Conversational AI technology to improve customer engagement

Introduction

You may have noticed that your favorite brands are increasingly using AI to help improve customer service. This is because the next generation of consumers wants more personalized experiences and greater control over their interactions, yet they're not always willing to trust AI technology alone. In this post, I'll explain why conversational AI is becoming essential for companies looking to provide better service for their customers and how it can be used effectively in conjunction with other techniques like machine learning.

According to a survey from Oracle, 81% of consumers prefer text messages, including social media direct messages, over phone calls for customer service interactions.

According to a survey from Oracle, 81% of consumers prefer text messages, including social media direct messages, over phone calls for customer service interactions. While email is also still popular (56%), it's quickly becoming outmoded by the likes of Facebook Messenger and WhatsApp on mobile devices.

That's not the only thing that brands can't ignore.

# The Text Message is King

You may think that you're still living in a world of phone calls and voicemails, but really, the text message is king. According to a 2019 Harris Poll survey commissioned by Twilio, 59 percent of consumers prefer texting over making phone calls when contacting businesses for information or support. These numbers are even higher for millennials (71%) and Gen Zers (79%). So if your brand isn't already utilizing SMS as a customer service tool—it's time to start!

The next generation of consumers is more likely than older generations to perform research online before making a purchase and contacting customer service.

The next generation of consumers is more likely than older generations to perform research online before making a purchase and contacting customer service. This is due in part to the fact that younger consumers use social media as their main source of information. A recent study found that 50% of millennials (ages 18-34) turn to social media for product recommendations, while only 36% rely on traditional advertising channels such as TV ads or magazine ads.

A growing number of people now prefer to make purchases online, which has created a greater need for companies to facilitate social interactions between customers and brands via digital channels like Facebook Messenger bot apps or voice assistants like Alexa/Echo Dot speakers with AI technology built in them (e.g., Google Home).

Consumers regularly interact with brands online, but that doesn't mean they're happy with their experience.

Consumers interact with brands online every day to make purchasing decisions, but that doesn't mean they're happy about it. In fact, consumers are more likely to end a relationship than continue dealing with an unpleasant experience.

For example, if you've ever had a conversation with an unhelpful customer service representative on the phone or used an app that just didn't work as expected, you know how frustrating this can be. So why do we keep doing things the same way?

53% of consumers say they'd rather end their relationship with a brand than continue dealing with an unpleasant customer service experience.

When it comes to customer service, consumers have high expectations. According to a study by Customer Care Innovation, 53% of consumers say they'd rather end their relationship with a brand than continue dealing with an unpleasant customer service experience.

But what exactly are they expecting when they interact with your brand? Consumers have three main expectations in the digital world: fast response times; helpfulness from agents; and consistent experience across channels. And if you're not delivering on one or more of those fronts? Well then, you're probably losing customers who are ready and willing to go elsewhere for service that meets their needs or exceeds them—and that's something no company wants hanging over its head.

Chatbots and other conversational AI (CAI) technologies can help companies deliver personalized customer experiences and individualize their customer care efforts.

As you know, customer experience is a critical component of business success. Customers want to feel engaged with the companies they do business with. They want their questions answered, and they want their needs met quickly and efficiently.

In recent years, conversational AI has emerged as an important technology that can help companies provide a more personalized experience for customers by making them feel valued and appreciated as individuals. Chatbots are obviously one way to do this—they can help companies deliver personalized customer experiences and individualize their customer care efforts.

While chatbots can help improve the experience, they aren't a catch-all solution.

Chatbots are a powerful tool, but they're not a catch-all solution. A chatbot can't replace the value of human interaction. It's important to use them in conjunction with real-time customer service representatives who can offer additional guidance and help resolve problems that might be beyond the scope of your chatbot’s capabilities.

While chatbots may not be every customer’s favorite way to interact with a brand, there are plenty of ways they can improve customer engagement. Here are three examples:

Although many people are already familiar with chatbots - and spend significant time interacting with them - only 25% say they're willing to do business with a chatbot.

Although many people are already familiar with chatbots - and spend significant time interacting with them - only 25% say they're willing to do business with a chatbot.

The reason: customers don't trust what they can't see or feel. Which is why conversational AI technology is best used in situations where customer satisfaction and loyalty go beyond answering technical questions. If your goal is to drive loyalty, provide better service, and increase sales through personalized interactions then you need to get comfortable with the idea of using AI technology as part of your overall customer engagement strategy.

Machine learning helps companies develop more efficient processes and enhance the expertise of their employees so they can focus on value-added tasks like relationship building instead of repetitive customer service activities.

Machine learning can help companies improve their processes. For example, machine learning algorithms are used to create personalized recommendations for customers and to automate financial transactions. Machine learning also allows companies to analyze large amounts of data and make predictions based on the analysis, improving customer engagement and driving sales.

Machine learning can help companies enhance the expertise of their employees. Instead of spending hours looking through mountains of data or manually searching through multiple systems for information, machine learning algorithms do this work automatically by analyzing large sets of structured or unstructured data such as text messages or emails. The resulting insights enable businesses to make better decisions about how best to engage with customers based on past experiences with similar customers (e.g., what worked well in the past). This frees up time for employees so they can focus on value-added tasks like relationship building instead of repetitive customer service activities that don't add much value beyond standard interactions with clients."

Consumers want to interact through messaging platforms, but don't want to solely trust AI for all assistance

Despite the popularity of messaging platforms, consumers still want to interact with brands in other ways. For example, they might prefer a live chat or phone call over a text conversation. The key here is that they don't want to solely trust AI for all assistance; they also want human interaction.

There are two main reasons consumers prefer human interaction:

• They want to be able to talk directly with a person so they can explain their needs and get answers immediately; this will improve the overall experience as well because it allows you to provide solutions faster than AI would be able to do on its own (or at least in some cases).
• They feel more comfortable talking with another person versus an automated system; this is especially true for complex tasks that require personalized attention like making a purchase or signing up for services like insurance plans.

Conclusion

The future of customer service is here, and it's exciting. Customers want to interact with brands online, and brands want to make that possible. CAI can make the experience more personalized and efficient for everyone involved - just be careful not to trust it too much!