Mastering conversational customer experience in 2024

When was the last time your business truly connected with its customers in a meaningful conversation? In the fast-paced landscape of today's growing enterprises, maintaining genuine interactions can be a considerable challenge.

Support reps often find it daunting to sustain a personal connection with each buyer across their journey. This struggle highlights the increasing importance of conversational customer experience – an umbrella term that encompasses contextual communications across touchpoints. But that’s not all. Paired with artificial intelligence, conversational CX is set to reach new heights.

According to data from Grandview Research, the global conversational AI market size reached an estimated $7.61 billion in 2022 and is projected to experience a robust compound annual growth rate of 23.6% from 2023 to 2030.¹ This staggering growth signifies the widespread recognition of the value that conversational CX brings to businesses.

In this post, we’ll delve into the dynamics of conversational customer experiences, exploring why it has become an indispensable aspect of successful relationship-building strategies. We’ll also cover the principles that guide this emerging trend, and give you a checklist to guide your conversational customer experience platform election.

What is conversational customer experience?

Conversational customer experience serves as an overarching term encompassing the set of interactions and engagements between businesses and their customers throughout their shopping journey, across different channels.

It extends beyond the confines of technology-driven solutions like conversational AI and encapsulates the entire spectrum of communication, both automated and human-led.

At its core, conversational CX revolves around fostering meaningful, personalized, and efficient dialogues, ensuring that each customer interaction is a positive and engaging experience.

What is conversational AI in CX?

Conversational AI is a fascinating technology that replicates the essence of human-to-human communication through either text or speech prompts. This advanced system doesn't just follow predetermined paths but adapts dynamically to user input, making interactions more genuine and responsive.

In contrast to conventional conversational technologies that rely on predefined scripts triggered by specific keywords, conversational AI takes it up a notch. It stands out by discerning and addressing the substance of a user's inquiry, thanks to two elements: natural language processing (NLP) and machine learning (ML).

Picture it as a digital conversation partner, not limited to a set of responses but capable of understanding and engaging with users in a way that feels more human.

In short, conversational AI enhances the user experience by providing intelligent and context-aware interactions, making technology feel more approachable and user-friendly.

Why does conversational CX matter?

1. It meets evolving customer expectations

Conversational customer experience holds significant relevance in today's business landscape due to its ability to meet evolving clients’ expectations. In a moment where a staggering 87% of support teams acknowledge a noteworthy surge in customer service expectations over the past year – according to our Customer Service Trends for 2024– it’s not enough to play the same old cards.²

Customers today are not only seeking solutions to their queries; they are looking for personalized, prompt, and engaging interactions. Conversational CX addresses this growing demand by offering an approach that aligns with contemporary customer preferences.

With features such as real-time communication, instant issue resolution, and customized responses, it ensures that businesses stay attuned to the heightened expectations of their customer base.

By meeting and exceeding these evolving expectations, conversational customer experience emerges as a strategic imperative for businesses aiming to stay ahead in the fiercely competitive market.

2. It builds stronger customer relationships

When it comes to cultivating valuable relationships, conversational customer experience is the way to go – a sentiment echoed by the fact that 77% of support leaders are gearing up to invest in personalization within the next 12 months. However, a notable hurdle persists, as 54% of these leaders currently lack the tools needed to provide tailored assistance at scale.³

By investing in the necessary tools to bridge the gap between intention and implementation, businesses can engage in personalized interactions that resonate positively with customers. This approach not only meets individual needs but also contributes to the creation of memorable conversational customer experiences.

As companies navigate this shift towards personalized engagement, they are well-positioned to nurture deeper connections with customers, reinforcing the foundation of enduring and mutually beneficial relationships.

3. It boosts operational efficiency

A notable 70% of C-level executives slated to invest in AI in 2024, a clear testament to the growing recognition of its potential benefits.⁴

Within the conversational CX framework, the integration of AI-powered solutions streamlines operations by automating routine tasks, handling repetitive queries, and facilitating seamless interactions.

This proactive approach not only frees up valuable human resources but also ensures swift and accurate responses, thereby significantly boosting operational efficiency.

What are the principles of conversational AI for customer experience?

