Modern customers expect quick, intelligent, and personalized service across all touchpoints—be it phone, web, or mobile. Even small delays or miscommunications can negatively impact customer satisfaction and damage your brand’s reputation. 

AI-powered customer service can help address this challenge by assisting human agents in handling frequent and simple questions. In fact, a 2023 Gartner study notes that 80% of companies are seeking to implement AI-powered chatbots to level up their customer service by 2025.

This blog post will explore the capabilities of AI in customer support, including benefits and use cases. You’ll also learn to implement AI in customer service to enhance customer experience.

What is AI in customer support?

AI in customer support uses technology such as ML, NLP and text analysis to manage customer interactions and optimize the customer experience.

The key idea is to address customer requests swiftly, streamline internal workflows and anticipate customer needs proactively.

Benefits of AI in customer support

A report by Deloitte reveals that 15% of contact centers use Gen AI to drive faster customer authentication, summarize pre-interaction journeys and provide automated call summaries and follow-up recommendations. This reduces human error, saves time, and enables management to make unbiased decisions.

Let’s understand how implementing AI in customer service can further help in boosting efficiency and enhancing customer customer experience:

Round-the-clock support

Unlike humans, chatbots and virtual assistants can operate 24/7 to provide consistent customer service. This means customers don’t have to wait for business hours to receive support. They can connect at any time of the day and have their issues solved, significantly improving the customer experience.

Enhanced customer support workflows

AI can streamline internal workflows in various ways, such as:

• Automate routine tasks
• Prioritize, categorize and route tickets to the appropriate agents based on urgency and complexity 
• Analyze customer history to provide tailored solutions

Data-driven insights

AI’s expertise lies in processing and analyzing large volumes of data. This helps businesses get in-depth insights into customer behavior and preferences.

Based on these insights, business leaders can make informed decisions about product development, marketing strategies and overall customer service improvements.

Reduced employee burnout

Since AI takes over repetitive and mundane tasks, agents have time to focus on more challenging and innovative tasks, such as handling complex queries and tailoring support experiences. This not only improves customer service job satisfaction but also leads to better-quality customer interactions. 

Personalized customer interactions

AI can provide tailored recommendations and solutions by analyzing customer behavior and data, leading to a more personalized support experience. Your team can tailor interactions before and after purchase to ensure customers receive the best experience.

Prediction of customer behavior

Using real-time data, businesses can use AI to determine customer behavior based on their purchase history, buying habits, and personal preferences. This helps you identify customer needs even before they say it and proactively reach out to serve customers in the best way possible.

Challenges of AI in customer support

While AI has several remarkable advantages, it is not free of challenges. Businesses must be aware of its challenges to have a well-balanced and holistic approach to using AI. This will help maximize the benefits of AI while minimizing associated risks.

Here are some common threats associated with AI:

Data privacy and security

Protecting customer data is essential to maintaining customer trust and security. Businesses must comply with data protection regulations like the General Data Protection Regulation (GDPR) to maintain high-security standards and protect sensitive customer information. They must also communicate transparently with customers about processing and protecting their data.

Implementation

Implementing AI customer service solutions requires huge investment in technology, training, and integration. To ensure alignment with existing processes, businesses must meticulously plan and execute the deployment of these systems.

Gartner emphasizes that aligning AI tools with current workflows requires careful analysis of existing systems. Their research shows that 58% of companies experience delays in AI deployments due to challenges with integration into legacy systems.

Additionally, AI depends on large volumes of data to process and analyze behaviors. Inconsistent or incomplete data can lead to inaccurate predictions, which can result in poor customer experiences. 

Inability to handle complex customer issues

Despite being advanced, agile and adaptive, AI still struggles with complex customer queries that require nuanced responses. This can frustrate customers who expect quick and personalized answers. 

To ensure comprehensive customer service, the precision and speed of AI should be combined with empathetic and compassionate responses from human agents.

Adaptability to changes

Businesses need to continuously update and train AI systems to keep them relevant. For example, a predictive analytics tool must be apprised of current market trends and customer behavior to forecast accurately. This need for flexibility can pose a threat, especially for rapidly changing industries.

Lack of emotional intelligence

Interacting with highly automated systems eliminates the human touch of care and empathy. This can make customers feel detached from the brand. Additionally, customers may get frustrated when they receive generic responses for sensitive or complex queries.

Ways to use AI in customer support 

Now, let’s understand some of the most effective ways companies are implementing AI in customer support:

Chatbots

Chatbots are built for real-time assistance to manage large volumes of messages while creating a human-like experience. It can handle basic customer queries, provide instant responses, and assist with tasks such as product recommendation, order tracking, and troubleshooting.

Omnichannel customer service platform Plivo CX's self-service chatbot, developed and powered by OpenAI, can support businesses to resolve customer queries quickly.

The chatbot is suitable for businesses of all sizes and has these stand-apart features:

• In-app customer service enables customers to send and receive photos and documents easily
• 24/7 availability to resolve  queries instantly, allowing customers to pause and resume conversation at their convenience
• Complete customer context and interaction history from multiple channels available in a single platform
• Can be easily updated with new product information, promotions or policy changes
• Summarizes and transfers complex queries to human agents with complete context
• Accurately reflects your brand identity while adhering to the company’s policies and guidelines 

Self-service resources

AI can synthesize existing information and create answers for popular customer inquiry topics. This can be used to develop self-service resources to help customers find answers independently. Some of the common self-service resources include:

• Knowledge bases featuring house articles, how-to-guides, troubleshooting tips, and more
• Frequently Asked Questions (FAQ) pages containing answers to customer’s most common queries
• Interactive Voice Response (IVR) to provide pre-recorded answers 

Sentiment analysis

Sentiment analysis can uncover insights from customer conversations across channels to tailor responses based on the client’s needs and emotions. It can monitor and analyze customer feedback, reviews, and interactions to identify areas of improvement, respond appropriately and provide personalized experiences.

Speech analysis

AI-powered speech analysis can provide insights into customer interactions by evaluating vocal tones, pitch, and speech patterns to detect emotions like frustration, anger, or satisfaction during a call.  This helps agents tailor their responses in real time and show empathy and care during critical situations.

Omnichannel routing

Customers are usually frustrated when they have to repeat their problem every time they switch channels. Omnichannel routing is the best way to ensure customers have a consistent experience across all channels. It provides a complete history of customer interactions so that reps can easily handle every communication with continued context.

As a true omnichannel contact center, Plivo CX features a unified agent desktop, allowing your team to manage interactions in every channel (live chat, voice calls, SMS, email, or WhatsApp) from a single platform, eliminating the need to switch between channels. This can help simplify the communication process and improve response times. 

Predictive analytics

Predictive analytics can analyze large volumes of data and draw actionable insights to forecast trends, anticipate customer needs, and solve future problems. This helps businesses reach out to customers proactively and solve possible problems. For example, if a shipment delay affects the delivery schedule, you can proactively communicate and even offer a discount coupon to appease the customer.

Automated call transcription

Call transcriptions are essential to review customer conversations, quality assurance and training, and maintain compliance with legal requirements. It makes it easier for teams to reference past conversations, particularly in cases of follow-ups or escalations and identify trends and recurring issues. 

Analyzing call transcriptions can also help businesses identify opportunities for upselling.

Routing and prioritization

AI in customer service can analyze incoming inquiries and automatically direct them to the most appropriate agents or teams. This is done by evaluating factors such as urgency, customer history, and issue complexity.

AI can also identify high-priority cases to address them promptly while managing routine inquiries efficiently. 

Real-time data and analytics

Automating customer service with AI can help you get granular insights into critical customer interaction metrics such as AHT, FCR, and CSAT.

Businesses can use this data to evaluate agent performance, find areas of improvement and tailor strategies accordingly.

Steps to implement AI in customer service

A report by IBM revealed that 42% of enterprise-scale organizations with over 1,000 employees actively use AI in their business, and 59% of enterprises already working with AI want to increase their investment in the technology. 

If you are yet to implement AI in customer service, follow these key steps:

1. Evaluate business needs

Evaluate your existing customer service processes to identify pain points, areas that require faster response times or staffing needs. This will help you pinpoint areas where AI can be most effective, providing a solid base for implementing AI in customer service.

2. Define goals and objectives

Based on your business needs and requirements, set clear and measurable goals. These might include goals like increasing first-contact resolution, reducing average response times or improving overall customer satisfaction scores. Specific goals help you pick the right AI tools and measure their impact effectively.

3. Choose the right AI software

Once you’ve sorted your needs and objectives, select a tool that aligns with your requirements. Consider scalability, integration capabilities, user reviews, pricing, long-term viability and support when evaluating different options.

4. Integrate with existing solutions

The tools you choose must work well with your existing current customer systems, which may include API integrations, data sharing, or other technical setups. Ensure to conduct pilot tests to identify and address any integration issues before full deployment. This will help you resolve potential problems early in the implementation process.

5. Train your employees 

Deliver in-depth training for your customer service representatives on operating and integrating the AI tools into their workflows. Focus on covering technical functionalities and how to partner with AI to provide the best customer experience. Offer ongoing training and guidance and encourage feedback on the new processes.

6. Ensure compliance and data privacy

Ensure the AI tools can securely handle and store customer data by maintaining strict compliance with data protection and privacy regulations. Also, regularly review and update your privacy policies and practices to align with evolving regulations. 

7. Monitor and optimize frequently

Lastly, continuously review the performance of your AI strategy. You can track performance by assessing relevant metrics such as response times, CSAT scores, and resolution rates. Based on data insights, make necessary changes and adjustments to improve your AI systems and processes to meet customer needs better.

Examples of AI in customer support 

From chatbots, personalized recommendation engines, to more innovative uses, let’s discuss how some brands are implementing AI in customer support to offer superior experiences: 

Encore

Encore uses a GPT-4 model to allow users to find and buy second-hand items. The idea is simple, you have to type your query and get results from multiple resources, including Poshmark, Grailed, Etsy, and eBay.

For example, if you are looking for outfits like Carrie Bradshaw, typing “Carrie Bradshaw” in the search bar will give you an AI summary of the fashion statement along with all possible product recommendations.

‍

Stitch Fix

Stitch Fix uses machine learning algorithms alongside human stylists to tailor recommendations for its 3.5 million customers. Their AI systems analyze customer preferences and broader fashion trends to refine suggestions over time.

Additionally, the platform utilizes generative AI, specifically GPT-3, to automate the creation of high-quality, branded product descriptions. This process enables the company to generate 10,000 descriptions in 30 minutes, helping scale their catalog management and improve search engine visibility. 

Shein

Shein uses AI to create rapid design by analyzing global fashion trends, with new styles developed in just 25 days. A smart design system streamlines production, while AI-powered personalization enhances customer experiences through tailored product recommendations.

It also uses AI to automate warehouse management and delivery scheduling. This strategic integration of AI has allowed Shein to scale globally, redefine fast fashion, and establish itself as a tech-driven leader in modern e-commerce.

