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10 Ways AI is Transforming the Customer Experience

10 Ways AI is Transforming the Customer Experience

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Eric Limer

- Last Updated: December 12, 2024

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Eric Limer

- Last Updated: December 12, 2024

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These days, customers have extremely high expectations for online retailers. Oftentimes, it takes just one bump or minor inconvenience on the customer journey to lose a buyer and gain a bad review. Who can blame them, in an age when the most successful companies are able to tailor their offerings and communication channels to meet customers’ every need?

Most of these changes have developed over the last few years including Artificial Intelligence (AI)-backed CX technology that allows brands to listen more closely to what their customers actually want. If your company hasn’t been keeping up with these innovations, there’s no time like the present to learn about the AI opportunities out there.

From automated content recommendations to voice-enabled shopping, companies need to invest in the latest tech in order to stay competitive. Here are 10 examples of how AI is transforming the customer experience.

Using AI, much of the guesswork is eliminated–whether you’re sending out email discounts or delivering customer support. Artificial intelligence lets you create a personalized experience by delivering relevant messages to consumers at the right time. You’ll also be able to automate many of your processes at scale so you can spend more time on other areas of your business.

Let’s take a look at the top 10 AI innovations that are changing the way you market your business and connect with your customers:

1) Accurate, Personalized Recommendations for Customers

Artificial intelligence can analyze a customer’s buying history and then make recommendations for other products and services that they might be interested in. These recommendations can be surprisingly accurate and give you the ability to build targeted marketing campaigns that your customers are actually interested in.

According to data from Instapage, 78% of internet users say that personally relevant content from brands increases their purchasing intent. Using these campaigns, you’ll be able to connect with customers on a more personalized level and introduce new products to increase your sales.  

2) Chatbots That Provide Efficient and Friendly Service

One of the top business concerns you can’t ignore is that consumers demand and expect fast and friendly service when dealing with any company. AI chatbots can meet that demand by providing service that is consistently efficient as well as cheerful. 

As a virtual assistant, chatbots can interpret what a customer is looking for, passing over more complex problems and questions to one of your employees when needed. Chatbots also means fewer errors when dealing with your customers by using intuitive technology to interpret customer needs and responses.  

3) Voice-Enabled Customer Service

Smart speakers such as Alexa and Amazon Echo have revolutionized the way consumers are shopping online, empowering them to find the information they need and providing them with self-serve customer experience at any time of the day. In fact, eMarketer predicts that by 2021, 38 million people will make purchases through their smart speakers.

Through voice-enabled interaction, your customers can find out more about your products, make purchases, and complete transactions simply by talking to their smart speaker. You’ll benefit by being able to build your brand using an easy and hands-free approach to connecting with your customers. 

4) 24/7 Support

Today’s consumers are digitally connected, shopping online 24/7, and looking for support after business hours. This means that you need to provide service and support even outside of business hours if you want to retain these customers. But for most online businesses, these hours of service are almost impossible for your employees to work without breaking your budget. 

The solution is to use AI, which can keep those important channels of communication open at all times so you’re available for customers to make changes to their orders, book appointments, or get answers to questions. Perhaps the biggest benefit of a chatbot is that they can deal with issues at any time of the day and engage in real-time interactions to quickly answer questions. 

CRO company Invesp predicts that in 2020, a whopping 85% of customer communications will take place without a human customer service rep.

5) Efficient and Reliable Buying Experience

Great customer experience means that consumers are able to make purchases quickly and efficiently without facing any delays or frustrations along the way. The fastest way to lose a customer is with a service that leaves them feeling unappreciated and unheard. 

When you use chatbots that are designed to simplify the entire buying process you’re able to interact with customers professionally and competently. AI innovations make it possible for you to streamline the buying process so that it moves smoothly until the transaction is complete and your product has been delivered into the hands of your customer.  

6) Phone Bot Accuracy

No matter how helpful and well trained your employees are to provide great service, delays and errors occur that can break down the relationships you’ve built with your current and potential customers.

The days are gone when automated phone systems gave one-word answers and dropped calls when rerouting messages. Artificial intelligence has made it possible for phone bots to make communicating with customers smarter and more accurate. AI can identify the purpose of the call and understand customer questions so that consumers get quick resolutions to their concerns.

7) Helpful Customer Insights

Using text analytics from customer feedback and reviews, AI can help you better understand your customers and gain useful insights into their shopping habits. Much of the customer buying experience is based on emotions – being able to understand what your customers are feeling as they interact with you can give you the upper edge in marketing. 

Through artificial intelligence, text analytics can find patterns in the way your customers communicate with you and provide a good insight into what they want from your business. The next step is acting with follow up solutions to resolve issues and give your customers what they want.

8) Visual Data Analytics

Artificial intelligence lets you use biometric tracking and visual data analytics to learn even more about your customers and engage with them on a more personal level. For instance, using eye-tracking, you can determine what customers are looking at on your website and how long they’re paying attention.

You can also track facial expressions to understand more about how customers feel when reviewing your products and making a purchase. This information lets you customize your online presence and make it a more positive experience for consumers.

9) Personalized Shopping

To grow your online business and brand you need to be able to predict your customer’s needs. In the past, online businesses relied on cookies for tracking so they can commend similar products for consumers. The updated strategy is artificial intelligence, which uses predictive analytics to tailor a customer’s buying experience to their own individual preferences. 

It’s this personalization that plays a big role in where consumers shop today, giving you the opportunity to refine marketing strategies for your customers.  

10) Data-Backed Marketing Strategies

Artificial intelligence provides you with machine learning data analytics to make better decisions about your business. AI collects and extracts important customer data through various sources, including phone calls, email, text, and visual tracking. 

This information can be used to build your marketing strategy so you can deliver exceptional service and support for your customers. You’ll be able to personalize interactions and build stronger relationships with returning customers as well as identifying new customers and what they’re looking for.

Final Words About AI Innovations 

Consumers have a lot of choices when they shop. They’re looking for businesses that provide a combination of great products and services. Therefore more and more online businesses are modifying their budget to include AI marketing so they can improve the consumer experience and gain the loyalty and trust of their customers. 

The bottom line is that AI-driven solutions are the way of the future and are a necessary investment for brands to remain competitive. If you don’t want to be left behind, it’s time to implement one or more of the innovations listed here in your own marketing strategy.

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