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How to increase customer engagement with conversational AI?

Published: June 01, 2022
Updated: August 24, 2023
How to increase customer engagement with conversational AI?

Building a loyal customer base doesn’t happen overnight.

Making customer engagement successful goes beyond simply preventing customer losses and getting more referrals.

To truly adopt a customer-centric business approach, you need to proactively connect with the people who hold the most significance for your business’s success.

Interactive and resourceful customer engagement technologies are critical in the contemporary digital world. More firms are focusing on providing customer-centric services 24×7. What was once expensive or tedious is now available to businesses of all types and sizes with conversational AI.

Let’s look at how a company can use conversational AI to improve customer engagement.

What is customer engagement?

Customer engagement refers to interacting, communicating and building relationships with your clients. These interactions can occur over multiple channels and with various tools, all of which work together to increase brand loyalty and exposure. If you want to generate trust and long-term loyalty in your brand, you must invest in enhancing customer engagement.

However, customer engagement is usually confused with customer experience and satisfaction. While the difference between this trifecta is very minimal, each of these concepts are distinct. We will delve into these concepts with greater depth in the subsequent discussion. At this point, it’s important to grasp that customer experience revolves around the perception that individuals develop through their interactions with and exposure to your company’s visuals, messages, and information.

What is conversational AI?

Conversational AI refers to a category of artificial intelligence (AI) capable of impersonating human conversations. This capability is enabled by natural language processing (NLP), an AI domain that empowers computers to comprehend and handle human language effectively. 

In simple terms, conversational AI brings together different technologies to make communication smooth and automatic. It can understand what customers want, whether they’re typing or talking, figure out the context and meaning behind their words, and respond just like a person would in a conversation.

Practical application

Whether you’re responding to an automated email, chatting with a chatbot or conversing with a virtual assistant, systems are working hard behind the scenes to analyze what you’re saying, determine the proper response and respond in a way that’s natural or easy to understand for humans.

Decoding the discussion

Conversational AI combines natural language processing (NLP), machine learning (ML), speech synthesis and other language technologies to create artificial intelligence. These tools enable the AI to analyze the spoken or written word and determine the most appropriate response to requests.

Ever-evolving market

The global conversational AI market is expected to grow at a compound annual growth rate (CAGR) of 21.8 percent from USD 6.8 billion in 2021 to USD 18.4 billion by 2026. The growing demand for AI-powered service offerings, omnichannel deployment and lower chatbot development costs are all driving the conversational AI market forward.

Furthermore, rising demand for AI-based chatbots to stay connected and a greater focus on customer interaction are essential to bringing value to conversational AI solutions. These tools present the potential for businesses across several sectors in the conversational AI market.

How conversational AI can help you engage with your customers?

Customer engagement is critical for enterprise success in today’s environment since it affects a brand’s capacity to recruit, convert and retain customers.

Your brand can develop long-term relationships with customers by engaging with them in relevant, user-friendly and suitable ways. This ensures that they choose you over the competition and stay loyal to your brand.

1. Create meaningful connections with customers 

Customers enjoy interacting with brands that are relatable and important to them. This makes brand awareness a need of the hour. Describe how your brand is unique, relevant and valuable to customers. Tell your brand story and engage in ethical business practices to communicate a sense of authenticity. Credibility is essential since it influences customers’ choice of brands.

It also aids in the development of meaningful connections that customers desire to maintain through continued brand engagement.

2. Offer tailored experiences 

Obtaining and maintaining a personal connection with clients may require more effort; however, people who have an emotional connection to your firm are considerably more likely to purchase your products and promote your brand.

Conversational AI allows brands to communicate with prospects and customers in a more ‘human’ way. Conversational AI-powered chatbots can give tailored experiences and suggest solutions that closely match a user’s interest level, background and demands based on data obtained from your website, back-end systems or previous interactions.

3. Increase social media engagement

Social media is an effective and low-friction tool for brands to communicate with customers by applying focused customer engagement tactics. Respond to all comments, even if they are nasty and take the time to respond to every complaint. 

Customers will have a steady stream of material to consume and engage with if you interact often. With the help of AI-powered chatbots that can be deployed on social media platforms like Facebook, Instagram, WhatsApp Business, or on your business listings on search platforms like Google. you can also have two-way conversations. Contests, polls and quizzes can entice users to participate actively.