Plivo CX: The future of AI in customer support 

Plivo CX is an all-in-one, cloud-based omnichannel platform designed to help businesses provide top-notch customer support across various channels. It is built to integrate effortlessly into your business and support mechanisms.

The platform also enables businesses to train OpenAI-powered chatbots using unique datasets, ensuring customer queries are answered with the most relevant and accurate information.

Some of its top features include:

• Omnichannel capabilities: Unify, track, and manage customer conversations across channels, including email, voice, SMS, WhatsApp, and live chat
  
  
• Visual workflow builder: Create custom workflows and use automations using a simple no-code drag-and-drop builder

• Integration: Integrate seamlessly with your existing tools, such as homegrown systems, ERP, CRM, and helpdesk tools

• Real-time analytics: Analyze real-time customer interactions to identify areas of improvement  and create targeted training for agents

• More productivity: Streamline agent workflows with message templates and internal notes to facilitate efficient conversation, transfers and task management
  
  
• Agent coaching tools: Train your support agents to monitor real-time performance with features such as call recording, barge, and whisper

• Security and compliance:  Offers enterprise-grade security features complying with SOC-2, GDPR, HIPAA, and PCI DSS. This ensures your customer data is safeguarded and your support processes align with industry regulations

‍Book a demo to learn more.

While voice assistants like Alexa and Siri have become familiar names, the next wave of AI customer service agents is more than that. They're designed to handle nuanced conversations, anticipate customer interactions, and deliver consistent, human-like support 24/7.

This has profoundly impacted customer expectations to the point where 68% of customer support teams believe AI has directly influenced them.

This blog post will help you understand the concept of an AI agent and how it improves customer service. It will also discuss real-life use cases and challenges to help you choose the perfect AI agents to provide unmatched service.

What is an AI agent?

AI agents are software programs designed to replace or augment the work of human agents. They are trained to understand the user's needs, respond to inputs, and act without human intervention.

They rely on ML and NLP to execute diverse tasks, from answering simple questions to resolving complex issues such as sentiment analysis, fraud detection and customer issue prediction.

How does an AI agent work? 

AI agents don’t just follow orders. They set tasks, determine priorities, and reprioritize tasks until the overall goal is achieved. The fundamental design of AI agents revolves around three key components: perception, decision-making and action.

Let’s understand how they work:

Perception: AI agents gather data from various sources, including customer interactions, transaction histories and social media. This helps them understand the context and nuances of customer queries.

Decision-making: The AI agent uses sophisticated machine learning models to identify patterns and make decisions based on the collected data. The agent improves decision-making by learning from past experiences and continuously refining responses.

Action: Once the decision is made, AI agents can execute tasks such as answering a customer query, processing a request, or escalating complex issues to a human agent.

How do AI agents improve customer service?

Parul Mishra, VP of product management in digital labor at IBM, says, 

“While the capabilities of AI agents across specific domains will vary depending on industries and use cases, the key point is that those agents will work in collaboration with AI assistants alongside a suite of other tools to transform a chatbot experience into a multi-dimensional system that can plan, test, write, and autonomously implement solutions.”

Here is how AI agents can improve customer service:

Faster response times

AI agents are available 24/7, ensuring customer inquiries are answered promptly, regardless of time zones or business hours. Being continuously available enables customers to meet their needs via self-service while improving satisfaction.

Personalized customer interaction

With AI entering the scene, 73% of customers feel they are treated as unique individuals in 2024, up from 39% in 2023.

This is because AI analyzes important information such as customer name, location, and past purchases in real time to tailor services to customers so that they feel valued and important.

Managing large-scale inquiries

AI agents can handle thousands of queries simultaneously without delays. They integrate with knowledge bases to provide instant and accurate information and automate routine tasks such as order tracking and password resets.

This ensures they maintain consistent service levels and enhance overall customer satisfaction.

Proactive customer support

AI customer service agents can determine the next best action for your customers by analyzing information from customers' contracts, warranties, and purchase history. For example, AI can set email alerts when it’s time to renew a subscription or when a product upgrade or discount is available.

Improved accuracy and consistency

AI agents can improve the accuracy of responses through agentic loops and human-like reasoning. This ensures consistent and accurate responses to customer queries and reduces the risk of errors.

Delivering consistent results helps build trust and confidence in the brand by meeting customer expectations.

Data-driven insights

Incorporating AI can help you gain deeper insights into every interaction to understand customer satisfaction levels. It enables you to track key metrics such as CSAT, CES, and NPS to optimize processes and proactively address customer needs.

Types of AI agents in customer service

From a support tool to a strategic game-changer, here are the most impactful ways you can use AI agents in customer service:

Chatbots

According to a study by Simplr, in 2022, chatbot usage doubled compared to 2020. This is because chatbots are fast, convenient and available 24/7.

Apart from just answering questions, chatbots can:

• Provide the most relevant information about your products and services
• Book appointments or make reservations
• Offer personalized product recommendation
• Handle refunds, product returns, and exchanges
• Guide customers to solve technical problems

Plivo CX's self-service chatbot, developed and powered by OpenAI, is available 24/7 to resolve queries instantly. With in-app customer service, customers can easily send and receive photos to report issues and queries, making the interaction much more convenient.

Voice assistants (IVR)

AI voice agents or voice bots are popular among businesses looking for additional ways to automate customer service operations. Just like chatbots, interactive voice response (IVR) can answer incoming calls, provide product/ service information, recommend relevant products, update account information and much more.

Sentiment analyzers

Sentiment analysis is a key component of speech and voice analytics that uses NLP and ML to capture customers’ emotions by analyzing vocal and speech characteristics such as pitch, tone, words, volume and other variables. 

Based on that, sentiment analyzers assign a score to each positive, neutral, or negative conversation.

Predictive AI agents

Predictive AI agents can analyze historical customer data, browsing history, and purchase patterns to predict issues and needs such as product failures, churn risks, or future purchase preferences.

Depending on the data, it can offer tailored recommendations and prevent potential problems.

Call transcribers

With real-time transcription and analysis, agents can quickly retrieve customer histories and previous interactions. 

These transcripts are especially useful for reviewing agent performance and ensuring calls adhere to regulatory requirements. Businesses can also identify recurring issues, customer preferences, or opportunities for upselling and cross-selling.

Omnichannel AI agents 

Sophisticated omnichannel platforms offer agents tools and contextual insights to effortlessly carry on a conversation across multiple channels. Although modern chatbots are more effective, they still fall short of managing all inquiries entirely. Omnichannel agents bridge this gap by facilitating seamless handoffs from self-service to live agents when necessary.

Plivo CX’s true omnichannel solution brings frequently-used communication channels, such as voice, SMS, WhatsApp, and live chat, together in a single platform, allowing agents to monitor, track, and manage customer interactions effortlessly.

Uses cases of AI agents in customer service 

Let’s have a look at how businesses worldwide are using AI agents to boost customer satisfaction and agent productivity:

Function of Beauty

This American brand uses AI to build products that are unique to each customer. Upon signing up, customers must complete a survey that understands their hair type, styling preferences, and texture. 

These responses are then analyzed with an AI-powered algorithm to design a unique formula for the customer.

Once the formula is generated, the brand employs AI-powered manufacturing to produce customized items at scale. The final product is sent to the customers, who are asked to give feedback. AI then analyzes this feedback to understand customer satisfaction and improve the customization process.

Lily AI

Lily AI is an AI tool designed to enhance product discovery and conversions in eCommerce, specifically for fashion, home, and beauty retailers. It uses sophisticated technology to match product attributes with consumer preferences.

For example, in fashion, it analyzes attributes like fabric, style, and neckline to recommend similar items, such as white crewneck t-shirts. For homeware, factors like product type, color, and wood tone are considered when displaying relevant products.

eBay

eBay has introduced its AI-powered “Shop the Look” feature, which offers personalized fashion recommendations based on users’ shopping history. The goal is to offer products that align with individual style preferences. 

Shoppers who view at least 10 fashion items in 180 days will see “Shop the Look” on their homepage and fashion landing page. The tool evolves with customers over time to enhance their shopping experience. 

Risks of AI customer service agents

As AI technologies become more common, 61% of customers highlight the need for trust, though fewer than half feel businesses use AI ethically. This gap allows companies to stand out by upholding ethical practices, transparency, and fairness in AI.

To create a secure customer experience, watch out for these potential risks associated with AI customer service agents:

Complexity with existing tools

Implementing AI systems can be complex and expensive, especially for smaller companies with limited resources. The initial investment, maintenance and training costs, and integration with existing tools can pose financial challenges when establishing commercially viable AI operations.

Data privacy concerns

As AI systems rely on large amounts of data, customers’ private information is at risk of being misused and manipulated. To maintain customer trust, companies must comply with legal regulations such as the General Data Protection Regulation (GDPR) and be transparent about processing and protecting customer data.

Lack of emotional intelligence

AI interactions can feel impersonal and lack the emotional connection customers crave, as they often involve robotic messaging. While AI enhances efficiency, it doesn’t offer the empathy many customers seek. 

How to choose the right AI agent for your business

With the wave of AI sweeping in, every business wants to hire an AI agent to make work simpler and more efficient. But every business is different, and so are the capabilities of an AI agent.

If you are new to the AI realm, consider these tips to find a tool that is most compatible with your business needs:  

Assess your needs

Determine the specific functions you want the AI agent to handle. Evaluate the tasks it should automate or support, such as responding to queries, managing orders, or providing recommendations.

Ensure it integrates with existing tools

The AI agent you select should easily integrate with your existing systems, tools, and workflows. To speed up implementation, prioritize tools that provide pre-built APIs or connectors. 

Moreover, a seamless integration process ensures the AI agent adds value without causing delays or technical difficulties.

Consider scalability

Select an AI agent that can scale its processing power, storage, and analytical capabilities to meet future demands. Evaluate its ability to handle larger datasets, integrate with evolving systems, and maintain performance under heavier workloads. 

Scalability is essential for businesses looking to expand, ensuring the AI solution remains effective and reliable as the company grows.

Ensure compliance and security

Finally, ensure the AI agent safeguards the data by using data encryption, controlling access, and adhering to industry standards. Learning and utility-based agents, which process large amounts of data, require stronger security to prevent unauthorized access. 

Opt for AI solutions that offer regular security updates, comply with regulations, and minimize risks like data breaches or cyber-attacks. 

Make interactions more personal with Plivo CX’s AI agents

Going forward, there is a need for seamless integration between artificial and human intelligence. This collaboration will give humans the wings to be creative and build meaningful bonds, while AI agents will ensure fast, proactive and accurate services.

Plivo CX is a complete cloud-based platform that can support this partnership and make customer service more empathetic. It is built to integrate effortlessly into your business and support mechanisms.

You can also train OpenAI-powered chatbots using your company’s unique datasets, ensuring customer queries are answered with the most relevant and accurate information.