Conversational CX is grounded in the understanding that effective communication is pivotal for customer satisfaction and loyalty. By prioritizing genuine dialogue and personalized interactions, businesses can create a customer-centric environment that goes beyond mere transactions, building enduring relationships.

Here are three principles that you can’t ignore when developing (or perfecting) your conversational customer experience strategies:

1. Easy to use interfaces

The effectiveness of a conversational AI solution hinges on its ability to offer a user-friendly interface, minimizing friction and maximizing accessibility. A well-designed software ensures that customers, regardless of their technical proficiency, can effortlessly engage with the AI, fostering a positive and efficient user experience.

This principle prioritizes clarity in design, intuitive navigation, and minimal cognitive load, allowing users to interact with the AI system naturally. From streamlined chat interfaces to voice-activated commands, the emphasis on user-friendliness reflects a commitment to enhancing customer satisfaction and engagement.

2. Proactive interactions

Proactive interactions are the notion that anticipating and addressing user needs before they explicitly express them is key to enhancing satisfaction.

In the context of a conversational customer experience, businesses can take advantage of AI to actively seek opportunities to assist and inform their audience, as well as solve any problems that may arise.

Whether through timely notifications, a product tour, checklists, tool tips, or preemptive issue resolution, proactive interactions demonstrate a commitment to understanding and meeting customer needs.

This principle goes beyond mere responsiveness; it means an anticipatory approach, fostering a sense of care and attentiveness.

By leveraging data insights and predictive analytics, conversational AI can intelligently initiate conversations, providing relevant information and solutions seamlessly. Proactive interactions not only save users time but also contribute to a positive perception of the AI, reinforcing its role as a valuable assistant in the customer's journey.

3. Contextual automations

Contextual automations are an essential principle of conversational AI for customer experience. It’s the ability of the AI-powered assistant to understand the circumstances of the conversation and take actions accordingly, which leads to personalized and effective solutions to the customers.

For instance, if the customer is asking for a product recommendation, the AI-powered assistant can use the customer's past purchase history, browsing history, and preferences to provide a relevant recommendation.

Moreover, if the customer has a specific issue and has contacted the support team multiple times, the AI-enhanced tool can quickly access the customer's previous conversations and provide a seamless experience by addressing the issue without having the customer to repeat the entire problem again.

This saves the customer's time and also enhances their experience.

If you’re eager to take your team’s productivity to the next level, check this out: Customer experience automation: a guide to doing more with less.

How to choose a conversational customer experience platform

1. Define your business goals

Your business goals may vary depending on the nature of your operations, but they typically include improving customer satisfaction, increasing sales, reducing costs, and enhancing brand reputation.

Once you've defined your goals, you can start looking for a conversational customer experience platform that aligns with your business needs and objectives. Keep in mind that different software offers different features and capabilities, so make sure to choose the one that best matches your requirements.

2. Assess scalability and flexibility

Your business needs to have a conversational customer experience platform that can grow and adapt alongside it. For instance, if your operations expand, your chosen software should be able to handle the increased user demand without compromising the quality of the experience.

When assessing scalability, consider factors such as the platform's ability to handle high volumes of traffic, its capacity to integrate with other systems, and how easily it can support different languages and channels. For flexibility, look at how easy it is to make changes to the platform, whether it supports customization, and how it can be adapted to meet evolving customer needs.

3. Evaluate integration capabilities

As you move on to the third step of choosing the right conversational customer experience platform, it’s essential to evaluate integration capabilities. This moment involves assessing the platform's ability to seamlessly connect with other systems, such as your CRM and marketing automation tools.

An integrated platform can help you streamline your workflow and provide your customers with a smooth experience. It's important to look for a platform that supports common methods, such as APIs and webhooks.

Additionally, you should consider whether it requires technical expertise. A conversational CX platform with a user-friendly interface and straightforward integration process will save you time and resources.

4. Consider omnichannel support

Customers use multiple channels to communicate with businesses, including email, social media, chat, and phone, to name a few. Therefore, it’s crucial to choose a platform that supports all these touchpoints to provide a seamless and consistent experience to your audience.

By doing so, you ensure that your customers can reach out to you through their preferred channels. Moreover, omnichannel support enables your team to handle customer queries across different origins efficiently, leading to increased customer satisfaction and loyalty.

