AI enhances customer experience by behaving like humans

Using sentiment detection and observability to empower virtual agents for the better

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The race to adopt AI in customer service is on – A recent survey found that 56% of businesses are pursuing AI to improve and perfect business ops and 63% of retail organizations are already leveraging AI for customer service. It’s clear we’re past thinking of AI as a futuristic tool in the consumer world. However, many companies are finding that simply deploying AI isn’t providing the return they initially expected.

This introduces a troubling trend - the disconnect between hefty AI investments and tangible returns, with a staggering 40% allocating budgets to AI without a strategic plan, limiting its capabilities and effectiveness. Many companies see AI as aproductivitybooster and primarily focus on task and response automation. Great fortime management, this strategy misses a crucial aspect: AI’s ability to amplify direct human capabilities like sentiment detection and analysis and employ a holistic observation of these interactions.

Traditionally, gauging customer sentiment was subjective and relied on interpreting limited data points from customers. Now, AI offers a comprehensive bird’s eye view of sentiment across all customer touchpoints. Imagine being able to analyze every signal-laden email,social mediapost, and chat interaction—not just for keywords but for the emotions, intentions, and frustrations bubbling beneath the surface. This observability is the valuable power of AI sentiment detection, and it’s a game-changer for both thecustomer experience (CX).

Chief Marketing Officer at SupportLogic.

From lagging to leading: AI in customer support

Customer support has traditionally struggled to meet customer needs. I’m sure many of us have experienced the irritation of repeatedly asking a phone system for a “representative,” hoping to connect with a real person. Then, post-frustration, businesses typically had to rely on reactive, after-the-fact satisfaction surveys that left a dissatisfied customer in their wake. This approach is particularly damaging in subscription-based software models where delays can lead to lost business. Re-strategizing their approaches, support centers are discovering how AI can transform their customer support into a proactive strategy for success. By analyzing customer interactions, AI can predict problems before they arise, allowing a support engineer time to intervene and prevent an escalation before it happens.

This isn’t to discount the massive benefits of AI for automation. AI virtual assistants can handle routine tasks, freeing up human experts for complex issues. Likewise, AI case routing streamlines the process by matching customers with the most qualified agent, leading to faster resolutions and happier customers. This proactive approach across use cases is essential for subscription-based businesses to scale - helping them handle complex issues while keeping users engaged and revenue flowing.

AI assists in complex case management by offering managers real-time guidance and tailored response suggestions, even for difficult situations. Additionally, AI-powered models can bridge communication gaps through language translation and integrate self-service options with agent-assisted support for a multi-channel customer experience. This frees up agent time by automating mundane tasks like data entry, allowing them to focus their time on interactions and troubleshooting.

The AI implementation trap: Beyond automation

Solely focusing on automation can be a trap for businesses, drawing them into a narrow focus on tasks likeAI chatbotsand basic troubleshooting. I believe AI’s true potential lies in its capacity for observability. Rather than simply executing predefined tasks, AI must dig deep into data, uncovering trends and patterns within customer interactions that might otherwise remain hidden.

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One of AI’s key strengths is its ability to gather insights from many touchpoints. Beyond analyzing open support tickets, AI can sift through previous cases, agent conversations, and reviews, providing a comprehensive overview of individual customer journeys and overall CX. By assimilating data from diverse channels, businesses can gain a nuanced understanding of customer behavior and preferences and make impactful decisions based on these insights.

From buzzword to bottom line

While AI revolutionizes the CX landscape, the human touch remains irreplaceable. Picture AI as a powerful assistant, equipping agents with real-time customer insights, prioritizing complex issues, suggesting next steps, and automating routine tasks. This frees up human agents to focus on what they do best: building solid relationships and tackling intricate problems, ensuring a future of CX that’s both efficient and empathetic.

Here are more ways AI sentiment analysis translates into measurable benefits:

Proactive Problem Solving: AI can anticipate customers' desires and expectations by spotting patterns in sentiment analysis. For instance, imagine identifying a surge in customer frustration with a new product feature before it snowballs into a PR nightmare. AI proactively flags negative sentiment, allowing companies to address issues swiftly and efficiently, preemptively resolve the problem, and foster goodwill.

Personalized Service: Personalization offers tangible benefits to companies: it can slash customer acquisition costs by up to 50%, boost revenues by 15%, and enhance marketing ROI by 10-30%. Personalized approaches have also yielded superior customer outcomes. Through sentiment analysis, a customer expressing frustration on social media can be flagged for a personalized, empathetic response from a human agent. This shows the customer you care, and it fosters loyalty.

Prioritized Customer Support: AI can help prioritize customer support tickets by identifying common pain points. This groups common issues seen across customers, showing product and engineering where their fixes can be most impactful. Frustrated customers with complex issues get the attention they deserve, reducing solution times and boosting satisfaction.

Product Development Insights: Sentiment analysis can reveal hidden gems - features customers love and areas for improvement. This data fuels better product development decisions, opportunities for cross-selling and expansion, and moments that can be used for testimonials.

The takeaway: Measurable CX benefits from AI sentiment detection

AI sentiment detection offers significant, measurable benefits for CX. By integrating AI sentiment detection, businesses can bridge the gap between investment and ROI, creating a win-win situation where companies and customers benefit from a more human-centered approach to CX.

While AI automation is undoubtedly valuable, its true power lies in its role as a facilitator of insight and foresight. By leveraging AI’s capabilities to gather specific comprehensive data, identify improvement opportunities, and proactively predict customer needs, businesses can expand beyond automation and truly elevate the customer experience to new heights.

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This article was produced as part of TechRadarPro’s Expert Insights channel where we feature the best and brightest minds in the technology industry today. The views expressed here are those of the author and are not necessarily those of TechRadarPro or Future plc. If you are interested in contributing find out more here:https://www.techradar.com/news/submit-your-story-to-techradar-pro

Joe Andrews is Chief Marketing Officer at SupportLogic.

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