Lowering product prices, reorganizing space, introducing new products, entering new markets – do you think companies make these decisions at random?
Not really. Most businesses take decisions after collecting and analyzing valuable information from their data. This is the reason why business analytics is an important concept, as it helps companies analyze historical data with the use of statistical methods to make informed decisions.
What created the need for AI in business analytics?
Today more than ever, companies collect a large amount of data. IoT devices, GPS networks, security tools, call logs, website analytics – these are just part of the tools that collect valuable data for businesses to analyze and find important information.
The problem is that big data is getting bigger and harder for standard business analytics software to process.
Imagine the amount of information that industry giants like Amazon are collecting. It is impossible to depend on traditional business analytics tools to extract valuable information and create strategies from such an immense amount of data.
That’s why companies combine business analytics with the power of artificial intelligence to democratize data and improve adoption.
Artificial intelligence in business analytics
We know that artificial intelligence is a field that builds intelligent machines that are capable of solving problems and performing tasks that would require human intelligence.
For artificial intelligence systems to learn and function as intended, they need data. That’s why AI in business analytics is a perfect use case, as business analytics is all about data and that’s exactly what AI needs.
Implementing AI solutions in business intelligence means processing this massive amount of data in a matter of seconds. In this way, managers can easily analyze data and export valuable information that can be used to improve decision-making and strategy building.
Artificial intelligence systems can connect data from several different sources and provide real-time analytics as well as notifications. This way companies can immediately act on the insights as soon as the data enters their system.
This helps managers not only in long-term decision-making but short-term day-to-day strategies as well.
However, in addition to the fact that AI helps transform raw data into an understandable form in real-time, another great benefit is its prediction capabilities. This is also known as predictive analytics.
Predictive analytics predicts future events and outcomes with the use of real-time/historical data, as well as machine learning techniques and statistical algorithms.
AI-powered business analytics can provide companies with reliable predictions on future trends such as price changes, customer responses, and more. This is a powerful tool that helps companies be proactive, ahead of competition and less likely to be caught off guard.
What benefits does this bring?
- Cost-effective – AI automates the time-consuming process and frees people from manual work. The system sends alerts that require human attention only in case of real need, thus reducing the cost related to human personnel.
- Greater efficiency – Implementing AI in business analytics means classifying raw data instantly and sorting it faster. This process reduces the steps that were previously necessary, therefore, provides greater efficiency to companies.
- Greater precision – Artificial intelligence technology not only automates certain processes but also eliminates cases of human error. As we said, handling large amounts of data is exhausting and time-consuming, increasing the chances of errors and mistakes. However, replacing this process with AI improves accuracy and quality.
Business analytics helps companies increase their market share, drive profitability and revenue. It is an essential tool for understanding how different processes work and what can be done to improve the overall business performance.
However, today’s competitive environment, as well as the vast amounts of data available, pushed companies to think outside of the box and proactively lead the market. That’s why implementing AI in business analytics today is not a “nice to have” feature, but a requirement to keep up with the competition.
If you want to leverage your data, improve operational accuracy, efficiency, and reach your goals faster, schedule a free consultation call with our artificial intelligence experts today and let’s start building something great together.
Customer churn refers to the rate at which customers stop using the company’s services or products for a specified period of time.
It has a significant negative effect on businesses as it reduces revenue and profits. In the US alone, $ 136.8 billion is lost annually due to avoidable customer churn.
For exactly that reason, it is important for a company to have customer retention strategies in place. Retaining customers not only helps businesses establish valuable customer relationships, but also increases profitability.
In fact, acquiring new customers costs 5-25X more than retaining existing ones.
Today, especially in such a competitive economy with wide availability of competitors, companies began to pay more attention to customer churn and have been implementing different strategies to prevent clients from leaving. However, AI has proven to be the most effective solution when it comes to customer churn.
Let’s take a look at how Artificial Intelligence helps companies with customer retention and churn prevention.
One of the biggest benefits of AI is that it can help companies predict which customers are likely to stop using their services or products.
How exactly can AI do that? The main characteristic of machine learning algorithms is to find links and patterns in historical data, learn from them, and apply what they have learned to new data.
The same applies to predicting the churn, from the data collected from customers, companies can identify the activities that contribute the most to the loss (decreased engagement, dissatisfaction, etc.). Later, machine learning algorithms are fed with this data, trained to identify such activities in user behavior and alert businesses about a potential churn.
The ability of artificial intelligence to accurately predict the future churn rate helps companies identify the causes of churn, implement effective retention strategies, and ultimately improve profitability.
Let’s sump up the necessary stages from an effective customer churn prediction:
- Data collection – The better the quality of the data, the greater the confidence in decisions. With numerous user interactions with your services, the amount of data can be overwhelming. Ensuring good quality data translates to better results.
