The digital age has transformed the way in which businesses interact with their customers. This tendency has been heightened and accelerated with the pandemic and the rise of e-commerce.

Customers have recurred to virtual exchanges rather than in-person visits to stores, thereby transforming the customer journey. From creating a strong social media presence to implementing new customer service features, building a strong customer engagement strategy that is attuned to the changing technological landscape is essential to remaining competitive. 

Personalization is key to a positive user experience for today’s consumer who is hyperconnected and has high expectations in terms of speed and ease of use of products and services. In fact, studies have shown that personalized experiences result in a 20% increase in sales. 

Artificial intelligence plays an important role in facilitating these personalized virtual interactions at scale. By combining AI and machine learning, businesses can gather and analyze social, historical, and behavioral data to get an accurate picture of who their customers are and tailor the experience to better meet their needs and interests. 

Here are some examples of AI tools that can help engage and retain customers through a more personalized user experience.

Creating emotionally engaging content

At every stage of the customer journey, it is essential to communicate clearly and with consistency. The last thing you want is a customer to feel deceived or confused about what is being offered. Establishing an emotional connection with users through engaging content is key to capturing a customer’s attention and –in the long run– gaining their loyalty. If you tell a story, make sure it’s consistent and projects the right tone and voice. 

According to Harvard Business Review, in terms of lifetime value, an emotionally connected customer is more than twice as valuable as a highly satisfied customer. Tools like Clevertap’s emotion editor are great for creating emotionally persuasive content that communicates the right message. The emotion editor analyzes the primary emotions being conveyed in a message and provides insights on how a customer might feel or respond to a certain text such as surprise, joy, trust, anticipation, or FOMO, and gives suggestions on how to improve upon it.

Behavioral segmentation

Behavioral segmentation is an excellent way to provide a truly unique experience for each customer. By accurately understanding users’ history and preferences such as their preferred categories or brands, previous orders, or behavioral patterns, you can make the customers’ journey a lot more efficient.  

The digital consumer expects this type of personalization throughout the customer journey which can appear in the form of push notifications, email campaigns, SMS, and in-app recommendations. Users rarely have to search for products or services when algorithms are able to predict what they want and need.

Customer service via chatbots

In a 2020 MIT survey with 1,004 participating business leaders, customer service via chatbots placed as the leading application of AI being deployed today. AI-driven chatbots are a cost-effective solution for businesses to manage customer flow and provide excellent customer service 24/7. Customers can instantly get answers to simpler queries whenever they want, while live agents can focus their attention on more complex cases.

The AI behind chatbots is constantly updating its systems through machine learning. It has access to an integrated database which allows it to provide customers with a more personalized user experience. Typically, customers are also able to change the preferred language, and in the case of a voice assistant, can even choose the accent.

Providing a meaningful engagement

The user experience has significantly transformed for many this year, as brick-and-mortar stores transitioned to digital, and those already operating online revamped their customer engagement strategies. This shift to digital has created a demand for more innovative solutions that enable online interactions between customers and businesses.

A successful customer engagement strategy involves building a long-term relationship with customers through meaningful connections. Artificial intelligence technologies are paving the way towards a new era of customer service which caters to the needs and wants of the modern consumer.

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