Artificial Intelligence and its impact on customer experience

Long before the widespread use of technology, customer experience (CX) was a simple, linear interaction. With technology, we have seen CX transform into a dynamic omnichannel journey. Firstly, the internet revolutionized CX, opening doors to self-service, online communities, and a plethora of choices as customers craved convenience and information at their fingertips. Today, it is all about emotional connection and building lasting relationships. With artificial intelligence (AI), CX is advancing towards the epitome of personalization excellence. The influence of AI on customer experience began with tackling low-hanging fruit, automating basic tasks and offering rudimentary chatbots. Now, AI is analyzing mountains of data, understanding individual preferences, and predicting needs before they arise. From proactive product recommendations and hyper-relevant marketing campaigns to chatbots that converse like empathetic friends, AI is doing it all to make CX seamless. Brands are competing to create unique, personalized experiences across every touchpoint, from social media to in-store visits.

Let’s take a closer look at how AI impacted customer experience across sectors in the year gone by:

Era of hyper-personalization

Customers are always on the lookout for personalized experiences, and it has given rise to hyper-personalization of services. Taking it to a new level, hyper-personalization is a secret ingredient to improve customer experience and drive long-term loyalty. It comprises leveraging data, advanced analytics, and AI to understand the customers’ unique preferences, needs, and behaviors. These tools enable brands to provide individually tailored experiences and make customers feel valued.

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For instance, food delivery platforms use real-time data and craft customer journeys based on users’ preferences. Hyper-personalization in food delivery involves crafting individualized and customized experiences for every customer, regardless of where they are. This approach ensures that customers enjoy more tailored and convenient interactions. A delivery service offers personalized recommendations through a click-to-WhatsApp ad, suggesting dishes or cuisine based on the customer’s preferences. Upon clicking the ad and placing an order, the customer receives a confirmation from the delivery company. Subsequently, the company keeps the customer informed about delivery progress with real-time updates, resulting in an end-to-end journey on a single platform.

Conversational AI in customer management

Many customer support teams now rely on conversational AI as their primary tool for enhancing customer experience. Brands are harnessing data to better understand their customers while the users are increasingly seeking transparency. When brands explicitly communicate that the data collection aims to enhance the overall customer experience, it benefits both parties.

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The adoption of programmatic tools for chatbots and virtual assistants became a prominent trend in customer experience during 2023. The key advantage of leveraging AI for customer-centric brands is its ability to provide tailored engagement to each customer while maintaining a natural conversational tone, avoiding a “machine-like” feel. Conversational AI technologies like AI chatbots and NLP-powered virtual assistants mimic human interactions.

One such example is from the healthcare industry where chatbots serve as intelligent aides deployed by medical facilities and professionals to expedite patient assistance. They streamline processes such as appointment scheduling, reminders, and addressing common queries that frequently swamp medical offices.

In the finance and banking sector, Conversational AI-based chatbots offer services such as providing account balance details, aiding in account setup, addressing basic FAQs, and interacting with customers in a conversational style. Consequently, this enhances the accessibility and user-friendliness of banking services.

Omnichannel services

Modern customers expect support through various communication platforms. Thus, it’s crucial to provide an omnichannel support system to address customer concerns regardless of their chosen means of reaching out to your brand. When employing an omnichannel strategy for customer support and service, it’s essential to prioritize the user’s holistic experience across all available channels. This encompasses interactions with customer service representatives, accessing information on your website and other platforms, and engaging with your products or services.

Let’s take an example of the e-commerce sector. It leverages an omnichannel strategy for end-to-end customer engagement. From marketing to sales and customer support to lead generation, e-commerce platforms benefit from an omnichannel strategy that covers every touchpoint. The personalized campaigns are delivered on the preferred channel, addressing repetitive customer queries on WhatsApp, and sending notifications on products in the cart along with 24/7 availability — these services across channels from e-commerce platforms have redefined the online shopping experience.

Rise of Generative AI

The rapid advancements in AI within GPT technology are truly remarkable. The potential and scope of this AI revolution are expanding at an unprecedented rate. This shift has the capacity to revolutionize entire industries and redefine our interaction with technology. Furthermore, Generative AI is revolutionizing the creation, consumption, and interaction with content across various domains. Its capability to swiftly produce personalized and captivating content is paving the way for new opportunities in sectors such as gaming, music, film, and marketing.

As more businesses adopt AI-driven solutions, there will be a rise in direct engagement with end-users, fostering immersive and tailored experiences beyond passive consumption. This evolution in content creation and delivery is poised to revolutionize how we engage with media, offering fresh avenues to captivate audiences, facilitate interaction, and spur innovation.

Future of AI-driven CX

There is going to be a significant transformation in communication dynamics between brands and end-users. Brands that prioritize hyper-personalization, careful channel selection, and timing in their customer-driven communication strategies are positioned for remarkable success. With a trend indicating a decline in app downloads and a move towards consolidating customer experiences, AI emerges as irreplaceable for elevating user engagement and streamlining interactions.

The author is VP Revenue – India and Eurasia, Infobip. Views expressed in the above piece are personal and solely that of the author. They do not necessarily reflect Firstpost’s views.