and retain customers. Some of the many applications AI is being used for in customer experience include:
- Personalization – Companies of all sizes regard personalization to be front and centre in their CX strategies. The success of the personalization strategy depends on how well a company can capture, analyse, and use data, and this is where AI plays a big role. With AI and automation, companies can create a 360-degree view of the customer and craft an end-to-end customer experience that delivers multiple moments of delight. From pre-purchase recommendations to post-purchase care, technology like AI can curate it all for each individual customer.
- Predictive analytics – AI, ML, and big data can refine predictive analytics to offer more than just product recommendations based on search history. AI can study user behaviour and detect even the smallest trends and opportunities that companies can capitalise on, such as changes in website layout or tonal shifts in Instagram messaging. Brands can thus deliver on customer wants before they are explicitly expressed.
- Sentiment analysis – This is a critical part of customer feedback that involves understanding the many ways customers express how they feel about a company’s products. From reviews on online forums to short tweets to email exchanges with the customer service team, AI-powered sentiment analysis picks up on indicators like tone and language usage and delivers insights that companies can use to optimise their brand communication. What’s more, sentiment analysis can already predict with 90% accuracy, making it a reliable technology well worth the investment for anybody.
- Generative AI – Generative AI is rapidly revolutionising how businesses interact with their customers by harnessing the power of advanced algorithms and deep learning models. This allows companies to provide a more personalised customer experience which is better tailored to suit individual preferences which in turn, helps brands build a stronger bond with the customer. With AI-generated content, businesses can not only create effective marketing materials, interactive chatbots, and product suggestions but also carry out functions like real-time language translation and sentiment analysis with customers getting more seamless support and services. As this technology keeps evolving, we can expect an era where businesses become more customer-centric across industries.
- Fraud detection and security – Counterfeits and fraudulent activity can be serious threats to customer experience, but with AI and ML, they can be prevented. Fraud detection software can be taught to recognize signs of suspicious activity, from a too-similar product listed on a competitor’s website to multiple chargeback attempts at checkout, and immediately flag them for review. Similarly, AI and ML can detect potential vulnerabilities in the system, both at the front end and the back end, and send out alerts so that customers and companies can take a step back and protect their data.
- Continuous improvement – Companies can use AI and ML to stay on top of how their initiatives are doing and incorporate feedback in real time. If AI detects a negative review somewhere, companies can instantly respond, and if certain brand messages are seen to have less impact, companies can modify them right away rather than wait for the next marketing campaign to begin. This not only saves on costs but also allows companies to quickly take advantage of opportunities, a crucial part of staying ahead in a highly competitive market.
Moreover, the list encompasses a diverse array of cutting-edge technologies that play a vital role in enriching CX. These innovative solutions empower businesses to gain valuable customer insights, anticipate and meet customer needs, and streamline customer interactions effectively. Offering personalised product and service recommendations, and conducting comprehensive Customer Journey Analysis all contribute to ensuring a seamless and gratifying experience. Additionally, businesses benefit from Enhanced Customer Service through the utilisation of Recommendation Engines and Customer Segmentation. Strengthening security and trust and delivering an Omnichannel Experience for consistent engagement across platforms further enhances the overall CX. By embracing these transformative technologies, businesses pave the way for continuous improvement and ultimately achieve greater customer success and loyalty in their endeavours.
Global AI is set to grow at a CAGR of 18.45% between 2023 and 2030. It is rapidly becoming a must-have, and indeed, the impact it has in terms of saving time and money, optimising business strategies, and creating exceptional experiences has been demonstrated many times over. Given how much choice there is and how rapidly tastes evolve, customer expectations will only keep soaring. Meeting those expectations calls for businesses to keep pace with the curve, if not stay ahead of it, and that’s what AI, ML, and Big Data can help them do.
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