Data analysed by the customer experience specialist CX Network has found that over half (56%) of businesses have not implemented AI optimisation strategies to improve customer engagement.
This is despite the fact that 42% of respondents agreed that automation was critical for delivering CX at scale, with 66% of customers expecting companies to understand their unique needs and expectations
Respondents note that proving ROI is the largest barrier to implementing AI in customer engagement, with 32% of businesses citing it as a key challenge.
Out of those businesses that have deployed AI to address customer engagement challenges, just 25% of AI usage within this area is spent on Customer Data Platforms (CDP). In line with this, Twilio’s recent 2024 State Of Customer Engagement Report found that 6 in 10 customers said protecting their data was the top way to build trust, yet 40% of brands said balancing security and customer experience is one of the most pressing challenges in 2024.
With 65% of customers saying they would switch brands if unsatisfied, it’s vital that businesses capitalise on AI to improve customer engagement, if they are to meet customer demands in an era of waning customer loyalty.
Dan O’Connell, Chief AI and Strategy Officer at Dialpad, said: “Generative AI will become the focal point of most business operations and continue to be a key driver in improving customer experience in the near term. By utilising AI to gain deeper insights into consumer needs and personalise interactions, businesses can foster customer loyalty and drive revenue growth.
“Companies will need to understand how AI can drive the most engaging online experiences for their customers or risk losing them as technology continues to advance – making impactful features that really work for them. Customers now demand a personalised digital experience with tailored recommendations and self-service options, making it mandatory for businesses to comprehend how AI can empower them to enhance their services.”