Some of its top features include:

• AI-powered chatbots: Interact seamlessly with customers by providing accurate responses at speed
• Simplified escalations with notes: Summarize conversations and pass them to human agents whenever needed
• Unified agent desktop: Visualize complete customer context and insights on a single, easy-to-use application
• CRM integration: Access customer details from your existing CRM and tech stack for a more personalized experience
• Detailed customer insights: Examine live or recorded interactions to uncover opportunities for growth and improvement
• Automated ticket management: Automatically organize and prioritize incoming tickets, ensuring critical issues are addressed promptly
• Interactive voice response (IVR): Set up automated menus to efficiently direct callers to the appropriate team or agent
• Integration: Integrate seamlessly with your existing tools, such as ERP, CRM, and helpdesk tools

• Enterprise-grade security:  Protect customer data with enterprise-grade security features complying with SOC-2, GDPR, HIPAA, and PCI DSS

‍Book a demo to learn more.

Managing customer support is hard. Agents spend valuable time switching between tools, handling repetitive inquiries, and struggling to keep up with the sheer volume of tickets—all while customers expect lightning-fast resolutions.

Delayed responses lead to frustrated customers, lower satisfaction scores (CSAT), and even churn. Meanwhile, your team faces burnout as they try to balance speed with quality in a system that isn’t built for scale.

AI is changing the game. In HubSpot’s recent customer service report, 92% of companies said AI has dramatically improved response times, while 82% credited it with boosting CSAT. By automating repetitive tasks, providing instant responses, and scaling effortlessly, AI equips your support team to meet today’s demands. Here’s how it works.

The Challenges with 100% Human Customer Support 

As your business grows, customer inquiries increase, and keeping up becomes a challenge. Here’s where many customer support teams hit roadblocks:

Constant Hiring
To handle rising demand, you hire more agents. However, research shows that 43% of customer service leaders identify hiring and training as their biggest challenges.This often leads to rushed decisions, high turnover, and operational disruptions.

Training Under Pressure
Every new hire needs time to understand your products, tools, and communication standards. But with tickets piling up, training is often rushed, leading to mistakes and decreased customer satisfaction.

Burnout Takes Hold
High turnover means frequent backfilling, rehiring, and retraining - adding to operational costs. The pressure on existing agents intensifies, resulting in burnout and inconsistent service delivery. Breaking this cycle is critical for delivering reliable, scalable support.

The Heavy Human Toll

This isn’t just about tools and processes—this is real life. Your agents are exhausted, your customers are irate, and you’re stuck in a loop that wears on everyone involved.

• Overworked Agents, Frustrated Customers:
  When your team juggles too many roles and tools, the result is inconsistent service. Customers wait too long and end up frustrated. Over time, lost trust hurts retention and your brand’s reputation.
  
  
• Too Many Tools:
  CRM systems, ticketing tools, chat apps, and more—each one meant to help ends up fragmenting your agents’ workflow. They lose time hopping between platforms, adding stress and slowing things down even more.
  
  
• Scaling Struggles:
  During rush periods, the cracks widen further. Bringing in temporary staff is costly and training them on the fly barely works. Instead of steady support, you’re left in constant damage-control mode, stuck with a team that’s stretched too thin.
  
  
• The Leadership Burden:
  As a manager or team lead, you’re carrying the weight of every decision. The constant juggling act and the emotional toll of trying to keep everyone afloat often go unspoken—but they’re deeply felt.

A Moment to Reflect

77% of CRM leaders believe that AI will handle most ticket resolutions in 2025. This isn’t just a prediction. This data reflects the increasing need for faster, more efficient customer support driven by AI.

To achieve this, you have to pick a tool that supports your support partners and makes their job easier. 

Meet Plivo AI: Your New Support Partner

Plivo AI is an intelligent agent designed to ease the load for your support team. It isn’t here to replace your team. It’s here to empower them. 

💡An AI Agent is a pre-programmed workflow that follows specific steps to complete tasks, like a customer service representative with a detailed manual. It can respond to customers, ask them for details, and take actions on behalf of the company - like updating addresses or processing refund. It combines AI language abilities with access to necessary tools and information, but always works within defined boundaries and processes. 

Here’s how it can change the game:

• Always On, Always Ready:
  Plivo AI works around the clock, making sure your customers get quick, reliable help anytime—whether it’s late at night or during a holiday rush. This consistent support builds trust and gives both your customers and team peace of mind.
  
  
• Effortless Scalability:
  When ticket numbers suddenly spike, Plivo AI scales up instantly—no need to rush through hiring and training. This keeps your service smooth, even during the busiest times.
  
  
• Personalized Problem Solving:
  63% of customers expect customer service agents to know their unique needs and expectations. With a knack for analyzing and learning from past interactions, Plivo AI offers tailored responses for each customer.
  
  
• Smart Automation and Guided Workflows:
  Plivo AI agent simplifies complex tasks by guiding your customers through step-by-step workflows. It’s like having your best agent handling every ticket, reducing mistakes and lightening the load on your team.
  
  
• Less Burnout, More Balance:
  By taking over the repetitive tasks, Plivo AI gives your human agents a chance to focus on high-value interactions. This cuts down on stress and helps create a more balanced work environment.
  
  
• Future-Proof Your Support:
  As your business grows, Plivo AI grows with you. It adapts to rising customer expectations and scaling demands, keeping your support team agile and ready for any challenge. It’s not just a tool—it’s a long-term partner in success.

Agent-Based Model vs. AI-Based Resolution: A Clear Comparison

Implementing AI in customer support offers distinct advantages over traditional human-agent models. Here’s a detailed comparison highlighting key aspects:

Cost Efficiency

Scalability

Efficiency and Consistency

Flexibility and Adaptability

Measuring the ROI of AI-first Customer Support 

One of the most compelling reasons to switch to an AI-based support model is the return on investment (ROI). Here’s how Plivo AI makes a strong case:

95% Query Resolution:

Imagine this: about 95% of customer queries get resolved by AI without the need for human intervention. That’s a massive reduction in workload for your team, allowing them to focus on higher-value tasks.

Cost Savings:

When AI handles most inquiries, you save significantly on salaries, overtime, and training expenses. With fewer errors and faster resolutions, the cost per support ticket drops dramatically.

💡With Plivo, the cost per resolution starts as low as $0.35/resolution. 

Higher Customer Retention:

Faster response times and consistent service mean happier customers. Loyal customers stick around longer, boosting your revenue and reducing the churn that can erode your bottom line.

Measurable ROI:

With the predictable expense model of AI and the dramatic drop in support ticket costs, you can easily measure ROI. Consider that a reduction in support costs, combined with increased customer retention, can lead to a significant boost in profit margins over time.

Energy Reinvestment:

Instead of spending resources on constant hiring and training, those saved funds can be reinvested into business growth, innovation, and even further enhancing customer support strategies.

It’s time to add AI customer support

AI-powered software—especially options with free plans or trials—can offer high potential for ROI, making it an attractive solution for service teams. 

The traditional agent-based model, like Zendesk, has served us well but the rising costs, scalability issues, and inconsistencies in service are clear signs that the old ways are no longer enough—especially when your team is already stretched thin.

Plivo AI offers a fresh perspective. It’s like having your top agent available 24/7, ready to handle demand spikes, keep costs predictable, and deliver a seamless, consistent experience for every customer.

From faster responses and in-depth personalization to a bump in satisfaction levels, AI has spurred a number of positive changes in how we provide support services to our customers. But that’s just the beginning.

According to McKinsey’s State of AI report, “If 2023 was the year GenAI was discovered, then 2024 is the year organizations truly began using and deriving value from this new technology.” 

Interestingly, 2025 holds even more potential for AI in customer service, with promises to transform our delivery and elevate customer experiences.

To help you stay ahead of the curve, we’ll share a few AI-powered drives you should keep on your radar.

AI in customer service: Current overview

According to Salesforce, 85% of decision-makers expect customer service to contribute a larger share of their company’s revenue in the coming years. So, it’s unsurprising that AI adoption in service operations and other departments surged to 72% in 2024.

AI has proven its worth through several automation use cases, too. For instance, 92% of organizations say it has helped improve their customer service operations. Merchants have also reported a 52% increase in ticket resolution speed.

Brands like Klarna, a buy-now-pay-later fintech company, used AI to resolve two-thirds of its customer service chats. If this had been done manually, it would have required a ridiculous amount of human resources and resulted in a high rate of inefficiency due to repetitive tasks.

As AI adoption is already in full steam across multiple business functions, starting now can make the biggest difference in the race to dominate your market space.

AI in customer service: 4 key trends you must look out for

To get started, we have compiled some major trends below to help you implement them without a hitch:

1. AI-powered chatbots are shaping customer service

A Deloitte survey shows that 76% of service agents in contact centers are overwhelmed by systems and information. However, the bulk of this problem is due to the increase in contact volume. 

For example, your complaint backlog scales synonymously with your business growth, overloading human agents with tons of data to analyze when providing services.

However, AI-powered chatbots are changing the scenario. These NLP and ML-trained bots can efficiently handle bulk customer data and leverage them to address customer queries and provide personalized resolutions.

In return, businesses see results such as:

• 37% faster first response time
• 46% agent occupancy rate and a 35% reduction in the likelihood of agents getting overwhelmed
• 27% decrease in ticket-to-order ratio and 1% increase in customer satisfaction score
• $11 billion in annual cost savings for ecommerce brands and other industries in 2023. Chatbots also saved 2.5 billion hours in customer service hours

Personalization

Beyond boosting ROI and saving time, chatbots will also change personalization. As a case in point, 73% of customers already anticipate improved personalized experience as technology advances. This experience includes customer service interactions—an area where 76% of service agents feel overwhelmed due to data load, thus making personalization a daunting task.

Chatbots, on the other hand, can accurately process large amounts of data in a shorter time, analyze even the smallest bits, and combine insights with predictive analysis to provide a hyper-personalized experience. This enhances customer satisfaction levels.

According to Statista, eight in ten satisfied customers are more likely to become loyal advocates.

Returns and refunds

Thanks to digitalization, customers rarely need to queue up in front of your office to return a product. Just a click on the ecommerce store app’s refund button will do. However, some businesses still struggle to streamline this process and pacify their turned-off customers.

When that happens, customers escalate the issue to social media, which can quickly sour your brand reputation. AI chatbots will help avoid such issues in 2025 by simplifying returns and refunds in seconds.

As a comprehensive, AI-driven customer service platform, Plivo CX offers an OpenAI-powered chatbot trained to handle returns and product exchanges, escalate complex issues to human agents, and enhance service delivery.

Implementation: Adopt chatbots to reduce the time to first response and time to resolution, eliminate customer complaint backlogs, free up agents for more complex tasks, and provide the much anticipated hyper-personalized experience to customers in 2025.

2. Omnichannel AI will take a leading role

Invoca’s 2022 survey shows customers prefer to communicate mostly via phone calls, followed by email, in-person communications, live agent chat, and chatbots. In 2024, chatbots and direct messaging via social media have also picked up more pace than before.

That means utilizing multiple channels to meet individual customers where they are comfortable. This leads to a chaotic multichannel communication process, as you have to switch between email tabs, social media, calls, and so on.

As a result, customers feel like they’re talking to different units within the same organization. This poor communication is a major reason 46% of businesses say they’ve lost a customer before.

