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7 Roles of Artificial Intelligence in Customer Experience (CX)

7 Roles of Artificial Intelligence in Customer Experience (CX)

Updated - August 26, 2023 By David Trounce Leave a Comment

Chatbots, personalized recommendations, virtual assistants — have you ever wondered how these are reshaping how businesses interact with customers?

Welcome to the world of artificial intelligence (AI), where machines are learning to engage with customers in previously unimaginable ways. The customer experience (CX) landscape is rapidly evolving, with AI at the forefront of this revolution.

With that in mind, we’ve rounded up seven roles artificial intelligence has in shaping the customer experience. It’s time to embrace this change. So let’s dive right in.

1. Curate More Targeted Experiences

With its ability to analyze vast amounts of data, AI enables businesses to gain valuable insights into customer preferences and behaviour, delivering personalized experiences at scale. Different industries require a tailored approach to leverage the power of AI in customer experience.

For example, where personalized service is paramount in the real estate sector, integrating AI-powered real estate CRM software for agents and brokers can significantly impact the customer journey. The specifically designed CRM empowers real estate professionals to provide customized recommendations, personalized property listings, and timely communications, improving customer satisfaction and long-term loyalty.

Screenshot by Emily Krings

Another example is using AI can help segment customers based on their attributes, such as age, gender, location, interests, and purchase history. It can then create dynamic content that matches their needs and expectations. This can:

  • Boost customer loyalty and retention
  • Improve customer satisfaction
  • Reduce operational costs
  • Increase efficiency

One of the tools that can help with this automation is SCIM, which stands for “System for Cross-domain Identity Management.” SCIM is a standard protocol that allows different systems to exchange user information consistently and securely. SCIM can help synchronize user data across multiple platforms, such as CRM, marketing automation, customer service, and identity management systems.

And better yet, you can sleep better at night knowing that your customer information is always up to date, accurate, and accessible, regardless of where it’s stored or how it’s used. SCIM can also help streamline the provisioning and de-provisioning of user accounts, enhancing security and compliance.

Organizations can use AI and SCIM to create a seamless, personalized customer experience that drives loyalty and growth.

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2. Optimize the Sales Process

Much of the sales process involves reassuring prospective customers that your solution is right for them. This involves building trust, providing reassuring information, and overcoming sales objections.

Luckily, AI can streamline the sales process. For example, you can use AI to improve the UX of your website, reducing friction in the checkout process. It can provide real-time insight into which areas of your site to improve, such as site speed, navigation, and other indicators of performance.

How to use heat maps to boost your website's conversion potential - GoDaddy Blog

Some analytics-focused AI tools (like a heatmap) can take this a step further by showing you exactly how viewers interact on your site, including which areas keep their focus and which they scroll through. You can use this information to guide future iterations of your site and other sales materials.

Cloud accounting software like SoftLedger can also improve sales by providing real-time financial insights. This allows businesses to make informed decisions quickly, streamlining sales strategies.

3. Create More Personal Shopping Experiences

Artificial intelligence is the go-to technology for creating personalized customer experiences across various industries.

AI-powered technologies enable businesses to offer personalized experiences to customers. By leveraging customer data and preferences, AI algorithms can:

  • Facilitate the customization of products
  • Provide tailored recommendations
  • Suggest relevant products

Clean Origin, for instance, leverages AI on its website to enable customers to design custom engagement rings, resulting in increased interactions and a positive impact on customer experience.

VisitorLAB | The Guide of Website Heatmap

This level of personalization enhances customer satisfaction and creates a sense of uniqueness and ownership, ultimately elevating the overall customer experience.

Additionally, AI enables businesses to analyze vast amounts of customer data to derive valuable insights. Leveraging machine learning algorithms can better understand customer preferences, behavior patterns, and trends.

This knowledge allows for targeted marketing campaigns, product enhancements, and tailored offerings that better align with customer expectations. Such data-driven decision-making leads to improved customer experiences and increased customer satisfaction.

4. Streamlined Service Delivery

As we dive deeper into the role of artificial intelligence in customer experience, we come across numerous applications that are transforming the landscape of service delivery and customer interaction.

Notably, one of the fascinating uses of AI can be seen in the financial sector, particularly in the realm of student loans. Refinancing student loans is a complex process that many individuals struggle to navigate.

Often, customers are unsure about the best time to refinance, how to choose the right lender, or how the refinancing would affect their long-term financial health. That’s where artificial intelligence enhances the customer experience and drives loyalty.

AI-driven platforms can take in personal and economic factors and use this data to provide custom advice for customers considering refinancing.

Call to Action and AI

By providing clear, personalized recommendations, AI helps demystify complicated processes, making them more accessible and less intimidating for customers.

5. Improve Discoverability

To provide a great customer experience, the experience needs to be accessible to your target audience. AI can streamline this process by making your offer easier to discover (read: visible at the right place and time).

Using AI product discovery tools, you can run market research (without doing all the heavy lifting) to determine how to position your offer best to maximize discoverability.

Besides, a great perk of having this knowledge handy is that it gives you the opportunity to ensure that your products or services offer the best possible experience to the consumer.

6. Create Self-Service Solutions

Artificial intelligence can enhance customer experience by enabling self-service solutions that empower customers to find answers to their questions and problems without relying on human agents.

For example, self-service business intelligence tools can allow customers to access and analyze data from various sources, such as sales, marketing, product, and customer feedback, and generate insights to help them make better decisions.

Using natural language processing and machine learning, these tools can understand complex queries, provide relevant answers, and suggest follow-up actions. This can:

  • Improve customer satisfaction
  • Increase business efficiency
  • Reduce overhead costs
  • Build customer loyalty

Here’s an example of a self-service tool in action. Hims adds a simple quiz on its telehealth website to help determine the best suitable treatment for hair loss:

Self Service Tools in AI

The result? Personalized treatment plans for customers after a few simple clicks. It’s simple. It’s fast. And it’s accurate. Customers love it. And they’re thankful for a seamless self-service solution.

7. Curate Individualized Promotions

Attention to detail in curating a targeted and individualized customer experience can boost your company’s success. By providing customers with information that interests them and connects them more with the brand, businesses can create a better customer experience. This is true even for loyal customers already familiar with the brand.

For example, House of Joppa, a store that sells modern Catholic home décor items, could benefit from all that AI has to offer.

Based on previous purchase history, it can ‌send its customers promotions for specific products that match their tastes. Or suggest matching items that share the same aesthetic or go well with their past purchases.

Upsell through AI

And that’s just the tip of the iceberg. It can curate special campaigns to create excitement and interest when it launches new products. The result? Products that sell out faster than ice cream on a hot summer day.

By taking these simple steps, any business can offer customers a superior customer experience and build loyalty and devotion.

Final Thoughts

And there we are, a virtual tour through the seven pivotal roles that AI is playing in reinvigorating customer experience.

From chatbots to predictive analytics, AI isn’t a high-tech novelty from a sci-fi movie. It’s a vital partner in building bridges between businesses and their customers. Oh, and boost sales.

As we stride into an era where personalization, efficiency, and innovation are key, embracing AI might be the golden ticket to creating memorable and satisfying customer interactions.

How will you use AI to improve your customer experience?

About the author

Emily KringsEmily Krings is an SEO content writer and strategist with a knack for storytelling. She specializes in helping B2B businesses create blog content that connects with their audiences.

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David Trounce
David is a CRO and marketing consultant. He has a background in business management and also writes for Business.com, GrowMap and Born2Invest.
+61 414 3555 22
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