AI could revolutionise customer engagement for brands and retailers

Data from the 2023 State of Digital Customer Experience Report by Verint show consumer expectations for effective digital engagement with businesses have risen significantly. Over the past year, 77 percent of businesses have noticed an increase of more than 10 percent in consumer expectations for digital engagement. Among US consumers aged 18 to 75 who prefer digital channels, 34 percent have seen an escalation in service expectations, a 16 percent increase from the previous year.

Consumers highly value quick responses from companies, with 65 percent considering it a top factor in positive customer experiences. About 47 percent prioritize getting prompt answers to service-related questions.

Negative customer experiences have a profound impact on behaviour, with 69 percent of consumers stating they would stop doing business with a company after a single negative interaction. Furthermore, 80 percent of consumers are likely to become loyal customers of companies that provide outstanding digital customer experiences.

Digital engagement channels are increasingly popular, especially among younger, tech-savvy consumers. Half of the respondents have reached out to companies via social media or private messaging, showing a year-over-year growth of 14 percent and 13 percent respectively. Surprisingly, 38 percent have used both these channels to connect with businesses.

Artificial Intelligence (AI) is gaining importance in customer engagement strategies, with 55 percent of businesses emphasising its role. Additionally, 27 percent plan to expand their use of AI, and 69 percent believe AI technology, particularly virtual assistants for self-service, will significantly influence their approach to customer experience.

However, challenges exist in AI deployment. Out of the 74 percent of consumers who have interacted with a chatbot, 64 percent had negative experiences, mainly due to the bots failing to answer questions (71 percent) or misunderstanding intent (64 percent).

Legacy systems hinder the transition to digital engagement

While 43 percent of businesses believe that customer service team adoption of social media and private messaging will shape their customer experience strategy, 46 percent find legacy systems a major obstacle to implementing digital-first customer engagement.

For more information or to see the report go to www.verint.com.