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Are AI Chatbots Costing Your Business Customers?

Are AI Chatbots Costing Your Business Customers?

by | Oct 14, 2024 | Business, Customer Service

Businesses are looking to streamline operations, save costs, and deliver efficient customer service. One popular method many companies have turned to is artificial intelligence (AI) chatbots. These bots are designed to handle a range of queries, offer quick responses, and theoretically improve customer experience by being available 24/7. However, my recent experience with Asana’s AI chatbot highlighted a critical flaw in relying too heavily on AI to handle customer interactions.

The AI Chatbot Loop: My Experience with Asana

While using Asana, I encountered a technical issue. Naturally, I turned to their customer support, which was run by an AI chatbot. At first, the bot seemed promising – quick responses and a vast knowledge of pre-set solutions. But when my problem turned out to be more complex, the chatbot got stuck in a loop, continually offering the same irrelevant solutions without any option for escalation. When I tried to register my email address for the next level of support, it kept failing, and then I was looped back around. Despite multiple attempts to resolve the issue, I was left going in circles, with the chatbot unable to provide real help.

Frustrated and unable to find a resolution, I eventually gave up. I tried emailing via their website for support….and heard nothing back after 3 attempts. The AI chatbot, meant to save time and frustration, became the very reason I walked away from Asana. My trust in their service was diminished, and I wasn’t willing to waste any more time waiting for the AI to understand my problem. In the end, I moved to a new system that offered real customer support staff.

The Downside of AI Chatbots

Many businesses view AI chatbots as a cost-saving tool that can handle high volumes of inquiries at a lower expense than employing real human support agents. However, the downside to relying on AI exclusively can be significant:

  1. Lack of Personalisation: AI chatbots, no matter how advanced, follow programmed scripts. If the issue is outside their range of responses, customers quickly realise they’re not speaking with someone who understands their specific problem.

  2. Frustration Over Complex Issues: While AI chatbots may be able to handle basic inquiries (e.g., “How do I reset my password?”), they often fail to resolve more complex issues. When customers, like myself, find themselves stuck in a loop of automated responses, frustration builds.

  3. Lack of Escalation: One of the biggest issues I encountered was the inability to escalate my problem. AI chatbots are often not designed to easily transfer to human support, leaving customers without the help they need.

  4. Missed Opportunities: Businesses may lose potential customers by offering insufficient support. Just like my case with Asana, customers may walk away, feeling that their time isn’t valued.

The Benefits of Having Real Staff Over AI Chatbots

While AI chatbots can handle simple tasks, having real staff still provides a range of benefits, especially when it comes to customer retention and satisfaction.

  1. Empathy and Understanding: Human support agents can offer empathy—a key component when resolving issues, especially those that frustrate customers. Real staff members can assess the tone of a conversation and adapt their approach accordingly.

  2. Problem Solving Skills: Unlike AI, which works on pre-programmed responses, human agents are critical thinkers. They can navigate complex situations, ask clarifying questions, and find unique solutions tailored to a customer’s issue.

  3. Building Relationships: Real staff can build long-term relationships with customers by understanding their needs and offering personalised recommendations. This not only solves the immediate problem but can also create brand loyalty.

  4. Escalation Options: With human support, there’s usually an established hierarchy – agents can escalate issues to managers or specialists, ensuring the problem is resolved at the right level. This chain of escalation is something AI bots currently struggle with.

Finding the Right Balance

AI chatbots are useful for handling straightforward queries, such as FAQs or simple troubleshooting. However, businesses need to recognise that for complex or high-stakes customer inquiries, human intervention is still necessary. The key is to find a balance between automation and real human support. One solution is to implement AI chatbots as a first line of support, but ensure that escalation to real staff is smooth and accessible. However, make it easy for people to find that next level of support.

AI can be helpful….

As my experience with Asana’s chatbot demonstrates, while AI can be helpful, it has its limitations- particularly when customer issues are complex. Businesses need to consider the potential consequences of relying too heavily on AI for customer service. If the balance isn’t right, they risk frustrating customers, losing business, and damaging their reputation. At the end of the day, investing in real human customer support can not only resolve issues more effectively but also strengthen the relationship between the customer and the brand.

How your business can grow its returns with email marketing

How your business can grow its returns with email marketing

by | May 8, 2023 | Business, Customer Service, Digital Marketing, Email Marketing, Mailchimp

Email marketing gives you immediate access to your audience by allowing you to send your content directly to their inboxes, which can lead to increased conversions and brand loyalty.

According to research email marketing has the highest return on investment than any other form of digital marketing.

Here are some best practices for using email marketing in your business:

The first step is to build a list.

You can’t market to anyone if you don’t have their contact information, and the best way to do that is by building an email list.

You want to develop an offering of some form that entices your target market to subscribe to your list. For example; a retail store may offer a discount on their first purchase, and service-based business might offer something that showcases their expertise and gives their audience a sample of how their services will benefit them. Give a solution to the most common problem your target market may have.

Send emails with personalized content that engages your readers.

Personalised content

  • is more effective,
  • helps build a relationship with customers, and
  • helps you stand out from competitors.

Personalised emails are more likely to be read and acted upon by your customers, which can increase customer satisfaction levels if used appropriately.

Automate where possible

When someone signs up to your mailing list, create an automation where you welcome them and introduce your business and services in more detail so they can get to know you.

Some kinds of automation you can also add that have great ROI (return on investment) are

Anniversary or birthday emails – make your audience feel special. Sending a birthday or anniversary email is a wonderful way to make a customer feel special. You can add an incentive for them to buy products as part of their birthday wishes, for example: when they spend $50, they will receive a birthday gift valued at $30.

Abandon Cart or Recovery emails – often people can get distracted on a website and forget to finish their purchases, a simple email saying you held their items for them can see purchases completed.

Some interesting statistics on abandoned cart emails by Moosend

  • A staggering average of 69% of online carts are being abandoned by users 
  • 45% of cart abandonment emails are opened; 21% of all are clicked on, while 50% of the users clicked purchase. 
  • Shipping-related reasons contribute to over 60% of carts being abandoned. 
  • Setting up an automated cart abandonment email is a great way to lower your cart abandonment rates.
  • Offer free shipping to really boost the conversion of your cart abandonment emails.

Perhaps incorporating free shipping more regularly in your marketing offers could be a great conversion for your business, obviously, you would have set guidelines around this such as minimum spend amount, or limited time offer. 

Consistency

Send out a regular newsletter is important, this can be weekly, fortnightly or monthly. Consistency is key. Your target market has given you permission to be able to email them, so don’t allow this opportunity to be missed. Life gets busy, so being consistent is a gentle way of reminding your audience you are still there if they need you!

Content

Make sure your content is valuable to your audience. It’s a privilege that they’ve allowed you to email them directly, so treat them with that same respect. Where possible throughout your content, don’t be afraid to insert their first name.  

When creating your newsletter, create the value of sharing your content and showcasing your expertise.  

Whilst we have AI here to help you along, only YOU can make it a personal experience for your audience. 

Need Help?

If you’re feeling overwhelmed by the whole process, then feel free to reach out to me for assistance. Creating opt-in, automations, funnels and newsletters is one of my specialities.

Some wise words for you

David Newman says “Email has an ability many channels don’t: creating valuable, personal touches—at scale.”

Ramsay Leimenstoll says “A small list that wants exactly what you’re offering is better than a bigger list that isn’t committed.”

Ann Handley says “Make the customer the hero of your story”

Karl Murray says “Focus on growing your list all the time as newer subscribers are more engaged, adding to healthier open rates and ROI.”