Omnichannel, AI-powered customer service bridges this gap and unifies customer preferences on a single screen. Your agents can seamlessly move between voice, chat, text/SMS, and WhatsApp or use multiple channels simultaneously to address customers’ complaints.

While omnichannel communication is not a new approach, it will see greater adoption in 2025 as businesses seek to centralize issues and customer communication for increased efficiency.

According to a Gartner report from 2024, over 30% of Fortune 500 companies will offer service through only a single AI-enabled channel by 2028.

Most importantly, advanced AI solutions will provide far more benefits than channel unification, such as live AI suggestions when your agents resolve customer queries. 

Plus, AI’s ability to leverage customer data can also help predict customer preferences, including their top communication channel, language, cultural nuances, and sentiment score when the query was logged.

Eliminating silos

Siloed communication data can worsen a customer’s image of your brand. Because no customer wants to narrate their issue in case of a query again after they’ve initially done so with the first service representative.

Also, not all queries end at L1 or L2; some are escalated to agents for resolution. However, each stage of interaction contains useful information the next correspondent will find useful.

With the appropriate AI-powered omnichannel platform, your agents can simply scroll up to access previous communication summaries or review full notes and utilize them to provide a unified experience for the customer.

An example of such a platform is Plivo CX’s unified agent desktop, which helps you break the barriers between your communication channels, centralize customer interactions on a single window pane, and eliminate communication silos.

Implementation: Adopt an AI-driven omnichannel communication tool to prevent disconnect in your customer-brand interactions.

3. AI and humans will collaborate seamlessly

The surge of AI in customer service has stoked job insecurity and unemployment fears in recent years. At the recently concluded World Economic Forum (WEF), AI was predicted to eliminate 14 million jobs in the next five years.

Gartner’s report also shows that AI will become the primary customer channel over phone calls for a quarter of organizations by 2027.

While there’s no doubt AI will handle some roles in customer operations better, it’s far-fetched to think these models are here to replace humans. On the contrary, AI will become service agents’ ideal assistants in 2025.

For instance, AI-powered self-service is expected to reduce ticket load via automated allocation, prioritization, and workload reduction. This will enhance agents' ability to focus on more complex tasks. Omnichannel AI tools will also provide helpful, live suggestions to agents based on customer data and improve overall delivery. 

AI makes sticky rerouting possible, ensuring the same callers stay routed to the same agent for a consistent experience. Plivo CX’s drag-and-drop workflow builder tool helps create escalation and communication pathways that both your agents and chatbots can use.

Besides, AI is still in its developmental phase and cannot totally replicate empathy. So, 2025 will see a seamless collaboration between humans and AI to provide both accuracy, which humans can’t offer all the time, and emotions, which AI lacks.

Gartner also predicts AI will reduce the number of customer service agents by 20-30% in 2026, but this does not mean humans will cease to exist. Instead, these changes will create new roles for agents instead of handling the same repetitive tasks as before.

Another report shows that AI will take the guardian seat and provide service reps with detailed contexts, insights, and suggestions instead of replacing agents.

Implementation: Embrace AI and equip your customer service team with result-oriented platforms like Plivo CX. Don’t leave AI to do the heavy lifting; instead, build a collaborative flow between your AI and human agents. 

4. Use of AI for quality management

Traditional quality management has long been a go-to for most customer service teams. However, it is inconvenient, time-consuming, requires extensive resource use, and provides slow feedback to agents on the frontline of your business operations.

Besides, traditional QM only allows analysis of a fraction of customer interactions—just the most concerning ones. This makes it impossible to paint a full picture of your service delivery and can result in subpar operations over time.

Given how customer service plays a major differentiating role between businesses, it’s no longer ideal to rely on traditional approaches for QM. In 2025, this trend will take a different turn.

As AI’s adoption for global customer service operations grows, companies are also expected to embrace it for quality management. Primarily, AI can handle vast amounts of customer data and provide a bird’s-eye view of the state of your customer service.

For instance, Plivo CX’s AI-powered Metrics can analyze customers’ past interactions, agents’ activities, and other data to provide useful insights for improving delivery.

AI in QM will also facilitate sentiment analysis, allowing you to determine whether your customers are happy and what’s driving their sentiment so you can promptly address it.

With predictive analysis, businesses will find it easy to identify trends and patterns and make healthy decisions that enhance customer satisfaction.

Enter the future of AI customer service with Plivo CX

The future of AI in customer service means taking proactive steps like integrating chatbots, embracing omnichannel AI, encouraging AI-human collaboration, and using AI for QM, which will help you gain a competitive edge in 2025.

To help you achieve that, Plivo CX equips your team with a scalable AI-driven omnichannel communication platform that boasts an OpenAI-powered self-service chatbot. Our award-winning platform also features the following:

• Effortless workflow design: Visually build custom workflows and automation with a drag-and-drop interface, no coding required.
• Seamless integrations: Connect Plivo CX with your existing tools, including CRM, ERP, helpdesk, and more.
• Data-driven optimization: Track real-time analytics and generate custom reports to gain insights into customer interactions and agent performance.
• AI-enhanced efficiency: Prioritize urgent tickets, ensure brand consistency, and adapt quickly to changes with AI-powered support.
• Rich communication: Enhance interactions with multimedia support, including images, videos, and documents.
• Increased productivity: Streamline workflows with message templates, internal notes, and skills-based routing.
• Comprehensive features: Leverage call recording, fully-customizable IVR, multi-language support, and robust security features for a complete solution.

‍Book a demo now!

According to Microsoft’s State Of Customer Service Report, 90% of consumers consider good customer service when choosing a brand, and 58% say they will switch to competitors if their former brand fails to meet up.

Without a doubt, customer service has become a brand differentiator.

Moreover, 55% of respondents in the same report also expect a year-on-year (YoY) increase in better service delivery. This implies customer support can no longer play a backseat role, especially in 2025, and you need to double down on your investments.

However, providing prompt and purposeful customer service has its ups and downs. In this article, we’ll discuss these challenges and offer proven solutions to tackle them.

Top 10 customer service challenges you must tackle

A typical customer service workflow consists of several touchpoints, ranging from customer inquiry and ticket creation to ticket closure and follow-up. 

Along these, several challenges often pop up. Take, for example, slow response times and dissatisfied customers, which can disrupt your delivery. In fact, as we noted above, this invariably risks losing out loyal customers to your competitors. 

So, what exactly do the challenges imply, and how do you handle them? Let’s take a look:

1. Slow response times

Hubspot’s survey report shows that 90% of consumers consider immediate response very important, and 60% define “immediate” as 10 minutes or less. The longer it takes to respond, the more likely your customers are to seek other alternatives.

Solution

• Implement chatbots for instant responses: Use smart chatbots to quickly handle L1 requests and escalate only complex issues to your agents.
  ‍
  As an omnichannel customer service platform with several AI-powered features, Plivo CX offers an OpenAI-powered self-service chatbot capable of reducing your response time to a negligible fraction and boosting customer experience.

• Monitor response times with real-time analytics. Assess metrics like time to first response and overall time to resolution. Review each touch point in your workflow to determine which part is taking longer to complete and optimize accordingly.

2. Lack of personalization

The latest Salesforce research report highlights an increase in the number of customers who feel treated like unique individuals from 39% in 2023 to 73% in 2024.

 While that’s good news, approximately 27% still feel like they are being treated as numbers. Such customers feel frustrated and are not likely to become loyal to your brand.

Solution

• Integrate data for personalized delivery: Collate customer data into CRM software and integrate with communication tools to eliminate data silo. 
  ‍
  Plivo CX simplifies this process by providing a unified agent desktop that presents a granular view of customer issues and previous communications. This allows customer service agents to tap into necessary information for personalized support right from a single dashboard without needing to switch channels.

• Train customer service agents: They should pay attention to cultural and language barriers when communicating. Also, equip your team with essential soft communication skills to make your customers feel valued at every point of interaction.

3. Handling multiple customers

As your business scales, the number of customer queries you handle daily also increases. However, this can expose your customer service workflow to errors, such as losing track of unresolved queries, unsatisfactory resolution, inappropriate rerouting, ticket collision, and prolonged time to resolution.

Solution

• Implement ticketing system: Use a ticketing system to consolidate all customer queries on one platform. This enables you to track each ticket efficiently, prioritize, and minimize ticket collision.
• Use AI-powered chatbot and routing software: Integrate chatbots to handle basic and common requests in order to free up your agents for other core tasks.
  For example, Plivo CX’s OpenAI-powered chatbot, trained on company datasets, helps resolve simple queries quickly. Also, it automatically escalates complex and nuanced issues to human agents, along with detailed notes and summaries.
• Expand support team: AI bots are powerful, but you shouldn’t leave them to do the heavy lifting. If necessary, acquire a few more agents with the needed expertise to boost response time and reduce the workload on other team members.

4. Answering challenging questions

Let’s face it: There are times you’ll receive some queries that are unscripted and out of the playbook. In such situations, you can’t possibly turn your customers away or tell them you have no answer.

Solution

• Offer a callback: If it’s a phone call, ask customers to give you a minute while you gather more information on their queries. This doesn’t reduce your professionalism but instead assures customers that you’re deeply concerned about them. 
  ‍
  With Plivo CX, optimize call routing by leveraging customer data to connect callers with the right agents, and improve customer experience with a convenient callback option.

• Escalate to senior agents: Different customer complaints require different levels of expertise. Ensure your agents have the tools and orientation necessary to escalate queries without delay. 
  ‍
  You can also use Plivo CX’s call whisper feature to coach your agents live on the phone without the customer's knowledge.

‍

5. Handling dissatisfied customers

Sometimes, getting complaints from annoyed customers is unavoidable, even if you provide the best services. What matters is how you respond. Not handling situations like this appropriately can damage your business reputation, especially since most customers will escalate the issue to social media for visibility.

Solution

• Apply H.E.A.R.D: The HEARD (Hear, Empathize, Apologize, Resolve, and Diagnose) approach focuses on empathizing with your customers and acknowledging the error. This helps diffuse the situation and preserve customer relationships. Once you’ve resolved the issue, immediately figure out why it happened and proactively prevent its recurrence.
• Provide updates on resolution: Keep your customers informed about the resolution process, progress, and possible challenges. This will get them involved and let them know you’re not slacking off.
• Offer a freebie after resolution: Appeal to their emotions with a discount, free subscription, or a limited-time offer. This ensures the resolution ends on a good note and boosts your chances of retention regardless of what has happened before.
• Escalate when appropriate: If all the options above are ineffective, bring in a senior person by hierarchy. In such cases, customers are more likely to listen if they communicate with someone whose words hold more authority than a frontline customer support agent.

6. Managing service outages

A number of factors, like hardware failures, software bugs, network issues, cyberattacks, or human error, cause service outages, which can upset your customer service workflow.

While not a common situation, a single occurrence can result in tons of angry and frustrated customers overwhelming your support, whether on social media or on calls.

