Did you know-

🚫 79% of customers demand consistent interactions across departments. 

🚫 56% have to repeat or re-explain their issues to different representatives. 

🚫 70% expect all representatives to have the same information about them. 

🚫 55% feel they deal with isolated departments rather than a cohesive company.

This isn’t just an expectation gap—it’s a crisis of operational inefficiency and customers’ frustration that no business can ignore. This is the sentiment shared by 14,300 consumers and businesses worldwide, highlighting significant problems in customer service.

In other words, the conventional approach to customer service is almost broken. Long wait times, impersonal interactions, and outdated systems do their part to drive customers away, damaging brands and eroding loyalty. 

This demands an immediate change. Can AI-powered contact centers be the solution? Its convenience and capabilities seem to say so. Read on to discover how AI-powered contact centers operate.

The fundamental flaws with traditional contact centers

Traditional contact centers face core issues such as high operational costs, outdated infrastructure, and inefficiencies in meeting modern service demands. Let’s go over some of the major drawbacks:

#1 High operational costs and resource constraints

Traditional call centers are often financially crippling, with operating expenses nearing $1.5 billion annually due to high labor costs, outdated infrastructure, and extensive training demands. 

Deloitte’s study highlights that these centers can cost businesses 60-70% more than digital alternatives, diverting resources from innovation. They also fail to meet millennials' expectations for faster, more efficient service, leading to substantial financial losses, including an estimated $750 million in uncollected debt each year.

The message is clear: The inefficiency of traditional call centers isn't just a fiscal problem—it's a symptom of deeper issues.

#2 Agent burnout and attrition 

Nearly 60% of contact center agents face burnout, a pervasive issue across the industry. This often goes unrecognized until its detrimental effects emerge, causing decreased productivity, high turnover rates, absenteeism, increased costs, and lower First Call Resolution (FCR) and Customer Satisfaction (CSAT) scores. 

Call center turnover serves as a pivotal metric for effectively managing operational practices and ensuring the sustained performance and well-being of call center teams.

#3 Limited employee knowledge

Despite heavy investments in customer experience software like CRMs, helpdesk platforms, and live chat tools, many organizations see minimal improvement. 

Approximately 60% of agents reported receiving little to no value from their call center training, leading to constrained customer experiences due to limited knowledge of services, troubleshooting methods, and client customization options.  

The key problem lies in inadequate training for employees to effectively utilize these tools. This gap hinders organizations from maximizing technological investments and meeting the high standards of modern customer service.

#4 Lack of personalization and empathy

According to McKinsey, approximately 70% of customers prefer personalized experiences, and around 75% become upset when this expectation isn't met. This starkly highlights traditional call centers’ inability to deliver tailored interactions. 

Outdated systems and inadequate training leave agents ill-equipped to offer customized solutions, causing customers to feel undervalued and misunderstood. This frustration not only damages customer satisfaction but also erodes brand loyalty, driving customers to seek better experiences elsewhere.

#5 Missed opportunities for proactive service

Traditionally, customer service has been reactive, forcing customers to navigate multiple channels with little success and resulting in low self-service containment rates and widespread dissatisfaction. 

However, Gartner insights reveal a rising customer preference for proactive engagement by organizations. This shift can significantly boost key metrics like Net Promoter Score (NPS), Customer Satisfaction Score (CSAT), Customer Effort Score (CES), and Value Enhancement Score (VES), highlighting a critical evolution in meeting customer expectations.

The promise of AI: Rescuing customer service

Customer service technology has evolved vastly since the earliest documented customer complaint on a clay tablet over 3,700 years ago. AI in contact centers is now transforming customer service, enhancing interactions with intelligence and empathy at every touchpoint.

👉Customers today prefer quick, efficient solutions from chatbots over waiting for live agents. 👉Additionally, managing customer service calls is costly, often running several dollars per call in labor and resources.

AI-powered contact centers transform these high-cost operations into efficient, responsive hubs. The technology optimizes every touchpoint in the customer journey, offering faster and more effective support. Freed from repetitive tasks, agents can dedicate their time to understanding and resolving unique customer issues, leading to higher job satisfaction and improved customer experiences.

Advanced technologies like predictive analytics and machine learning enable AI to analyze vast amounts of data, identify patterns, and predict customer needs. 

How does an AI-powered contact center work?

Adopting AI in customer service can offer numerous benefits for businesses. Here are some ways to leverage customer service AI:

✅Supercharge agents with AI assistants: 

Like Ironman’s JARVIS, AI assistants provide a powerful, guided, and personalized agent experience. Their role is not to replace agents. 

