Did you know that 66% of customers expect a response to their queries within 10 minutes? Yup, customers’ expectation of response time is getting shorter and shorter and fortunately, AI has allowed us to achieve that. However, even though AI chatbots are more efficient and are able to help customers solve their problems, they still prefer to be assisted by a human agent.
Those expectations make customer service a little challenging, and businesses are forced to find a balance between AI and human agents. In this guide, we will how you can achieve that.
The Role of AI in Modern Customer Service
The role of AI is to provide basic and faster customer service, answer common queries, and guide consumers to the right sources to help solve their problems. There are countless benefits of using AI in customer service, such as 24/7 customer support, instant response, and the ability to handle multiple inquiries simultaneously.
The most common AI applications you’ll encounter are chatbots and voice assistants. Interacting with a well-designed chatbot is like texting with a personal assistant who has instant access to a company’s entire database. However, AI isn’t perfect. It can misunderstand complex queries and lack the nuance required for delicate situations.
The Irreplaceable Value of Human Touch
There is something special about human interaction that AI can’t replicate — empathy and emotional intelligence, at least not yet. One of the reasons why many people prefer to chat with human agents instead of robots or algorithms is because they feel like they can be understood by a human being. When dealing with furious or highly emotional customers, all AI can do is provide suggestions and recite policy but the human team is able to listen, empathize, and find solutions that not only solve the problem but turn the angry customer into a loyal customer.
Furthermore, AI is incapable of solving complicated queries that are specific to different consumers, which is another reason why human agents are needed. A human agent can assess a situation critically and provide a reasonable solution, for example, refunding a product and deciding whether a refund is eligible, then guide a customer to make the refund.
When to Use AI vs. Human Agents
Preference and Expectations
So how do we know when to use AI and when human agents should interfere? The first thing to do is analyze your customer preferences and expectations. On some occasions, your customers might prefer to interact with an AI chatbot over a human agent when they feel embarrassed and don’t want to be judged when buying a product. It varies depending on the industry you are in and how sensitive people are. Apart from that, some customers love the instant response but some of your customers might not be tech-savvy and prefer an old-fashioned conversation.
Complexity
The complexity of customer queries is important. For simple questions like “What are your open hours” or “How do I reset my password?”, your customers shouldn’t have to wait 10 minutes for a human agent to get an answer. But when a customer comes at you with a unique problem that requires thinking and emotional sensitivity, you want your customer service team to handle it.
Customer satisfaction
Human agents can handle a case better than an AI chatbot, which only follows the instructions you provide. They can turn one of your ordinary customers into a loyal one by providing better service. One time I purchased protein powder from a brand in bulk but I didn’t like one of the flavours. The company had a policy of refunding or replacing a product if you haven’t consumed it for more than 5 scoops so I reached out to customer service and told them that I would like a replacement. Since I bought in bulk, the customer service team told me that I didn’t have to return the favour and that they would send me another flavour of my choice. Ever since I have become a loyal customer of the brand. If I were chatting with an AI chatbot, I wouldn’t have got an extra pack for free.
Strategies for Integration of AI and Human Support
Implementing Hybrid Models
What many businesses are doing right now is combining both the power of AI and the human touch. Let AI handle the initial contact, collecting all the details, and basic info and solving simple issues. If the customer thinks the issue is not resolved, offer them the option to be transferred to a human agent for further assistance. With all the information and conservation your team has access to, the issue can be resolved promptly, eliminating the need for customers to repeat themselves.
Training your AI
You can train your AI chat so it recognizes when to escalate to human agents to facilitate the process of transferring and reduce handling time. I remember there was a time when an AI chatbot stubbornly tried to solve a problem I had and none of the solutions were helpful, and it didn’t offer me the option to be transferred to the customer service team. I got frustrated and left the site. When you train your AI chatbot the right way, it can situations like this from happening.
Measuring The Success
You might be thinking: “This sounds great, but how do I know if it’s actually working?” By tracking some KPIs, you will be able to measure the success of your strategies.
Customer Satisfaction Scores (CSAT)
A survey can be included when an issue has been resolved. It can be done separately for assistance provided by AI and by human agents. Let your customer choose from a score of 1-7 or options from very unsatisfied to very satisfied on how satisfied they feel about the service provided. The advantage of this method is it’s easy and quick, which means customers are often happy to complete the survey. However, one thingto note is it doesn’t provide deep insights into what’s good or bad about the service.
First Contact Resolution rates (FCR)
First contact resolution measures the percentage of inquiries resolved on first contact. A higher rate means greater efficiency, better customer satisfaction, and optimized resource allocation. Measure the change of FTR with the implementation of AI chatbots, and find out how many enquiries are resolved without your human team.
Average Handling Time
Average handling time can give you an idea of how efficiently an issue is resolved. If the average handling time decreases after the AI chatbot is implemented, it’s a good sign. However, it doesn’t necessarily mean better customer service. That’s why it should be measured alongside all other KPIs in order to get a fuller picture.
Net Promoter Score (NPS)
“How likely are you to recommend (brand) to a friend or colleague?” With the response on a scale of 1-10, from extremely unlikely to extremely likely, you can discover who your detractors (score 1-6), passives (7-8), and promoters (9-10) are. Deduct the percentage of detractors from promoters and you will get your NPS, with -100 being the lowest and 100 being the highest. The higher the score, the more satisfied your customers are with your service, product and company.
The Future of AI Customer Service
What would the future of AI customer service be like? It’s difficult to predict the future but here are some possibilities:
Predictive Customer Service
With the power of AI to extract data and information for the database, AI can help your customers solve problems before they even know they have them. It’s like having a virtual assistant that knows what you need and proactively reaching out with solutions. For example, AI notices that you are struggling to find the sneaker you are looking for, and by collecting all the information, the colours, the style, and the size you have previously searched for, it provides you with suggestions.
AR and VR
Integration of AI with other emerging technologies like VR and AR in customer service is promising. Imagine putting on a VR headset and speaking with an AI that looks like a human guiding you through the products on a website and answering any questions you have in mind.
AI Become More Human-Like
This is the one everyone is looking forward to. With the advancements in natural language processing, AI interactions will become more human-like than ever. It sounds creepy when you can’t differentiate between an AI and a human, but when it happens, it will revolutionize customer service.
Conclusion
AI will be an indispensable part of customer service, but it won’t completely replace human agents. It’s not about choosing one over the other – it’s about finding the perfect balance to provide more efficient customer service without compromising the quality of your service and keeping your customer satisfied.
