Conversational AI For Recommendations: How to Personalize Product Advisory

With organizations looking into the conversational engagements of customers, the market is rapidly deploying conversational AI. Artificial intelligence is driving customer journeys by improving product offerings and creating a personalized buying experience.?

Conversational AI for recommendations?

In the past, customer service was defined as quick resolution of queries.?Customers today want more.?Customers want brands that listen to their needs and take prompt, personalized actions to provide value in every interaction.?Conversational AI for recommendation is a great way to get there.?

With an intelligent AI that can provide product advice based on each customer's interests and intent, you can be a standout brand.?Even AI can be optimized to achieve the best results.?It is important to fully understand how customers interact with your AI chatbot.?The bot should gather feedback from customers and provide more valuable information to improve their experience.?

AI can be used to personalize customer experiences and recommend products and processes if data is properly used.?

Data Required to Enable AI Recommendations?

Higher quality recommendations from AI to customers will be possible with more enterprise data.?This information is used to train machine learning. Your virtual assistant will use this data to identify customers and product listings for them to make accurate correlations.?Only then can they recommend better product suggestions.?

These are the data sets that can be used to train conversational AI for recommendation:?

• Customer Data:?Every customer's personal and demographic interests, name, data, likely interests, and any other information.?
• Traffic?Data:?All information about a site visitor, including names, contact details and browsing history, as well as products and services they were interested in.?
• Transactional data?:?Historical information about customers' commercial transactions.?A customer's buying decision is usually influenced by the pricing range and their product purchasing habits.?

For example, a use case for an e-commerce business:?

An e-commerce business would require the following data sets in order to ensure accurate product recommendations-?

• Product details including product names, package types, and relevance based on different demographics.?
• High-demand product details based on seasons, offers, or locations.?
• Price data for all available products.?

Benefits of Personalized AI Recommendations?

1.?Responses that customers are looking for?

Companies that use either a generic chatbot or a manual approach to customer communication are most likely to have inaccuracies.?Both approaches fail to capture the user's intent in real time.?They are unable to immediately discern user preferences by looking at previous purchases or message history.?

Conversational AI can do all of that.?It can provide accurate answers based on real time intent data analysis and the messages and queries shared by users previously.?This ability allows the AI chatbots to make personalized recommendations.?

2.?Smart way to collect insights and feedback?

Each conversation between an AI virtual assistant (a customer) can be used for collecting insights and feedback.?Conversational AI can provide valuable recommendations and then ask for feedback.?

Your internal team can also use these conversational insights to identify the most frequently asked questions among customers and help them resolve them quicker.?These patterns are easy to spot through conversation that takes place 24 hours a day with humanlike intelligence.?

If multiple customers have complained about the same problem with a product, you can immediately take steps to fix it before the problem gets too serious.?

3.?Clear understanding of customers persona?

Manual analysis of customer personas can often be contaminated with incomplete conclusions, biased hypotheses, or missing key factors.?The customer persona is one of the many benefits of combining conversational AI and data intelligence.?

AI bot learns about customers' preferences and creates a persona which can be used by sales and marketing staff to optimize their efforts.?AI-enabled customer understanding allows for more data-driven sales and marketing decisions that will lead to increased revenue.?

4.?Less manual labour?

AI recommendations are the best way to reduce manual labour in marketing, sales and customer support.?It is the only technology that automates business processes and can match the digital channel's scale with personalized interactions.?

AI can recommend products and services and internal teams have more time to analyse customer needs and market trends and make strategic decisions.?

5.?Identifying intents that were not visible before?

Many times, unique customer intentions are overlooked among the many repetitive and common questions.?These customer intents are urgently important and require support agents to pay attention. This is not possible in normal circumstances.?Conversational AI can answer common questions and assist customers with more specific queries by passing them on immediately to the appropriate human agent.?

Agents with a limited number of queries can better understand complex customer needs and make accurate recommendations.?

6.?Right products for the right customers?

To increase sales, it all boils down to providing the right product to the correct customer.?AI can help customers avoid browsing through a multitude of products online and only offer options that match their needs.?

This approach is called Conversational AI for recommendation. It interacts with customers to learn what they are looking for.?It also collects historical data about the customer.?

All of this allows AI to provide relevant product information as well as process details.?AI can store feedback from users to help them resolve their issues.?

Conversational AI for recommendation is a reliable method of providing consistent customer experiences and?obtaining actionable insight in the process.?It reduces the time required to manage a chatbot communication platform. Instead, it enhances processes using artificial intelligence.?Your business activities do not have to rely on only human memory or decision-making abilities.?

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