Solution

• Proactive communication: When the light’s off, your customers need to know what’s going on even before they reach out. Let them know what has happened, why it’s happening, and what you’re doing to resolve it while assuring them accordingly. You must also communicate time-to-resolution and empathize genuinely with them to avoid unpalatable outcomes.

Plivo CX’s proactive service excels in situations like these to reduce your inbound requests and manage crises before they escalate.

• Develop a crisis management plan: A crisis management plan outlines the steps your agents should take to resolve each outage systematically. It includes a playbook of responses to use when reaching out to customers, escalation pathways where necessary, and internal communications.
• Compensate losses: Restoring services after an outage does not resolve your customers’ dissatisfaction and anger, especially since they may have suffered a few or large losses. So, develop a compensation plan and communicate it to them after the crisis.

7. Dealing with customer requests that are outside of your offerings

It’s not uncommon to see customers request a feature you don’t offer yet or something totally out of your industry. If the entries are high and align with your vision, that’s a good sign, and you can possibly use it as feedback when upgrading your product library.

But if the requests are not entertainable, whether now or in the near future, it can put your support team in a tight spot.

Solution

• Clearly communicate service boundaries and limitations: Train your agents on your full catalog of offers, including detailed information on future inclusions. They should be able to explain the services you provide comprehensively and help customers understand what you can’t.
• Suggest alternative solutions or third-party services: If a complementary brand provides the requested service, you can refer your customers to them to build a brand-brand relationship. However, you can’t do the same if the other providers are your direct or indirect competitors.
• Sell other offers: While you can’t address exact requests, let customers know about other alternative services you provide and how you can still assist them.
• Deliberate inclusion: Going forward, communicate these requests with the product and development team for inclusion where possible.

8. Providing omnichannel customer support

Customers have different communication preferences, which can lead to a disjointed support delivery if you cannot unify these channels. For instance, Mulesoft’s survey report finds that only 26% of organizations provide a connected experience across all channels, surprisingly leaving a whopping 74% out.

To put it simply, disconnected delivery makes your customers feel like they’re talking to multiple businesses instead of just one when interacting with your support team.

Solution

• Implement omnichannel support tool: Omnichannel support tools centralize your channels and eliminate the need to switch tabs. An example is Plivo CX’s unified desktop agent, which lets your customers conveniently reach out to the contact center via channels such as email, voice, chat, text/SMS and WhatsApp. 

9. Service ticket overload

Ticket overload occurs when the volume of customer queries exceeds the support team's capacity to handle them efficiently, leading to delays and decreased service quality.

Sometimes, it is caused by a growing backlog of queries that have stayed beyond the agreed SLA.

Solution

• Embrace automation: Automation tools like AI-driven chatbots can accurately handle most repetitive customer queries and significantly ease your ticket load. Use ticketing and routing automation programs to stepwise manage each query until it is resolved.
  ‍
  To achieve this without resorting to multiple tools, try out Plivo CX’s full-packaged service, which offers all these features and more.

• Build automation workflows: Workflows are predefined instructions your automation should follow from entry to resolution of every query to improve customer service efficiency. 
  ‍
  In this case, Plivo CX’s drag-and-drop workflow automation builder allows you to design a custom automation workflow that aligns with your objectives.

10. Choosing the right tools and software

Owing to the shift from brick-and-mortar to digital interactions, there is an increasing need to integrate technology for customer support. However, choosing the right tools from so many different options with varying feature sets can be daunting. In a worst-case scenario, you might end up with a bunch of siloed, inefficient software programs.

Solution

• Assess needs: A customer service team needs an omnichannel support tool, a CRM, a ticketing and routing system, a knowledge base, an analytics tool, and automation software. Review whether your current systems or software of choice are scalable as your needs grow; if not, replace them with modern alternatives.
• Keep the tech stack simple: More is not always better, and too many tools lead to inefficiency, as you need to switch tabs often. To avoid that, use a comprehensive platform like Plivo CX and integrate with CRM like Hubspot to unify data and conversations.

Increase customer satisfaction with Plivo CX

By addressing these common challenges head-on and continuously optimizing your support processes, you can create a customer service experience that not only meets but exceeds expectations, ultimately driving business growth and success.

To help you achieve this, Plivo CX equips customer support teams with a robust omnichannel platform that boasts features and functions such as an OpenAI-powered self-service chatbot, visual workflow builder, inbuilt routing, agent coaching, and a single window pane to unify all communication. 

To learn more, book a demo now!

Retailers today face a major challenge: with so many marketing channels available, standing out and capturing customer attention has become increasingly difficult. With inboxes overflowing and social media feeds constantly buzzing, breaking through the noise to truly engage people isn’t easy.

This is where SMS marketing comes in.

SMS allows retailers to connect directly with their customers on the most personal device— their phone. Its high open rates and instant delivery make SMS a powerful way to reach customers with time-sensitive offers, updates, and promotions.

In this article, we’ll explore practical tips and best practices for using SMS to improve your retail marketing strategy.

What makes SMS marketing a must-have for retail

SMS marketing for retail brands drives sales and fosters long-term customer relationships. Here’s why it’s become an essential part of retail marketing:

Increased customer engagement through personalization  

With the SMS marketing software market expected to grow by USD 8.47 billion at a CAGR of 21.44% between 2023 and 2028, personalization has become a driving force. 

Customizing messages based on customer preferences and behaviors increases engagement and strengthens customer loyalty.

Timely promotions and offers 

Sharing deals at just the right moment keeps your customers excited and engaged. SMS ensures your limited-time discounts or special offers reach them instantly, improving response rates and driving quick sales.

Cost-effective communication 

SMS marketing offers an affordable way to reach customers, with messages costing just $0.015-$0.050 per message, depending on the platform. 

Unlike traditional advertising methods, SMS delivers high ROI by connecting directly with customers on their mobile devices. This allows retailers to send promotions without high costs.

Boost retention rates easily 

Sending personalized offers, exclusive deals, and timely updates helps keep customers engaged and loyal to your brand. 

Regularly reaching out with relevant messages strengthens your relationship with customers, making them more likely to return. 

Real-time communication for announcements and updates

With SMS, you can reach customers at the moment—whether it's sharing an exciting launch, updating them on store changes, or alerting them to a limited-time offer. 

Real-time communication maintains customer trust and ensures your brand stays relevant in their busy lives.

Higher open rates compared to email 

Text messages have an impressive average open rate of 98%, far surpassing email open rates. This high engagement means customers are more likely to see and act upon your messages. 

Whether it's a promotion, update, or reminder, you're guaranteed that your message will be noticed.

Retailers who leverage SMS marketing see tangible results, setting the stage for successful campaigns. Now, let’s explore best practices for maximizing the impact of retail SMS campaigns.

Best practices for effective retail SMS campaigns

When you follow the right SMS campaign practices, increasing engagement, driving sales, and building customer loyalty are within reach. Here’s how you can get it right:

Concise and compelling messages 

Customers appreciate clear, to-the-point messages that get straight to the benefit. Focus on delivering your message in a way that grabs attention and sparks interest—so they won’t miss out on what you have to offer.

Personalization through segmentation 

Segmenting your audience allows you to send more personalized, relevant messages, which can significantly boost engagement. 31% of consumers sign up for SMS to get personalized offers. When your messages match their interests or needs, they’re more likely to take action.

Timing your messages for maximum impact 

Sending messages at the right time increases the likelihood of immediate engagement and better results. Research shows that 90% of consumers reply to a text within 30 minutes, so it's important to reach customers at the right moment. 

Compliance with SMS opt-in regulations 

Obtaining consent before sending SMS messages ensures compliance with legal regulations like GDPR, TCPA, and others. These laws require explicit consent, and failing to follow them can have serious consequences. 

Add clear CTAs 

Including clear calls-to-action (CTAs) in your SMS messages makes it easy for customers to know what to do next. 33% of SMS recipients react to CTAs, and 47% of them end up making a purchase. Clear CTAs guide your audience, making it simple for them to take immediate action. 

By following these best practices, retailers can create campaigns that truly connect with their audience. 

But what kind of campaigns work best? Here are some winning campaign ideas.

7 proven SMS campaign ideas for retail growth

To drive growth and maximize customer engagement, these 7 proven SMS campaign ideas will help you connect with your audience and strengthen loyalty.

1. Seasonal promotions and holiday campaigns 

Offering exclusive deals or discounts during peak seasons creates a sense of urgency, encouraging customers to make purchases. These timely offers keep your brand at the top of the customer’s mind during special occasions.

2. Promote a discount 

By offering limited-time deals, you give customers an incentive to make a purchase right away. Whether it's a flash sale or a special deal, this approach effectively rewards loyal customers and attracts new ones.

3. Personalized product recommendations 

Using data like past purchases to suggest items that align with customer preferences makes their shopping experience more personalized. This relevancy increases the chances of conversions and encourages repeat purchases.

4. Store event invitations and reminders 

Sending event invitations and reminders is a great way to keep customers hooked. A quick SMS alert about an upcoming sale or in-store event gets them excited and ensures they don’t miss out.

5. Post-purchase follow-ups 

A simple SMS follow-up after a purchase shows customers you care and helps build loyalty. It’s also a great opportunity to ask for feedback or suggest related items, keeping the conversation going and driving future sales.

6. Loyalty program updates 

SMS loyalty program updates are a great way to keep customers excited and coming back. Studies show that SMS coupons are redeemed ten times more often than any medium. 

A well-designed loyalty program can increase customer retention and lifetime value, turning occasional shoppers into dedicated brand advocates. 

7. Abandoned cart reminders 

A simple, friendly nudge can remind them of what they left behind in their cart and encourage them to finish their checkout. With the right timing, you can recover lost sales and turn potential customers into repeat buyers.

These ideas are just the beginning. With the right platform, you can unlock even more growth opportunities.

How to choose the best platform for retail SMS marketing

A suitable platform doesn’t just send messages—it amplifies your marketing efforts, saves time, and increases customer engagement. Here’s what to consider when selecting the perfect SMS marketing platform for your business:

What to look for in a retail SMS marketing platform

• Easy onboarding and setup: Choose a platform that simplifies the initial setup process. Look for simple, user-friendly interfaces, guided onboarding, and quick access to essential features, making it easy to get started without delays.
• Automation capabilities: Opt for a platform that supports scheduling, triggered messages (e.g., abandoned cart alerts), and automated workflows to handle repetitive tasks. 
• Integration with existing tools: Choose a platform that integrates smoothly with your existing CRM, POS, and e-commerce tools. This compatibility simplifies your operations and enables a unified view of customer data.
• Analytics and reporting: Look for robust reporting features that track open rates, click-through rates, conversions, and other KPIs, enabling data-driven decision-making.
• Personalization features: Choose a platform that allows segmentation and customized messaging based on customer preferences, behaviors, and purchase history.
• Compliance features: SMS marketing involves strict regulations. Your platform should include tools to manage opt-ins and opt-outs and ensure adherence to local and global compliance standards.

Questions to ask when evaluating SMS providers

• Is it user-friendly and scalable?
  A good platform should be easy to use and able to grow with your business, handling increasing message volumes and customer data without compromising performance.