- Feature selection – To get the best result, we need to focus on the features that contribute the most to our output (churn). Including irrelevant features in our data can damage the accuracy of the model.
- Deploying machine learning models – We feed the correct data to our machine learning model to get the prediction that suits your needs.
- Prediction – Finally, after all these steps, you get the churn prediction and can make a business decision based on historical data, not intuition.
Going beyond prediction
While churn prediction is a vital part of customer retention, it doesn’t fully address the issue. Companies must employ various promotional strategies to ensure that the customer interacts with the business again and continues to use its products/services.
Here, as in the previous example, artificial intelligence can be a powerful tool to achieve these goals.
Prediction alone does not mean that the customer will not leave your business. To ensure customer retention, companies should approach users with incentives.
It is important to offer the customer a discount or promotional program to show that you care. Artificial intelligence systems can automate such activities while taking into account what churn stage the client is in.
Artificial intelligence can also determine what type of promotional offer can achieve the best result for the highest engagement and retention for each individual customer. Based on this, the system can automatically personalize the promotional offer without the need for human participation.
Today, one of the main goals of any business is to retain customers for as long as possible, as it boosts the revenue of the company and increases the lifetime value of the customers.
Artificial intelligence and machine learning are the perfect solutions for customer retention and churn prevention. Information and analysis based on customer data can be delivered to the company’s business systems and dashboards, allowing them to be proactive and ensure that their clientele continues to use products/services.
If you want to improve your customer experience and reduce churn rate, schedule a free consultation call with our AI experts and let’s see how we can get the most out of your data.
Social media was initially created for people to upload photos and make friends. However, it didn’t take long for companies to realize that social media presence plays an important role in brand recognition, marketing, customer relationship, and overall business growth.
Today, most businesses can be found on social media like Facebook or Twitter. These platforms are so popular that it often happens that customers visit the company’s social media page before their website. In fact, research shows that 91% of American businesses use social media.
With more and more companies joining social media, competition became fiercer and customers more demanding. The introduction of new tools and strategies to win customers on social networks made the process more complicated and difficult than it seems.
Fortunately, solutions such as artificial intelligence can help different teams in your company, such as marketing, customer service and sales, to order social media activities well, increasing their efficiency and effectiveness. Let’s find out exactly how it does that.
Customer feedback analysis
Online business reviews have a significant influence on the purchasing behavior of potential customers. Regardless of your marketing efforts and strategies, online reviews are of greater importance and weight to customers.
However, customer feedback is not only important for branding, it also serves as a vital tool to improve your product or service and find the improvement gaps.
No one knows your product better than your customers. That’s why listening to them gives you access to priceless business-critical information and also makes your users feel truly valued and important, helping with customer retention.
However, with so many different social media platforms, it became very difficult to keep track of each customer’s sentiment, extract important information, and act on it. This is exactly why AI-powered sentiment analysis is vital to businesses.
Using natural language processing (NLP) and neural networks, AI-powered solutions take seconds to analyze mountains of customer feedback data, rank it by sentiment and extract the most important keywords.
This way, your team will have access to already analyzed important information, and instead of wasting time reading reviews, the team will be proactive and work towards customer satisfaction based on insights from the feedback.
Fake follower check
Another novelty that came with social media was influencer marketing. Influencer marketing is a type of marketing that involves endorsement and product placement of influencers – people who have the power to influence other purchasing decisions due to their experience or knowledge in the specific field.
Brands spend a lot of money to appear in an influencer feed due to the large number of followers that the person has. However, if the followers are not authentic, the commitment and the money invested were not worth it.
With the help of machine learning algorithms, AI systems can analyze different criteria of authenticity, such as engagement rate, number of followers, number of posts, etc.
All of these details provide businesses with crucial information to avoid targeting the wrong audience resulting in a loss of money.
AI-powered chatbots use natural language processing (NLP) and machine learning that simulate human conversations and provide thoughtful responses to customer inquiries. Such a system is much more advanced than automated responses, as AI chatbots understand customer intent.
Thanks to this solution, companies can reduce service costs and, at the same time, offer continuous support to customers.
Using chatbots is a perfect way to improve the customer experience, as your service agents are free from repetitive tasks and can focus on more meaningful interactions with customers.
Analyzing and optimizing online advertising campaigns on platforms such as Google Adwords or Facebook is not an easy task and requires considerable time to master.
Tracking ad performance becomes a challenge when companies have dozens of different versions of each campaign.
Analyzing the data provided by these platforms such as impressions, cost per click, click-through rate, conversions, etc. can certainly be overwhelming and time-consuming.
By gaining access to data such as ad spend, target audience, ad creatives, the AI-powered solution can automatically identify the best performing ads, optimize how much to bid on them and identify the best target audience.
Because artificial intelligence systems can analyze a large amount of data in seconds, ad automation becomes especially valuable for companies with many ad sets and ad campaigns.
