Not since the invention of the Internet, and then the mobile phone, have we seen a technological revolution as far-reaching as AI. Artificial intelligence is changing the way we live, how businesses operate, and how we interact with customers. For small and medium-sized businesses with fewer resources, AI will greatly improve their ability to compete at a larger scale.
Combine this with AI's ability to use first-party data to better understand customer needs, and AI will redefine the parameters of customer experience. But with AI products and tools popping up everywhere, it's important to not only understand how AI is changing the growth landscape, but also how small businesses are responding to this change.
There's no doubt that we are living in a transformative era of AI. So what should small businesses consider when planning for AI integration?
Identify key customers to increase customer loyalty
The huge impact that AI tools can have on small businesses is most evident in the area of online stores, where personalized customer experiences are key. Traditionally, small businesses have struggled to deliver the kind of customized experiences that larger retailers offer.
Historically, only large retailers had the resources to analyze the buying patterns and preferences of their most loyal customers. Unable to identify these “VIPs” and customize their experiences, small and medium-sized businesses were missing out on huge revenue potential from this group.
For companies without a VIP engagement strategy, AI-powered tools are an attractive solution. By integrating AI into CRM systems, companies can identify VIP customers more effectively than ever before. AI algorithms can identify patterns and behaviors that indicate VIP status, making it easier to create personalized experiences. Research shows that nurturing relationships with VIP customers not only drives increased revenue, but also leads to greater profitability in the long run.
Founder and Co-CEO of Channel Talk.
Personalized support with chatbots
AI-powered chatbots are becoming increasingly common for businesses looking to improve their customer service capabilities and standards. Customer questions and comments are often repetitive and relatively easy to resolve. By automating common interactions (such as checking order status or initiating a return process), businesses can drive highly personalized experiences while reducing operational costs. Chatbots use customers' information, past engagements, and purchase history to instantly craft the right response when needed, so resources can spend less time on redundant tasks and focus on more complex customer inquiries.
Additionally, AI chatbots can act as virtual concierges to improve customer experience. Similar to how a hotel concierge helps guests fulfill their travel needs, AI chatbots can use preferences and past interactions to provide personalized recommendations for products and services; facilitate the purchase or return process, eliminating the need for customers to take action on their own; and even help customers quickly retrieve relevant information and resolve issues in real time.
What's more, it does all this while conversing with users in natural language, providing a friendly, seamless experience.
It is important to note that AI chatbots are not intended to completely eliminate the need for human interaction, but rather to focus on providing excellent service where it matters most.
Improved workflow
Beyond customer engagement, AI is also transforming internal operations. Workflow automation has eliminated the need for lengthy manual data entry. AI can automatically populate data from various sources into the best CRM for small businesses, eliminating human error and ensuring accuracy and consistency.
AI algorithms can also enhance team management by automatically assigning tasks to sales and support staff based on predefined criteria. Automatic follow-up reminders can be triggered to ensure customer inquiries don't slip through the cracks.
An AI-driven CRM system generates reports and analytics that allow you to drill down into key performance indicators like customer satisfaction and marketing ROI, making data-driven decisions much easier and faster to execute.
Achieve success with AI
AI technology represents a sign of opportunity for small businesses, offering unprecedented opportunities for advancement and the ability to compete on a much larger scale. By incorporating solutions into various aspects of their operations, small businesses can increase customer loyalty, streamline processes, and provide superior service. As AI evolves and matures, the future for small businesses looks brighter than ever.
We have listed the best customer database software.
This article was produced as part of TechRadarPro's Expert Insights channel, featuring the best and brightest minds in technology today. Opinions expressed here are those of the author and not necessarily those of TechRadarPro or Future plc. If you're interested in contributing, find out more here. https://www.techradar.com/news/submit-your-story-to-techradar-pro
