Why retailer should invest in AI-driven customer support
Buyer satisfaction often hangs on the subtle art of customer support. Gone are the days when it was limited to nine-to-five hours. The modern-day consumers demand round-the-clock support. With AI-driven technologies, retailers can engage customers 24/7, offering tailored recommendations and excellent support.
In retail, one of the most common issues customers faces is slow and unhelpful customer service. They must either wait on hold for long periods or receive generic responses from outdated chatbots that don’t solve their problems. Poor support can quickly drive customers away.
In fact, PwC’s Future of Customer Experience Report shows that 43% of consumers would stop buying from a retailer after just one bad experience. The problem is clear: when customer service fails to meet expectations, retailers risk losing their most valuable asset, i.e., loyal customers who could give regular business.
That’s where AI-driven customer support comes in.
AI-driven customer support involves using advanced technologies such as machine learning (ML), natural language processing (NLP), and automation to deliver personalised, efficient, and scalable assistance. These AI agents analyse customer queries, understand context, and provide accurate responses in real-time.
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Why retailer should invest in AI-driven customer support
AI-powered customer support solutions offer retailers a clear path to improving their return on investment (ROI). By automating routine customer service tasks, retailers can cut down on staffing costs while providing instant, round-the-clock support. This reduces the need for large customer support teams (especially during busy times) and eliminates the need for costly overtime. The result is a significant reduction in operational costs, directly improving the bottom line.
Also, AI agents improve efficiency by handling multiple customer inquiries simultaneously; something human agents simply can’t do. With AI managing the repetitive tasks, human agents can focus on more complex issues that require their expertise. This leads to faster resolutions, fewer customer complaints, and ultimately, higher customer satisfaction – which directly impacts sales and customer loyalty.
Moreover, the ROI from AI-driven customer support goes beyond just cost savings. AI-driven customer support boosts sales by offering personalised recommendations and support, enhancing the overall shopping experience. When customers feel well taken care of, they are more likely to return and make additional purchases. This combination of cost savings and increased sales creates strong and measurable returns for retailers.
Understanding the technology behind AI-driven customer support
AI-driven customer support, primarily through conversational AI route, combines ML and NLP to make interactions with customers more natural and effective. ML allows AI to learn from past interactions and improve over time by recognising patterns in data, adapting to new information, and providing better responses. NLP helps the AI understand human language, including nuances like tone, context, and intent, enabling it to respond more accurately to customer queries.
Deep Learning (DL) takes this a step further by allowing the AI to process vast amounts of data and mimic how human understand and interpret language. Together, these technologies help create smarter, more proactive AI agent that can not only answer questions but anticipate customer needs.
AI-driven customer support applications
The applicability and use case of AI agent in retail is great. It’s more than simply a chatbot to answer general queries. Here are some interesting AI-driven customer support applications for retailers:
- Personalised responses: AI-powered smart shopping assistant can help retailers provide personalised experiences by analysing past customer interactions and purchase history. For example, they can suggest products based on what a customer has bought before or offer special discounts tailored to their preferences.
- Simplified Order Tracking: AI-driven customer support can provide instant updates on order status, shipment tracking, and delivery dates without the need for human intervention. This reduces customer anxiety and call volume for support teams. Salesforce reports that 70% of consumers expect real-time communication, and chatbots can ensure customers are always in the loop about their purchases.
- Reduced Cart Abandonment: AI agents can help reduce cart abandonment by engaging customers in real time as they’re browsing or about to leave a site. For instance, the AI smart shopping companion can remind customers of their abandoned items, offer discounts, or answer any last-minute questions to encourage a purchase.
AI Agents as Brand Ambassadors
AI agents are not just about providing support. They can also be a powerful way to build and reinforce your brand. Retailers can customise an AI agent’s tone and personality to match their brand’s voice to ensure a consistent experience for customers every time they interact with it. Whether a brand is friendly and casual or professional and formal, the AI agent can reflect that in its responses. This will help customers recognise and connect with their brand, building trust and loyalty.
Beyond just chatting, AI agents can also drive engagement by promoting loyalty programmes, special offers, and personalised content. For example, the AI agent can remind customers about reward points, offer discounts based on their preferences, or even suggest products that fit their style. Reaching out and keeping customers informed help create a more personalised shopping experience.
In-house vs off-the-shelf AI agents: Which option is better?
Building AI-powered customer support in-house can be technically challenging for retailers. It requires expertise in machine learning, natural language processing, and system integration, which can take a lot of time and resources to develop. Plus, ensuring data security and privacy compliance like GDPR adds another layer of complexity. Retailers would need to continuously maintain and update the system, which can be costly and require specialised knowledge.
Instead, using an off-the-shelf AI solution designed specifically for retail is a smarter choice. These ready-made solutions are built with the right tools and features for retail needs, saving time and development costs. They also come with built-in security and compliance measures, so retailers don’t have to worry about technical details. Choosing a specialised AI system allows retailers to get started right away and start seeing results without the hassle of building and maintaining a system from scratch.
Conclusion
The future of customer service is here, and it’s powered by AI. It’s not just about solving problems, but enhancing every interaction, creating memorable experiences, and building deeper connections with customers. Retailers who adopt AI agents, and do it smartly, will not just keep up with the competition, but lead the way.
The question is no longer whether to adopt AI-driven customer support, but how quickly you can make AI agents a part of your retail business.
If you want to fast-track your AI-driven customer support implementation and provide top-quality support to your customers, try Converso.ai today!
Converso.ai is designed to simplify and enhance customer interactions, providing retailers with faster, more personalised support. It expertly handles every conversation, delivering tailored experiences that drive real results. Let Converso handle the support, so you can focus on growing your business.