Picture effortlessly addressing your customers' inquiries day or night with these AI-powered self-service chatbots, which can swiftly handle queries, direct customers to the right information, and even create support tickets. These bots quickly retrieve technical details and seamlessly escalate to support agents if AI is integrated with knowledgebase. 

✅Predict customer needs with proactive service: 

Predicting customer needs and offering smart suggestions transforms customer service from reactive to proactive, creating smoother and more satisfying experiences for customers. When customers frequently face delays and frustration, having to contact support whenever issues arise. 

With proactive service, the system anticipates potential problems and offers solutions before customers even notice. Customers receive prompt and quick resolutions, ensuring timely service and boosting satisfaction.

✅Personalized journey with omnichannel support
Picture a customer starting a conversation on a website's live chat, seamlessly transitioning to a voice-bot interaction for further assistance, and later receiving follow-up messages via SMS or WhatsApp—all within a cohesive and personalized journey. 

An omnichannel engagement approach integrating AI-powered features for a unified experience would be a solution. This strategy not only ensures seamless real-time interactions but also empowers businesses to personalize outreach and deliver tailored messaging.

✅Streamline operations with smart workflows

AI-powered agent assistance tools can significantly enhance agent productivity and efficiency, helping your support team resolve issues faster. Consider a customer needing support; the voicebot allows them to resolve simple issues when agents are unavailable or directs them to the appropriate queue or agent using their speech or dial tones. 

✅Customize support with AI insights

To make precise predictions about customer behavior, customer support data teams must deeply understand their customer's purchasing habits and lifestyle preferences. This insight is crucial for optimizing the customer journey. 

For instance, AI-powered sentiment analysis enhances this understanding during voice calls. By analyzing customer tone and language in real time, businesses can gauge emotions and tailor support interactions accordingly. This personalized approach resolves issues effectively and fosters stronger customer relationships.

Top questions to ask when choosing your AI solution for your contact center

Choosing the right contact center AI solution hinges on asking the right questions. These queries ensure seamless integration, meet interaction needs, align with timelines, and facilitate swift adoption with minimal training.

👉Can the AI-powered solution handle fluctuations in customer service demand effectively?

A scalable AI ensures you can meet peak demands without sacrificing performance, which means happier customers and fewer lost opportunities. Seek features like dynamic resource allocation and real-time load balancing. These ensure the AI can manage automatically based on current call volumes, maintaining high performance and customer satisfaction.

👉What kinds of interactions can the AI handle effectively?

Ensuring the AI aligns with your specific needs means it can handle routine tasks, freeing up human agents for more complex issues and improving overall efficiency. Evaluate AI capabilities in handling various interactions, such as answering FAQs, performing transactions, providing technical support, and managing complex queries. Advanced natural language processing (NLP) and machine learning capabilities can enhance the AI's performance in these areas, providing a more effective solution for your business.

👉Can the AI software seamlessly integrate with our existing systems and workflows?

Smooth integration minimizes disruptions and maximizes efficiency, allowing you to leverage your existing investments in technology. Look for AI solutions with APIs and pre-built connectors for popular CRM systems (like Salesforce), ticketing tools, and communication platforms. Integration capabilities should allow for a unified view of customer interactions across all touchpoints, enhancing workflow efficiency and data accuracy.

👉What level of customization does the AI solution offer to meet our specific business requirements?

Tailoring the AI to your unique processes and industry-specific needs ensures it delivers maximum value and aligns with your operational goals. Opt for AI platforms that offer configurable workflows, customizable dialogue scripts, and the ability to fine-tune algorithms based on your business rules and data. This flexibility allows you to adapt the AI to your exact needs, providing a personalized experience for your customers.

👉Does the AI software support communication across diverse channels like voice, chat, email, and social media?

Customers demand cohesive and uninterrupted experiences across every channel. A multichannel AI solution helps meet these expectations, boosting customer satisfaction and loyalty. Ensure the AI supports omnichannel interactions, with features like unified customer profiles and consistent interaction history across channels. This integration provides a seamless experience for customers, regardless of how they choose to contact you.

👉How will agents be supported during the transition to AI integration?

Efficient training programs mean quicker implementation and less downtime, enabling agents to start using the AI effectively without a steep learning curve. Look for a unified agent desktop that consolidates all necessary tools into a single interface. Additionally, a robust knowledge base integrated with AI-trained chats can assist agents by pulling relevant information and features on demand, further simplifying the learning process.

