Three Ways Smaller Businesses Can Use Artificial Intelligence for Customer Experience Enhancement

Is using Artificial Intelligence for customer experience enhancement a smart idea for businesses? After all, it’s quite self-evident that customers are still just as important to businesses as they were when the world’s first barter transaction was executed. In the past, businesses have always pushed boundaries to offer better customer service experiences. What’s relatively new for modern businesses is their ability to track customers, recognize their liking/disliking, and customize their products or services based on this understanding.

That’s why, for many decades, businesses have been tracking the footprints of their target customers – be it via market research or by collaborating with other businesses to gain insightful data about target audiences. The internet has, of course, made this process of accumulating customer data much easier. Not only has the internet radically transformed the way corporations can manage their customer management, but it has also transformed customer expectations.

What Does the Modern-Day Consumer Want?

Modern-day consumers seek richer shopping experiences with minimal friction. These experiences must also capture the spirit of their personalities – who they are, how they behave to business offers, and how they desire to consume information. The sooner retailers understand this need for creating personalized customer journeys, the faster they’ll be able to trump the competition and increase profitability and customer retention rates. Thankfully, AI and analytics can give them this competitive edge.

Analytics and Artificial Intelligence (AI) can redefine customer experiences in various ways, and that’s why the large enterprises are already implementing them. Here are three ways smaller businesses can replicate this model and use Artificial Intelligence for customer experience enhancement –


The most widely-used application of AI tools is automation. Machine Learning programs enable businesses to curate customized product recommendations on their platforms without needing any human intervention. Top businesses like Amazon use their AI tools to process user reviews, study the past searches or purchases of individual customers to present them with highly-precise product recommendations. Small-scale retailers may not have access to large amounts of data like Amazon does. But, by implementing programs like collaborative filtering, they can optimize the customer experiences their websites provide.

Super-Fast Communication

Unlike in the past, when data had to be analyzed for weeks before creating product offers for customers, AI-powered customer experience systems stream live data and curate products/offers in real-time. For instance, an AI-powered algorithm can use a customer’s mobile geolocation data to send instant offers or promotions whenever customers are near one of the business’s brick-and-mortar stores. Even if very few customers respond to these offers, businesses can instantly track customer engagement levels and improve their approaches in the future.

Push Customers Towards Purchases

AI tools can streamline retail processes on the internet. Instead of dull browsing experiences, eCommerce websites can now offer interactive customer experiences on the internet using AI-powered tools like chatbots and intelligent product search systems. AI-powered programs can track customers’ transactional data, assess what webpages they’ve spent their most time on, what links they’ve clicked on, and other insights to make smart recommendations. AI-powered Chatbots can serve as automated customer service representatives and answer customer queries. Overall, these tools can push customers to find and purchase a product that they were thinking of purchasing while browsing the eCommerce website.