• What kind of customer support is available?
  Reliable support can make a big difference, especially during critical campaigns. Check if the provider offers 24/7 support, onboarding assistance, and access to a knowledge base.

• What’s the platform’s pricing model?
  Understand the pricing structure, including any hidden fees. Look for transparent models that align with your budget and offer flexibility as your needs evolve.‍
• What integrations does the platform offer?
  Verify that the platform supports integrations with your existing tools to avoid operational silos and ensure seamless data flow.

Selecting the right SMS marketing platform is an investment in your retail growth. 

As an omnichannel customer engagement tool, Plivo CX checks all the boxes for a reliable and efficient SMS marketing platform. With its user-friendly interface and powerful analytics tools, the solution makes it easy to optimize your SMS marketing for maximum impact.

Simplify retail SMS marketing with Plivo CX

Managing retail SMS marketing can feel overwhelming, from staying compliant to delivering personalized, timely messages that truly resonate. 

With robust automation capabilities, seamless integrations, and industry-leading compliance features, Plivo CX helps businesses create impactful retail SMS campaigns easily. 

It offers an advanced solution for retail SMS marketing, enabling you to send personalized messages, automate workflows, and track performance—all while ensuring seamless integration with your existing tools. 

Here’s what Plivo CX can do for your business:

• Send bulk SMS for retail promotions: Reach a wide audience with bulk SMS, offering a cost-effective way to promote sales, discounts, and special offers directly to customers' phones.

• Segment and personalize messages: Break your customer base using the Audiences feature into smaller groups and send tailored messages. When your promotions feel relevant to each person, they’re more likely to take action!
• Recover abandoned carts:  Bring customers back with timely, personalized reminders that make it easy to complete their purchases.

• Track SMS campaign performance: Track performance, measure ROI, and optimize your SMS strategy with Plivo CX’s analytics. Use insights to refine message content, timing, and targeting for better results.

• Re-engage loyal customers: Send product updates, reminders, and feedback requests to spark interest and keep customers loyal.

With access to Plivo’s premium global carrier network covering over 220 countries, your messages reach customers quickly and reliably, no matter where they are. 

Most importantly, with affordable pricing, you can reduce your SMS marketing costs by up to 70% while delivering messages effectively. The platform is also designed to be user-friendly and fully compliant with industry standards so you can focus on what matters most: connecting with your customers.

Want to improve your retail SMS marketing strategy?

Book a demo today!

Let’s be honest—promoting and managing events can feel like a lot, especially when traditional methods like email and social media don’t deliver the desired results. 

For example, a recent Mailchimp research indicates that the average email open rate is only about 34%, which means email communication from your brand frequently risks going unread. On the other hand, the sheer volume of information shared on social media platforms makes it challenging for your branded content to stand out.

In this scenario, with an impressive 98% open rate, SMS stands out as a reliable way to reach your audience. Whether mounting a marketing campaign, sending event reminders or handling last-minute changes, this good-old, time-tested communication channel allows you to connect with customers directly. 

In this article, we’ll explore some top actionable strategies and best practices for using SMS effectively for event promotion and management.

Why use SMS marketing for event promotion and management?

According to the Mailchimp study, while event emails see a decent 21% open rate, this falls short of the 30% average across all industries. This is why SMS has emerged as the go-to option for event organizers to reach a broad audience instantly and keep everyone informed at every step. 

Here are some compelling reasons why event SMS should be part of their marketing strategy:

High open rates and engagement

As mentioned above, SMS have a high open-rate due to their nature of immediacy. Typically, most messages are read within minutes of receipt. This makes it an ideal channel to ensure your event-related communications are noticed and acted upon.

Budget-friendly

Compared to other marketing channels like email or paid ads, SMS is highly cost-effective. It’s significantly cheaper than CPC (cost-per-click) marketing, which can cost upwards of $6 per click on average. 

This makes SMS a budget-friendly option for event organizers looking to drive high engagement and attendance.

Fast and efficient

SMS is delivered almost instantly. 90% of people read a text message within the first 3 minutes, making it invaluable for real-time updates and last-minute announcements during events.

Timely and direct communication

Unlike emails that might sit unread or social media posts that can get lost in the feed, SMS delivers your message directly to the recipient’s phone.

Companies like Amazon use it to automate essential tasks like order confirmations and delivery updates, ensuring timely and efficient communication.

Broad audience reach

With 98% of Americans owning a cellphone and 91% using smartphones, SMS stands out as one of the most accessible ways to reach audiences across all demographics. 

Personalized messaging

31% of consumers sign up for SMS to receive more personalized messages. Marketers can personalize SMS by addressing recipients by name, tailoring content to their interests, and sending messages based on their behavior or preferences. 

Now that you know the benefits of SMS marketing for event promotion and management, let’s take a look at how you can use SMS at every stage of your event.

Key strategies for using SMS in event management and promotion

Effective event management has three key phases: pre-event planning, real-time management, and post-event engagement. Here’s how SMS can play a pivotal role at each stage:

Pre-event management

Promotion phase: Start by sending event announcements via SMS to ensure your audience is aware of the upcoming event. 

For example, an online fashion brand could send:
"🛍️ The wait is over! Our Fall Collection Launch Event is happening this Friday at 7 PM EST. Be the first to shop—RSVP now: [link]."

You can also include early-bird offers with direct RSVP links to encourage early sign-ups and create a sense of urgency. This makes it easy for attendees to confirm their participation with just a click.

For example:
"Exciting news! [Event Name] is coming on [date]. RSVP now and save 20% with early-bird pricing: [link]."

Reminder phase: As the event date approaches, schedule reminder texts to keep attendees informed. A quick, friendly nudge like:

"Just a heads-up! [Event Name] is tomorrow at 2 PM. We can’t wait to see you there!"

This keeps your event top of mind and reduces no-shows.

Furthermore, sending timely reminders ensures they don’t forget to attend. Highlight key event details like the event’s time, location, and agenda, so that attendees are fully prepared.

These reminders and updates minimize no-shows.

Real-time event management

Updates and alerts: Send real-time updates about schedule changes, important announcements, or helpful info like parking details.

For example:
"Reminder: Session 3 is starting in 15 minutes in Room 102. Don’t forget to check out the parking lot near the venue!"

Engagement during the event: Share links to session materials or highlight key moments throughout the event to keep attendees captivated.

For example: "Check out the session slides here: [link]. Don’t miss our live Q&A at 4 PM!"

Post-event SMS engagement

Gathering feedback: After the event, sending a short survey link via SMS is a quick and easy way to gather valuable attendee feedback.

For example:
"We’d love your thoughts! Please take 2 minutes to complete our survey: [link]. Your feedback helps us improve!"

This helps you understand what worked well and what can be improved for future events.

Sharing highlights: Show appreciation by sending thank-you messages and sharing event highlights like recordings, photos, or key reports.

For example:
"Thank you for attending [Event Name]! Check out the event highlights and photos here: [link]. Hope to see you at our next one!"

Promoting future events: Encourage attendees to stay engaged by promoting upcoming events through follow-up SMS.

For example:
"Don’t miss our next event on [date]! Register now and be the first to know about exciting updates: [link]."

This helps build anticipation for future events.

SMS helps you draw in attendees before, during, and after the event. Now, let’s explore some of the most used event SMS templates for event promotion and communication.

Top 10 ready-to-use SMS templates for event promotion

Here’s a selection of customizable templates for your event SMS campaigns:

1. Limited seat reminder

Only a few spots left for [Event Name] on [date]! Don’t wait—secure your place now: [link]

Example: Only a few spots left for the Business Growth Conference on June 10th! Don’t wait—secure your place now: [link]

2. RSVP confirmation

Thanks for RSVPing to [Event Name]! We're excited to see you on [date]. Your ticket: [link]
Example: Thanks for RSVPing to the Annual Networking Gala! We're excited to see you on July 5th. Your ticket: [link]

3. Countdown reminder

[Event Name] is just 3 days away! We’ve got an exciting lineup of speakers, workshops, and networking opportunities, so don’t forget to mark your calendar. Check out the full agenda and get ready for an unforgettable experience! [link]

Example:
The E-Commerce Expo is just 3 days away! We’ve got an exciting lineup of speakers, workshops, and networking opportunities, so don’t forget to mark your calendar. Check out the full agenda and get ready for an unforgettable experience! [link]

4. Last-minute registration

Time is running out! Registration for [Event Name] closes in 24 hours, and we don’t want you to miss out. Reserve your spot before it’s too late. Hurry, register now, and join us for an amazing event!  [link]

Example:
Time is running out! Registration for the Business Strategy Workshop closes in 24 hours, and we don’t want you to miss out. Reserve your spot before it’s too late. Hurry, register now, and join us for an amazing event!  [link]

5. VIP early access

Get exclusive early access to [Event Name]! Be the first to enjoy all the perks—secure your VIP spot here: [link]

Example: Get exclusive early access to the Luxury Fashion Show! Be the first to enjoy all the perks—secure your VIP spot here: [link]

6. Ticket reminder

Your ticket for [Event Name] is waiting! Don’t forget to grab yours before it’s gone: [link]
Example: Your ticket for the Annual Startup Expo is waiting! Don’t forget to grab yours before it’s gone: [link]

7. Session highlights

We have some exciting sessions lined up for [Event Name]! Get a sneak peek at the key topics and speakers. Plan your day with these session highlights: [link]

Example:
We have some exciting sessions lined up for the E-Commerce Innovation Conference! Get a sneak peek at the key topics and speakers. Plan your day with these session highlights: [link]

8. Thank you message

Thank you for attending [Event Name]! Check out the event highlights and photos here: [link]
Example:  Thank you for attending the Annual Networking Gala! Check out the event highlights and photos here: [link]

9. Upcoming event teaser

Exciting news! [Upcoming Event Name] is coming soon. Stay tuned for more details.
Example: Exciting news! The Annual Innovation Forum is coming soon. Stay tuned for more details.

10. Exclusive offer

As a thank you for attending, enjoy exclusive content from [Event Name]: [link].

Example: As a thank you for attending, enjoy exclusive content from the Marketing Innovators Summit: [link].

Now that you’ve got your event SMS templates, let’s look at some best practices to make your event communication even more effective.

Best practices for using SMS for events

To get the best results from your event text messaging, follow a few key practices. Let’s go over some tips for success:

Keep it concise

SMS messages have a character limit, so it’s essential to keep your messages short, clear, and to the point. Users are more likely to interact with short messages, as they can quickly understand the key details.

Timing matters

When it comes to event SMS, timing is everything. With 71% of people checking their phones first thing in the morning, it’s important to send messages at peak times—avoid early mornings or late nights. 

By reaching your audience when they’re most likely to respond, your message stands a better chance of being noticed.

Add a call-to-action

Whether it's promoting limited-time offers, exclusive discounts, or flash sales, a clear CTA like “Shop Now” or “Grab Your Deal” encourages recipients to act quickly, increasing engagement and sales.

