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Home / Blog / How AI Personalisation is Revolutionising Customer Interactions

How AI Personalisation is Revolutionising Customer Interactions

How AI Personalisation is Revolutionising Customer Interactions

Struggling to keep up with evolving customer expectations? You’re not alone.

Customers demand personalised experiences, quick responses, and seamless interactions across touchpoints. As traditional marketing and customer engagement strategies couldn’t fulfil this expectation, businesses are unable to close deals, and frustrated customers are switching to competitors.

Simply put, many businesses are leaving money on the table.

Here’s where AI personalisation steps in to extend a helping hand. No matter what size your company is or which industry you belong to, AI-driven personalisation acts as a backbone of customer interaction in today’s world. And customers are expecting it from businesses, too.

What Is AI Personalisation?

AI personalisation addresses a customer’s requirements without them wanting to explain their needs or queries. It utilises complex algorithms, such as Natural Language Processing (NLP), Large Language Models (LLM), and Machine Learning (ML) to customise the user experience based on real-time data. 

This allows businesses to create personalised interactions that feel real and seamless.

Why AI Personalisation Is Necessary For Staying Ahead

AI personalisation helps improve engagement, conversion rates, and thereby revenue. It analyses vast amounts of data to learn individual preferences and predict their needs, allowing businesses to showcase the right product, deliver a service, or message at the right time through the right channel.

Match Customer Expectations

McKinsey’s Next in Personalisation 2021 report revealed that 76% of customers become frustrated when they’re not given a personalised experience.

Customers expect content personalisation. Period. They want to form real, meaningful connections with brands, expecting businesses to treat them as individuals and not as one among the Target Group (TG).

Drive More Revenue

Forrester found in a study that 77% of consumers choose, recommend or pay more to brands that provide personalised services or experiences. This study proves that customers are yearning for meaningful brand connections and are willing to pay more for a better customer experience.

AI-powered recommendation engines are disrupting the customer experience landscape. Businesses that don’t adopt AI-driven personalisation are likely to be abandoned by customers as the personalisation software market is expected to reach 31.62 billion by 2030. Probably, garnering adequate revenue might become dependent on a business’s ability to deliver personalised customer experiences.

Enhance Sales Efficiency

Gone are the days of generic, conventional marketing. Customers expect brands to understand their needs deeply and deliver experiences that exceed their expectations. And it’s high time brands start acting on it.

When AI personalisation kicks in, email marketing and retargeting ads sound more relevant to the audience, as you could talk about the products and deals that resonate with them. For instance, personalised promotional emails have 29% higher unique open rates and 41% higher unique click rates than non-personalised mailings, per Experian.

Hence, advanced personalisation increases the chances of sale, resulting in improved customer satisfaction and brand engagement over time.

The Role Of AI In Customer Interactions

Efficiency and scalability are a big hindrance for businesses looking to implement personalisation in their customer interactions. Personalisation is much bigger than greeting customers with their first or last name.

You are expected to deliver targeted offers, customised recommendations, and proactive support and assistance. Leveraging AI-driven personalisation opens up new possibilities to deliver meaningful customer personalisation at scale.

With AI personalisation, you tailor every interaction, piece of content, and service based on customers’ behaviours and preferences. Also, the algorithms enable AI to perform these tasks efficiently that is not humanly possible.

As a result, your business sets a new standard for customer experience by delivering it consistently at every stage of the customer journey. Here are the components enabling AI personalisation.

Data Collection

The first step to initiating AI personalisation is collecting customer data, including but not limited to: service engagements, behaviour patterns, and purchase preferences. AI personalisation consolidates all this data and comprehends each user’s preferences proactively on a deeper level.

Predictive Analytics

AI models can deduce and predict customer behaviours and needs using the collected data. This capability helps businesses to deliver personalised recommendations, discounts and deals, experiences, and content to emboss a positive impact on the customer journey.

Customer Segmentation

AI-driven personalisation combined with customer segmentation ensures that customers with identical behaviour patterns and interests receive relevant suggestions. Businesses can optimise their personalisation process with the help of AI-powered customer segmentation and cater efficiently to customers.

Tailored Product Recommendations

Thinking of serving customers without them searching or asking for products? Recommendation engines are bundled with AI personalisation capabilities to enhance the purchasing experience. The engine analyses past customer interactions with the website or application and tailors product recommendations that are likely to be of interest. This way, e-commerce businesses can create a seamless purchase experience.

