How AI will change the customer journey forever
One of the trends we describe later in this issue is how AI is changing our search behaviour. But it goes beyond that. Recent research by Wired Consulting and Google shows that artificial intelligence (AI) will influence customer behaviour through all stages of the customer journey.
More B2C and B2B companies are discovering how AI can not only improve their processes, but more importantly help transform their interaction with customers. And it has only just begun.
Simplifying the "messy middle"
The "messy middle" refers to the complex and often overwhelming part of the customer journey in which consumers research, weigh up choices and ultimately make a decision. AI can reduce this complexity by filtering relevant information and providing personalised recommendations. This allows consumers to make faster and more confident decisions, leading to less choice overload, higher conversion rates and higher customer satisfaction.
In addition, image recognition technology assists visual searches, such as a search from a picture of a particular piece of clothing.
Generative AI in Conversational Commerce
The new generation of AI chatbots, can act as a virtual sales assistant. Where previous chatbots were limited to simple service questions, these new chatbots can answer much more complex questions. For example, they can offer advice based on personal preferences or even make suggestions for specific occasions, such as clothing advice for a wedding. This is described as "conversational commerce", where AI is able to have conversations similar to those of a human salesperson.
Improved product visualisations and virtual previews
AI can not only make recommendations about copy, it can also enhance visual previews, especially in sectors such as fashion and beauty, where online purchases are often returned due to size or colour discrepancies.
Generative AI allows consumers to get a virtual fit or preview that is more realistic than previous technologies, such as augmented reality (AR). This reduces the likelihood of returns and helps consumers make better buying decisions.
Automation of regular purchases
AI can also automate the trickier and less fun aspects of the customer journey, such as renewing insurance or keeping track of daily shopping. AI agents can independently make certain purchases based on consumer preferences and habits.
This concept is often referred to as the "AI agent", which may be able to perform more complex tasks in the future, such as planning an entire trip or managing inventory.
AI as an extension of human preferences
AI can also improve the customer journey by developing an intimate understanding of personal preferences. The article outlines a future in which a personal AI agent constantly makes suggestions, discovers new products that match consumer tastes and can even make purchases without user intervention. This level of personalisation could transform the shopping experience from a task to an enjoyable and proactive interaction.
The style assistant of fashion store Zalando, uses AI to put together outfits for you based on your preferences. This not only makes shopping easier, but it also makes the process fun by offering you choices that are tailored to your preferences and clothing style. AI takes the stress out of choosing and makes the customer feel listened to.
Look at streaming services like Spotify and Netflix, for example. They use AI to provide relevant recommendations. For example, Spotify's Discover Weekly is particularly popular because it introduces you to new music based on what you've listened to before.
Netflix does something similar: AI helps you find not only films and series that suit your tastes, but also new content you might not have heard about. This kind of personalised experience keeps customers coming back because they feel understood.
Shorter waiting times for customer service
AI also plays a big role in after-sales service. AI-powered chatbots, for instance, help companies serve customers faster and more efficiently. Whether you have a simple question or a complex problem, AI can provide real-time support. That means shorter waiting times and more satisfied customers.
AI contributes to better brand experiences
iO is already seeing how profoundly AI will change the relationship and interaction between brands and customers. Whether it is personalised recommendations, better customer service or new ways to interact with products, AI is a key factor in creating strong, relevant connections. In this dossier, we take a closer look at the opportunities AI presents to B2B and B2C companies: the possibilities are almost endless ...