This blog discusses the advantages of using AI chatbots in customer service, including 24/7 availability, personalization, cost-effectiveness, and multilingual support.
Customer service involves providing support and assistance to customers before, during, and after purchase through various channels such as phone, email, and live chat. It aims to ensure customer satisfaction by addressing inquiries, concerns, and complaints in a timely and helpful manner and can play a critical role in building customer loyalty and driving repeat business.
Hence it is wise for customer service representatives to make use of AI chatbots to ease their load for routine tasks or answer frequently asked questions (FAQs), so they can focus on more managerial tasks, achieving a balance in human-assisted automation.
Benefits of using AI to support customer services With the increasing popularity of digital channels for customer communication, it has become more important than ever to provide prompt and effective customer support. By utilising AI chatbots as one of your customer service tools, your customer support team can streamline customer support processes, improve response times, and reduce costs while providing an enhanced customer experience.
Listed below are a few advantages of utilising AI chatbots and how they can benefit businesses of all sizes.
24/7 availability AI chatbots enable businesses to offer customer service around the clock as they do not need breaks, thus allowing customers to receive assistance at any time, especially outside of regular business hours. When AI chatbots can respond to customer inquiries and requests instantly, this reduces wait times and minimise customer frustration, leading to improved customer satisfaction and loyalty.
Personalisation Customer service chatbots can utilise customer data and preferences to provide personalised recommendations and solutions
For example, H&M has incorporated an AI chatbot that can provide outfit suggestions by analysing and identifying your gender and style of clothing and showing outfits that fit your preferences.
Cost-effectiveness and improved efficiency Using AI chatbots for customer service can be more cost-effective for businesses , as they can handle a high volume of inquiries and requests simultaneously, without requiring additional staff. This can help reduce costs and improve the efficiency of the customer service department.
Additionally, AI chatbots can handle routine tasks and inquiries, freeing up human customer service representatives for more complex issues. This can, in turn, improve the efficiency of the customer service teams, allowing businesses to provide better support to customers in a more timely and effective manner.
Multilingual support AI powered chatbot can be programmed to provide customer service in multiple languages, making it easier for businesses to expand their customer base globally. Under circumstances where non-native speakers wish to communicate in the business's primary language, AI chatbots are of great help in assisting them to solve issues, further earning their trust.
The Indian conversational AI platform enterprise, Haptik, has addressed the need for chatbots to have multilingual capabilities in case there are users who provide their queries in a different language other than English, making it accessible to those in the country who are not well-versed in the English language and providing a better and inclusive customer experience for all.
Anticipate upcoming trends AI customer service chatbots can significantly assist a company in anticipating trends by leveraging its data-driven capabilities and real-time interactions. By analysing a continuous stream of customer questions, feedback, and interactions, the chatbot can identify emerging patterns and shifts in customer preferences or concerns.
This early recognition of trends allows the company to proactively adjust its strategies, products, and services to align with evolving customer needs. Additionally, the chatbot can aggregate and analyse data from various sources, such as social media mentions and product reviews, to gain a holistic view of customer sentiment and opinions.
This insight empowers the company to make informed decisions and adapt to changing market dynamics more swiftly. With its ability to process large volumes of data and rapidly detect shifts in customer behaviour, a customer service chatbot acts as a valuable tool for businesses to stay ahead of the curve and remain responsive to emerging trends.
Improve Customer Retention A customer service chatbot plays a pivotal role in boosting customer retention
The chatbot can also offer proactive support, reaching out to customers with relevant information or assistance based on their interactions and history. This personalised approach strengthens customer engagement and loyalty.
Moreover, the chatbot can automate routine tasks such as order tracking, subscription renewals, and account updates, saving customers valuable time and effort. By consistently delivering efficient and effective customer service processes, the chatbot contributes to a positive impression of the company, making customers more likely to stay and continue their relationship.
Additionally, the chatbot's ability to gather and analyse data from interactions enables the company to identify pain points, recurring issues, and areas for improvement. This data-driven insight allows the company to make strategic adjustments that address customer concerns and enhance the overall customer journey, ultimately fostering long-term loyalty and higher retention rates.
Human vs. AI customer service Although AI chatbots have shown to be beneficial in many ways to brands, there are still those who prefer a more human approach to customer service. One such brand that prefers customer service agents over AI chatbots is Zappos, which is well known for having the best customer service in the business world.
Zappos believes in promoting personalised interaction with its customers through phone calls . Hence, it can be seen that AI chatbots still lack certain elements which can only be attained through human interaction. Among the more important elements which are lacking are as listed below:
Complex issues Human agents are highly skilled at addressing complex customer issues that demand critical thinking, sound judgment, and creative problem-solving abilities. They can meticulously analyse the situation, weigh multiple options, and determine the most suitable solution that meets the unique needs of each customer.
Unlike AI chatbots, human representatives can adeptly adapt to each customer's distinct preferences and requirements. They carefully listen to customers' concerns and provide personalised solutions that cater to their specific needs, which an AI chatbot may not be capable of delivering.
Meanwhile, AI chatbots still lack certain creative and critical thinking skills to be able to satisfy customer needs. For instance, while ChatGPT is being widely used nowadays, it is still flawed in terms of critical thinking skills and the possibility of providing misinformation .
Perception / Human Touch Some customers may prefer to interact with a human agent as they may perceive AI chatbots as impersonal or robotic . Human customer service representatives can provide a more human and relatable experience for customers, which can improve their overall perception of the business. PwC has conducted a study related to this issue and it has been determined that two-thirds of respondents have lost their human touch in terms of customer service , further showcasing the need for human interaction in customer service rather than relying on AI chatbots.
AI chatbots have started to revolutionise customer service by providing support in multiple areas. However, while AI chatbots may be efficient to an extent, they still lack a certain human touch which only a human customer service representative can provide.
Therefore, it is important for businesses to strike a balance between human and AI customer service to ensure they are providing the best possible experience for their customers. Ultimately, a combination of both human and AI customer service can help businesses generate more leads and revenue through better customer engagement.
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