Blog | Digital Engineering Services

5 Ways AI Is Driving Better Customer Experience

APRIL 17, 2024

With the global adoption of AI for analyzing customer data and personalizing interactions, businesses are raising the bar for customer satisfaction.

Companies riding this shift are not just meeting customer needs but predicting them. This forward-thinking approach builds loyalty and fuels growth in our digital-first world.

In fact, The 2023 State of Social Media Report reports that 96% of business leaders think AI will greatly enhance decision-making in the future.

With the demand for personalized interactions across digital platforms multiplying, 81% of organizations recognize CX as the leading competitive edge.

However, meeting these expectations is a significant challenge, owing to complex customer interactions and vast data silos.

Enter generative AI—a game-changing innovation in this landscape. By leveraging innovative AI solutions, enterprises globally save time and cost with hyper-personalization. This technology goes beyond traditional automation to understand and anticipate customer needs, crafting responses and human-like solutions in real time.

This article will take a closer look at the role of AI in enabling a more human-centric customer experience and discuss how AI is transforming CX:

Why Do You Need AI in Customer Experience Today?

1) Drive Better Support at Lower Costs

By integrating AI, companies can boost support operations without inflating costs. This means they can serve more customers without expanding their support teams. For example, going from 100 agents helping 1 million users to 150 agents assisting 5 million users is feasible and can save a lot on operational expenses.

By 2026, conversational AI will reduce contact center agent costs by $80 billion. Moreover, the automation also extends to providing 24/7 service, ensuring that customers have support whenever they need it, without delay.

2) Analyze Massive Amounts of Data Easily

AI based tools are crucial for sifting through and making sense of the vast amounts of data generated from customer interactions. By analyzing this data, AI based tools help businesses understand customer preferences and behaviors on a deep level, enabling them to deliver highly personalized experiences that further lead to a revenue boost of 10-15%.

You can also drive customer engagement and improve customer satisfaction rates significantly with personalized, accurate replies using tools like Sutherland HelpTree, as the OTT streaming service provider did for an enhanced customer experience.

Top 5 Ways AI is Transforming CX:

5 Ways AI Is Driving Better Customer Experience

1. Personalized Recommendations

In the digital age, personalization is essential for a great customer experience. Tailoring messages and content to individual preferences makes customers feel valued and boosts their engagement with your business.

Research by McKinsey shows that personalization can reduce acquisition costs by as much as 50%.

To achieve this, AI-driven systems create environments where content discovery is enhanced, leading to higher engagement and retention. Recommendations aren't just broad but also consider detailed customer data, ensuring personalized suggestions based on individual behaviors for a better user experience.

For instance, let’s consider an ecommerce setup. Here's a breakdown of how AI based tools achieve this:

  • Understanding Preferences: AI based tools dig into customer data—purchases, browsing, reviews—to craft detailed profiles. This means spot-on product suggestions.
  • Enhancing User Experience: AI based tools ensure swift, frustration-free searches, keeping customers from visiting competitors' sites.
  • Strategic Placement: Recommendations pop up where they matter: search results, homepages, product pages—guiding customers toward purchases.
  • Amplifying Engagement: Personalized suggestions hook customers at every step, driving longer visits and more interactions.

2. Self Service Chatbots:

5 Ways AI Is Driving Better Customer Experience

One of the best things about AI is that it can help reduce customer hold times. Now, companies can use AI based chatbots and virtual assistants to quickly solve simple customer problems with bills, products, or services.

According to Salesforce, 69% of consumers like using chatbots for faster brand communication. Faster first-response times, shorter wait times, and decreased handling times are benefits customers enjoy when businesses use AI based tools to improve their CX.

Self-service platforms powered by AI, like Sutherland's Conversational AI, enable customers to find solutions to their queries quickly, without the need for a live agent.

This not only improves customer satisfaction by offering 24/7 support but also significantly reduces the workload on human agents, saving up to 30% of customer support costs. For instance, while AI based tools can handle straightforward questions about account balances or order statuses, human agents are free to work on more difficult issues.

