Nowadays, Artificial Intelligence is the buzzword for any company. From Siri to restaurant menus and chatbots to GEN AI solutions, the future of customer service is undergoing an immense transformation. HubSpot data report shows that 79% of customer service professionals believe that AI tools are essential for their strategy.
Even in the 20th century, customer service often meant long wait times, frustrating phone calls, and generic responses that left customers feeling unappreciated and undervalued. Now, the scenario has completely changed. The use of AI in customer service is helping companies improve their efficiency, reduce response time, and enhance the overall customer service experience.
Artificial Intelligence has been in action for a decade. Today, it is a game changer in the market. According to a report by Harward Business School, 34% to 44% of companies are already using AI to manage their work, security, etc.
Generative AI in Customer Service Statistics - Market Size
In this blog post, we will provide you with information about the future of AI in customer service. We will also explain AI's impact on the customer journey and how it is revolutionizing the global market.
Benefits of Leveraging AI in Customer Service
Entrepreneurs and founders are always ready to experiment with new technologies or strategies, measuring return on investment. So, let us understand more about the Benefits of Leveraging AI in customer service:
1. Operational Cost Savings
There is no question about cost-effectiveness. AI-based solutions help in other areas of customer support. However, AI in customer service can lead to substantial operational cost savings by daily tasks, improving efficiency, optimizing resource allocation, and enhancing the overall customer experience.
2. Increased Productivity
AI handles routine tasks and inquiries where less human intervention is needed. Human agents can focus more on attention-seeking matters or complex issues. This not only improves the efficiency of customer service operations but also enhances the productivity of the employees.
3. Enhanced Customer Life Time Value
While businesses deliver a personalized experience and proactive support, AI-powered customer service solutions increase customer lifetime value. By implementing AI in analyzing customer data and behavior, companies can identify upselling and cross-selling opportunities and provide recommendations and promotions by growing relationships with customers.
Examples of AI in customer service solutions
In this fast-moving world, the utilization of AI in customer service is increasing. AI is playing a significant role not only in one, two, or three industries but also in various kinds of industries. Here are some of the examples of AI in customer service:
1. Virtual Assistants
These days, various virtual assistants, such as Alexa, Siri, Amazon, etc., interact with customers in real-time. They answer questions in a fraction of a second and provide support and guidance through various processes.
2. Natural Language Processing
Natural Language Processing (NLP) is used to interpret and understand human language. NLP easily enables AI systems to analyze customer queries, extract relevant information, and provide accurate responses.NLP improves the effectiveness of customer service interactions.
3. Voice Recognition
AI-powered voice recognition technology allows AI to transcribe and analyze voice interactions with customers. It also enables an easy way of communication, improves accessibility, & facilitates more natural and efficient interactions between customers and AI-powered systems.
4. AI-powered Email Automation
AI can analyze incoming emails, categorize them into different sections, and generate automated responses based on predefined rules and templates. This streamlines the email management process & ensures timely response to customer inquiries.
5. Self-Service Platforms
Self-service platforms help customers find answers to their questions, solve issues, and perform tasks independently. These platforms typically leverage AI technologies like natural language processing and knowledge base to deliver relevant information and assistance.
Real-World Success Stories Across Industries
Numerous success stories across industries vividly illustrate the transformative impact of AI on customer service. Let us look at some of them that showcase the power of AI in customer service.
1. Banking & Finance
- DBS Bank (Singapore)
DBS implemented an AI-driven virtual assistant called “POSB Digibank Virtual Assistant” to handle customer inquiries & provide support via Facebook Messenger. Virtual Assistants can assist customers with account-related queries, also offer product information, and provide personalized recommendations, leading to customer engagement and satisfaction.
2. E-commerce
- Flipkart
Flipkart utilizes AI extensively in its customer service operations, chatbots & virtual assistants to handle customer inquiries and provide support. AI can help customers with order tracking, product recommendations, and issue resolution, resulting in faster response times and enhanced customer experiences.
