Around 73% of companies are considering or using AI-based customer service, and believe it or not, the numbers keep growing. This integration of AI in customer service is necessary if you want to compete in the technologically fast-paced era. Now, to keep customers engaged on your website, you need to respond to them as quickly as possible. The customer service systems completely changed with the involvement of Artificial Intelligence.
However, these AI chatbots are quicker with responses, and many popular companies like H&M use AI customer service to assist their customers. But at some point. Customers need human assistance. However, a survey shows that around 60% of people prefer chatbot assistance over waiting for a human operator.
Thus, today, we will talk about how companies are leveraging AI along with live assistance to improve the AI customer service experience, which, according to a report, can lead to improved satisfaction and an increase in revenue.
Factors That Make AI Customer Service Better Than Traditional Customer Service
Artificial intelligence addresses the loopholes in Human customer services. Combining both can help provide smart, effective, and timely customer responses. Just imagine a system that never sleeps, remembers everything, and learns more about customer behavior with every interaction. It sounds like the ideal AI customer service for your company, right?
Let’s look at all the factors that make AI customer services better than Human Agents:
1. Speed and 24/7 Availability
The most important factor in customer service is the on-time response. Whenever we have an issue, we wait impatiently for a response from the respective website’s chatbot. Sometimes, we get it, but sometimes, the agent is busy or unavailable, so we are put on hold.
This is where an AI-powered chatbot steps in. These AI chatbots are trained on large structured data and can answer your inquiry instantly. These AI-driven customer support tools depend largely on automation to provide filter replies or acknowledgments. Companies pre-program these automated responses based on common questions or produce them with the help of AI models like GPT variations.
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Thus, unlike human agents who need sleep, breaks, and shift changes, AI customer service operates 24/7, 365 days a year. This constant availability means customers can get immediate answers whenever they reach out, whether it’s noon or midnight. Not only does this boost customer satisfaction, but it also frees up human representatives to tackle more complicated requests.
2. Cost-Efficiency and Scalability
Every business needs a customer service department; however, sometimes setting up and maintaining it can be hefty, no matter how big your business is, especially when expanding during busy seasons. But here’s how AI takes charge of resolving this issue. With the integration of AI, it will handle hundreds and even thousands of inquiries at once.
Unlike human agents, who are entitled to a salary, paid leaves, and sometimes even overtime payment, the operational costs invested in AI are still far less. Consequently, even if you provide service to more customers, the operational expenditures will not change.
Let’s assume that a company introduces a new product. Instead of hiring additional staff, AI can deal with the army of queries, ensuring there is no interruption in service while also saving costs. This is all possible because AI provides such levels of assistance in a matter of seconds. Businesses can grow easily and affordably, irrespective of whether they assist 10 people or 10,000 at once.
3. Consistency and Accuracy
There have been plenty of times when you asked for assistance from customer service, and the answers or solutions given on various provided calls were different. AI customer service can fix these issues by adhering to prescribed responses and instructions. An AI system make sure tha there are no inconmsitenciens in the client enggemnets.
It will also ensure that there are no mistakes and that every client always gets the right information. In addition, reliability increases customers’ trust and eliminates the odds of customers getting upset.
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But now you know what makes these chatbots able to answer questions efficiently and relevantly—NLP or Natural language processing (NLP) and various machine learning models. Often, a person may forget important information or get tired of repeating the same things; AI replies based on the current statistics in the database, which helps to avoid any confusion or incidents and situations leading to false answers.
For example, an ecommerce AI application makes assisting customers much easier. If a customer asks about a particular product’s stock, an AI-based activity can already know the current availability of a certain product and its quantities.
This way of doing things is much faster and less prone to mistakes like telling the customer that the product is in stock when, in reality, it is not. Thus, it saves time and increases satisfaction.
4. Data-Driven Personalization
Personalization isn’t just a buzzword—it’s a cornerstone of great customer service. AI takes Personalization to the next level by analyzing data to customize each interaction. AI systems can pull insights from past purchases, browsing history, and previous conversations, giving them a deep understanding of the customer’s preferences.
Imagine a customer who frequently buys certain types of products. With AI customer service, the system can recommend related items or special offers relevant to that customer, turning routine customer service into a personalized experience. This isn’t just efficient—it makes customers feel seen and understood, building a stronger connection with the brand.
Take the example of Sephora, A Popular Global Beauty Retailer.
Sephora and other companies that use AI-generated customer support use chatbots on their sites and mobile apps to provide customers with personalized product suggestions, skincare tips, or order-related assistance. These chatbots can learn and improve their interactions, sound human, and hold conversations.
5. Seamless Customer Experience With Omnichannel
Picture this: you initiate a discussion with a company on their web page, switch to a text message to keep it rolling, and finally, receive follow-up info in the company’s application. That is called omnichannel service, and Starbucks is an ideal example. Customers can easily check loyalty points, order, and see store updates, regardless of the device used.
Here, AI helps the channels work together to share information about the customers to enhance their experience wherever they are.
Real-world Example of Nike
Take Nike, for example. It offers an omnichannel experience from mobile shopping to in-store pickups, with AI-enhancing personalization along the way. On its app, consumers may find something from Nike and get customized suggestions when they visit the retail store.
This creates a whole user experience that is not dependent on the channel they interact with, enhancing customer retention and simplifying their shopping journey.
