AI has marked its importance across various sectors. With cheaper programming and enhanced algorithms, AI has successfully been able to automate many processes while reducing costs associated with manual labor.
It is important to understand the effectiveness of AI in building the customer experience and the cost advantages of AI solutions. It is also important to understand how retailers need to address the issues their customers face in the context of subpar customer experience. In our report, written by Coresight Research, we discuss two key aspects of AI in the light of consumer pain points around customer experience.
Personalization of Data
Retailers need to develop a deeper understanding of consumers to become more efficient at engaging them. This has not been the case, to a broad extent, as retailers have failed to create personalized experiences for their shoppers. About 59% of the respondents surveyed by Cognizant and Forrester in 2017 stated that the retailers at which they shop do not know about their likes, dislikes and preferences.
Not all shoppers provide the same value or revenue stream for retailers. The top 1% of customers are worth 18 times more than the average customer, according to software development company RJMetrics. Hence, it is all the more valuable to know the shopping habits of these individuals and tailoring service precisely to them.
Customers now want hyper-personalization; they expect relevant content sent to them on the right device and at the right time. This level of customization will act as a competitive advantage for retailers and will enable them to sustain their market share, while reducing customer churn.
Enhanced Customer Support
Support is one of the key building blocks of customer experience. By 2020, 25% of customer service operations will integrate chatbot technology across channels, up from less than 2% in 2017, according to Gartner. Enterprises can deploy AI-enabled conversational interfaces such as chatbots and virtual assistants to resolve customer issues.
This automation reduces not just costs but response time. High attrition rates in the industry are a big challenge for retailers—and, in many cases, attrition is one of the key drivers for automation around customer experience.
Although chatbots are designed to answer only a set of basic questions, they are quite effective at resolving a number of customer queries instantly. In addition, chatbot technology is only becoming more advanced as time goes on. Only 12% of US respondents stated that chatbots are ineffective in resolving queries, according to a 2017 survey by Microsoft.
To see the full report from Coresight Research, you can download it here.
You can learn more about the customer experience and how automating the shopper experience can engage your customers at every touchpoint by exploring Linc’s platform and solutions pages. Or take a look at how leading brands like Lamps Plus, JustFab.com and others are using an automated shopper experience platform as part of their customer experience strategies in their businesses today, in our resources page