Tap the Potential of Conversational CX with AI


Organizations can rely on AI-enabled tools to deploy conversational CX initiatives that positively impact customer loyalty and add value to their bottom lines.

AI-enabled virtual assistants have become transformative forces in shaping modern customer experiences (CX). These technological tools redefine the landscape of customer expectations and interactions and have established a foundation for what’s becoming known as conversational CX. The broad spectrum of conversational CX includes tailor-made interactions, streamlined operations, and the cultivation of enduring customer allegiance.

At its core, conversational CX revolves around the reinvention of customer engagement. Using emerging communication technologies, it prioritizes attentive interactions across every touchpoint and aims to foster meaningful conversations attuned to individual needs and preferences.

One of the core technologies supporting conversational CX is conversational AI. Conversational AI is a blend of natural language processing (NLP), AI, machine learning (ML), deep learning, and contextual awareness. Businesses bring conversational AI into customer interactions through intelligent virtual agents (IVAs). This form of AI is a critical component of IVAs, which helps organizations eliminate routine interactions that, if not efficiently addressed, leave customers dissatisfied.

The Role of IVAs in Delivering Conversational CX

Organizations use IVAs to facilitate genuine, fluid, real-time conversations with customers. They use conversational AI to engage with customers and create experiences that are more conversational and human than a standard phone tree. IVAs equip customer service teams to seamlessly handle high volumes of customer interactions across channels while maintaining service quality and personalization. IVAs can also handle everyday interactions such as frequently asked questions, order tracking, scheduling appointments and reminders, and logging customer feedback. The modern customer service tool can oversee all these activities simultaneously and across channels, ensuring 24/7 consistent service that is tailored to the company’s customers.

IVAs also promote self-service options for customers that retain a human touch. Customers can resolve issues independently by accessing instant solutions to common queries. The ability for customers to access self-service options diminishes pain points such as wait times while also boosting the organization’s operational efficiency. By enabling self-service, IVAs liberate human agents to focus on more complex and fulfilling projects and deliver on customer expectations.

Gather Actionable Insights to Personalize Service

In addition to facilitating more conversational interactions, IVAs are a source of valuable information for businesses. Every customer dialogue offers insights into preferences, challenges, and behavioral tendencies. An organization can tap into customer data to guide its journey toward achieving conversational CX. For example, customer data helps organizations understand the context of each interaction, whether it’s a support inquiry, purchase, or feedback. This context enables employees to address customers’ concerns more effectively and provide relevant assistance.

By personalizing service in this way, customer service can go beyond merely reactive assistance. Instead, conversational CX creates an environment where companies can predict and preemptively address needs. Insights from past engagements empower decision-makers to create personalized strategies, which automated tools like IVAs can support.  

For example, imagine a customer who frequently shops online for athletic shoes. The customer reaches out via chat on the website to ask about a specific shoe style. The IVA recognizes that the customer is a returning shopper, greets them by name, and pulls up the customer’s past queries about shoe sizing to effortlessly guide them through the selection process. This personalized experience saves the customer time and makes them feel valued, fostering a stronger connection with the brand and enhancing their overall shopping experience. Other user profile information, such as the customer’s preferences, purchase history, and previous interactions with the brand, provide a personalized experience.

The Value of Human and AI Collaboration

Creating a strategy to coordinate AI with human agents can be pivotal in delivering a CX that feels authentically conversational. Human and AI collaboration seamlessly blends the efficiency of automation with the subtle empathy of human interaction.

To strike the right balance between automated interactions and human interventions, businesses must first identify the types of interactions that can be effectively automated and those that require a human touch. AI can handle routine tasks like FAQs and order tracking, while complex inquiries or empathetic situations might need human escalation.

Designing the transition between AI and human interactions to be smooth is also important. For example, ensure that customers are aware when interacting with AI and provide clear pathways to escalate to a human agent if needed. In addition, organizations should give customers options to choose between automated assistance and human support. Humans excel at addressing complex scenarios that require critical thinking, empathy, emotional intelligence, and creativity. Companies can determine what scenarios could use the support of AI and then access those AI-driven insights to help streamline and personalize service.

