How AI is changing customer service and what you can do to keep up

The rise of AI technology has transformed customer service at an incredible rate. AI can now automate mundane customer service tasks, deliver personalized experiences, and provide faster, more accurate responses.

Exceptional Customer Service Should Be a Priority for Every Business From small local shops to large multinational corporations, business owners are turning to helpful tools like modern AI to provide superior customer service.

But is it possible?  Looking for an alternative to an AI-powered customer care team?

In this blog post, we look at what AI can and can't do, how it will transform customer service, and what you can do to keep up.

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What does AI mean?

Before we get into the trends of using AI in customer service, let’s understand what AI means.

When we talk about AI, aka artificial intelligence, we are usually referring to machine learning. These software algorithms are able to learn and improve their ability to perform tasks as they complete assignments and process data.

You may not realize it, but you use AI-powered tools every day: search engines, online marketplaces, and movie streaming services, for example, all use machine learning to improve customer experience.

AI can collect customer data and create powerful insights, deliver personalized experiences, and improve productivity, which is why using AI is so beneficial for businesses. AI also:

• Save time. By automating simple, repetitive tasks (like answering questions like "What's your tracking number?"), customer support agents can spend more time working on complex issues.
• It helps with customer retention: AI improves resolution times and the overall customer experience, which is crucial to keeping customers coming back for more orders.

What customer service professionals think about AI, according to a survey by  Dialpad

A great customer experience also helps attract new customers: 59% of consumers say they would recommend a brand to a friend because of customer service.

Now that we understand what AI means in customer assistance, let’s take a look at some of the most popular trends.

Self-Service Solutions to Streamline Shopping Experiences

Shoppers often contact customer service with simple questions. Most people want to know about shipping updates or return policies. These questions don't necessarily need to be handled by a dedicated staff member.  Human — Solutions like chatbots on self-service websites can handle basic queries.

A chatbot is a computer program designed to simulate a conversation. AI chatbots can help customers track their orders, get quick answers to basic questions, and even help them find what they want in an online store.

Chatbots save time for both customer service agents and customers. What's more, 60% of customers would prefer to have their issues resolved without speaking to a service agent when shopping online.

Chatbots are primarily useful for:

• Customers need answers  to simple questions as quickly as possible ;
• Customers don't want to talk to real people.

While chatbots can direct shoppers with complex questions to the right customer service channel, businesses shouldn't rely solely on chatbots for customer service. To ensure great customer service, automation and  human-based solutions must be easily accessible.  Customers—no , they like to go to any lengths to get in touch with a human representative.

Deliver personalized interactions and recommendations

Personalization in customer service means providing product recommendations and customized offers based on customer preferences.

According to  a Zendesk consumer trends report , while personalization is on the rise, many brands are underestimating its importance. In fact:

• 76% of customers expect personalization from brands.
• 62% of consumers believe companies can do better with personalization.

That's where AI-powered technology comes in. AI-driven chatbots and virtual agents can analyze a customer's past purchase history, interests, demographics, and behavior to provide customized recommendations in real time.

For example, Amazon's recommendation system is  AI-based, which analyzes customer purchase history, search records, and behavioral data to predict and suggest products that customers might be interested in. This personalized approach has significantly increased Amazon's customer engagement and sales.

Speeding up customer service operations

AI helps businesses analyze the nature of customer requests before assigning them to a customer service agent. AI tools can analyze the customer's issue, urgency, and sentiment. They can then automatically categorize the customer request and assign it to the right agent.

For example, you can automatically assign your most experienced agents to handle complex cases, while freeing up newer reps to tackle simpler tickets.

Many tools, such as advertising platforms, automatically identify the sentiment of comments.

Additionally, it may be helpful to have someone dedicated to handling emergency or time-  sensitive requests. Resolving unfavorable requests quickly is important to retain customers: 42% of consumers say they would stop buying from a brand after one negative service experience.

Process customer feedback more efficiently

Natural language processing is a key  component of AI-powered customer service. Customer interactions are collected, analyzed, and classified using algorithms and machine learning. Companies can use AI to understand what customers are saying about products, how they are reacting, and what they need. Such tools help process customer feedback.

AI copywriting can be particularly useful as it can speed up the process of responding to reviews: Jasper, for example, uses the Review Responder tool, which analyzes customer feedback and generates replies accordingly.

Example of an AI-generated response to negative feedback

Responding quickly to feedback, especially negative feedback, is key to keeping customers happy. Consumers now often share complaints or ask questions on social media, forcing brands to respond faster than ever before. According to the Bureau of Statistics, 28% of global consumers expect to receive a response within one hour , while 37% want a response within the same day.

Survey results for "What is your expected response time for a question or complaint about social media?" (Source: Statista )

What can you do to keep up with customer service trends?

Using AI to enhance customer service benefits businesses and their customers, so businesses that leverage AI for customer service are more likely to stay competitive.

While larger businesses may be willing to invest more,  small and medium-sized businesses need to keep up with the trend by adopting AI-powered product recommendation systems. Conveniently, business owners can get the latest products without spending a fortune.

Here are some simple ways to stay relevant and provide great customer service, even with a small team of reps.

• Use chatbots to address frequently asked questions about products, refunds, shipping, and other topics. If you run an Ecwid store, you can choose from several customer support chatbots, including Tidio , Chaport , Desk ,  and others .
• Analyze customer data to provide personalized recommendations for each individual shopper. For example, you can use Marcelo to create loyalty, SMS, and email campaigns based on customer shopping behavior.
• Use a customer communication platform to understand your customers' buying behavior and personalize your communications. Ecwid allows you to integrate your store with different platforms .
• Be proactive in trying new tools that can help improve customer service, for example by testing tools developed to reduce wait times or automate repetitive tasks.
• Monitor customer reviews and feedback. Identify areas that need improvement. There are plenty of ways to  collect and manage reviews for your Ecwid store.
• Build an effective customer support system using Ecwid's built-in Facebook live chat or integrating  with a third-party platform like Zendesk .

AI-powered tools that businesses of all sizes should use to provide better customer service. AI brings a variety of benefits, including optimizing mundane tasks, helping businesses stay competitive.

For more tips on how to use AI for your business, check out these articles: 

1. 11 Real-World Applications of Machine Learning in E-Commerce

2. Artificial Intelligence Is The Future Of E-commerce

3. How to Use AI Tools Effectively as a Business Owner

Summary

AI technologies offer the convenience and speed that customers desire in customer service, and as business owners, we must start taking advantage of them. Effective customer service is essential for businesses to keep their customers satisfied, and AI can deliver that at speed and scale.

We recommend taking these small steps to integrate AI into your store:

• Explore self-service solutions that best suit your customers' needs.
• Give shoppers a personalized experience.
• Invest in tools to speed up your customer service operations.

Change can seem daunting, but there's no time like the present to harness AI to drive business success. Explore the tools available to you and find the one that's right for you.