Sep 14, 2023 9:00:00 AM | The Game-Changer: AI Customer Service in Online Retail Business

People nowadays expect quick and convenient customer service. Leveraging AI to deliver a frictionless experience for higher customer engagement.


AI Customer Service in Online Retail Business

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The rise of Artificial Intelligence (AI) is paving the way for greater efficiency in businesses, particularly in customer service.

AI-powered customer service allows you to gain deeper insights and provide a better user experience. This improves the online customer experience, retention rates, brand image, preventive care, and even revenue generation. According to Accenture, AI is anticipated to increase company productivity by up to 40% by 2035.

AI-powered chatbots are primarily used in customer support, but modern AI solutions provide much more. Customers and customer service representatives gain a new viewpoint thanks to Machine Learning and Natural Language Processing (NLP) technology.

How Can AI Contribute to The Customer Service of Online Retail?

As online retail grows, providing excellent customer service becomes increasingly important. Customers expect a seamless shopping experience, with quick and effective assistance whenever needed. Artificial intelligence has unquestionably become the key to making a difference. 

AI-Categorized Support Ticket

Most AI includes automatic tagging tools that allow you to categorize customer support tickets effortlessly. This means you can add labels to your customer data and make it easier to organize and process. 

You could tag your tickets based on the feature they relate to or the stage of the sales funnel they are in. Each ticket is reviewed and classified as referring to a particular feature, and your team can better understand what's causing problems for your customers.

Sentiment Analysis

Sentiment analysis is the process of finding and extracting the emotional tone of a text. It can be used to assess customer feedback to see where you can improve, whether it's your product or the service, and find which components of the customer experience have the most significant emotional impact.

For instance, AI-powered Sentiment Analysis of a customer survey may reveal that users are 'dissatisfied' with your response rate or order processing time. This allows you to prioritize the development of these services based on your customer feedback.

AI Customer Support Chatbot

Chatbots are programs that can mimic human dialogues. They are often used to answer FAQs, give essential support, and route more complex issues to live agents. 

Many online business owners now use chatbots to answer basic questions based on data from internal systems and customer-specific information, including order status, order tracking number, return policies, and many more. As a result, their customer service representatives can focus on more complicated problems and deliver better customer experience while saving operating costs.

Virtual Assistant

AI can be used to gather valuable data about your customers, such as their preferences, purchase history, and pain points, and based on that, AI is able to personalize the customer experience by providing recommendations and suggesting products to the customer's individual needs. This will assist you in strengthening your ties with your customers and increasing their level of satisfaction. 

In addition, AI can serve as your marketing assistant, helping improve your products and services and design more targeted marketing campaigns based on the customer information gathered.

Multilingual Service

You can detect languages and respond in your customer's preferred language using some automation features included with AI-powered customer support tools.

When doing business on a global scale, multilingual customer support can help you attract and retain website visitors as well as provide a smooth communication experience to customers. You may gain favorable word-of-mouth by supporting them in achieving more benefits from your products or services in a language they understand.

Reduced Costs 

By automating certain tasks, such as resolving simple queries and processing returns, AI can help lower the workload of human customer care personnel. This can help cut employment costs while also improving the overall efficiency of the CS department. 

Furthermore, by providing a smooth and personalized customer experience, AI can help boost customer retention and increase the lifetime value of each customer, which, in turn, may help reduce customer acquisition costs because happier customers are more likely to make repeat purchases and refer their friends and families to the store.

Additional Suggestions for Using AI in Customer Service

AI-powered customer support is a game-changer for online retail businesses. Using AI to automate tasks and provide personalized assistance, online retail stores can offer a seamless and satisfying customer experience, leading to increased customer loyalty and repeat business.

If you are considering using AI support in your business, there are a few things you need to keep in mind:

  • The technology is still evolving: AI customer service is still in its early stages of development, and the technology is constantly evolving. This means that you need to be prepared to invest in new technologies and upgrade your systems as needed.
  • It is not a replacement for human interaction: AI customer service can be a valuable tool, but it is not a replacement for human interaction. There are still some tasks that are best handled by human agents, such as resolving complex issues and providing emotional support.
  • It needs to be properly integrated: AI customer service needs to be properly integrated into your existing customer support operations. This means that you need to have a clear understanding of your customer's needs and expectations, and you need to develop a strategy for using AI to meet those needs.

Let’s Wrap It Up!

AI-powered customer service can help online retail stores thrive in an increasingly competitive marketplace. However, it should be seen as a tool to enhance and optimize the customer service experience, not replace it. 

Customers are happy when customer service is efficient, personalized, and of high quality. They may become ambassadors for your brand and improve your business reputation since good testimonials attract more customers and lead to increased revenues.

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Frankie Zhang

Written By: Frankie Zhang

Frankie is a Digital Marketing Specialist at Shoplazza. Outside of eCommerce, she is obsessed with hiking in the woods and exploring nature.