👉How quickly can contact center AI software be implemented and put into operation?

Fast implementation reduces downtime and allows you to start realizing the benefits of AI sooner, improving operational efficiency and customer service. Prioritize AI solutions with rapid deployment options, including cloud-based models that can be up and running quickly. Pre-configured templates and out-of-the-box integrations can further accelerate the implementation process.

👉How does the AI solution handle data management and ensure data security?

Customer data should be managed securely and efficiently, which is paramount for maintaining trust and complying with regulations like GDPR or CCPA. Proper data handling can also provide valuable insights to improve customer service and operational efficiency. Ensure robust encryption for data in transit and at rest to protect sensitive information. Look for comprehensive data management tools with automated tagging, anonymization, and secure storage. Verify compliance support for regulations and detailed audit logs. Strong analytics capabilities are crucial for actionable insights and continuous service improvement.

Best-of-breed examples of AI-powered contact center solutions

#1. Plivo CX: 

Plivo CX makes customer service more convenient, less resource-heavy, and solution-centric for small and medium businesses with its cloud-based omnichannel contact center solution. Here’s how it helps:

• OpenAI-powered live chats handle common questions based on your knowledge base, giving instant help
• It works with your custom knowledge bases, so agents always have the right answers
• Agents can switch between channels effortlessly and handle multiple conversations using Unified Agent Desktop. Customers can also reach out to your agents in any platforms they prefer.
• Predictive analysis triggers automated workflows and directs calls based on agent skills
• Deliver the right messaging to the right customers at a specific time to increase engagement 
• Leverage the Workflow builder to build automated customer journeys across all communication channels
• The platform leverages Plivo’s award-winning premium carrier network with low latency. It supports outbound voice calls to more than 220 countries, with features like call recording for agent training
• Features like call-back options and sticky routing ensure customers stay connected with the same agent
• It seamlessly integrates with Shopify, Zoho, Salesforce, Zendesk, and HubSpot, and you can customize it with your API
• You can also integrate it with your existing systems to create personalized customer journeys across all channels

#2. Help Scout: 

Help Scout provides a comprehensive omnichannel contact center solution that consolidates all client conversations onto a single platform, enhancing the efficiency of customer support. Key features include:

• Support for chat, live chat, email, and social media interactions
• A unified inbox for smooth collaboration between customers and agents
• Tools to improve team efficiency, such as message assignments, private notes, real-time collision detection, and an AI summarizer for email threads
• Automation capabilities with customizable workflows triggered by actions like tagging subject lines
• Mobile apps for iOS and Android enable agents to stay connected and respond promptly while on the move

#3. Kustomer:

Kustomer caters to mid-market businesses in e-commerce and retail industries with a range of powerful features:

• An AI-powered help center available in 76 languages, significantly reducing support volume by deflecting 40% of inquiries
• KIQ Customer Assist utilizes AI and knowledge base information to provide quick and accurate responses to customer queries
• Customize IVR menus based on customer data to ensure efficient routing to the most suitable agents
• Agents benefit from a timeline view that displays interactions in chronological order, offering complete context for better customer service

Will contact center AI replace call center agents?

As AI-driven technology continues to reshape customer service, the question of whether it will replace call center agents is pivotal. Despite technological advancements, over two-thirds (70%) of contact center managers foresee an increase in the number of agents over the next decade. This trend reflects a shift towards cultivating "super agents" who excel in handling complex issues and leveraging multiple communication channels effectively. 

Evolving Roles: Cultivating "Super Agents": 

• Complex issue management: Agents will specialize in resolving intricate customer problems that require critical thinking and empathy
• Multichannel proficiency: Super agents will adeptly navigate various communication channels to deliver seamless customer experiences
• Increasing value: The demand for agents capable of empathetic and personalized problem-solving will rise, underscoring their indispensable role in contact centers

It is also important to note that machines may soon surpass humans in intelligence, reliability, and predictability. However, a key ethical consideration for the future of AI is whether we should maintain a Human in the Loop (HITL) system, even as AI capabilities advance.

Power your contact center with AI 

As we forge ahead into the future of customer service, one truth stands out: the call center industry is undergoing inevitable change. AI integration in omnichannel strategies is pivotal for businesses, offering enhanced operational efficiency and competitive advantages.

It’s time for contact centers to seize growth opportunities. Selecting a customer service platform like Plivo CX that fits your business needs can help you dart ahead in the competition. 

Take charge of transforming your contact center today by starting your free trial with Plivo CX and embracing a future of elevated customer service excellence.