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Machine Learning to Improve Customer Experience and Retention

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A common problem faced by almost all types of businesses is customer retention. According to the Harvard Business School, an increase in customer retention by just 5 percent, can lead to an increase in profits by 25 percent to 95 percent.

 

Business leaders always keep looking for strategies to improve their customers’ experience with a hope of their retention for a sustainable business. Business people have shown inclination towards use of machine learning tools to empower the lead generation, to analyze existing customer’s intentions and to deliver the expected to their customers.

In past, human work was preferred over machines’ work because of their capabilities to interact with the customer and understanding their needs. But today the tables have turned. Machines are now considered to be more effective and useful than human beings in shaping customer experiences by suggesting the ways to lock-in the customers, understanding their preferences and of course their precision in mundane tasks. Today machine learning can lend a hand to businesses in scaling customer engagement and subsequently providing most pertinent experiences.

Customers are not easy to deal with. It requires not only knowledge and patience but also a basic understanding of customer’s behavior. Some customers always look forward to give feedback to business people expecting a better service next time while some other want to engage in specific type of conversations. Even after knowing all these facts and taking all the necessary planning, sometimes business leaders are not able to pick the right method while pursuing a customer.

Machine learning can enhance the efficiency of business driving it with gear of sustainability. It sounds awkward, but this is a fact that we need machines to better understand human beings… Let us walk through the ways in which machine learning can offer improved customer experience.

  • People can spend hours on social media but when they become customers, they like the company which values their time. They hate waiting to get service from their seller, even if it is an automated response system. Machine learning allows customers to interact easily with their company enabling the business people to quickly understand what their customer wants minus longer waiting time.
  • Customers are the most impatient creatures who do not allow person handling their service query even to breath before they are served right. But at this point it is important to note that they have approached a particular company because they have an affinity for their product or brand. Machine learning gives you a better idea on why a customer has raised a service ticket within just few seconds of initial conversation. Machine learning algorithms can also do this by scoring them on the basis of certain predefined parameters. This relieves customer from frustration of explaining their problem again and again.
  • Customer’s interests, preferences and perceptions change every day and every hour but businesses stand helpless in such situations. Proper understanding of customers depends on having a crucial insight into their behavior, recent attentions and choices predominating top of their mind. Machine learning lets business carry out customer analytics by which it becomes easy for them to understand customer preferences. Predictive analytics plays an important role in identifying and showing the products matching their interest, taste, personality and of course current trends.
  • If a business leader wants to dig out the reasons behind improved or drop-off revenue, the responsive conduct of marketing or sales team can be one of the reasons. They also sometimes get bored of answering the same questions to their customers over and over again and hence fail to deal with typical customers. Machine learning can come up with solution to this problem by learning from past experiences. So when the customers approach your business, you can provide the most relevant information to them because machine learning algorithms makes it handy to fetch the required information about that customers.
  • Grabbing the right customers at right time is another challenge. Business people sometimes lack the knack of identifying this mantra. A well-developed machine learning algorithm can not only predict the best price of a product, but can also give an idea to the marketing team to channelize the products to the right customer group at right time.
  • With the increase in online transactions, online frauds are also increasingly reported. Hence, customers obviously look for business people who can better prevent their identity theft and fraud. Whatever product is offered, how much service-oriented is a businessman, if it cannot be streamlined with the customer’s touch-point, nobody can save the business.

The purpose of machine learning algorithms is to strengthen the customer relationship and to improve experience. Hence, instead of replacing employees with technology and relying completely on machine learning tools, these tools should be utilized to provide ability to your business to monitor numerous processes and enormous data to serve the customers better.

5 Responses to “Machine Learning to Improve Customer Experience and Retention”

  1. Retiluret says:

    Fantastic points altogether, you just gained a brand new reader.

  2. Stan says:

    Good tips

  3. Fokuru says:

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  4. Bee White says:

    Hello! I just want to give a huge thumbs up for the nice info you’ve gotten right here on this post. I will likely be coming back to your weblog soon.

  5. Poonam says:

    Identifying customers’ perception and their buying behavior is the key to successful business….Machine learning seems to be a great future help for the same

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