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Utilizing AI to Answer Customer Questions - How It Can Improve Customer Service Utilizing AI to Answer Customer Questions - How It Can Improve Customer Service

Written by
June 15, 2022

Utilizing AI to Answer Customer Questions - How It Can Improve Customer Service

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Artificial Intelligence (AI) is revolutionizing the way businesses interact with their customers. AI-powered customer service tools are becoming increasingly popular as they provide a more efficient and effective way to answer customer questions. By utilizing AI, companies can provide accurate responses to customer inquiries quickly and easily. AI can also help companies better understand customer preferences and needs, allowing them to provide personalized service. This can lead to improved customer satisfaction and loyalty. With AI, customer service teams can spend less time searching for answers and more time focusing on improving the customer experience. AI is proving to be an invaluable tool for businesses looking to improve their customer service and stay ahead of their competition.

What is AI?

Artificial Intelligence is a computer’s ability to exhibit intelligent behavior that is comparable to humans. This can be achieved through machine learning, which is the ability for computers to process data and draw conclusions using algorithms. AI has become more prevalent in recent years as computers have become more powerful and affordable. It has many applications, including customer service. AI allows humans to outsource tasks that are tedious or difficult to complete. In the case of customer service, AI can be programmed to respond to common questions or complaints, freeing up human agents to handle more complex issues. AI comes in many forms including natural language processing, machine learning, and automation. All of these can be used to enhance customer service. Natural language processing, or NLP, refers to computers’ ability to understand language. NLP can be used to quickly find answers to common customer questions.

Benefits of using AI for customer service

Communicating with customers is an important part of any business, and using AI to do so can help companies improve their customer service in a number of ways. AI allows for quick and accurate responses to customer inquiries, which can lead to better customer satisfaction, loyalty, and retention. Here are a few ways AI can improve customer service. - Improved accuracy - When customers have questions, accurate answers are important. AI can quickly and easily find the correct response to a customer's question, allowing a business to provide the best service possible. - Increased productivity - The more quickly companies can respond to customer questions, the less time agents spend on other tasks. This frees up agents to focus on other areas of the business, like pursuing additional sales or resolving customer issues more quickly. - Improved customer satisfaction - Quick and accurate responses can lead to increased customer satisfaction, which can help a company build or retain a customer base. - Better customer retention - Retaining customers is important in any industry, as it can help a company keep a consistent and reliable source of income. - Better reputations - A company's reputation can be greatly affected by its customer service, as poor service can lead to negative reviews and fewer sales. - Increased customer loyalty - In addition to improved reputations, better customer service can lead to increased customer loyalty.

AI customer service statistics

- 72% of customers will abandon their purchase if their query isn’t answered in 10 minutes. - 78% of customers expect a response to their query in 60 minutes or less. - 72% of customers expect the same or better level of service as person-to-person interactions. - 40% of customers will try multiple times to get in touch with a company for assistance. - Only 19% of customers feel that they are receiving effective communication from businesses. - Only 18% of companies have a customer service strategy that is working. - 30% of companies believe they will lose revenue due to poor service.

AI customer service tools

- Natural Language Processing - Natural language processing is a form of AI that allows computers to understand human language. This can be used to search for answers to common questions and complaints. - Automation - Automation allows computers to make decisions based on certain circumstances. This can be used to route customer questions to appropriate agents based on previous interactions, or to answer simple questions. - Chatbots - Chatbots are a form of automation that allows businesses to operate 24/7. They can answer basic questions, track metrics such as length of interaction, and allow customers to make orders or conduct other transactions. - Machine learning - Machine learning uses algorithms to analyze data and learn from it, allowing computers to make more accurate decisions. This can be used to understand customer needs, preferences, and other factors.

AI customer service best practices

- Make sure to put customer needs first. Always prioritize the customer's needs when designing and implementing your customer service AI solution. If a customer places a query that the AI can't answer, provide the human touch by quickly connecting with the customer either through the same platform or by connecting with them on the phone or via email. Remember: the customer is king. - Know your customer base. AI can help you understand your customers better by drawing from data that has been collected on them. This can help companies provide more personalized service. - Let customers choose how they receive assistance. Some customers prefer to receive help over the phone while others feel most comfortable using an online chat. Letting customers choose their preferred method of customer service can help businesses better serve their customer base. - Stay flexible. Customer needs can change over time, so it’s important to stay flexible and be able to adapt to customer preferences as needed.

How to get started with AI customer service

Now that you know what AI can do for your business, you may be wondering how to actually implement it. There are a few key steps to consider when implementing an AI customer service solution. - Define customer needs - Before you can implement AI customer service, you need to figure out what customers need. Conduct surveys or ask current customers what they expect from a business. This will help you identify areas where AI can be particularly helpful. - Select a platform - There are many different AI customer service solutions on the market, each with their own features and benefits. Make sure to select a platform that meets your needs and is easily customizable. - Plan for expansion - Even the best AI solutions will need to be updated and modified over time as customer needs change. Make sure to create a plan for making changes to your AI customer service solution.

AI customer service challenges

While AI can provide many benefits, there are also a few challenges businesses must consider when implementing AI customer service solutions. - Risk of misinterpretation - As with any technology, there’s always the chance that an AI solution will misinterpret data or make a mistake. It’s important to test a solution before fully implementing it to ensure it works as expected. - Over-reliance on technology - Customers can appreciate human interaction, and relying too much on AI can lead to frustration. Make sure to keep human agents available to handle complex queries and to provide a more personal touch. - Lack of customer insight - One of AI’s biggest draws is the amount of customer data it can analyze. However, the data is only helpful if you know how to use it. Make sure to research how to tap into the customer data your AI customer service solution provides.

AI customer service implementation tips

- Don’t expect AI to be a silver bullet. AI is a helpful tool, but it can’t do everything. Make sure to have an overall customer service strategy in place that includes other methods of providing customer assistance, like phone calls and email correspondence. - Test your solution. Before fully implementing your AI solution, test it out on a small sample of customers to make sure it works properly. - Stay up-to-date. AI solutions are always evolving. Make sure to monitor service updates and keep an eye on new technologies to make sure your AI customer service solution stays effective.

AI customer service case studies

- Online retailer Zappos uses machine learning to help customers find products based on common searches. This allows customers to quickly and easily find the products they’re looking for. - Retail giant Amazon uses AI to help customers search for products. Its virtual assistant, Alexa, uses machine learning to understand user needs and provide appropriate search results. - Coffee company Starbucks offers customers the ability to order and pay for their coffee through a smartphone app. The app uses AI to learn customers’ ordering habits, allowing them to quickly place their usual order. - Online grocery store chain Kroger uses a chatbot to answer frequent questions. This allows the company to serve more customers at once and frees up human agents for more complex issues.

AI customer service resources

- Forrester’s Predictions for 2020: What We Think Will Happen - Read this report to get a glimpse into the future of customer service. Forrester,

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