In today's hyperconnected world, where negative reviews on social media can wreak havoc on a company’s reputation, delivering an exceptional customer experience isn't just a luxury—it's a business imperative. Companies are locked in a fierce battle for customers that is primarily based on their ability to deliver outstanding customer experiences (CX). According to research by The Conference Board, 65% of CEOs globally prioritize investing in strategies to improve CX.
CX: A strategic imperative.
Customer experience is a battleground where every interaction counts. Where the prize is not just customer loyalty but also a larger slice of the market share pie. In this cutthroat environment, companies are reshuffling their priorities and elevating customer experience to the top of their agendas to drive revenue growth, foster loyalty, and ultimately secure long-term success.
But success in CX hinges on understanding customer behavior and preferences, which is precisely where the power of AI shines. AI can offer hyper-targeted customer modeling that lets you get to know your customers like never before.
1. AI unlocks hyper-targeted customer modeling.
Innovative companies are leveraging AI-powered predictive analytics through a process called look-alike modeling to compare potential new customers with similar customers who have already made purchases. This advanced technique leverages artificial intelligence to analyze massive amounts of customer data, including demographics, purchase history, browsing behavior, and preferences.
Tailor marketing activities.
Artificial intelligence algorithms then identify patterns and similarities among customers, allowing companies to identify potential new customers who share characteristics with their existing customer base. By targeting these look-alike audiences with tailored marketing campaigns or product recommendations, companies can significantly improve their chances of acquiring new customers who are likely to be interested in their products and services.
This AI targeting strategy increases the efficiency of marketing efforts and enhances the customer experience by delivering relevant and personalized content to potential customers.
2. AI chatbots boost customer service efficiency and productivity.
Generative AI (genAI) applications like ChatGPT are powered by large language models (LLMs) that allow chatbots to respond to text and audio prompts in a human-like manner. These AI applications are proliferating to the point that 95% of global customer service leaders expect their customers to be served by an AI bot at some point in their customer service interactions by 2025, a trend that could boost customer service productivity by 30% to 50% or more, according to a recent BCG survey of global customer service leaders.
Expedite problem resolution.
By harnessing natural language processing (NLP), AI-powered chatbots and virtual assistants empower organizations to handle routine inquiries 24x7x365, accelerate the customer journey, and expedite problem resolution. Customer service teams burdened by the inefficiencies of managing emails and paperwork can leverage AI to streamline workflows by automatically extracting and categorizing relevant information from documents and emails.
3. AI augments customer experience with sentiment analysis.
In 2024, the secret sauce to enhancing customer service isgenAI, the technology that supercharges the capabilities of customer service agents. This kind of AI is poised to empower agents to succeed in the most key customer experience areas: delivering quicker and more accurate responses, solving problems on the first try, communicating with crystal clarity, and ensuring customers feel valued and respected.
Transform customer onboarding and servicing.
For example, innovative banks are using sentiment analysis tools for customer lifecycle management (CLM) in their call centers to gauge customer moods across platforms like IoT devices, virtual assistants, and mobile apps.
These AI-powered tools elevate CLM by providing customer service agents with real-time insights into customer emotions and by analyzing customer response data to route trouble tickets to human agents.
As banks harness the power of AI to integrate sentiment analysis into CLM seamlessly, they gain valuable insights for fostering customer retention. Let's delve into how AI transforms the customer onboarding and servicing experience.
Discover how to create a seamless
customer experience from beginning to end.
Watch: Customer Lifecycle Management: How to Achieve a 360-Degree View of the Customer Experience.
Onboarding new private banking clients is an intricate part of the CLM process that can take days or weeks, depending on the complexity of the client. However, by leveraging AI-powered automation, banks can accelerate, scale, and personalize the customer experience with CLM applications that harness AI automation.
Expedite customer onboarding.
Case in point: State Street Global Advisors plans to use Appian’s AI-powered automation platform to streamline and customize client onboarding and servicing procedures. State Street aims to reduce the average time required to onboard new customers by 10% by automating processes and integrating artificial intelligence to enhance efficiency and deliver a more personalized experience to clients.
Overcoming barriers to maximizing AI’s potential in customer service.
AI offers vast potential for revolutionizing customer service, yet actually implementing it can pose challenges. High-quality, interconnected data is crucial for AI-powered insights, but inaccuracies or gaps can hinder its effectiveness and raise compliance concerns.
Process automation platforms like Appian integrate AI seamlessly—with built-in data connectivity and data privacy safeguards—enabling businesses to leverage AI insights, personalize customer interactions, and optimize customer service operations without migrating their data.
AI is transforming the way we work.
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