11.4.2023

How AI Humanizes Customer Experiences

Over the last decade, the importance of the customer experience in business strategy has become increasingly recognized by brands the world over. In fact, it’s almost universally acknowledged that the customer experience is now critical to the perpetual growth of every kind of business.

Marc Funk

Founder & Managing Director

Customer Experience

The rapid rise in the value of customer experience can be attributed to numerous factors. Customers have increasingly high expectations from their brand interactions, and are more willing than ever to pay a premium for superior experiences. Their loyalty to a brand increases significantly when they have a positive experience, and they often become brand advocates, recommending products to their networks. This is largely due to the brand and its offerings being genuinely beneficial, delightful, and in tune with their needs.

For businesses, prioritizing the customer experience – and in particular, personalization – has become paramount to success. In the current climate, customers are frequently overwhelmed by the array of products and companies to choose from. In a stark change from the past, users are no longer restricted to one organization to meet their needs but can pick from literally thousands of producers and brands. For businesses, this means that they need to stand out from their competitors, and an enriching customer experience is a guaranteed way of not only differentiating from market competitors but also ensuring loyal, returning, and frequently evangelizing customers.

The role of AI in the customer experience has evolved rapidly in the last few years. Through the collection and analysis of customer information, AI has now moved from getting a user's name right in an email or publishing tailored advertisements on a landing page to being responsible for a completely personalized and integrated omnichannel customer experience. For companies that recognize that personalization is where their competitive advantage lies, an AI-driven approach is increasingly forming the foundation of their corporate strategies.

AI capabilities enable a more intimate understanding of your customers' journey with your brand. They provide invaluable data for an in-depth view of each user, enabling real-time decision-making and more. Let's dive into some of these aspects.

A 360° View of the User

As we have seen, having a deep understanding of what drives your customers – their challenges, desires, motivations, and goals – is crucial if you want to differentiate from your competitors and build strong relationships with your customers that see them returning to your solution time and time again.

AI is able to collect and analyze large amounts of user data that reveal exactly this kind of detailed information. Using technology such as NLP (Natural Language Processing), companies can now know in detail their users' needs, behaviors, preferences, and desires and use this data to directly meet their expectations and assist them in reaching their goals, significantly enhancing the customer's overall experience of the brand.

Visualization of what the 360 Degree of the user looks like

Examples of AI-driven solutions include providing highly targeted recommendations of products or services that match the user's needs. Or informing a customer service team of the customer's specific stage in the customer journey, enabling them to better assist that customer in making a buying decision.

Automation of Processes

Through the automation of business processes, AI can significantly improve the customer experience. When automated with AI, repetitive processes are simplified and sped up, significantly reducing the effort and time required for customers to complete tasks and reach their goals. In addition, thanks to the collation and analysis of user data in real-time, additional features, events, special offers, and new products can be introduced to the user that they are uniquely interested in. When recommended items are aligned with a user's interests and goals, their overall impression of a brand is boosted, which in turn increases their chances of trying out new products. This is because, thanks to the accuracy of the data and the insights drawn from it, these recommendations don't feel automated to the user but instead feel as though they have been uniquely selected for the individual. It ultimately builds trust and makes the user feel seen and heard.

Finally, when customer relationship management (CRM) processes are automated thanks to AI, customer success team members have infinitely more time to focus on improving the customer experience and giving users one-on-one attention.

Seamless and Streamlined Purchasing Journey

A common place to lose a potential customer is at the checkout (also known as "cart abandonment"). If the process is too slow, confusing, or complicated, a user is likely to give up and go elsewhere. AI technology can understand what hinders a user at the checkout and streamline the process.

By making the purchasing process more efficient and usable, AI ensures that users complete their desired purchases in an effortless and timely fashion, enhancing their experience with the brand and encouraging repeat business.

Text and Voice Interaction

While interacting with digital platforms, biometric technology and virtual assistants, both powered by AI, are enabling companies to read and analyze users' emotions and intentions in more detail than ever before. This enhances and humanizes the customer experience as, by enabling companies to get to know their users more profoundly, they can offer them rewards, targeted features, or offers that match each user's desires and moods.

Customer service chatbots are currently the most common usage of AI technology for companies, as customer trust in these applications continues to increase. However, it is important to acknowledge that chatbots have certain technical limitations compared to actual virtual assistants. Chatbots, while capable of automating tasks and providing basic assistance, lack the same level of sophistication and nuanced understanding, and struggle to grasp complex or ambiguous inquiries and may not possess the ability to empathize or adapt their responses based on subtle emotional cues.

A visual representation of the complexity of virtual assistants vs. regular chatbots

For businesses aiming to provide the most advanced and human-like response to users, virtual assistants truly offer the future. Virtual assistants, equipped with advanced natural language processing and deep learning capabilities, can comprehend user intent, emotions, and nuances in conversations. Their ability to interpret context, deliver more personalized and tailored responses, and exhibit a higher degree of emotional intelligence sets them apart from traditional chatbots.