5. Examine the platform's analytics and reporting features

Analytics and reporting help you gain insights into your customers' behavior, preferences, and pain points, allowing you to optimize your strategies accordingly.

By examining the platform's analytics and reporting features, you can track your team's performance, measure customer satisfaction, and identify areas for improvement.

This information can help you make data-driven decisions to improve your customer experience, reduce response times, and optimize your support operations.

Additionally, analytics and reporting features can help you identify trends and patterns in customer queries, allowing you to proactively address common issues and prevent escalations.

The majority of our purchasing decisions are made by the subconscious brain. Do you know how to communicate with it? Check out this article: Behavioral economics expert Melina Palmer on unlocking the science of consumer behavior.

6. Ensure compliance with data security and privacy regulations

Ensuring compliance with data security and privacy regulations is the sixth crucial step in selecting an optimal conversational customer experience platform. In an era where data breaches and privacy concerns loom large, it is imperative to choose a software that aligns with prevailing regulations.

Begin by thoroughly assessing the platform's security measures, ensuring robust encryption protocols, and compliance with global standards such as GDPR, HIPAA, or other relevant regulations in your industry.

Scrutinize the platform's data handling practices, evaluating how user information is stored, accessed, and protected. Request transparency from the provider regarding their data security policies and practices to ensure a seamless integration into your organization's compliance framework.

Prioritizing these aspects will not only safeguard your customers' sensitive information but also bolster your organization's reputation for trustworthiness and reliability.

7. Check out the platform's customization options

One size rarely fits all, and a conversational customer experience platform should be adaptable to your unique business needs. Examine the extent to which the software allows customization in terms of conversational flows, user interfaces, and integration with existing systems.

A flexible platform will empower you to tailor the customer experience to align with your brand identity and specific requirements. Evaluate the ease of customization – the more intuitive, the better.

8. Look for multilingual support

Multilingual support is more than translating text word by word; it involves cultural nuances and context, enhancing customer engagement on a global scale. Whether your customers speak Spanish, Mandarin, French, or any other language, a platform with robust multilingual capabilities will empower your brand to connect authentically with a broader audience, fostering stronger relationships and expanding your reach in the global marketplace.

9. Verify vendor's reputation and customer reviews

As the last step in the quest for the ideal conversational customer experience platform, verifying the vendor's reputation and exploring customer reviews is paramount. Take the time to delve into the vendor's track record – investigate their history, customer satisfaction levels, and reliability.

Seek out testimonials and case studies to gain insights into the experiences of businesses similar to yours. By verifying the vendor's reputation, you'll be better equipped to make an informed decision, steering clear of potential pitfalls and ensuring a reliable partnership.

Engage with online forums, social media groups, or industry-specific communities to tap into the collective wisdom of those who have already embarked on the conversational platform journey. Embrace the power of shared experiences to gauge the vendor's credibility and ascertain their commitment to customer success.

Get conversational with Intercom

As you’ve seen, providing a conversational customer experience can help you meet evolving customer expectations and boost your business’ operational efficiency, while strengthening your relationships with your audience and simplifying your support team’s life.

If you’re ready to leverage conversational AI for customer experience, we’re here for you. Our modern platform combines an AI chatbot, help desk, and proactive support, so you have everything you need in one place.

Moreover, you can count on us to make the internet business personal. Our customizable messenger allows you to match your brand with infinite design options. You can also show and hide different content, features—even entire spaces—to create bespoke experiences.

Ready for a single, powerful, easy-to-use platform? Start your free trial today.

Sources

1 Grandview Research, Conversational AI Market Size, Share & Trends Analysis Report By Type (Chatbots, IVA), By Deployment (Cloud, On-premise), By Technology (NLP, ASR), By End-user (Healthcare, BFSI), By Component, And Segment Forecasts, 2023 - 2030.

2, 4 Intercom, Customer Service Trends 2024. We commissioned an independent research firm to survey 2,004 customer support professionals about how customer support teams are preparing for groundshaking changes and new capabilities. The margin of error for this study is 2.2% at the 95% confidence level.

3 Intercom, Customer Service Trends 2023.