3. Nurture clients via email 

Like social media, email also has a huge user base. More than half of the world’s population now uses email. However, manually replying and sending emails to customers can be a tedious process. 

With the help of an email bot, an automated marketing tool,  you can respond quickly to incoming email leads instantly. Using Artificial Intelligence and intent analysis, an email bot delivers personalized email responses, allowing you to automatically respond to multiple emails with the right message and keep potential leads engaged. 

4. Provide support in multiple languages

In recent years, customer engagement has evolved into a global endeavor rather than a specialized offering. It can be challenging to prepare a team of customer service representatives to grasp hundreds of languages, quirks and dialects to meet a global brand’s needs.

It is impossible to train individuals to grasp linguistic diversity but it is far easier to train chatbots. Chatbots may switch between languages in the middle of a conversation, allowing your company to reach a wider audience.

5. Deliver consistent omnichannel support

Chatbots can assist you in customer engagement in a variety of ways, including answering queries, thus omnichannel support is mandatory. Chatbots, for example, can assist users in navigating your website, collecting information and performing activities in a more human-like manner.

Chatbots are available on a variety of platforms, including the web, mobile, social media, voice and IoT. Your bot can help your customers have a consistent digital experience across all of their devices.

Why is customer engagement analysis important?

Dedicated customers not only remain loyal to your company but also spend more. Analyzing customer engagement plays a vital role in establishing and sustaining this loyalty. 

It’s important to note that mere collection of customer data wouldn’t cut the chase for achieving long-term success in managing customer experiences. 

The behavioral data and feedback from various sources must offer meaningful insights that guide businesses in taking prompt actions and delivering personalized marketing messages. 

In essence, customer engagement analytics empowers you to understand your customers better, provide more personalized experiences, make informed decisions, and ultimately drive business growth by building strong and lasting relationships with your customers.

1. Insight into customer behavior

By analyzing customer engagement, you can understand how customers interact with your brand, products, and services. This insight helps you make informed decisions about your offerings and strategies.

2. Enhanced customer experience

Analytics provide valuable information on what customers like and dislike. This allows you to tailor your offerings and interactions to meet their preferences, resulting in a better customer experience.

3. Hyper-personalization

Customer engagement analytics help you segment your audience based on their behavior, enabling personalized marketing and communication strategies that resonate with individual customers.

Tracking engagement patterns over time helps you identify trends and changes in customer behavior. This can inform your business decisions and help you stay ahead of market shifts.

5. Measuring effectiveness

Analytics allow you to measure the effectiveness of your marketing campaigns, customer support efforts, and other engagement initiatives. This helps you allocate resources more efficiently.

6. Reducing churn

By monitoring engagement metrics, you can identify signs of disengagement early on and take proactive measures to prevent customer churn.

How to Increase Customer Engagement?

When you’re trying to make customers more interested and involved, there are practical strategies you can use to build strong connections and interactions with them. These customer engagement strategies don’t just work well, they’re also something you can actually do — they help you take clear steps to increase involvement and build better relationships with your customers.

1. Provide live chat support

Incorporating live chat support on your website or application allows customers to receive instant assistance. This real-time interaction addresses their queries promptly and provides a sense of personalized service, leading to increased engagement and satisfaction.

2. Focus on product experience

Prioritize the quality of your product or service. A seamless, user-friendly experience fosters positive engagement. Customers who find value and ease in using your offerings are more likely to engage with your brand on a regular basis.

3. Personalize all customer communication channels

Tailor your communications to individual customers. Use their preferences, purchase history, and behavior to create personalized messages that resonate with them, increasing the likelihood of their engagement.

4. Provide real-time assistance using co-browsing

Co-browsing allows customer support agents to navigate websites or applications alongside customers. This hands-on approach helps resolve issues faster and provides a visual aid, enhancing engagement and problem-solving.

5. Use gamification to increase engagement

Gamification involves incorporating game-like elements into non-game contexts. By adding challenges, rewards, and competitions, you can encourage customers to interact more with your brand, making the experience enjoyable and interactive.

6. Create interactive and engaging content

Develop content that encourages participation. Polls, quizzes, surveys, and interactive videos prompt customers to actively engage with your content rather than passively consuming it. 

