Unleashing the power of AI to elevate the customer experience

The Asia Pacific (APAC) region is bracing itself for a year of exploration and growth, with artificial intelligence (AI) at the centre of it all. The 2024 Global Customer Engagement Report by Vonage sheds light on the current trends and future directions of customer interactions with businesses. One of the report's most significant insights is the importance of AI in enhancing customer engagement strategies.

The study indicates that users are seeking quicker problem resolution through technology, rather than waiting to speak with a live person. This capability is a "must-have" for winning and keeping satisfied customers.

The study confirms that AI within CX is well liked by consumers, particularly Indonesia, North India, South India, and China. Positive sentiment ranges from Indonesia’s 71%, to South India’s 89%. Positive sentiment correlates strongly with consumer experiences using AI, from China’s 90% to North India’s 94%. These positive experiences lead to higher customer satisfaction, brand loyalty, and positive feedback.

Business Market Insights also reports that customer experience (CX) services spending in Asia Pacific is expected to reach an impressive US$7.5 billion, expanding at a CAGR of 18.8% by 2028. This growth trajectory highlights the increasing importance of CX in the region's business strategies. With the rapid advancement of AI tools, companies have found a powerful ally in their quest to elevate customer satisfaction, revolutionising traditional business-customer interactions.

From chatbots that provide instant and personalised assistance to predictive analytics capable of anticipating customer needs, AI is playing an important role in transforming how businesses engage with customers.

Emerging consumer communication preferences

The study revealed that in APAC, mobile phone calls (73%) lead as the preferred daily communication method with businesses, followed by phone calls via messaging apps (60%), messaging via non-SMS apps (64%), emails (50%) and social media posts (47%). India and Indonesia have the highest daily usage of most methods for communicating with businesses whereas Japan and South Korea show the lowest use.

The main frustrations for consumers include long wait times (63%), no way to speak to customer service via voice/phone (59%), lack of 24/7 support availability (48%) and lack of self-service support (46%).

The report reveals that 80% of consumers are likely to take their business elsewhere because of poor experiences. It also found that 61% will not tolerate bad experiences and will walk away after just one or two bad encounters.

The report also categorises communication methods into two groups: established methods with wider adoption and emerging methods with lower usage levels but high growth potential.

The findings showed that consumers are embracing AI to make their experiences better. Chatbot usage is projected to more than double from 10% to 23% in the next six to 12 months, with video chat usage also expected to rise from 13% to 26% in the same period.

AI tools such as chatbots and AI-based virtual agents are set to play a key role in providing quick resolutions, reduce frustration, and ultimately offer a more targeted and personalised customer experience.

Video chat plays an equally important role as an essential communication channel. Businesses can leverage video APIs to integrate live video chat into their websites and apps. This integration offers customers the option to securely engage with human agents in a more personalised setting.

Additionally, AI-driven sentiment analysis can be used to detect customer frustration. This technology automatically generates relevant insights, enabling human agents to quickly and effectively address any issues.

The role of artificial intelligence in customer experience (CX)

Using AI tools to improve CX has been met with largely positive responses from consumers. Most display positive and neutral sentiments, with only about 1 in 10 expressing negative views. Positive sentiments about companies using AI tools are particularly high in Indonesia (71%), North India (86%), South India (89%), and China (77%). This positive sentiment correlates strongly with consumer experiences using AI-assisted tools– Indonesia (92%), North India (94%), South India (92%), and China (90%).

Implications of positive customer experiences on brand loyalty and feedback

Positive experiences facilitated by AI enhance customer satisfaction and significantly impact brand loyalty and feedback. 56% of consumers are likely to give positive feedback after a great business experience, with 55% sharing their experience with friends and family. Over half (52%) show increased brand loyalty, and 36% make additional purchases post-encounter.

To ensure positive customer experiences, businesses should focus on avoiding major frustrations. One approach is implementing an omnichannel communications strategy that allows customers to seamlessly contact them across their preferred channels. Those that do will benefit from the ability to leverage the powerful capabilities of AI across various communication channels, such as voice, video, messaging, and chat.

This enables the enhancement of live customer support. It also contributes significantly to ensuring personal and real-time customer engagement at every touchpoint.

Conclusion

Businesses recognise that delivering exceptional CX is pivotal to unlocking growth and loyalty. AI is at the heart of this transformation, solving increasingly complex problems in customer communication. It's poised to answer more complex queries and manage tasks that directly enhance engagement and productivity, shaping a new era of customer-business interactions in the APAC region.

This article was written by Sunny Rao, Senior Vice President of API Global Sales, Vonage