The integration of AI into customer service doesn't stop at immediate problem-solving. Intelligent knowledge management tools like Sutherland’s HelpTree AI go a step further by augmenting the knowledge base used by these systems, ensuring that the information provided to customers and agents is not only up to date but also easily accessible and highly relevant.

3. Voice Assistants:

According to Adobe, 48% of consumers use voice for general web searches, indicating a shift towards voice interaction in daily digital activities.

AI-driven Voice Assistant tools enable customers to perform tasks and access information through simple voice commands, facilitating hands-free and multitasking scenarios.

Integrating voice assistants with smart home devices further elevates the customer experience by enabling seamless interactions within the consumer's ecosystem.

Beyond Amazon's Alexa and Google Assistant, other enterprises leverage voice assistant technology to improve customer experience. Domino's Pizza, for instance, allows customers to place orders through voice commands via its in-app voice assistant - ‘Dom’. Even Starbucks has introduced voice ordering through their app.

Apart from the convenience and efficiency voice assistants bring, enterprises should also consider this technology for the competitive edge it offers today.

4. Deep Customer Analytics and Insights:

5 Ways AI Is Driving Better Customer Experience

AI based tools excel at identifying patterns in large datasets that humans might miss. This paradigm shift enables businesses to bypass traditional bottlenecks in data analysis, such as the need for specialized skills in Excel or BI tools, and a deep understanding of underlying datasets.

By integrating deep analytics into your strategy, your business can move beyond operational KPIs, driving outcomes that matter, like customer satisfaction, first contact resolution, retention, and more sales. Here is a breakdown of how AI based tools achieve this:

  • AI based tools detect patterns in large datasets, enabling businesses to predict customer needs for personalized experiences.
  • AI algorithms identify trends, segment customers, and predict churn rates, enhancing business data processing and understanding.
  • AI based tools track real-time customer behavior, allowing for swift, data-driven decisions. For example, online retailers can adjust inventory or marketing strategies based on sudden search upticks.

For instance, CX intelligence platforms like Sutherland’s CX360, transform every customer interaction into actionable insights. It is designed to analyze customer journeys comprehensively, offering insights on consumer journey stages, sentiments, behaviors, and 100% topics discussed across all interactions.

Moreover, Sutherland’s CX360 automates quality monitoring with AI and machine learning, auditing each interaction comprehensively. This shift from manual auditing to a holistic, automated approach ensures that no interaction is overlooked, providing businesses with reliable insights to optimize the customer journey.

5. Agent Experience

5 Ways AI Is Driving Better Customer Experience

AI is also revolutionizing the role of customer experience (CX) agents, making them more productive and efficient. That is one of the reasons why 82% of CX leaders are rethinking their entire customer experience based on recent AI advancements. It is true! In the past, agents mainly handled customer inquiries and issues on their own. But now, with AI, their roles are getting a major upgrade.

Instead of spending hours routing tickets and answering routine questions, agents now rely on AI to do most of the heavy lifting. AI is also helping agents become experts in their fields. With AI providing real-time data and insights, agents can dive deeper into understanding their customers' needs and preferences. This means they can offer more personalized solutions and make each interaction feel like a friendly chat with a knowledgeable friend.

Take Sutherland's Agent Success, for example. It is a cloud-based, GenAI-powered solution designed to enhance the productivity of contact center agents in their customer interactions. With AI, Agent Success revolutionizes the way agents work by providing contextual knowledge articles, summarizing interactions, suggesting AI-powered response recommendations, and automatically detecting key entities and moments and flagging them for manager's review.

Tools like Agent Success transform agents into efficient problem solvers, enabling quick and intelligent customer service. This leads to an improved customer experience, with inquiries promptly and accurately addressed, leaving customers impressed and satisfied.

Drive Better CX with Sutherland:

If you are ready to start leveraging AI to improve the customer experience, we are here to support you every step of the way. Our suite of AI-powered platforms is designed to streamline processes for both agents and customers, making interactions smoother and more efficient than ever before.

But it's not just about the tech—it's about value. Our solutions offer a significantly lower TCO, giving you a competitive edge without draining resources. Ready to elevate your CX? Book a discovery call with us and let's make your CX smarter, more intuitive, and delightfully efficient.

Sutherland Editorial


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