7. Fine-tune product features based on user engagement

Monitor how customers use your product or service and gather feedback. Adjust and enhance features based on their engagement patterns and preferences, making your offering more aligned with their needs.

8. Use an omnichannel approach

Offer a consistent experience across all channels, whether it’s your website, social media, mobile app, or physical store. This ensures that customers have a seamless journey and can engage with your brand wherever they prefer.

Benefits of Yellow.ai’s Dynamic Automation Platform for customer engagement

Our advanced Dynamic Automation Platform (DAP) is not just powered by generative AI but also offers the optimization of a multi-LLM architecture to help enterprises augment their marketing funnel while also lowering operational costs.

Here are a few reasons why you need DAP if you are struggling with customer engagement:

  • AI-powered templates for ease: Leveraging state-of-the-art LLM technologies, quickly craft conversational templates that skyrocket user engagement by 60%.
  • Auto-generated reminders: Deploy auto-generated reminders that engage users just in time, slashing cart abandonment rates by a staggering 30%.
  • Omnichannel workflows: Design purpose-driven campaigns across all channels, amplifying lead conversion rates by an impressive 50%.
  • Targeted promotions at an individual level: Leverage personalized, data-driven campaigns to understand, engage, and decode individual user preferences to boost purchase success.
  • Powerful dashboards: Realize potential revenue growth of up to 10% by diving deep into past campaign performances and buying trends.
  • Event-triggered campaigns: Monitor user actions and at specific points in their journey budge them towards desired outcomes. This can help in improving cart recovery by 25%.
  • User lifecycle optimizer: Map out and engage with customers throughout their journey, optimizing conversions at every phase and magnifying customer engagement by a whopping 60%.

Customer engagement FAQs

How can conversational AI improve my customer engagement experience?

Through conversational AI, enterprises can deliver a more personalized encounter for their customers. This involves utilizing data gathered by the chatbot to comprehend customer preferences and requirements.

Also, implementing chatbots allows businesses to offer swifter and more effective customer service. By managing numerous customer inquiries simultaneously, chatbots can also route customers to the appropriate agents, diminishing wait times. 

Conversational AI also empowers companies to enhance their conversational marketing capabilities and implement automation. By utilizing chatbots to comprehend customer needs and furnish appropriate content, companies can improve their marketing strategies.

How do AI-powered chatbots or virtual assistants improve customer engagement?

Recent studies have claimed that businesses could save an average of 30% on customer service costs by using chatbots.

In the upcoming years, nearly all prominent enterprises will utilize chatbots to enhance their customer service and achieve favorable business outcomes for the company.

Chatbots play a role in pinpointing conversation gaps, detecting patterns in customer interactions that aid in swiftly resolving issues. They have the ability to adapt the conversation flow while engaging with customers.

The ultimate outcome: A customer who is more involved and satisfied.

Is conversational AI available 24/7 to assist me whenever I need support or information?

Yes! Conversational AI works tirelessly, like a reliable companion, ready to assist you whenever you need support or information. Whether it’s the middle of the night or a busy workday, you can count on conversational AI to be there, making sure your questions are answered and your needs are met without any time constraints. It’s like having a knowledgeable and friendly helper available around the clock, just a message or a question away.

What steps can I take to optimize my interactions with conversational AI and enhance my overall engagement?

To optimize your interactions with conversational AI and enhance overall engagement, it’s helpful to approach it like a natural conversation. Use clear and concise language, incorporating keywords to ensure accurate understanding. Take advantage of the AI’s multitasking ability by asking various questions within one conversation. Providing feedback on responses helps the AI learn and improve over time. Explore the AI’s features to discover ways to enhance your experience. 

For critical matters, consider verifying information from official sources or experts. If possible, personalize the AI’s interactions to align with your preferences.

To sum up

Even though AI has the potential to revolutionize customer service, not many companies have explored it. Some firms, particularly in the B2C sector, are unsure how to employ AI for consumer benefit, while others believe they do not need AI to be customer-centric. 

But the truth is, these businesses have the most to benefit from AI technology. It’s crucial to connect with your customers in a way that suits them best. This is the key to providing the amazing brand experiences they anticipate and want. Conversational AI is the perfect way to achieve all of this affordably and effectively when needed.

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