PSFK IQ Report: AI-Enhanced Customer Service

Positively Impacting CX Through Intelligent, Personalized And Inclusive Support?

Looking across the retail landscape, the concept of “anywhere commerce” has arisen from a set of consumer expectations that prioritize convenience, ease, seamless connectivity and relevance wherever they choose to shop. This is especially important given the expanding range of customer touchpoints that now encompass physical storefronts, company websites, mobile apps, social media and gaming platforms.

To meet shoppers with the elevated level of service and experience they now expect, companies are prioritizing AI, machine learning and data. Together these technologies enable companies to scale 1:1 support 24 hours a day and deliver new levels of personalization. When combined with the capabilities of human associates, these solutions can power greater efficiencies and enhance overall CX.?

Throughout the end-to-end shopper journey, the role of AI has graduated from the basic chatbot to now personify a top sales, marketing and support agent. Advancements in empathetic AI, conversational commerce and natural language processing have all allowed for more humanistic AI experiences. Further, businesses are taking a more considered approach while training AI models and algorithms, centering inclusivity, and prioritizing a wider view of needs to deliver an overall improved experience for all of their customers.?

In this report , PSFK iQ team researchers have identified six strategies that unpack the AI opportunity across customer service processes. Supported by best-in-class examples from the marketplace, learn how leading brands and retailers are delivering greater value to their customers, developing stronger relationships and ultimately driving loyalty.

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Featured Trends

Hybrid Sales Assistance

Regardless of where and how consumers choose to shop, they expect to be met with service that is personalized based on their past interactions and current needs. To be able to deliver on that expectation, retailers are equipping their associates and service reps with AI-powered dashboards that serve up relevant information like shopper purchase history and preferences, alongside contextual data like current promotions and product details and availability in a single view. By empowering associates with real-time customer and business intelligence, service agents are providing tailored interactions and one-to-one communications for every customer, no matter their level of product knowledge.

Humanistic AI

While AI-enabled chat offers the benefit of speed and always-on availability, the technology hasn’t always been successful in replicating human characteristics like empathy and inferring meaning from context. At best this can make for stilted interactions and at worst lead to frustration on the part of the customer. In an effort to deliver more valuable, life-like customer experiences, businesses are integrating next-gen AI that are capable of carrying on more natural conversations and even detect emotional cues to understand intent and respond in a more appropriate manner. The addition of these humanistic qualities are adding a level of personality to intelligent-based solutions that more closely resembles person-to-person conversations.

Inclusive Service Models

While AI has proven to be a powerful business tool given its ability to quickly extract insights from data and provide tailored recommendations and advice in a broad range of customer-facing applications, this technology isn’t without its challenges. To create a welcoming and inclusive experience for every shopper, companies are working to remove inherent bias from algorithms and train machine learning platforms on a representative range of information sources. By taking a human-first approach while training AI models, brands and retailers are better equipped to meet consumers' specific needs, provide more accurate recommendations and deliver an overall better customer experience.

Intelligent Clienteling

When navigating a full product catalog, customers can feel overwhelmed or unsure of how to choose (or customize) products to fit their needs. Retailers are offering AI-enabled decision support that asks customers questions about their preferences and requirements and/or leverages shopper data to help narrow down choices and suggest the best options. Guided selection systems support customers in finding the best product for their needs, boosting shopper confidence.

Featured Examples

Levi's Turns To Next-Gen Bots For Labor Efficiencies

Iconic denim retailer Levi Strauss & Co. is leveraging bot technology across its operations as it pilots shifting labor resources to higher-value initiatives.?

Animatico Is Improving Customer Interactions With AI-based Avatars

By combining artificial intelligence and voice control technology with fun, engaging and customizable avatars, Animatico creates seamless interactions for store and brand customers and visitors.?

Alpha’s Clienteling App For Luxury Brands Is An Exclusive, Modern Way To Shop

Digital personal service platform Alpha is reinventing the way luxury brands and their shoppers interact.?

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