Here’s a great example from Amazon Prime Day deals. Their SMS campaign focuses on urgency and simplicity, offering a strong call to action:

Make it personal

90% of customers are more likely to make a purchase when they receive a personalized SMS. Use your recipient's name, reference their past interactions, and tailor your message to make them feel valued. This relevance increases interaction and drives action.

Offer value

Whether it’s a special discount, exclusive product access, or early access to event registration, always offer value to your SMS recipients. When customers see a direct benefit, they’re more likely to act.

Test messages before sending

Testing ensures your SMS messages are clear, error-free, and contain the right information. It’s always best to test with a small group before sending it to a larger audience. 

Target your audience

91% of consumers are more likely to engage with brands that offer personalized offers. By segmenting your audience and sending targeted messages based on their interests or needs—whether VIPs or first-time attendees—you make them feel valued and more connected to the event.

Mobile-friendly pages

With 19% of marketing budgets in the U.S. now dedicated to mobile advertising, it’s important to ensure your event registration page links are mobile-friendly. They should load quickly and display perfectly across all devices for a good experience.

Measure performance

Track the effectiveness of your SMS campaigns by monitoring open rates, click-through rates, and registration conversions. Based on the results, you can optimize your messaging strategy and adjust your tactics for future events to achieve even better results.

By following these best practices, you’ll see an increase in engagement and attendance for your event. To elevate your SMS strategy, you need a robust platform that simplifies managing event communication and maximizes your impact.

Plivo CX, an omnichannel customer service platform, simplifies your event SMS strategy, making it easy to send personalized messages, track performance, and keep your audience connected every step of the way. 

Simplify event SMS strategy with Plivo CX

Managing event communication can be a challenge—whether it’s promoting the event, sending reminders, or providing real-time updates, getting the right message to the right people at the right time is crucial.

Plivo CX facilitates campaign management for event organizers looking to send timely event promotions, reminders, and updates. The tool helps you automatically connect with your audience more personally. 

Here’s how Plivo CX can charge up your event SMS strategy:

• Send bulk SMS: Launch, manage, and monitor your campaigns with ease. With just a few simple steps, you can select your audience, create targeted messages, and send them at the optimal time to maximize engagement and ROI. 

• Segment and build contact lists: Segment customers using the Audiences feature based on rules like purchase history or engagement. Send targeted campaigns to specific groups for higher relevance and engagement.
  
  
• Generate personalized messaging at scale: The Copywriter AI is designed to streamline message creation. You can specify event objectives, parameters, timing, urgency, and desired voice for the message.
  
  
• Analyze SMS campaigns: Use Plivo CX's detailed analytics to track performance metrics, measure ROI, and improve your SMS strategy. Adjust message content, timing, and targeting based on insights for better results.

• Timely updates: Instantly notify attendees about important event changes, updates, or reminders, ensuring they stay informed and engaged throughout the event journey.

• Cost-effective: Plivo CX offers affordable SMS solutions with high ROI, making it a budget-friendly choice compared to other SMS marketing platforms. Get discounts on SMS volume and spending as your usage scales.

With Plivo CX, you can manage your event communication more efficiently, reduce costs, and increase engagement. Also, Plivo CX taps into its premium carrier network, spanning 220+ countries, which ensures your event sms messages reach anywhere in the world with minimal delays.

Plus, with the affordable pricing, you can cut your SMS marketing costs by up to 70%.

See the difference Plivo CX can make for your event promotion and management. Book a demo today!

Long gone are the days when customers used to wait 20-30 minutes to get on call with a care executive. Now, they will abandon their call in 2 minutes 36 seconds.

Thanks to AI, businesses can now deliver real-time responses and personalize engagement across multiple touch points. 

If you are a business looking to explore AI in customer experience, this guide will help you understand AI's utility in depth. You’ll also learn how to choose and implement the right AI tool.

What is artificial intelligence in customer experience? 

Artificial intelligence in customer experience involves implementing AI technologies to enhance interaction between businesses and their customers. The goal is to deliver fast, efficient, and personalized experiences that allow businesses to work more productively and save costs.

Integrating AI into customer experience helps businesses understand what their customers want even without asking. It utilizes advanced algorithms to analyze customer data, predict preferences and improve response times, enhancing the overall customer experience. 

Benefits of artificial intelligence in customer experience

With the rise of AI, there is a question that people are desperately trying to figure out: Will AI replace human agents? The simple answer is no. 

Although Goldman Sachs says AI could replace the equivalent of 300 million full-time jobs, most experts believe that human efforts in customer service will be augmented with AI-driven automation and not replaced.

Let’s find out how:

Delivering faster responses with immediate chatbot assistance

In 2023, 44% of customers appreciated chatbots for helping them find relevant product information before making a purchase, and another 35% were keen on using chatbots available on brands’ websites.

One of the primary reasons customers love chatbots is that they can provide instant responses. Additionally, chatbots can also support agents with pre-written responses to customers based on the conversation’s context.

Forecasting customer needs using predictive analytics

58% of customers are willing to pay more for better customer service. AI for CX can analyze past interactions and behaviors to engage customers proactively and address potential concerns before they arise.

This allows businesses to identify signs of dissatisfaction, provide quality assurance, and discover up-selling and cross-selling opportunities, improving the overall customer experience. 

Maintaining employee stability through proactive retention analytics

AI can identify at-risk employees and address their concerns before they decide to leave. This is done by analyzing patterns in employee behavior, performance metrics, and engagement levels. 

For example, a company might notice that employees with prolonged project deadlines and fewer growth opportunities are more likely to leave. HR teams can then intervene by offering professional development programs, mentorship or improved incentives to retain top talent.

Delivering tailored experiences to build lasting relationships

According to a report by Deloitte, brands that are focused on delivering personalized experiences are :

• 48% more likely to exceed their revenue targets 
• 71% more likely to improve customer loyalty

AI can tap into customer behavior data to reveal preferences, helping businesses craft customized interactions and recommend products and services that align with individual tastes and needs.

Efficient resource allocation with intelligent lead scoring

Companies can leverage AI to implement smart lead-scoring systems that prioritize customers based on various factors, including engagement levels and industry relevance. 

This allows sales teams to focus their efforts on leads most likely to convert, resulting in optimized resource allocation. 

Amplifying business outcomes through sales prediction

AI-powered sales prediction tools can efficiently analyze historical data, customer interactions and external market factors to generate accurate forecasts. These insights help the sales team to make data-driven decisions and refine strategies. 

By leveraging AI, businesses can achieve new levels of growth, optimize resource allocation and ultimately amplify their success.

Examples: Uses of artificial intelligence in customer experience

Meeting customers' demands is one of the biggest challenges businesses have faced. But with AI, things are changing for the better. Gartner predicts that by 2025, 80% of customer service organizations will utilize AI technology in some form to improve customer experience and agent productivity. 

Let’s understand how some brands are excelling in meeting customers’ demands with the following AI customer experience examples :

Plivo CX’s self-service chatbot

The cloud-based omnichannel customer service platform Plivo CX comes with an advanced AI-powered self-service chatbot driven by OpenAI’s latest model. Once trained by a custom dataset of the company, the chatbot is designed to answer common queries swiftly and accurately. 

Plus, the chatbot is available 24/7. Even if the customers put the conversation on hold, chatbots can pick up where they left off. Plus, for complicated issues requiring human touch, the chatbots can hand them over to relevant agents, along with detailed notes and summaries.

Some of the other notable features of Plivo CX include:

• A unified agent desktop for omnichannel support helps agents quickly switch between channels with complete visibility of customers’ issues
• Integrations with top marketing platforms such as HubSpot, Help Scout, Zendesk, and other home-grown systems
• Visual workflow builder for creating automatic workflows
• Live coaching so that agents always remain knowledgeable about the process
• Metrics and Reporting to analyze customer interactions and gather feedback in real-time

Shopify’s advanced AI implementation

Shopify utilizes AI to analyze customer data such as browsing history, purchase patterns and demographic information to tailor product recommendations for each shopper.

Unlike traditional recommendations, AI product recommendations on Shopify shift based on real-time insights and user interactions.

Shopify’s advanced AI also helps in :

• Predictive inventory management to minimize overstocking and stockouts
• Fraud detection and prevention to provide a secure and trustworthy shopping environment
• Enhanced supply chain management by improving logistics and delivery processes

Amazon’s product recommendation system

Amazon takes product recommendations one step further by personalizing product descriptions that are more relevant to customers.

For example, instead of using generic phrases like “users also search for” or “more like this,” they provide more specific product descriptions such as “Cookie boxes for Christmas” or “Curling rod for straight hair.”

It also uses super-specific product descriptions to make it easy for customers to quickly locate a product based on the attributes they are looking for, such as “medium-sized bed for small dogs.”

eBay’s Gen AI seller function

Earlier in 2024, eBay launched a tool allowing marketplace sellers to remove the background around the product on a photo and replace it with a more professional-looking background created by Gen AI.

This helps small-range sellers who cannot invest in studio equipment create a professional shoot that appeals to more customers.

How to evaluate an AI customer experience solution

With many AI customer experience solutions in the market, it is extremely difficult to determine the best option. Moreover, most vendors glorify and present their AI capabilities in different ways to stand out from the crowd. Evaluating the right solution requires a strategic approach to ensure it aligns with your business needs and goals.

Consider these key factors when assessing an AI customer experience solution:

Feature sets

Look for platforms that offer an extensive range of features to support diverse needs. Consider features such as omnichannel routing, advanced personalization and real-time data analytics to empower your team to test and refine customer experiences.

Moreover, choose a platform that can handle basic and advanced scenarios to help you scale your efforts as needed.

User-friendly interface

An intuitive and user-friendly tool enables your team to set up, execute and analyze experiments without extensive training. A well-designed interface can minimize the learning curve and empower your team to focus on driving results rather than learning how to use a tool.

Advanced AI and machine learning capabilities

Opt for platforms with sophisticated algorithms that can analyze user behavior, predict trends, and adapt to customer preferences in real time. This allows for more precise targeting, personalized experiences and continuous optimization.

Robust security and compliance measures

Protecting customer privacy is non-negotiable for building trust and loyalty. Ensure the platform adheres to stringent security standards and complies with relevant data protection regulations, such as GDPR, to avoid legal complications and maintain customer trust.

Cost-effectiveness

Examine the platform’s pricing model to ensure it complements your budget and functionality. Beyond the initial costs, consider long-term expenses, such as feature upgrades, additional integrations, and ongoing support.

Proven track record

Look for platforms with a history of success with similar businesses. Evaluate case studies, customer testimonials and independent reviews to gauge the platform’s reliability and performance. A strong track record means the platform can deliver the required results and ensures confidence in your investment.

Steps to implement an artificial intelligence customer experience solution

Implementing AI requires a clear understanding of customer needs, seamless integration with existing systems, and proper team training. Here are the steps to help you get started:

1. Set your objectives

Identify the specific customer experience goals you want to achieve. Whether you are creating a more personalized customer journey, accelerating response times or automating repetitive tasks, defining your objectives will help you pick the right AI tool that fits your needs perfectly.

2. Select the right tool

Pick a tool that caters to your identified needs and objectives. Ensure the tool is scalable and adaptable to changing business needs. Consider other factors such as pricing, long-term viability, and support for these tools. 

