Customer Service

Real world examples of how AI works to answer retail customer questions

Bob Grohs, director of marketing at Solvvy, some real-world examples of how AI-powered chatbots are answering customer questions and the value proposition provided.

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August 23, 2021

There are few things more frustrating for a customer than needing an answer to a pressing question only to realize a company's service desk is closed and won't reopen until the next business day.

In a world where information never sleeps, from the 24-hour news cycle to endless online content, why should customer assistance? The answer is simple: It shouldn't.

The vast integration of chatbots and virtual assistants into our digital spaces, homes, offices and cars proves AI-powered technologies are here to stay. This staying power can be attributed to the powerful advancements in machine learning and underlying technologies like natural language processing that have made chatbots smarter, more responsive, and more useful for consumers. And while chatbots don't outright eliminate the need for human help, they do complement person-to-person customer service systems to effectively address issues in real-time and deliver customers quick resolutions — even after hours, on weekends, and holidays.

With chatbots now mainstream, let's take a look at some real-world examples of how AI-powered chatbots answer customer questions.

Understanding natural language

Five individuals may ask the same question — or make the same statement — five different ways, which means chatbots need to be sophisticated enough to understand a customer's intent. For example, take a recent blue jean purchase where a customer is dissatisfied with sizing. When the customer visits the retailer's website and engages with a chatbot, they might make a declarative statement like, "My jeans don't fit," "I'm not happy with my jeans," or "I dislike my new jeans." Using natural language processing, chatbots can understand statements phrased in different ways to get to the heart of the customer's concern.

This ability to understand human language and decipher the various forms a question or assertion may take means chatbots can effectively take on tasks that typically fall on live agents. These tasks can include helping someone pay a bill, choose a shipping option, or initiate a return. They don't end there though. Chatbots can also troubleshoot complex issues, provide remedies, and educate customers on products and services.

Shopping around, making a sale

When consumers visit a company's website, they often don't know the product or service that's right for them. Fortunately, AI chatbots can help. Let's say someone is looking to install home security but doesn't know where to start building their system. With customized, multi-step workflows built in, AI-powered chatbots can help customers reach a decision, or direct them to a specific solution, based on their specific needs.

For example, a chatbot may ask: Do you need a security system for inside or outside? Do you want video capabilities? Are you connected to WiFi? Chatbots can ask a series of questions, programmed as a decision tree, with each answer leading to another question until the customer's need is narrowed down and a solution is identified. This works similarly to how a sales associate or service agent would handle things. Ultimately, automated workflows power a chatbot's ability to identify needs, suggest products and ensure customers get the support they need.

Troubleshooting customer issues

AI enables chatbots to help customers solve issues that would traditionally require live agent support. From order tracking to subscription management and even complex troubleshooting, chatbots can prompt customers to answer simple questions in order to offer a solution. Similar to the line of questioning from above regarding product needs, chatbots can determine a customer's particular concern and troubleshoot issues of all calibers. So, if a customer is having an issue with the home security device they purchased, they could be prompted to answer questions like: What device do you have? Is it blinking red, blue or green? And so on.

At the end of questioning, a chatbot can determine the best course of action, whether it's providing customers with the specific content, support via video, or other instructions to fix the problem. Next-gen chatbots can also determine whether an issue requires a more serious fix and will connect customers directly with the right person. In the end, chatbots ensure issues get solved quickly and with less human intervention.

Reducing customer churn

When it comes to retaining customers, AI can be just as effective as a live agent in addressing customer concerns and helping to mitigate future issues. Say a customer wants to cancel a subscription –– rather than directing customers straight to a cancellation page, chatbots can redirect them to a retention team. Chatbots can also save customers by sharing special offers when appropriate. By effectively reducing customer churn, there is a quantifiable benefit and cost savings with chatbots when measuring retention.

AI-powered chatbots aren't a one-off problem solver, but rather a system that can work in coordination with live service agents to offer quick resolutions and help customers avoid long waits on hold, every day and hour of the week.

Bob Grohs is director of marketing at Solvvy