Furthermore, virtual assistants can seamlessly integrate with other technologies, such as biometric sensors, enabling them to gather real-time emotional and physiological data. This comprehensive understanding of users allows virtual assistants to deliver highly customized experiences, anticipating and meeting individual needs more effectively.

Real-Time Decision-Making

Real-time decision-making is the ability of AI to provide quick and efficient decision support. It uses the most relevant data sets and decision-making models to manage, analyze, and report on business operations. An example of the data this technology uses could be the data from a real-time customer interaction with a company website.

Real-time decision-making is vital in delivering a comprehensive and competitive customer experience. Leveraging existing customer data, real-time decision-making technologies combine this information with contextual details about the current interaction, previous engagements with the brand, and the customer's exact journey stage. This confluence of data empowers the experience management team of the company to render solutions that align with the customer's unique desires and needs at the moment they become relevant. By implementing a real-time decision-making solution across all customer touchpoints with the brand, users can receive immediate responses in their preferred channel or format.

Real-time decision-making provides myriad benefits for brands seeking to humanize their customer experience. Leveraging this approach enhances the quality of data collected, facilitating decisions grounded in the most accurate information currently available. Simultaneously, customers are more likely to foster an emotional bond with a brand they perceive as actively listening and responding to their needs in real-time.

For businesses, this AI-driven technology offers real-time insights into how users interact with their brands. Precise understanding of user behavior can bolster revenue, as products can be personalized or tailored to accommodate evolving user preferences.

Targeted Marketing Opportunities

AI technologies are becoming an increasingly valuable tool for comprehending and shaping customer behavior. The “Using AI Predicted Personality to Enhance Advertising Effectiveness” study from researchers at Deakin University in 2021 found that when marketing messages were written with specific personality types in mind, both click-through and conversion rates were higher than when this wasn't the case, with significantly more compelling marketing campaigns produced overall as a result. With AI supporting the identification and profiling of different types or groups of customers, a company is in a much stronger position to create campaigns that uniquely entice and inspire them.

Reflecting on the Importance of CX

AI technology is revolutionizing the customer experience, creating digital experiences closer than ever to their real-world equivalents. It does this by providing a more holistic view of the user, automating processes, streamlining the customer journey, responding directly to users, enabling decision-making in real-time, and enabling targeted marketing opportunities, with more advances being made in the field every day.

Due to the increasingly high value placed on digital experiences by users themselves, this distinctly more human approach puts the companies that engage with AI technology at a significant advantage over their competitors, enabling them to attract and retain more customers than ever before.


Want to Boost Your Customer Experience?

At Frontnow, we can provide customized solutions to enhance your customer journey. Get in touch with us to learn how we can revolutionize your customer interactions and elevate your brand.

The rapid rise in the value of customer experience can be attributed to numerous factors. Customers have increasingly high expectations from their brand interactions, and are more willing than ever to pay a premium for superior experiences. Their loyalty to a brand increases significantly when they have a positive experience, and they often become brand advocates, recommending products to their networks. This is largely due to the brand and its offerings being genuinely beneficial, delightful, and in tune with their needs.

For businesses, prioritizing the customer experience – and in particular, personalization – has become paramount to success. In the current climate, customers are frequently overwhelmed by the array of products and companies to choose from. In a stark change from the past, users are no longer restricted to one organization to meet their needs but can pick from literally thousands of producers and brands. For businesses, this means that they need to stand out from their competitors, and an enriching customer experience is a guaranteed way of not only differentiating from market competitors but also ensuring loyal, returning, and frequently evangelizing customers.

The role of AI in the customer experience has evolved rapidly in the last few years. Through the collection and analysis of customer information, AI has now moved from getting a user's name right in an email or publishing tailored advertisements on a landing page to being responsible for a completely personalized and integrated omnichannel customer experience. For companies that recognize that personalization is where their competitive advantage lies, an AI-driven approach is increasingly forming the foundation of their corporate strategies.

AI capabilities enable a more intimate understanding of your customers' journey with your brand. They provide invaluable data for an in-depth view of each user, enabling real-time decision-making and more. Let's dive into some of these aspects.

A 360° View of the User

As we have seen, having a deep understanding of what drives your customers – their challenges, desires, motivations, and goals – is crucial if you want to differentiate from your competitors and build strong relationships with your customers that see them returning to your solution time and time again.

AI is able to collect and analyze large amounts of user data that reveal exactly this kind of detailed information. Using technology such as NLP (Natural Language Processing), companies can now know in detail their users' needs, behaviors, preferences, and desires and use this data to directly meet their expectations and assist them in reaching their goals, significantly enhancing the customer's overall experience of the brand.

Visualization of what the 360 Degree of the user looks like

Examples of AI-driven solutions include providing highly targeted recommendations of products or services that match the user's needs. Or informing a customer service team of the customer's specific stage in the customer journey, enabling them to better assist that customer in making a buying decision.