3. Train and fine-tune the AI model

Engineers typically perform this step, which involves adjusting the model’s parameters to ensure accuracy. The process involves:

• Gathering relevant data from chat logs, email exchanges, and call transcripts
• Cleaning and categorizing the data before feeding it into the AI model
• Continuous fine-tuning by incorporating new data and feedback from customer interactions
• Testing AI responses before deployment to test for accuracy, relevance, and tone

4. Integrate with CX channels

Integrate the AI solution into your current systems, including your CRM, live chat or email platforms. The IT team typically does this, which involves API integrations, data syncing, and testing to ensure there are no errors. 

5. Ensure compliance with data protection laws

Maintain strict compliance with relevant data privacy laws and regulations, such as :

• General Data Protection Regulation (GDPR)
• Health Insurance Portability and Accountability Act (HIPAA)
• Payment Card Industry Data Security Standard (PCI DSS)

Also, regularly review and update your privacy policies to evolve with changing regulations.

6. Collect feedback on the new processes

Once done, collect feedback from agents and customers to identify areas for improvement and optimize where needed. Address any concerns promptly to maintain trust and satisfaction.

7. Train your team

To fully utilize the power of AI, train your customer service team on how to use the tools effectively. The training should cover more technical aspects, understand limitations, and effectively handle an escalated customer.

8. Measure return on investment (ROI)

Evaluate the ROI by assessing metrics such as customer satisfaction scores and response times. Makes adjustments where necessary based on performance data and evolving customer needs.

Accelerate response times with Plivo CX’s AI customer experience solution

Plivo CX is built as an all-in-one, AI-driven customer service solution for the modern era— agile and adaptive.  It features an AI-powered self-service chatbot, developed and powered by OpenAI, to provide exceptional omnichannel customer service for businesses of all sizes. 

Here is what it has to offer:

• Super-fast responses: AI chatbots efficiently handle customer inquiries, including exchanges, information updates, and order tracking in real-time
• Train as you need: Integrate with custom knowledge base and train AI chatbots to make informed decisions based on your company’s policies and brand guidelines
• Easy to update: Whether promoting offers, launching new products, or communicating policy changes, update the chatbots as needed. It is a simple and cost-effective process 
• Seamless escalation: For more complex issues that require human intervention, the chatbot can hand over the problem to the most suitable agent with complete context
• Keep it on track: Set boundaries to align your chatbot with your company’s guidelines, policies, and processes

As noted before, Plivo CX also features the unified agent desktop, which facilitates seamless communication across channels—email, SMS, chat, WhatsApp, and voice—to empower support teams to operate more efficiently and effectively than ever before.

To try Plivo CX today, book a demo.

The market size of the Interactive Voice Response (IVR) industry is expected to grow to USD 11.5 billion by the end of 2037. And, the need for efficient customer service has propelled this success.

Research suggests that 89% of customers will likely make repeat purchases with companies that offer excellent customer service.  And one of the key components of this efficiency is the integration of multi-level IVR systems into customer service processes.

Plivo’s suite of products offers businesses the tools they need to optimize and elevate their IVR systems. With Plivo’s real-time audio streaming, companies can move beyond traditional IVR setups and create dynamic, conversational, and personalized customer experiences.

This article will explore multi-level IVR systems, how they work, their implementation, benefits, and how you can go a step ahead of the traditional multi-level IVR systems with Plivo’s effective customer support solutions. 

What is Multi-Level IVR?

Multi-level Interactive Voice Response (IVR), also known as Auto Attendant, is an automated phone solution that guides callers through a structured self-service menu to connect them with the appropriate destination—be it an agent, queue, information, or action.

Unlike single-level IVR, which offers a straightforward menu with limited choices, a multi-level IVR allows for layered navigation. Each selection leads to submenus, offering more specific options to help callers find what they need.

Let’s say you have an e-commerce business. Here’s an example of how a Multi-level IVR would look like for your customers:

• Level 1: Welcome message with language preference selection (e.g., English, Spanish, etc.).
• Level 2: Primary menu options like browsing product categories, tracking an order, or connecting to customer support.
• Level 3: Specific options within each category, such as viewing discounts in a category, updating shipping information, or querying about product returns.

Structure and functionality of Multi-Level IVR

Imagine a telecom company using a Multi-Level IVR to streamline customer support. Here’s how it would work: the first menu asks users to choose between billing, technical support, or new plans, while a second level under "technical support" could identify whether the issue involves internet, mobile, or TV services. 

This layered approach lets you resolve most customer queries without call transfers. 

Key functionalities of Multi-Level IVR systems:

1. Manages incoming calls with multi-layered menus:

The multi-layered menu system organizes incoming calls by offering a series of hierarchical options. This ensures that callers can navigate through tailored choices, such as selecting their issue type or department, making the call-handling process smooth and efficient.

2. Routes calls to relevant agents or departments:

The system intelligently directs the call to the most appropriate agent or department based on the caller's menu selection. This eliminates confusion and ensures that customers reach the right point of contact quickly.

3. Reduces agents' workload by addressing routine queries:

The system can independently handle frequently asked questions, such as providing business hours, order tracking, or refund policies. Automating responses to these common inquiries allows agents to focus on more complex and critical customer issues, boosting overall productivity.

Benefits of Multi-Level IVR

Integrating a multi-level IVR system automates customer interactions, reduces operational costs, and significantly enhances customer service quality. Here’s how:

1. Empowers customer self-service:

Multi-level IVR lets customers resolve basic queries, such as checking order status or getting information about a product, without needing to wait for a live agent. This creates a more seamless experience and reduces frustration for customers who want quick answers.

2. Reduces customer service costs:

By automating repetitive tasks like FAQs or payment inquiries, businesses can save on staffing costs. The system handles a significant volume of inquiries, allowing human agents to focus on more complex customer issues.

3. Optimizes call routing:

Based on the customer's input, the IVR system efficiently directs calls to the most suitable department or agent. This ensures that customers are connected to someone capable of addressing their specific needs, saving time, and enhancing resolution efficiency.

4. Offers 24/7 availability:

Multi-level IVR operates round-the-clock, enabling businesses to assist customers even outside regular working hours. This feature is particularly valuable for global businesses catering to customers across multiple time zones.

5. Improves customer satisfaction:

Studies show that 70% of customers avoid brands with long wait times. Multi-level IVR minimizes wait times and offers faster resolutions, leading to higher customer satisfaction and loyalty. Customers value the convenience of resolving issues on their terms, anytime.

Also read: Use IVR to improve customer service.

Operational mechanics of Multi-Level IVR

A Multi-level IVR system works by intelligently guiding callers through a predefined call flow. Here’s how it operates:

1. Initial interaction:

• The IVR system welcomes the caller with an automated greeting.
• It then asks the caller to make a selection based on the presented options.

2. User input options:

Callers can interact with the system by either:

• Speaking their choices aloud (voice commands).
• Pressing specific keys on their keypad (keyed inputs).

3. Scripted call flow:

• Based on the caller's input, the system proceeds through a predefined sequence of prompts.
• Each step guides the caller closer to their intended destination, such as accessing information or connecting with a department.

4. Dynamic adjustments:

The IVR system can modify the call flow in real-time depending on:

• Time of Day: Adjusting options for business hours versus after-hours service.
• Call Volume: Prioritizing responses or providing alternatives during peak times.
• Caller History: Personalizing interactions using data from previous calls.

How to implement and customize multi-level IVRs?

A poorly designed Multi-level IVR system can frustrate customers rather than help them. Common pitfalls include irrelevant menu options, lengthy navigation paths, and difficulty in connecting with live agents. 

Avoid these challenges by following a structured implementation process:

1. Analyze the current IVR flow: Review if the existing system is efficient and meets customer needs. Gather feedback from stakeholders and customers to identify issues like slow routing or missing steps.
2. Design the IVR flow: Start by mapping out the most common customer journeys and defining clear objectives for each interaction. Ensure that options are concise and self-explanatory, and limit menu levels to avoid overwhelming users. Incorporate error handling for invalid inputs and provide quick access to a live agent when necessary. 
3. Create IVR transcripts: Write IVR scripts for various scenarios like greetings, options, and busy signals. Customize the tone and content based on your brand voice and target audience demographics.
4. Test the IVR flow: Run tests with external users to identify bottlenecks or areas of confusion and ensure the flow is intuitive and works smoothly.
5. Monitor and optimize: Use analytics to track performance and make necessary adjustments based on metrics like call abandonment or handling time to optimize your IVR system

Going beyond traditional customer service with Smart IVR 

Traditional multi-level IVRs have been a reliable solution for years, but customer expectations are evolving. Your customers don’t want to navigate through multiple menus to find the right option. They want a fast and simple option.

That’s why many forward-thinking businesses are upgrading to smart IVRs powered by AI voice agents that offer faster, more conversational customer experiences.

Why Are Smart IVRs the Game-Changer?

Smart IVRs let your customers skip the frustrating menu maze. Instead of “Press 1 for billing,” they can simply say, “I want to check my last payment.” Using AI, smart IVRs understand what customers need, respond naturally, and get them to the right place quickly—no guesswork or dead ends.

You can easily switch to smart IVRs with Plivo powered AI voice agents. By leveraging natural language processing (NLP), these voice bots understand customer intent and respond intelligently, eliminating the need for rigid menu navigation. 

They also integrate seamlessly with existing workflows and ensure smarter call routing, faster resolutions, and a modern customer experience that scales with your business. 

Here’s how smart IVRs with AI voice agents improve your customer interactions:

• Talk, don’t press: Plivo powered AI voice agents use Natural Language Processing (NLP) to understand and respond to what your customers are actually saying, not just what button they pressed.
• Smarter routing: Unlike multi-level IVRs, smart IVRs analyze caller data and preferences and dynamically adjust the call routing and response pathways, creating a tailored experience for every customer.
• Contextual awareness: AI-powered IVR tracks the history of previous interactions, to pick up any conversation where the customer left it to avoid unnecessary repetition.
• Data-driven operations: Smart IVR integrates with customer relationship management (CRM) systems and databases, to provide relevant, real-time information during the interaction.

Make the switch today with Plivo powered AI voice agents .

Traditional IVRs served their purpose, but it’s time to evolve. Plivo makes it easy to launch AI voice agents and create a smarter, more intuitive IVR experience that enhances your customer experience. 

Why Plivo?

• Superior voice infrastructure: To deliver get crisp call quality across 220+ countries 
• Low latency: Our PoPs are located in seven locations (California, Virginia, Frankfurt, Mumbai, Singapore, Sydney, São Paulo) across five continents. 
• High availability and uptime: With a redundant infrastructure across multiple geographies and at least three local carrier connections across countries, Zentrunk promises 99.99% uptime
• Full redundancy: Redundant links reroute traffic over backup networks in less than two seconds in case of backbone failover

With Plivo-powered AI voice agents, you can create smart IVRs that don’t only talk but empathize and engage with your customers. 

‍ Request a trial to Plivo today to get started.