How Is AI Changing Customer Behavior and Experience?

Updated: Aug 17, 2021



In today’s society, customer experience is crucial to the success of any company. As competition becomes fiercer and consumers have more choices than ever before, businesses must offer top-notch customer service to stay ahead of the pack. Arguably, AI is a game-changer, but how is it redefining consumer behavior and experience?

Artificial intelligence is changing consumer behavior and experience in several ways, such as quick access to services quickly and personalizing interactions. Besides, AI is making customers more proactive. Also, it builds customer confidence by providing non-intrusive methods of getting feedback.

The rest of this article describes each of these changes in detail. Read on for insights into these and how your organization can employ this technology to improve customer service.


How AI Has Changed Customer Behavior and Experience


Arguably, AI is a significant disruption to conventional customer service. This technology has redefined customer service, and companies are adopting it to ensure efficient delivery.


Here are some of the ways artificial intelligence is changing consumer behavior and experience:


Efficient Services


AI allows customers to get what they want more quickly and efficiently. With chatbots, people can find answers to their questions without waiting for an agent or customer service rep.


This decreases the amount of time they spend waiting on hold or chatting with a live person and often saves them from making multiple calls.


A practical example of such is the application of DigitalGenius, an AI-powered app, by Magoosh, the student prep company. As this article points out, this technology has reduced the number of customers waiting to be served at any point by half, which is a remarkable result!


Personalized Services


AI is also making customer service interactions more personalized for customers by remembering their preferences.

For example, suppose someone always orders chicken when ordering takeout food. In that case, AI will use that information to recommend particular items without the customer asking.


Feedback Avenue


The use of AI also makes it possible for customers to offer feedback constructively by providing suggestions or pointing out errors.

This means that companies can make changes more quickly and get better data on what features are working well and which ones need improvement.


Proactive Customers


AI is changing customer behavior by making it possible for them to be more in control and proactive. With predictive analytics, customers can look forward to new products or events without waiting for ads on social media platforms such as Twitter.


Non-Intrusive Interaction


AI is also affecting how companies interact with their consumers.

For example, AI makes it possible for companies to take surveys of their customers in a non-intrusive manner and provide feedback without feeling like they are being sold a product.


Examples of brands using AI customer service include:

  • DISH: DISH’s AI customer service helps customers find the best channels, offers suggestions on what to watch, and will even predict when a favourite show is about to happen.

  • Netflix: The streaming service uses AI to help people find new shows to watch and recommend ones that might interest them. It also uses predictive analysis for when they’ll be in the mood for specific genres or topics.

  • Uber Eats: With Uber Eats, customers can order food without having to contact a restaurant directly. This helps save time and reduces the amount of back-and-forth that would typically happen in a phone call with an agent. Uber Eats also offers a “suggestion” feature to offer food options based on the person’s location, time of day, and previous order history.

  • Lululemon: The clothing company uses AI to make suggestions for what outfits people might want to buy or try on next - making shopping more personalized than ever before.

For more information on how AI is transforming customer care, I recommend that you watch this video:

https://www.youtube.com/watch?v=n5vMhntiReg




The Pros and Cons of AI Customer Service

Despite its disruptive nature, AI comes with several advantages and disadvantages that organizations should know.


Let’s look at them in detail:


Pros of AI Customer Service


Reliable


AI is a dependable, on-demand customer service assistant. It provides answers to customer service requests quickly and easily.

Besides, it comes with 24/7 availability, which is crucial for uninterrupted customer service.


Variety


In the era of technology, AI provides a variety of services that are customizable to meet individual needs. This allows companies to reach out more accurately and satisfy their customers in multiple ways using tools like chatbots or voice assistance programs.


Personalized


AI can provide a personalized experience by remembering preferences and making recommendations based on past orders or purchases.

Moreover, it can understand what customers are looking for using natural language processing to identify their needs faster than human beings.


Efficient


Efficiency is another advantage of AI over human-run services. For example, this technology can complete tasks that would take a human being several hours within minutes or seconds, depending on its complexity.

This saves time for both parties involved in the transaction and allows others on either side to move onto other tasks without having to wait so long.


Lower Costs


Reduced business costs is another worthwhile benefit of artificial intelligence.

Corporations can rely on this technology to reduce their high staff-related overhead costs, such as customer service centres or back-office functions like accounting departments.


With this technology, they can do all that without sacrificing quality standards for the product they provide.


Engaging


As consumers expect more personalized experiences from businesses, it’s essential for them to feel engaged with the company they chose to do business with. With this technology, they can do so with minimal effort.


Cons of AI Customer Service


Limited Knowledge


In general, chatbots are not programmed to answer questions outside their specific area.

This creates a customer service experience where customers have to ask for assistance from an actual person when they need help with something the chatbot can’t address. However, the chances are future chatbots will be designed to answer various questions to address this problem.


Artificial Intelligence Lacks Emotional Intelligence


Unlike humans, AI tools like chatbots have a hard time understanding emotional cues or moods such as anger or frustration. This can lead to more frustrating interactions with AI when people are at their breaking point.


This can hurt businesses, especially if customers develop negative attitudes and switch to the competition due to such negative interactions. Nonetheless, with real-time feedback mechanisms, businesses can avert such instances.


5 Effective Ways To Leverage AI in Customer Service


Suppose you are wondering how you can use AI to improve customer service in your business. In that case, here are some helpful ways to do that:


Employ Chatbots


Chatbots are a great way to automate customer service and also have the ability to reach out to new customers. They can be used for anything, from simple transactions like finding an item in-store or providing order status updates on your delivery.

However, they’re not just limited to that!


You could use these bots as part of a larger marketing strategy by using them during promotional periods with discounts codes and special offers only available through chatbot interaction.


This is a surefire way to upsell those bargain hunters who may need some persuading before committing any funds.

Analyze Data


If you’re looking to create a lasting impression on your customers, start by employing predictive analytic tools in AI to analyze the data they leave behind.


Utilizing customer data collected from sources like social media or websites is crucial in understanding what type of messaging resonates with them and how best to meet their needs.


Whether it’s better serving current clientele through promotional offers and discounted products, tailoring more personalized interactions for repeat shoppers, or keeping up-to-date with new trends that might be relevant to your business—knowing who they are will guide every decision in the future!


In that regard, AI tools like machine learning, clustering, deep learning, and natural language processing can come in handy.


Offer Personalized Experiences


With AI available in many industries such as finance, travel, and retail, it is now possible to create an experience that personalizes a customer’s journey using this technology.


For example, suppose you own a bookstore. In that case, you could use this technology to recommend books based on past purchases made by other customers with similar tastes.


Alternatively, suppose you’re a leader in the financial services sector. In that case, you could tailor automated messages or offers for each client.


Further, those in the hospitality industry can provide guests personalized maps according to their preferences (e.g., pet-friendly hotels and resorts).


Similarly, digital content companies can use AI to identify preferences and offer personalized suggestions.


Engage Customers with Content and Marketing Automation


You can use AI in content marketing automation to have the right message delivered at the right time. This makes it much more likely that your customers will see messages that are most relevant to them.


In this case, your organization can employ this tool in various forms of content, from email campaigns to blog posts. The aim is to create a personalized experience for users, which may lead them on the path of being engaged and loyal customers.

Final Thoughts


AI is the future of customer service. With its ability to provide personalized, one-on-one experiences for every individual on your list and its limitless potential, you can use this technology to get steps ahead of the competition.


That being said, the best way to understand how customers respond to AI is by leveraging this technology in your business. You can use various ways to use it, which will enable you and your company’s target customer base to have the most personalized experience possible. Give these tips a try today!


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