Automation of Processes

Through the automation of business processes, AI can significantly improve the customer experience. When automated with AI, repetitive processes are simplified and sped up, significantly reducing the effort and time required for customers to complete tasks and reach their goals. In addition, thanks to the collation and analysis of user data in real-time, additional features, events, special offers, and new products can be introduced to the user that they are uniquely interested in. When recommended items are aligned with a user's interests and goals, their overall impression of a brand is boosted, which in turn increases their chances of trying out new products. This is because, thanks to the accuracy of the data and the insights drawn from it, these recommendations don't feel automated to the user but instead feel as though they have been uniquely selected for the individual. It ultimately builds trust and makes the user feel seen and heard.

Finally, when customer relationship management (CRM) processes are automated thanks to AI, customer success team members have infinitely more time to focus on improving the customer experience and giving users one-on-one attention.

Seamless and Streamlined Purchasing Journey

A common place to lose a potential customer is at the checkout (also known as "cart abandonment"). If the process is too slow, confusing, or complicated, a user is likely to give up and go elsewhere. AI technology can understand what hinders a user at the checkout and streamline the process.

By making the purchasing process more efficient and usable, AI ensures that users complete their desired purchases in an effortless and timely fashion, enhancing their experience with the brand and encouraging repeat business.

Text and Voice Interaction

While interacting with digital platforms, biometric technology and virtual assistants, both powered by AI, are enabling companies to read and analyze users' emotions and intentions in more detail than ever before. This enhances and humanizes the customer experience as, by enabling companies to get to know their users more profoundly, they can offer them rewards, targeted features, or offers that match each user's desires and moods.

Customer service chatbots are currently the most common usage of AI technology for companies, as customer trust in these applications continues to increase. However, it is important to acknowledge that chatbots have certain technical limitations compared to actual virtual assistants. Chatbots, while capable of automating tasks and providing basic assistance, lack the same level of sophistication and nuanced understanding, and struggle to grasp complex or ambiguous inquiries and may not possess the ability to empathize or adapt their responses based on subtle emotional cues.

A visual representation of the complexity of virtual assistants vs. regular chatbots

For businesses aiming to provide the most advanced and human-like response to users, virtual assistants truly offer the future. Virtual assistants, equipped with advanced natural language processing and deep learning capabilities, can comprehend user intent, emotions, and nuances in conversations. Their ability to interpret context, deliver more personalized and tailored responses, and exhibit a higher degree of emotional intelligence sets them apart from traditional chatbots.

Furthermore, virtual assistants can seamlessly integrate with other technologies, such as biometric sensors, enabling them to gather real-time emotional and physiological data. This comprehensive understanding of users allows virtual assistants to deliver highly customized experiences, anticipating and meeting individual needs more effectively.

Real-Time Decision-Making

Real-time decision-making is the ability of AI to provide quick and efficient decision support. It uses the most relevant data sets and decision-making models to manage, analyze, and report on business operations. An example of the data this technology uses could be the data from a real-time customer interaction with a company website.

Real-time decision-making is vital in delivering a comprehensive and competitive customer experience. Leveraging existing customer data, real-time decision-making technologies combine this information with contextual details about the current interaction, previous engagements with the brand, and the customer's exact journey stage. This confluence of data empowers the experience management team of the company to render solutions that align with the customer's unique desires and needs at the moment they become relevant. By implementing a real-time decision-making solution across all customer touchpoints with the brand, users can receive immediate responses in their preferred channel or format.

Real-time decision-making provides myriad benefits for brands seeking to humanize their customer experience. Leveraging this approach enhances the quality of data collected, facilitating decisions grounded in the most accurate information currently available. Simultaneously, customers are more likely to foster an emotional bond with a brand they perceive as actively listening and responding to their needs in real-time.

For businesses, this AI-driven technology offers real-time insights into how users interact with their brands. Precise understanding of user behavior can bolster revenue, as products can be personalized or tailored to accommodate evolving user preferences.

Targeted Marketing Opportunities

AI technologies are becoming an increasingly valuable tool for comprehending and shaping customer behavior. The “Using AI Predicted Personality to Enhance Advertising Effectiveness” study from researchers at Deakin University in 2021 found that when marketing messages were written with specific personality types in mind, both click-through and conversion rates were higher than when this wasn't the case, with significantly more compelling marketing campaigns produced overall as a result. With AI supporting the identification and profiling of different types or groups of customers, a company is in a much stronger position to create campaigns that uniquely entice and inspire them.

Reflecting on the Importance of CX

AI technology is revolutionizing the customer experience, creating digital experiences closer than ever to their real-world equivalents. It does this by providing a more holistic view of the user, automating processes, streamlining the customer journey, responding directly to users, enabling decision-making in real-time, and enabling targeted marketing opportunities, with more advances being made in the field every day.

Due to the increasingly high value placed on digital experiences by users themselves, this distinctly more human approach puts the companies that engage with AI technology at a significant advantage over their competitors, enabling them to attract and retain more customers than ever before.


Want to Boost Your Customer Experience?

At Frontnow, we can provide customized solutions to enhance your customer journey. Get in touch with us to learn how we can revolutionize your customer interactions and elevate your brand.

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