AI’s Deep Dive into Customer Desires

AI’s Deep Dive into Customer Desires

The Gist

  • AI personalization. AI-driven tools enable highly personalized customer journeys, tailoring content and interactions to individual preferences and behaviors.
  • Generative impact. Generative AI revolutionizes customer service with natural conversations and contextual understanding, significantly enhancing user experience.
  • Predictive analytics. AI and predictive analytics are reshaping customer service by accurately forecasting needs and behaviors, leading to deeply customized experiences.

In an era where customer expectations are continually evolving, Artificial Intelligence (AI) has become a pivotal force in reshaping the customer journey. From revolutionizing marketing strategies to enhancing customer support with sophisticated chatbots, AI is not just redefining the standards of customer engagement but also setting new benchmarks for business intelligence and operational efficiency. This article will examine the transformative role of AI on the customer journey in 2024, looking at how it personalizes experiences, automates customer service interactions and provides deep insights into customer behavior. 

Isabelle Guis, CEO and global CMO at Brevo, North America, a CRM suite solution provider, told CMSWire that customers have become more digitally savvy and have higher expectations. “In 2024, marketing teams need to stand out with a more granular micro-segmentation, highly personalized content, and better predictions of the customers’ next touch point over the right channel at the right time.” Guis said that AI enables teams to execute at scale, increasing precision in the segmentation, using fewer resources to create more customized content, and improving the engagement flow for optimum customer satisfaction and higher engagement levels. 

Generative AI Is Still the Headliner … so Far

Generative AI is continuing to transform the customer journey in 2024 by enabling more personalized, proactive and frictionless experiences. Chatbots that are based on large language models can now hold natural conversations, understand context and sentiment, and access vast knowledge to resolve customer issues instantly. These chatbots are able to initiate and guide self-service interactions, while intelligently escalating complex inquiries, reducing wait times and speeding up resolutions.

A country road made of asphalt with a white dashed line heading into the distance and with green trees on each side of the road in piece about AI and customer journeys.
Generative AI is continuing to transform the customer journey in 2024 by enabling more personalized, proactive and frictionless on Adobe Stock Photos

Heidi Williams, head of engineering for Grammarly Business, an AI-powered enterprise writing assistant, told CMSWire that although the first wave of generative AI was all about quickly creating new content, the next phase will be about refining that content to move beyond generic text toward more tailored and relevant output. “We’ll see a significant investment shift toward hyper personalizing gen AI through greater application of company, personal, and customer context and insights. This will be essential to realize AI’s transformative value, and those providers that nail personalization with an eye to security and privacy will have the advantage.” This personalization of content creation will enable brands to more seamlessly and easily create content that resonates with customers. 

Behind the scenes, generative AI facilitates next-best conversational flows, predicts high-risk customer scenarios, and generates new engagement strategies. Models are continuously being updated through reinforcement learning across customer touchpoints. This empowers brands to optimize journeys in the moment based on customer signals.

Itamar Falcon, CEO and co-founder of Coho AI, a product-led revenue platform provider, told CMSWire that the CX landscape will be dramatically reshaped by two AI-driven trends in 2024. “First, there’s the impact of Gen AI, which has been pivotal in 2023 and will continue to shape 2024. A range of tools such as ChatGPT, MidJourney, and various AI video generators are revolutionizing content creation. They enable us to respond quickly and efficiently, crafting highly tailored and engaging content. This speed and adaptability in content production allow for more streamlined and responsive customer interactions.”

Related Article: Customer Journey Orchestration in the Age of AI

AI and Predictive Analytics Get Personal

“The second significant trend is the advancement in predictive behavior, segmentation, and AI-based interactions,” said Falcon. “This movement, which began in recent years, has taken a giant leap forward recently. Now, we’re not just reacting to customer needs; we’re anticipating them. AI technologies are enabling us to analyze and predict user behavior in ways we couldn’t before.” Falcon said that this leads to hyper-personalized customer journeys where interactions are not just based on general details but are finely tuned to each individual’s behaviors and preferences.

The combination of AI and predictive analytics is enabling a deeper understanding of customer needs and predictive capabilities that go beyond marketing personalization. Businesses can now leverage these insights to tailor product development, optimize inventory and dynamically price. “The evolution in predictive AI allows us to understand and interact with customers on a much deeper level,” said Falcon. “The synergy of these two trends means that in 2024, two people could use the same app and have entirely different, personalized experiences. This shows how AI is not only enhancing customer experience, but fundamentally changing it.”

Jing Huang, senior director of engineering and machine learning at SurveyMonkey, told CMSWire that according to research by SurveyMonkey, 86% of CX and digital marketing professionals said their customers receive a personalized experience all or most of the time throughout the entire customer journey; however, only 8% of consumers felt that they received a consistently personalized experience. “As we look at how AI can be leveraged to improve customer experiences in 2024, it will be essential for business leaders and marketers to recognize the disruptive potential of AI and how it can alter their business’s long-term trajectory positively — for instance, helping align the customer experience they’re delivering with their customer journey.” 

Real-time analytics on current customer behavior, paired with predictive models of future needs, empower more agile product pipelines. Rather than developing based on historical data alone, generative algorithms identify emerging requirements, underserved segments, and opportunities to differentiate. Products can then be iterated matched to predicted trends even before new markets materialize.

Sean Mackay, founder of Growth Wave, a digital marketing agency, told CMSWire that AI’s role in enhancing personalized customer engagement is particularly notable. “We implemented AI-driven analytics mid-2023 and have gained the ability to dissect and interpret vast amounts of customer data, leading to the development of highly tailored marketing strategies that have seen a 20% uptick in engagement in just six months.”

Mackay said that this personalization isn’t just confined to marketing; it extends into the very nature of sales and account management. “Insights into customer preferences and behaviors, provided by AI, are invaluable in crafting customized sales pitches and solutions, ensuring each client interaction is as relevant and impactful as possible,” said Mackay. “Our pitches now are so more insightful and about half the size.”

Predictive demand modeling aids inventory planning by forecasting best-selling configurations, including custom options. An AI system analyzes leading indicators in customer data, economic trends, demographics shifts and more to recommend optimal stock levels across locations. This tailors inventory to customers based on predicted purchase preferences for highly personalized, efficient fulfillment.   

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