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How Conversational AI Has Improved Customer Retention?

Conversational AI

Business operations in the contact center vertical have transformed since conversational AI took the front seat. Last year, customer experience saw humongous upscaling with the integration of artificial intelligence in the form of AI chatbots.

As per a 2023 report, 45% of tech startups utilized conversational AI chatbots to address customer queries. It indicates how much businesses are inclined toward integrating this technology to ensure a seamless customer experience.

In 2024, customer experience remains the battlefield with AI chatbots as the armed combatants. Contact centers across the globe are deploying Conversational AI Chatbots to shield human agents from repetitive queries that can distract them from urgent tasks.

In this blog, you’ll learn how AI chatbots play a significant role in redressing trivial queries and augmenting customer retention rates.

Conversational AI Upgrades Customer Service

The advent of technology in the contact center industry has proved to be a boon for agents. It fixes different bottlenecks faced by agents & revamps customer service. Here’s how.

Refines Agent Efficiency & Productivity

Agent workload can be reduced by automating the workflow through AI chatbots. The conversational AI can effortlessly handle customer queries & eliminate repetitive tasks. It further helps contact center agents focus on high-priority tasks to ensure a superlative customer experience.

Proactive Recommendations to Customers

When AI chatbots are equipped with the right customer information, they can easily make personalized recommendations based on the customer’s preferences. Not only this, but conversational AI prevents customers from abandoning their carts by guiding them to the checkout process.

24/7 Assistance

AI chatbots simplify customer service by addressing customer queries 24/7. This means that customers can connect with a business at any time of the day to seek resolution, even if agents are offline. Offering 24/7 assistance to customers is a great way to refine customer experience.

💡 Also Read | Reshaping Customer Support and Marketing With Conversational AI

Refining CX With Conversational AI

Market trends predicted that by 2028, conversational AI is set to reach a whopping 29.8 billion USD. These figures rely on trends like frequent adoption & implementation of AI chatbots in businesses, personalized responses, and customer experience.

Since human restrictions do not restrain conversational AI, it can deliver amazing results. Below is how customer service teams use conversational AI to refine customer experience.

Improving AI Chatbots

Customer experience remains the foremost priority of brands like Amazon, Walmart, Apple, etc., Such brands are ready to invest in superior technology to offer the best customer experience. As per a survey report, 75% of Apple customers are delighted with their experience with the AI chatbots deployed.

As conversational AI continues to evolve, it delivers prompt responses and efficiently handles a frustrated customer, walks them through solutions, and provides personalized recommendations based on previous interactions. Though conversational AI cannot replace human agents, it can potentially improve automated interactions.

Personalized Support

2023 reports submitted by Forbes state that 87% of customers prefer shopping with brands that offer customized suggestions based on their shopping behavior. Conversational AI like chatbots is efficient in recalling previous customer interactions.

By analyzing those interactions, personalized recommendations can be made to the customers along with human-like responses.

Maximizing Operational Efficiency

Integration of conversational AI chatbots in customer service helps a business reduce its costs by 30%. The features below help a business reduce surplus costs & boost gross profits.

Refining CX With Conversational AI

💡 Also Read | Generative AI is Here: What Next for Contact Centers?

Conversational AI & Customer Retention: Real-Life Examples

Different verticals have been using conversational AI to automate different operations. Here’s a quick look at some real-life examples where AI chatbot integration has been beneficial.

Virtual Assistants

Siri (Apple), Google Assistant, and Amazon Alexa: These virtual assistants use natural language processing (NLP) to understand and respond to user queries. They can perform tasks such as setting reminders, answering questions, and controlling smart home devices through voice commands.

Customer Support

Chatbots on Websites: Many companies use chatbots on their websites to provide instant customer support. These chatbots can answer frequently asked questions, guide users through troubleshooting processes, and escalate complex issues to human agents when necessary.

E-commerce

Shopping Assistants: Some online retailers use chatbots to assist customers with product recommendations, order tracking, and general inquiries. These chatbots can analyze user preferences and behavior to suggest relevant products.

Banking

Virtual Financial Advisors: Conversational AI is employed in banking apps and websites to provide users with account information, help with transactions, and offer financial advice. Chatbots can also assist in detecting potential fraudulent activities.

Education

Language Learning Apps: Some language learning applications use conversational AI to simulate real conversations, providing users with interactive language practice. These apps often use speech recognition technology to evaluate users’ pronunciation.

Social Media

Automated Social Media Responses: Some businesses use chatbots to handle routine customer inquiries and interactions on social media platforms. These chatbots can respond to messages, comments, and provide information about products or services.

The Future of Conversational AI in Customer Retention

Conversational AI is a promising technology as the world progresses toward the future. It will aid businesses in fostering customer loyalty by predicting churn rates and offering a personalized customer experience.

Furthermore, the world can expect new ways of retaining customers by using conversational AI, which will propel it into a new era of customer experience and satisfaction.

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