Dave Waters said, “Artificial Intelligence is the future and the future is here”!
According to reports, almost 85% of customers’ relationship with a brand will be carried out without human interaction in the next 5 years, which is why companies across the world are fast leveraging Artificial Intelligence (AI) to significantly enhance engagement and customer experience.
How can you retain customers in a hyper-connected world where competition is fierce and customers are fatigued by so many different product options to choose from. The answer is usually through smart customer engagement. Brands are fast realizing that traditional methods don’t work anymore and that they have to better understand their current customer needs and focus the majority of their marketing energy on retention through AI. Artificial intelligence is very useful in providing intelligent, intuitive and convenient customer experience at any point in the customer journey. With Google and Microsoft already investing heavily into new AI initiatives, it is expected to go into turbo mode in the near future. Google recently purchased DeepMind for £400m, the artificial intelligence company that specializes in algorithms and machine learning for positive impact. It is just one of many expected acquisitions that proves AI will continue to be a major factor with brands, retailers and manufacturers for years to come.
According to a Teradata study, 80% of enterprises report that their organization already has some form of AI in production. The study also revealed that one of the top planned areas for AI investment for brands was customer experience. In another study by Gartner, Enterprise use of AI has grown 270% over the past 4 years.
So how can AI improve customer experience?
Customer experience is a competitive driver of growth and leveraging AI can accelerate good understanding of customer behavior. AI tools offer fraud detection, white-space analysis and brand recommendations to increase sales. In marketing, AI-powered solutions enable brands to optimize prices and generate highly personalized messages at scale that cannot be achieved with humans alone. Also, chatbots powered by AI can be used to enhance the customer experience by reducing response time. In 2014, Airbnb built an AI model that provides daily suggestions on price optimization, considering multiple indicators like location, seasonality, amenities, prices of similar lodgings, current listing prices, and availability. Paypal merged AI with their security system to identify any unusual transaction activity.
You can drive customer loyalty with AI by:
To understand your customers better, this is your guide to use AI in the best possible manner:
The better AI gets (and it will), the more personalized your marketing approach will get. AI powered tools are shaping the way brands and customers interact with each other both now and in the future. If you’re seeking to invest in AI, it is very important to gauge key metrics, including customer retention and revenue growth, and working backwards to see which AI is apt for achieving that goal.
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