3. Travel
- Marriott International
Marriott International uses an AI-driven virtual assistant called “Marriott Moments” to assist guests with booking reservations, providing recommendations, and answering common questions. This virtual assistant is also available on the Marriott mobile app & uses neutral language to understand guest inquiries, enhancing the overall guest experience and driving customer loyalty.
4. Retail
- Sephora
Sephora Retail utilizes technology in its customer service operations through a virtual assistant called “Ora.” Here, the virtual assistant helps customers with product recommendations, makeup tutorials, and beauty tips, leveraging augmented reality to allow customers to try makeup products virtually.
Future of AI in Customer Service
As technology continues to evolve and AI capabilities advance, businesses will leverage AI in innovative ways to enhance the customer experience and drive business success. Let us take away some key trends and developments shaping the future of AI in customer service.
Chatbots: Scratching the Surface
Chatbots are known as a revolutionary tool in customer service, scratching the surface of what’s possible to enhance user experience and drive business efficiency.
Let us take an example here: you are browsing a website, looking for an instant assistant for help, and suddenly, a friendly chat window pops up, & inviting you to ask any question or need any help. You type your problem, and within a fraction of a second, you get an answer, no waiting on a call, no transforming the calls. This is the power of chatbots.
Personalized: Game-Changer Experience
One of the most significant impacts of AI customer service is its ability to deliver hyper-personalized experiences. We live in a world where businesses are known for their loyalty. The key to successful experiences is to leave customer feedback and understand their requirements.
Imagine: You enter the newly opened cafe, and before you order your favorite food, the barista greets you with your name and asks you what you would like. This is the power of personalization, and it is completely transforming the way businesses communicate with their customers.
Capabilities: Understanding Customer Emotions
Companies are increasingly turning to advanced technology, such as AI, virtual assistants, etc., to decode and understand customer emotions in real-time.
AI is developing more sophisticatedly; it can easily predict customer behavior and needs accurately by improving customer experiences and increasing customer loyalty. Imagine the scenario: Your valuable customer reaches out to a company’s customer service team, frustrated and upset about the issue they face.
Rather than receiving a generic, robotic response, the customer service agent is equipped with an AI-generated tool that enables them to analyze customers’ emotional state of mind based on their tone, language, and choice of words. AI understands it quickly and addresses the customer's concerns in a personalized way.
Predictive Analysis: Assuming Customer Needs
Companies harness the power of data and analytics to meet the ends of their customers. It can gain valuable insights into customer behavior, preferences, and trends that allow their productivity, services, and interactions to exceed customer expectations.
Let us take an example: As a customer, you visit an e-commerce website to browse for a new t-shirt. The website’s AI-powered recommendation engine analyzes the customer’s past purchases, browsing history, and demographic information to predict their preferences and suggest relevant products.
The customer is presented with a specific selection that aligns with their style, size, and budget, streamlining the shopping experience and increasing the likelihood of a successful purchase.
Introducing Splore
Splore is a generative AI-powered answer engine that businesses can use to simplify knowledge access. It empowers businesses to streamline their knowledge base, provide personalized and engaging experiences, and enhance customer interactions.
Businesses can configure a "Base" and use that base to personalize their answer engine by using data from their different knowledge bases such as websites, blogs, channels, or other platforms.
Critical Insights on Splore
- Act as an answer engine for businesses
- Act as a discovery engine for businesses
- Automate inbound customer queries
- Customizable APIs (answer engine)
- Personalize FAQs
- All knowledge under one roof
- Reduces support staff load costs and workload by 30%
- Instant response is equal to improved customer satisfaction
- Programmable SEO for quality leads
AI is transforming the future of customer services by simplifying and automating processes like onboarding and support and giving a successful experience to a more traditional ticketing system.
There are various gen AI solutions that you can use. But we recommend you use Splore as Splore is an all-in-one AI-powered answer engine that can do wonders quickly. Configuring a Base is as easy as plug and play. Companies can continue to get high-level personalized support, success experience, and loyalty by improving retention and increasing customer lifetime value.
As businesses navigate the evolving landscape of customer service in the digital era, adopting the latest AI technologies is the best they can do.
Book a free consultation and check out Splore to leverage the full potential of AI in customer service.