Today, most of your clients and potential customers are on social media, regardless of the industry you operate in. That’s why doing your best on these platforms gives you the opportunity to better connect with your customers, increase your brand awareness, and boost your sales. To achieve this successfully, AI solutions can be a perfect tool.
AI can be seen as a superpower for social media marketing activities due to its benefits. AI can identify your best-performing campaigns, notify you of trends, optimize your advertising, and free your staff from repetitive manual labor.
If you want to take your social media marketing to the next level, schedule a free consultation call with our artificial intelligence experts and let us show you how our AI solutions can help your brand shine on social media.
“Customer service represents the heart of a brand in the hearts of its customers.” ~ Kate Nasser.
Customer service is the assistance you offer to your customers before or after they purchase your product or service. One of its earliest documented examples can be found in the early 1800s, when many companies began to realize the important role that customer service plays in business success.
However, the rapid rise in customer expectations has created a serious challenge for companies. With all the new digital channels and increased competition, it’s no wonder some companies have a hard time keeping all of their customers happy.
As this saying goes “Modern problems require modern solutions”, which is why many companies began looking for innovative ways to ensure customer satisfaction.
One of these modern solutions is Artificial Intelligence (AI), which began to be increasingly adopted by companies around the world to improve the overall customer experience.
In fact, it is estimated that by 2025 around 95% of customer interactions will be handled by AI. So what does this technology have to offer that so many companies decided to implement it?
Chatbots are applications that help businesses automate online messaging interactions with customers to some degree. However, AI chatbots are a step forward in this technology and can guide customers through more complex operations.
AI chatbots are not limited to pre-programmed responses and commands, they continually learn from the data provided and from the interaction of each customer.
Using Natural Language Processing (NLP) capabilities, chatbots break down the question and compare it to data in their knowledge base or previous answers that made customers in similar situations satisfied and happy.
The more interactions chatbots have with customers the larger is its knowledge base, giving more accurate and useful information to interested parties.
Reduced waiting time
Another great advantage of AI chatbots is the reduced waiting time and service time. Research shows that due to long wait times and service times, companies reported 75% of customer churn.
Using smart chatbots can speed up this process, as they mostly don’t require the involvement of human agents. Therefore, when a service agent is limited in terms of the number of people they can serve, the chatbot is not – it can respond to multiple requests in a matter of seconds.
AI chatbots are estimated to save businesses around $8 billion per year in customer support costs.
Today customers demand constant availability from companies. This is especially important if the business is international and operates in countries with different time zones. Therefore, 24/7 availability shows your customers that you are ready to help them when needed, giving your business a positive reputation.
However, this can be a difficult task to accomplish considering that the average worker works 8 hours a day. 24/7 availability means you need to have different shifts of workers to ensure your customers get uninterrupted support.
AI Chatbot is a more effective and efficient solution which many international companies implement in such scenarios. Chatbot knows no 8-hour work schedule and requires no rest, unlike your staff. It is always readily available to provide your clients’ assistance and guide them with their inquiries.
AI-powered customer feedback analysis
Another way AI can help businesses is by constantly checking different digital channels, such as forums, review websites, emails and chats, to find specific problems that users are experiencing.
In addition to identifying customer pain points and improving your product or service based on these insights, this proactive feedback analysis approach helps your business establish a strong connection with your users and identify the root cause of customer problems.
With the help of NLP and neural networks, the artificial intelligence solution will analyze customer feedback in seconds and classify it based on user sentiment. It will also provide exact keywords regarding the problem that customers have encountered.
In this way, companies will always be aware of what aspects of their service customers like best or what things need improvement, giving them the opportunity to respond to the problem before the specific user leaves the business and churns.
Last but not least, another powerful tool for improving customer service is video analytics. Video analytics is a technology that with the help of algorithms analyzes the content of a digital video to find customer trends and ensure security.
What are the benefits for companies? With the help of this technology, companies can analyze heat maps and customer journeys, discovering the most common routes that help retailers better display their most popular products and offers.
Video Analytics also helps facilities identify peak traffic at their location and understand when additional staff is required to provide faster service.
Once the service is finished, the facial expression of the visitors can also be detected and connected with the quality of the service, giving more precise information on customer satisfaction.
Many companies still ignore the implementation of AI because they believe it is a more expensive solution. However, the truth is that AI is a more profitable solution for your business in the long run.
Another important point is that the Artificial Intelligence solution not only improves customer satisfaction but also makes your staff happier. Delegating boring and repetitive tasks to artificial intelligence while providing your employees with meaningful projects engages and retains talents within your company.
If the reason you are still hesitant to implement AI in your business is because you are not equipped with the necessary resources to implement AI, that is not a problem either.
MaxinAI is pleased to offer you a free consultation call with our Artificial Intelligence experts so that we can better understand the project you have in mind and provide you with a customized AI solution that will ensure its success.