Customer service can improve customer retention and loyalty, brand reputation, and even employee satisfaction for every business. It is essential for handling crises, sustaining growth, and increasing revenue.
AI-driven automation is one of the most recent ways to improve customer service. AI and automation use chatbots and virtual assistants to handle customer queries and tickets, provide analytics and sentiment analysis, and enhance CRM systems.
Huge companies like Amazon use AI and virtual assistants like Alexa for customer service. Google, Apple, Microsoft, Bank of America, and Walmart also use AI and automation to streamline their customer service.
If you're still unsure, here's how it can help.
1. Always-on support
Automated customer service's first and most significant advantage is that it consistently provides the same service at any time of the day.
Unlike human agents, who need to take breaks and sleep, an AI-driven customer service solution like a callbot or a chatbot is active 24/7.
For specific applications, AI and automation can ensure that customer service is available anytime, particularly useful for queries and issues outside regular business hours.
This increased availability is about more than just about convenience, however. 24/7 availability will reduce customer wait times and help spread incoming call volume throughout the day, reducing the risk of overflow.
2. Reduced operational costs
Automated customer service and AI solutions are by no means free, but they can reduce operational costs for customer service departments and call centers.
The amount that could be saved will vary wildly depending on how automation is used and the industry in which it is used.
For example, HSBC reported around a 40% reduction in customer service costs after implementing AI-driven chatbots and other automation tools into the bank's customer service.
On the other hand, travel companies have reported as much as a 70% reduction in customer service costs by using AI to manage bookings, cancellations, and other customer service inquiries.
Automated customer service can reduce costs by 30%.
3. Enhanced efficiency and speed
AI-driven customer service solutions and other kinds of automation can do certain things far quicker than human agents.
While they can't do everything more quickly than human agents, they can reduce average handling time (AHT) by around 50% for the tasks they can do. They can also greatly reduce after-call work (ACW).
On a query-by-query basis, AI-driven chatbots deal with queries around 18% quicker than human agents, according to Glassix. This is because they can handle several interactions simultaneously and access knowledge basis very quickly and efficiently.
4. Improved customer satisfaction and loyalty
Most consumers still prefer chatting with humans regarding customer service, but almost half (46%) are comfortable with human agents using AI.
40% of consumers are more interested in getting the help they need and don't care whether they deal with a human agent or an AI.
This is especially true given that AI solutions almost completely eradicate wait times. Automated customer service can offer accurate and reliable solutions to most customer issues and redirect calls and queries to the right human agent when needed.
Better customer service and personalization lead to higher customer satisfaction, and AI can be part of the solution that keeps customers happy and loyal.
Using AI and automation to improve your customer service in these ways will ultimately improve overall customer satisfaction and loyalty.
5. Scalability
We've already mentioned how AI and automation are typically faster than human agents, but what makes them fast is that they are also incredibly powerful and scalable.
AI can scale with the demands put on your customer service solutions, and unlike hiring new human customer service agents, you don't need to train AI solutions from scratch when scaling up.
Typically, AI and automated customer service solutions can be scaled up using cloud-based infrastructure, further integration with existing CRM systems, and advanced machine learning and AI models.
There are also ways to scale customer service automation by increasing the collaboration between AI and human agents. For instance, AI and automation can handle more routine inquiries, allowing human agents to focus on complex issues requiring a personal touch.
Imagine you're expecting high call volumes. You've just launched a new product, run a TV advertising campaign, and your call center is likely to receive a sudden spike in call volume.
You could temporarily hire human agents. This would involve training everybody, integrating them into the appropriate teams, and hoping they could offer the same customer service as your experienced agents.
You could also outsource some of your call volume to a third party to handle the extra calls. Again, you can't guarantee that they'll offer the same quality or type of customer service as your usual human agents and there's still some onboarding and training to be done.
Or you could simply scale up your AI-driven customer service. If done right, your customers will enjoy the same quality of customer service. At the same time, most queries and issues can be quickly and effectively dealt with by scaling up the current automation you already have in place.
6. Consistent brand voice
AI can be incredibly consistent and accurate in almost every way. With automated customer service, you can ensure that your branding and brand voice are consistent across every channel.
Companies can use AI's Natural Language Processing (NLP) and Tone Analysis to analyze large amounts of content and communications.
Companies like Coca-Cola use AI to analyze the tone of their social media posts and customer responses to ensure that all their branding and online interactions are consistent with the brand's image.
The AI chatbots used by Sephora and H&M have specific language guidelines reflecting the brands' voices.
7. Minimized human error
AI and automation can indeed make mistakes, but it pays to have AI-driven solutions when it comes to consistency.
AI and automation will greatly outperform humans in terms of consistency for certain repetitive tasks. While tired human agents are at risk of making these mistakes, AI will never tire or make these kinds of slip-ups.
Responses, particularly those reliant on information from a knowledge base, can be provided by AI-driven solutions accurately every time.
8. Improved agent satisfaction
Automated customer service is for more than just customers. AI and automation provide numerous benefits to human customer service agents.
We've already alluded to the power of hybrid solutions whereby human agents work with AI solutions. Customers are happy to allow human agents to do their jobs better with AI, and so are the customer service agents themselves.
AI-powered customer service solutions are almost always used to reduce human agents' workloads by automating routine tasks.
Most human customer service agents are happy to see the dull and monotonous duties allocated to AI and other automation tools. Customer service agents have more time to focus on what they do best: helping customers.
Since 64% of customers prefer to avoid using AI for customer service and 60% are worried that this would make it harder to reach a human being, it's a good idea to ensure human customer service agents are there to deal with customers who still prefer the human touch.
9. Omnichannel capabilities
While integrating AI and automated systems into customer service can bring many benefits, it's essential to be aware of potential challenges. These may include the need for staff training, ensuring data privacy and security, and managing customer expectations during the transition.
The most common example is likely the AI-powered chatbot that uses Natural Language Processing (NLP) to understand requests and customer inquiries.
These are particularly useful in customer service for offering solutions, answering FAQs, or guiding customers through processes. For example, the travel industry and KLM Royal Dutch Airlines have used AI chatbots to quickly and effectively provide customers with flight information, baggage status, and other real-time updates.
Companies are using AI in different ways for contact centers, email, and CRM. For example, Bank of America's AI-driven virtual assistant, Erica, handles customer queries via email, offering answers to questions, payment reminders, and other banking advice.
AI can be used in social media to engage with customers. The coffee chain Starbucks uses AI for targeted promotions and provides customers with relevant content, driving sales. Companies also use chatbots to manage customer service requests on social media.
10. Alignment with modern customer preferences through instant responses and self-service
Last but certainly not least, AI and automation provide customized customer service solutions. These allow customers to quickly get the answers they want through the channels they want.
Some customers don't want to make a phone call to find out something they can find out themselves, and AI is particularly powerful when used to offer solutions and answer FAQs.