The level of modern technological progress, advanced AI capabilities, instant messaging and the fast pace of life have had a significant effect on how consumers behave and what level of customer experience they expect. One of the aspects that were affected the most is the way brands interact with customers. Consumers don’t want a passive one-sided communication approach from businesses, their expectations are at the brand new level. What customers expect is a fast, efficient and personalized way to interact with a brand, especially when it comes to resolving their problems.
Such traditional methods of communication as email ticketing and phone calls do not provide users with the desired level of customer support, especially when they need an urgent reply and/or help. This is where AI can demonstrate its full power in the form of AI-powered chatbots that are emerging as a game-changer, offering businesses endless benefits.
AI chatbots’ main feature is that they use natural language processing and machine learning to provide features like 24/7 availability, instant responses, personalized interactions, and self-service options. From enhancing product recommendations in e-commerce to streamlining account management in banking, AI chatbots are delivering significant improvements in customer satisfaction, operational efficiency, and cost savings. Looking ahead, advancements in AI technology promise even more sophisticated chatbots with superior natural language understanding and problem-solving abilities.
The Customer Service in the Age of AI: Redefining Expectations and Transforming the Approach
Customer service is undergoing a significant transformation, mostly because today’s consumers demand a level of service that surpasses the limitations of traditional methods. Customers expect immediate, personalized, and efficient interactions across all channels. And the key factors behind this transformation are the following:
The Rise of the Digital Customer
Everybody could already notice the significant changes that have taken place in customers behavior and the way we interact with businesses. For the past several years a new medium between businesses and customers has been playing a significant role. This medium is technology. Customers are becoming increasingly tech-savvy: they know how to conduct research online, they compare products and services before making a decision and make purchases with a click. And, since brands provide customers with easy-to-access purchase ways, customers in return expect no less quality and accessibility from customer support. This digital fluency has transformed into higher expectations for customer service channels and overall online experience.
The Power of Social Media
Social media platforms have become a powerful tool for customer feedback, both positive and negative. A single bad review left on social media can quickly go viral and damage a brand’s reputation for a very long time. Customers expect professional and ‘to-the-point’ responses that will allow them to solve problems immediately. Therefore, making real-time engagement is a critical aspect of modern customer service.
The On-Demand Economy
The rise of services like Uber, Netflix, and DoorDash, where customers get what they need right away, has made customers expect quick and easy service from businesses. As for the customer service, they want information, answers, and solutions at their fingertips 24/7. Thus, traditional customer support models that rely on fixed operating hours or limited agent availability simply aren’t providing customers with the service standards that they need.
The Importance of Experience
Customer experience (CX) has become a key component for the business that makes them stand out from competitors. Studies show that companies that excel in customer experience outperform their competitors by as much as 80%. Therefore, companies that don’t pay much attention to the customer service quality and functionality may be at the risk of being left behind.
The Limitations of Traditional Customer Support Methods
Before introducing the advantages of AI-powered chatbots, let’s discuss why traditional means of customer support are not so effective anymore and why introduction of AI technologies is even necessary. In general, traditional customer support methodologies are struggling to keep pace with modern customers’ expectations.
Here’s a closer look at some of the shortcomings:
- Phone Queues and Wait Times: Reaching a live agent via phone can be a frustrating experience. Customers often face long wait times, and navigating complex IVR systems can be a barrier to getting the help they need. This can lead to customer dissatisfaction and abandonment, especially if a customer is contacting support for some easy-to-solve issue. According to the research, about 53% of respondents find waiting too long for replies the most frustrating part of interacting with businesses. Imagine waiting for an hour in a queue to get a reply from an operator just to solve an issue in 5 minutes. Such situations can cause anger and frustration despite the fact that the problem was actually solved.
