Unveiling the Future: AI in Customer Engagement Strategies

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The world that we live in has changed forever.

During the pandemic we witnessed an overhaul of infrastracture for the vast majority of organisations, which in part, paved the way for the era of Artificial Intelligence (AI), that is currently taking the world by storm. But in an era rife with automation, AI generation and generic content can we still engage with our customers in an efficient and humane way??

In this article we will discuss how, in 2024, I believe using AI to drive personalised, efficient and predictive customer experiences can support your business to build brand loyalty, drive revenue and become more effciient. ?

The Importance of Customer Engagement?

Research conducted by Salesforce in their State of the Connected Customer report found that 80% of customers say the experiences provided by a company are as important to them as its products and services. In other words, the quality of your customer experience has a direct impact on your potential for business success.?

With 79% of customer expecting this level of customer service to be consistent in interactions across departments too.?

Understanding Customer Needs and Preferences?

Client interaction is essential for building deeper relationships and increasing client loyalty. Businesses may establish a strong relationship with their audience by going beyond transactions and actively engaging customers across many channels and touchpoints.?

This can lead to increased sales, positive word-of-mouth, and a strong brand reputation.?

Engaged customers are more likely to stay loyal to a brand, leading to lower churn rates. Customer satisfaction and loyalty improve when customer relationships are consistently nurtured and their demands are met. Effective customer engagement helps firms understand customer preferences and purchase patterns, resulting in targeted cross-selling and upselling opportunities that boost average customer lifetime value.?

Providing excellent and relevant material can help businesses attract and retain subscribers, increasing their brand reach and influence.Engaging content establishes a firm as an industry expert and attracts loyal subscribers.?

The Role of AI in Customer Engagement?

In Q4 2023 89% of companies surveyed by Gartner Peer Community were planning to invest more in digital, white-glove customer service models. With companies reporting that 70%-80% of their revenue came from only 10% of their customers. With this in mind it becomes paramount to look to manage and maintain your existing customer base over growing your customer base. “A bird in the hand is worth 2 in the bush” as the old adage goes. This is where I believe that AI, when implemented correctly can provide the level of service required to effectively support your customer base. Here are some of the areas that can be strategised to revolutionise your organisations customer engagement:?

Personalised Interactions?

Now, more than ever before, customers want to feel valued and appreciated. Optimove found in their 2024 Consumer Perspectives on AI-Driven Brand Marketing Report that 51% have positive feelings about embracing AI-driven personalisation, with a further 46% of consumers saying they have made purchases based on AI recommendations. I firmly believe that 2024 will be the year of Hyper Personalisation, with AI-driven tools enabling highly personalised customer journeys, providing the ability to tailor content and interact with customers with their individual preferences and behaviors.??

In my experience, this strategy requires accurate and curated historical and real-time data, to allow AI-driven predictive analytics to thrive and anticipate your customers' needs and preferences.??

Approaching personalisation does require due diligence and planning before diving headfirst into harnessing customer data as data privacy is the highest concern of consumers surveyed. It is now more imperative than ever to ensure that your organisation has robust data privacy measures in place and adhering to any specific legislations within your jurisdication/s.?

Predictive Analytics?

Predictive Analytics, can be deployed for organisations that want to not just understand past performance, but to anticipate future trends and even future events to improve processes and customer journeys. The use of Predictive analytics for customer service use has grown in recent years and I firmly expect this to continue, with methods including statistical modeling, forecasting and machine learning leading the forefront of this AI-based approach.?

In March, research firm Facts & Factors said the global predictive analytics market was estimated at $5.7 billion in 2019 and will reach $22.1 billion by 2026, a compound annual growth rate (CAGR) of 24.5%.?

Successful organisations are aware of the power of predictive analytics and I can’t think of a better way to keep your customers happy than to keep them alive, which is exactly what managed care consortium Kaiser Permanente did, by creating a hospital workflow tool that incorporates predictive analytics to identify non-intensive care unit patients that are at risk of rapid deterioration.?

Kaiser Permanente developed the Advanced Alert Monitor (AAM) system, which leverages three predictive analytic models to analyse more than 70 factors in a given patient’s electronic health record to generate a composite risk score.?

This system is now fully operational and saving lives!?

Chatbots and Virtual Assistants?

Chatbots and virtual assistants are becoming increasingly popular in customer service. These AI-powered tools can handle routine customer inquiries and provide quick and efficient responses. This not only improves the customer experience but also frees up human agents to handle more complex issues.?

One example of this is L.I.S.A - Limitless Intelligent Support Assistant.

Real-World Examples of AI in Customer Engagement?

Let's take a look at some real-world examples of businesses using AI to revolutionise customer engagement:?

Starbucks?

Starbucks has been at the forefront of using AI in customer engagement. Their mobile app uses AI to make personalised recommendations to customers based on their previous orders and preferences. The app also allows customers to place orders and make payments, making the ordering process more convenient and efficient.?

KLM Royal Dutch Airlines?

KLM Royal Dutch Airlines uses AI to provide personalised travel recommendations to customers.??

The BlueBot chatbot uses AI to assist customers. It can help them book flights, provide flight updates, and suggest travel destinations based on their budget and preferences.?

This has not only improved the customer experience but also increased sales for the airline.?

Implementing AI in Customer Engagement?

If you're considering implementing AI in your customer engagement strategy, here are some tips to keep in mind that I will elaborate on in future articles:?

• Start Small and Focus on a Specific Goal?
• Choose the Right AI Tools?
• Train Your Team?

Conclusion?

AI is revolutionising customer engagement, and businesses that embrace this technology will have a competitive advantage in the market.?

Companies can use AI to make customer interactions more personalised, predict how customers will act, and provide better customer service. This helps businesses develop strong relationships with customers and stay ahead of competitors.?

I believe, that with time, AI will be able to handle tougher customer interactions in scenarios with voice and video interactions, predicting customer needs and becoming common place in the large majority of 1st, 2nd and 3rd line customer interactions.??

So, if you want to stay ahead of the curve, now is the time to start exploring the possibilities of AI in your customer engagement strategy.?

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About Leon Gordon?

Leon Gordon, is a leader in data analytics. A current Microsoft Data Platform MVP based in the UK and founder of Data Analytics and AI consultancy Onyx Data. Over decades, he has helped organisations improve their business performance, use data more intelligently, and understand the implications of new technologies such as artificial intelligence (AI).?

Leon is a Thought Leader at the Forbes Tech Council, an Ambassador for Gartner Peer Experiences and also an Executive Contributor to Brainz Magazine, a Thought Leader in Data Science for the Global AI Hub and The AI Journal, chair for the Microsoft Fabric – UK community group, Bletchley Park AI Microsoft User Group and the DataDNA data visualisation community as well as an international keynote speaker and advisor.

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