The optimal integration of a dynamic omnichannel strategy with Artificial Intelligence transforms the customer experience. AI collects information across all channels, allowing companies to acquire insight into client behavior and choices.
For example, if a client contacts support on social media and later does so through the company’s application, AI customer service makes it possible for these interactions to be linked. This helps clients avoid explaining themselves more than once and facilitates quicker solutions to issues.
6. Less Workload On Customer Service Agents
When AI is incorporated within customer service departments, the burden on the customer service agents is quite alleviated because AI can, thanks to advanced technology, take care of many routine inquiries, perform basic troubleshooting, and carry out repetitive tasks. This enables agents to deal with complex issues that do not require normal reasoning but have a unique nature that necessitates human intervention.
AI Customer Service Limitations
As much as AI is beneficial, it can also have shortcomings. In other words, when conversations are too complex or require emotional intelligence, AI can be insufficient. For example, consider a customer who is angry about an overdue delivery. In these circumstances, the person will most likely appreciate an understanding of an individual’s effort instead of an automated system’s reply.
Certainly, AI is improving in contextual analysis. However, it is still very limited in quite intricate and emotional contexts, elements that need a person’s intervention.
Furthermore, some customers cannot interact with the AI system and resolve complex concerns, which can be annoying. These drawbacks show the importance of having human agents for delicate and complicated issues. However, AI is always being improved to fix some of the problems that are encountered now.
Best of Both Worlds: AI and Human Collaboration
When you can have it all, why settle for AI or humans? A hybrid model is increasingly becoming the best practice in smart customer service.
Here’s why: AI takes care of the mundane and the repetitive—responding to customer inquiries such as “What is my order status?” “Where is my package?” and “How can I update my account information?”—while human agents take care of more complex or emotional interactions that require a human touch.
Now, AI is considered useful only for guiding customers through rudimentary processes. Human agents only come in for sophisticated, nuanced issues. This model is cost-effective because few resources are consumed, yet it appreciates the customers’ needs. It is the best way to understand the use of technology and customer service in business while incorporating humane factors.
How Soft Tech Cube Can Help You
Implementing AI in customer service is not aimed at making human interactions a thing of the past. Instead, the target is the opposite: to enhance human interactions in a way that guarantees clients are always responded to promptly and with relevant and appropriate replies as per the situation. Once again, it is not a question of which is better, artificial intelligence or human intelligence; the two can coexist very well.
As both customer support and AI continue to advance, the importance of AI as part of customer service cannot be overemphasized. However, you do not need to be proficient in predicting the future of AI to enjoy its benefits; you have a Soft Tech Cube. We are a leading IT solutions and services provider offering strong soft tech solutions, including AI automation.
Our company incorporates cutting-edge technology, such as Natural Language Processing services, when developing AI to automate customer support service. Hence, leverage our soft tech solutions, such as AI Automation, and efficiently handle your customer inquiries on time.
You can also engage our automation engineers on extra integrations like ERP support or other product-related issues. Further, If you have additional queries, kindly reach out to us. Our professionals are always ready to help.
Closing Note
The automation of customer service with Artificial Intelligence is surprisingly fast, effective, and personalized, making it a must-have resource for all enterprises. On the other hand, it lacks human warmth and empathy, but its capacity to expand and streamline services and enhance operations makes it a great asset.
Using the powers of AI and the capability of human agents, such as their emotional intelligence and flexibility, forms a healthy balance in customer service that is adequate and efficient in getting clients.
It may not be possible for customer service representatives to be entirely replaced by machines in the near future, but they are certainly elevating anticipations.
Frequently Asked Questions (FAQs)
What is the advantage of AI customer service?
The advantages of AI in customer service include:
- Speed and 24/7 Availability
- Cost-efficiency and Scalability
- Consistency and Accuracy
- Data-driven Personalization
- Seamless Customer service with Omni channel
- Less Workload On Customer Service Agents
How did role-playing with customers fuel innovation?
Among the various advantages that role-playing presents to your team, these can be pointed out:
- It encourages the creative and imaginative faculty to think and come up with new ideas and concepts,
- It develops an understanding and empathy towards customers or other stakeholder,
- It promotes teamwork and cohesion among members of the team,
- Allows for safe evaluation of assumptions and hypotheses
What are the benefits of AI as a service?
AIaaS, also known as AI as a Service, offers several benefits to businesses, including:
- Reduced costs by eliminating the need to build and maintain an in-house AI team
- Faster implementation of AI solutions
- Scalability to meet changing needs
- Access to advanced AI capabilities without extensive technical expertise
- Improved customer experiences through automated processes
- The ability to experiment with AI without significant upfront investment
If your company is also looking for AI customer service, choose Soft Tech Cube. They offer cutting-edge soft tech solutions, including AI automation with cooperative tech support.
What are the major distinctions between human intelligence and AI in handling customer support?
Regarding customer support, human intelligence and AI have different strengths and weaknesses. Human support can handle complex issues, provide empathetic interaction, and build trust and loyalty. AI can provide quick answers to routine queries, handle high volumes of requests, operate 24/7, and vice versa.
What consumers prefer AI responses vs human responses?
Most consumer surveys indicate that many still prefer a human to respond to them than an artificial intelligence, particularly in feedback systems. Humans have more understanding, empathy, and capability to solve intricate issues, whereas AI is more useful in quick, less demanding tasks.
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