- Email Ticketing Systems: While email offers an asynchronous alternative to phone calls, it can be slow and inefficient. Resolutions can take days or even weeks, especially with complex issues. Additionally, email communication lacks the real-time interaction and human touch that some customers value. Additionally to long waiting times, a customer very often has no chance to see the status of an email: has it been read? or even delivered? Therefore, email ticketing systems are not reliable when it comes to cases when a solution is urgently expected.
- Limited Agent Availability: Even though nothing can substitute a real human interaction, customer support that relies solely on agents replying to customers has serious drawbacks. First, traditional customer support teams typically operate during business hours, leaving customers with limited options outside those times. This can be particularly inconvenient for customers in different time zones or those with busy schedules. Secondly, it is impossible to expect from a customer support agent a high level of knowledge on every aspect of company operations. While customers can receive an immediate response regarding a standard or frequently asked questions, they can face much longer waiting times or a switch between multiple operators when it comes to a more specific problem or situation.
- Inconsistency in Service Quality: A human factor is something that cannot be overlooked if a company tries to provide customers with high quality service. Its quality can vary significantly depending on the agent a customer interacts with. A customer service worker can have training gaps, high call volumes or simply be distracted by personal issues which can lead to inconsistent information and frustrating interactions for customers.
- Limited Scalability: Traditional methods are often difficult and costly to scale to meet peak demands. During busy periods, wait times can increase, and customer satisfaction can plummet. According to the Live Chat Benchmark Report, the number of chats per agent grew by 138% in 2022 for teams with 26+ agents. It indicates that the number of customers who demand personal communication is growing and while using traditional methods it can be challenging to keep up with this pace.
The Inevitable Rise of AI in Customer Service
The need for innovative solutions for customer service is not just a trend caused by artificial intelligence advancement, it is a necessity that has developed from the limitations of traditional customer service. However, with the developments in natural language processing (NLP) and machine learning (ML) these needs can finally be met. It can be done with the help of AI-powered chatbots that can address many drawbacks of traditional methods of customer service:
- 24/7 Availability: AI chatbots are available 24/7, 365 days a year. AI-powered customer support doesn’t have holidays, sick leaves or simply bad moods. This allows customers to get answers to their questions or troubleshoot issues whenever it’s convenient for them, regardless of time zone or business hours.
- Faster Response Times: Unlike emails or phone calls, AI chatbots can provide immediate responses to basic questions, which has a positive effect overall on customer satisfaction. According to the data provided by Business2Community, 82% of consumers rate an “immediate” response as very important when they have a question.
- Personalized Interactions: AI chatbots can be programmed to personalize interactions based on a customer’s past interactions with a chatbot, purchase history, and other relevant data. AI-powered agents can ‘remember’ all the details of conversation with a customer and then provide a more detailed and targeted response. This allows for a more relevant and engaging customer experience. Moreover, the response received from an AI-assistant is not only informative, but can also be adapted to a tone and requirements of a customer. Natural language processing (NLP), which is also called by some a ‘superpower of chatbots’, can help computers not only understand a conversation with a customer word by word, but also interpret and generate human language in a personal way. This allows developing a more personalized conversation with a customer and provides high-quality service.
- Multilingual Support: Artificial intelligence also removes one of the most serious obstacles, language barrier. For local companies it may not be an issue due to the common language among customers and customer service agents. However, when it comes to an international company, making sure all customers regardless of their language are provided with the same level of service and not making any customer feel left out becomes a serious challenge. That is why AI-powered chatbots are the best solution for such cases. They can provide help to customers from any region or country and speak with them in their language without customers even noticing that they are talking with artificial intelligence.
- Self-Service Options: AI chatbots can be integrated with knowledge bases and FAQs, allowing customers to find answers to common questions without requiring human intervention. This empowers customers and reduces the burden on customer support teams. Moreover, particular groups of customers can especially benefit from the support of AI-powered agents. According to the data from the research, Gen Z believes that different situations require different ways of communicating with businesses. For example, 62% of Gen Zs would prefer using chatbots to order food and 71% would use chatbots to search for products.