Home > Columns > CRM Columns

How to Supercharge Your CX with AI in 2023 and Beyond

Contributed Article by Shubham Rajpara

In recent times, Artificial Intelligence (AI) has revolutionized the world of customer experience (CX). AI can provide valuable insights into customer behavior to enable businesses to take data-driven measures to optimize processes and offer excellent customer experience. By leveraging AI in CX, businesses can take a proactive approach to meet changing customer needs and preferences rather than a reactive one. In this article, we will explore ways you can supercharge your CX with AI in 2023 and beyond.  

Personalize the Customer Experience

Results from an Accenture survey show that 91% of customers are more likely to shop with brands that provide personalized recommendations and offers. AI can help businesses understand customer preferences from their browsing pattern and previous orders, thanks to ML-driven recommendation engines.

AI can analyze customer data to provide product recommendations, personalized promotions, and even customized pricing. Tailoring the customer experience can significantly improve customer satisfaction and loyalty.

Use AI-powered Chatbots

AI-powered, conversational chatbots can respond quickly to a variety of customer inquiries. Chatbots are expected to save businesses more than $8 billion annually, according to a Juniper Research study. In addition, using machine learning, they can gain insight from prior interactions and train themselves to give better responses over time. This implies that companies would no longer need a sizable staff of customer service agents to offer 24/7 customer support.

H&M, a global fashion retailer, introduced a chatbot on the popular messaging platform Kik to interact with customers and offer a more convenient and personalized shopping experience. The chatbot enables customers to make purchases directly through the app and offers product and styling recommendations. As a result, H&M  saw a 30% increase in conversion rates for customers who interacted with the chatbot and a 70% increase in click-through rates when compared to other digital channels.

Predict Customer Needs

E-commerce businesses can use machine learning algorithms to analyze customer data and identify patterns of churn. Predictive analytics can be used to offer personalized solutions to retain customers. AI-enabled customer service interactions are expected to increase by 400%. Harvard Business Review found that reducing customer churn rates by 5% can increase profits by 25% to 95%.
According to a report by Barilliance, personalized product recommendations can increase sales by up to 300%. By analyzing customer data, e-commerce businesses can predict what products a customer may be interested in and offer them in a  way that increases the chances of making a sale.

Analyze Customer Feedback

Customer feedback is a valuable source of information for businesses, but analyzing copious amounts of feedback can be time-consuming and challenging. AI can help businesses analyze customer feedback in real time and identify trends and patterns. 

For instance, AI can analyze sentiment using sentiment analysis tools to categorize people's social media activity into specific emotions. This can give business rich, tangible insights into how customers and potential customers feel about their products and services. Businesses with such insights can improve the customer experience and address customer concerns efficiently. A study by PwC shows that 73% of customers consider customer experience a crucial factor in their purchasing decisions.

Automate Processes

AI holds the potential to become a powerful tool for businesses seeking to streamline their operations and reduce costs. With the ability to automate manual tasks like data entry and customer service inquiries, AI can significantly reduce the laborious part of company operations, allowing the workforce to focus on more complex tasks that require human input. 

The use of AI in business operations can boost productivity by up to 40%, according to a report by Accenture. This not only increases productivity but also efficiency, allowing businesses to run with greater success quickly.

Improve Customer Retention

Retaining customers is essential for the success of businesses, it is known that loyal customers shop more and often. Also, higher the retention rates lower the acquisition costs. AI can analyze customer behavior and interactions to identify patterns that suggest a customer may be dissatisfied. By reaching out to these customers and addressing their concerns, businesses can prevent churn and improve customer loyalty. 

A use case case for this could be, a subscription-based e-commerce business can use AI to analyze a customer's purchase history and browsing behavior to determine if they are at risk of canceling their subscription. The business can then offer targeted discounts or customized products to incentivize the customer to continue their subscription.

AI Integrated Voice Assitance
Voice search is an area that can be leveraged to enhance CX with AI. 40% of adults now use voice search at least once per day. Voice assistants such as Siri, Google Assistant, and Alexa use NLP technology to respond to voice commands. AI can improve voice assistants' functionality by helping them understand complex queries and personalize interactions.

An AI-powered voice assistant can analyze a customer's past interactions and tailor responses based on their preferences and history. This can create a more personalized and engaging experience for the customer.

Advancements in AI technology that are expected to impact CX in 2023 and beyond

As per a report by Gartner, by 2023, AI augmentation will generate $2.9 trillion in business value and recover 6.2 billion hours of worker productivity. 

Natural Language Processing (NLP) is a rapidly evolving field that has seen significant advancements in recent years. With improved NLP technology, businesses can better understand customer queries and respond with more accurate and relevant information. According to a survey by Capgemini, 79% of consumers prefer to interact with chatbots powered by NLP.

Machine learning algorithms can analyze large amounts of data to generate insights to inform CX strategy. According to a survey by Salesforce, 84% of customers say being treated like a person, not a number, is very important to winning their business. Machine learning algorithms can help businesses personalize CX by analyzing customer data and generating personalized recommendations.

Predictive analytics algorithms can analyze large amounts of customer data to identify patterns and trends, allowing businesses to predict customer behavior and anticipate issues before they arise. According to a report by Forrester, companies that prioritize personalizing CX will increase revenue by 15% by 2023. Predictive analytics can be used to identify at-risk customers and provide personalized solutions to address their concerns.

Conclusion

AI is transforming the customer experience in many ways. Businesses that leverage these advancements will be better positioned to deliver a personalized, seamless, and efficient customer experience.

Author Bio 

Shubham is a long-form B2B copywriter for SaaS companies. He excels in writing about technology, marketing, and customer experience. He helps businesses create actionable content that boosts revenue. To enhance your content marketing efforts, you can contact him at rajpara.shubham@gmail.com.