Ways To Leverage AI For Personalisation

AI-powered personalisation tools like chatbots, recommendation engines and automation exceed customer expectations by predicting their needs, personalising interactions, and refining customer engagement in real-time. Simply put, it transforms how businesses cater to different customers.

Generative AI-Powered Chatbots

Customers expect your support 24/7, and there is no such thing as “off hours”. Here’s where chatbots kick in to deliver personalised assistance to customers without sounding robotic. NLP aids in crafting human-centred responses, ensuring a conversational experience to boost customer satisfaction around the clock.

When support agents are empowered with Generative AI, it helps them to connect with customers and address their queries in no time. Also, the agents can now reduce time spent on crafting replies as AI delivers empathetic, accurate, and personalised replies in real-time. It is crucial to remember that agents are the decision makers here in terms of what needs to be sent to the customer.

Recommendation Engines

Recommendation engines analyse vast amounts of user data with the help of sophisticated AI algorithms. Soon after the analysis, it deduces the user’s behavioural patterns to suggest relevant products or help documents depending on the use case. Such recommendations boost customer experience regardless of the customer journey.

Automation + Personalisation

AI personalisation, coupled with automation and machine learning, opens up new doors for businesses to streamline customer interactions. The best part? It requires no manual/human interventions. This combination enables businesses to deliver a personalised experience at scale efficiently.

Examples Of AI Personalisation In Action

There are a wide variety of use cases where AI personalisation comes in handy. Below are two such examples in action.

Contact Centres

Customers reach out from different channels when they run into an issue. It could be through Twitter, Emails, Calls, and the list goes on. While covering all these channels is necessary in today’s world, your support agents are stretched thin.

Customers also expect you to understand the nuances of the issue, be empathetic towards them, and establish a human connection. However, using AI to power chatbots concerns businesses as it might result in less connection.

(Visual Cue)

AI personalisation removes that doubt and ensures human-like customer interactions and assists support agents to provide an empathetic, meaningful service. AI-powered chatbots trained using machine learning on customer data taken from adequate interactions are capable of detecting intent, sentiment, emotion, and effort.

This learning allows AI chatbots to respond empathetically (not sound stockish), leaving no room for frustration but enhancing customer satisfaction.

E-Commerce Stores

Performing marketing activities becomes more effective with AI-powered personalisation, especially for e-commerce stores. AI-powered tools can suggest products purchased by customers in a similar demographic, as well as similar items related to the baskets of specific customers.

These suggestions happen in real-time, thereby increasing the probability of a purchase. Likewise, this strategy works the same way for retargeting ads. By leveraging both individual-specific data and general customer data, your retargeting campaigns display relevant products.

AI Personalisation In Action: Worktual Use Cases

At Worktual, we’ve designed our AI platform to deliver personalised customer interactions across touchpoints. Here’s how it looks in practice:

Personalised Customer Engagement For Marketing

A global e-commerce brand uses Worktual’s AI to refine its marketing strategy. The AI-powered tool segments customers based on real-time interactions and customer data, ensuring highly personalised promotional messaging and recommendations.

Personalised Conversion Optimisation For Sales

A SaaS company integrates Worktual’s AI-powered tool to optimise lead conversion. The AI learns from customer interactions and refines messaging to improve engagement. Moreover, the AI Personalisation tool helps executives with lead scoring, tailored pitches, and automated follow-ups to increase close rates.

Personalised Assistance For Customer Support

A telecommunications provider implements Worktual’s AI chatbot for 24×7 personalised support. The tool is capable of understanding intent and sentiment, so it can engage in meaningful interactions with customers. Since Worktual’s AI chatbot is powered by NLP, it converses in a more natural and empathetic manner.

Choosing The Right AI Personalisation Platform

If you’re on the lookout for an AI personalisation platform, you must focus on the following characteristics:

  • Easy to set up
  • Free trial without capability restrictions
  • Allows you to match branding style
  • Multilingual capabilities and
  • Easy to scale as you grow

Worktual understands these expectations and helps businesses personalise, automate, and assist interactions such that customer retention skyrockets.

Implement AI Personalisation Today

Do not frustrate your customers with irrelevant suggestions and product recommendations. Trying to implement personalisation manually is so tiresome. Businesses have already jumped on the AI Personalisation bandwagon. If you don’t want to leave money on the table, implement Worktual. It simplifies your life.

Book a free demo today!

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