When you have an exceptional customer service experience, what do you do? If you’re like me, you tell all your friends about it. And they tell their friends. Who go on and tell their friends…You get the picture. The same is true for your customers. They’ll share their experiences with your brand, whether good or bad.

Research shows that consumers reward good service with positive recommendations, greater loyalty, and more spending. Check out these stats:

• 68% of consumers will pay more for products and services from a brand that offers a good service experience
• 93% of customers will make repeat purchases with companies that offer excellent customer service
• Consumers who rate a company’s service as “good” are 38% more likely to recommend that company

See why delivering excellent customer service is so important? It doesn’t just affect your customer retention. It can make or break your future, determining your brand reputation and the extent of your competitive advantage.

So, how can you improve customer service? By adopting artificial intelligence customer service.

Why Retailers Are Adding Artificial Intelligence Customer Service

The future of retail customer service includes artificial intelligence. In fact, 63% of retail organizations use AI in customer service to improve customer interactions.

Why? Here are a few things you can do with artificial intelligence.

Analyze Your Data

The retail industry is no stranger to data (and lots of it). Customer experience data sets the course for memorable customer experiences. To get ahead of the competition, retailers need a way to collect, organize, and use their customer data. This is where AI shines.

With artificial intelligence, retailers can process vast amounts of data, identify patterns, and make accurate predictions. And they can do so at a scale that’s simply not possible for humans.

Boost Your Operational Efficiency

Operations are the lifeblood of a successful retail brand. AI helps retailers stay operationally agile. Customers want efficient and consistent service. They want to trust that products will remain in stock. And they want prompt delivery — 24/7.

AI helps retailers offer faster help and be more communicative with customers. Using automation, retailers can speed up behind-the-scenes processes. AI can even predict when items will go out of stock so you can prepare accordingly.

Add Personalization

Artificial intelligence offers unique opportunities to personalize customer service. Generative AI helps brands synthesize product descriptions, making products more enticing to consumers. It can also analyze data from purchase histories, behaviors, and preferences. Then, it generates personalized product recommendations and tailored messaging.

7 Tactics to Use Artificial Intelligence in Your Customer Service

You see, artificial intelligence customer service uniquely benefits the retail industry, but it’s been a struggle to adopt. So, let’s get a bit more specific about how to use AI to boost your CX.

Here are seven tactics to get you started.

1. Use AI-Powered Chatbots and IVAs for 24/7 Customer Support

AI chatbots provide customers with direct access to your brand. Bots help answer common inquiries and provide instant support. You can also add chatbots to your SMS and live chat channels and integrate IVAs in your IVR. These tools can answer FAQs, track orders, and resolve issues.

How It Boosts CX

• Bots and IVAs can manage a significant volume of inquiries. This decreases the burden on human agents, reducing wait times and increasing FCR.
• With fewer tickets, agents can focus on more complex and nuanced issues. This frees agents to spend more time with customers who need a personal touch. This improves the quality of service your customers receive and relieves agent stress.

Add virtual assistants to improve your service today. Learn more about Go.AI.

2. Offer Personalized Recommendations

AI analyzes customer data to provide personalized recommendations, creating a tailored shopping experience. Use AI to track customer preferences and shopping behavior. With this data, AI can suggest products that align with individual tastes and needs.

How It Boosts CX

• Personalized recommendations help customers discover new products. AI can suggest items based on customers’ browsing history, past purchases, and preferences. This ensures they’re exposed to relevant products, making their shopping experience more enjoyable and efficient.
• Personalized shopping experiences help customers feel valued and understood. Greater personalization increases customer loyalty and encourages repeat purchases.

3. Implement AI-Driven Inventory Management

AI helps retailers predict demand and manage inventory more efficiently. It can analyze sales data, market trends, and other factors to forecast future demand and optimize inventory.

How It Boosts CX

• AI helps ensure your popular items are always in stock so customers can find what they need. This enhances their shopping experience and improves customer satisfaction.
• Better demand forecasting helps you shape your brand’s future. With it, you can anticipate trends and identify what your customers want to see next. Then, you can build your go-to-market strategy around the exact features your customers want.

Discover more ways to add AI to your retail workflow.

4. Streamline Checkout Processes

AI can automate and optimize various stages of a transaction. Add AI to streamline checkouts and reduce the number of abandoned carts. With an AI-driven self-checkout system and smart payment options, brands can reduce wait times and friction.

How It Boosts CX

• AI self-checkout helps customers scan, bag, and pay for their items fast without needing assistance. This significantly reduces wait times during peak shopping hours, enhancing satisfaction.
• AI can detect and correct errors in real time, ensuring prices are accurate and promotions and discounts are correctly applied. This creates a hassle-free checkout experience, leaving customers with a positive impression of the store.

5. Add Visual Search and Image Recognition Tools

AI-powered visual search features allow customers to find products by uploading images. This makes the shopping experience more intuitive and efficient. Plus, image recognition tools can also help with inventory management and quality control.

How It Boosts CX

• Visual search makes it easier for customers to find exactly what they’re looking for on the first search. This improves their experience and enhances satisfaction.
• By using images instead of text, customers get a simplified, user-friendly search process.

Check out these AI tools to boost CX (and help your agents).

6. Optimize Delivery Logistics

AI enhances delivery logistics and route planning. By analyzing data from various sources, AI can help optimize delivery routes, predict delays, and allocate resources efficiently.

How It Boosts CX

• AI algorithms can identify the most efficient delivery routes by considering factors such as traffic patterns, weather conditions, and delivery windows. This ensures faster delivery, reduced wait times, and enhanced CSAT.
• AI can predict potential delays and adjust routes in real time, ensuring deliveries arrive on time. With AI, you can provide more accurate delivery estimates and updates to keep customers informed and build trust.

7. Automate Customer Feedback Analysis

AI can analyze customer feedback from various channels, such as surveys, reviews, and social media. This is key to identifying trends and areas of improvement. With this intel, retailers can gauge customer sentiment and take appropriate action.

How It Boosts CX

• AI can process a large amount of feedback to detect patterns and trends. You can see how customers feel about a new product, your service quality, and your brand. Then, you can make informed changes.
• AI helps you promptly address customer concerns. Use AI to analyze vast amounts of data and feedback. Then, improve customer service and adjust agent training to enhance performance.