By carefully orchestrating the partnership between AI and human agents, customers receive the best of both worlds—swift AI-driven assistance that feels natural and the depth of understanding that human agents bring to complex situations.

See also: Conversational AI: Improved Service at Lower Cost

Ensure Success by Continually Refining AI Systems

Long-term customer satisfaction is a moving target, requiring businesses to stay attuned to customer preferences and evolving trends. Companies must engage in a continuous cycle of adaptation and refinement, particularly in their AI systems. The iterative process of training and improving AI models lies at the heart of enhancing response accuracy and relevance. Training and improving AI models begins with an initial model that’s trained on existing data and knowledge, enabling it to provide informed answers to customer inquiries.

Just as customer data is critical in personalization, it is also important in improving AI systems. Customer feedback, in the form of surveys and reviews, is a catalyst for refining applications and making improvements if AI expectations change. Developers can refer to this feedback loop to inform ongoing adjustments. Teams must remember to regularly fine tune the AI model to incorporate new data, learn from unanswered or ambiguous queries, and understand changing language nuances. Partnering with an AI provider that prioritizes continual monitoring and improvement can ease the burden on internal IT teams.

Businesses that actively solicit and integrate customer feedback, monitor emerging trends, and fine tune their AI systems are poised to offer a conversational CX that remains attuned, relevant, and responsive to evolving customer expectations.

Key Performance Metrics to Measure Conversational CX ROI

Measuring conversational CX initiatives’ return on investment (ROI) involves assessing how these efforts translate into tangible business outcomes. Several key performance metrics can provide valuable insights into the effectiveness of such initiatives:

  • Customer Satisfaction Scores (CSAT): Monitoring CSAT surveys following customer interactions gauges how well experiences align with customer expectations. An increase in CSAT scores indicates improved customer experiences, demonstrating the success of conversational CX initiatives.
  • Response Times: Reduced response times through conversational CX demonstrate enhanced efficiency in addressing customer needs. Faster responses foster positive impressions and contribute to customer satisfaction.
  • First Contact Resolution (FCR) Rates: Conversational CX aims to enhance customer issue resolution during the first interaction. Higher FCR rates suggest that customers’ needs are being efficiently addressed, positively impacting their satisfaction and loyalty.
  • Reduction in Customer Support Costs: Effective conversational CX can decrease the volume of inquiries routed to human agents, thus reducing operational costs associated with customer support staffing.
  • Operational Efficiency: Metrics such as the number of interactions handled by AI systems versus human agents and the resulting impact on resource allocation showcase the efficiency of the conversational CX initiative.
  • Net Promoter Score (NPS): Monitoring changes in NPS, which gauges the likelihood of customers recommending a business, can highlight the effect of conversational CX on customer advocacy.

Measuring the ROI of conversational CX investments involves a multifaceted approach that considers customer satisfaction, engagement, operational efficiency, financial gains, and long-term customer relationships. Businesses can use the above metrics to assess the success of their conversational CX initiatives quantitatively and qualitatively.

Conversational CX: A New Era of Customer Interaction

Conversational CX emphasizes personalized interactions, streamlined operations, and lasting customer loyalty. Organizations can rely on AI-enabled tools to deploy conversational CX initiatives that positively impact customer loyalty and add value to their bottom lines. Businesses that embrace the convergence of human agents, AI, IVAs, and conversational CX usher in a new era of customer interaction, elevating business-customer engagement.

Rebecca Jones

About Rebecca Jones

Rebecca Jones is the general manager of Mosaicx, a leading provider of customer service AI and cloud-based technology solutions for enterprise companies and institutions. Rebecca joined the West Technology Group, owner of Mosaicx, in January 2021, after a 25+ year career focused on growing businesses, people and client success. Rebecca also serves as a member of the board of the Families for Effective Autism Treatment (FEAT) of Louisville, KY, is an executive sponsor for Women of West, actively volunteers for The Molly Johnson Foundation that supports children with special needs, and champions causes promoting women in technology, including the IWL Foundation (Integrating Women Leaders Foundation), Tech Up for Women, and CCWomen.

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