Month: June 2024

I take classes at a local Pilates studio at least once a week. After signing up for a class through an app, I get SMS updates communicating class changes and reminders. My favorite kind of text is the one letting me know I’ve been moved off the waitlist and into the class. These real-time updates wouldn’t be possible without customer service texting software.

Customer service texting, or SMS customer service, is an essential part of an omnichannel messaging strategy and an increasingly important element of customer service overall. And when customer service is critical to the rest of the business’s success, SMS software is not something to overlook.

Table of Contents

What is customer service texting software?

Customer service texting software is a program or platform that allows businesses to communicate directly with customers via text messages. Also known as SMS customer service, this form of communication enables businesses to answer customer questions, resolve issues, share appointment reminders, or send order updates in a way that’s convenient for everyone involved.

Including SMS in your customer service strategy — in addition to phone, email, social media, and live chat — allows you to meet customers wherever they are. Taking an omnichannel approach is key to providing good customer service.

Not only does texting provide instant support when customers need it — which can be a fast and convenient way to resolve an issue when they have a question — but it also enables agents to help customers asynchronously. Helping customers over text is much more efficient than talking on the phone, which means agents can handle more tickets in one day. This, combined with the automation that customer service texting software provides, helps your company save time and money. And if you want to learn more about how those intertwine, check out our 2024 State of Customer Service report.

How does customer service texting software work?

Customer service texting software works like other tools in your tech stack. Once you set up a business number or enable texts on your existing one, you can use your software to create and send messages to your contacts. The software can be standalone, or you can choose one that integrates with other tools to create a connected workflow, like the HubSpot’s customer service software.

Most SMS services offer mass texting, two-way conversations, and sometimes MMS (multimedia messaging service), which enables you to send images and GIFs. If you’re focused on using SMS for customer service purposes, the ability to have two-way conversations is the most important feature to look for — especially when you consider that 61% of consumers want the ability to text a business back.

If you have a business landline, you can text-enable your existing number. Or, you can choose a new 10-digit local or 800 number. You can also opt for a five to six-digit short code.

Once you have your SMS number and your software set up, you are ready to start helping customers over text.

10 Best Customer Service Texting Software

I receive texts from businesses all the time, but I never thought about how they could actually text me until I started looking into customer service texting software.

Here are some of the top customer service texting services I found for a range of industries and businesses of all sizes.

1. SimpleTexting

SimpleTexting is a well-rounded customer service texting software that enables businesses to have two-way conversations, as shown in this text exchange between a coffee business and a customer interested in placing a bulk order.

Image Source

As its name implies, SimpleTexting makes SMS conversations easy for businesses of all sizes. Whether you want to send product updates or marketing announcements to a list of 500 people or engage in two-way conversations to resolve a customer inquiry, you can do it all in one dashboard.

Some of SimpleTexting’s helpful customer service features include templates for saved replies, self-cleaning lists, link shortening and tracking, and polls. SimpleTexting also makes it easy to launch your texting strategy, even if you’re starting from scratch, by offering multiple options for setting up a number to text from.

What I like: The idea of sending a text to your customers can feel daunting if you haven’t done it before. That’s why I appreciate that SimpleTexting’s free trial allows you to text your own number *first* to see how it all works.

2. Textline

Textline is a customer service texting software for small teams that enables two-way conversations, internal collaboration, and more, all in a unified inbox.

Textline is a popular customer service texting platform that offers secure ways to send bulk SMS, collaborate via group messages, send media attachments, and have two-way conversations. Textline’s pricing plans support anywhere from three to 50 agents, making it a smart SMS software for teams of all sizes.

Plus, Textline integrates with tons of tools that your support team likely already uses, such as HubSpot and Slack, making it easy to create a seamless workflow.

What I like: With Textline, you can send text surveys to directly collect feedback from customers and ultimately improve the customer support process.

3. EZ Texting

Twilio’s SMS API allows businesses to create custom customer service texting software with as little or as much custom code as they want.

EZ Texting is an SMS marketing service used by teams in marketing, sales, operations, and customer service. Plans include unlimited two-way texting and incoming messages, which means you don’t have to worry about missing a customer inquiry.

One of my favorite features of EZ Texting is AI Compose, which uses generative AI to help compose personalized texts for your audience. Using AI to help generate texts is the fastest way to scale your customer service texting operations.

Pro: If you plan to send MMS or multimedia content, you can tap into EZ Texting’s massive library with millions of free images from Shutterstock. There’s even an image editing tool.

4. Twilio

If you’re tech-savvy, consider using Twilio’s SMS API. Geared toward developers, Twilio offers an API that can be used to build your own messaging system, making it a customizable solution.

With Twilio, you can send and receive text messages at scale, and the pricing structure is pay-as-you-go, so you only pay for what you use. This can be a cost-effective way to scale your customer service texting strategy as long as you know how to use the API or have a developer on your team who does.

Best for: Twilio is a developer-friendly SMS tool, so it’s best for those with technical skills.

5. Textedly

Textedly is a customer service texting software geared toward SMS marketing, but it also offers features like two-way texting and keywords that trigger automated responses, as shown here.

Textedly is an SMS marketing service equipped for a range of industries, from retail and restaurants to schools and nonprofit organizations. All of the Textedly plans include unlimited contacts, free incoming messages, picture messaging, one toll-free number, and one 10-digit phone number (10DLC).

While the service is geared toward SMS marketing, Textedly enables businesses to conduct customer service through its two-way texting, personalized messages, and text message analytics. It also helps businesses collect customer feedback by enabling review requests sent through text. This can be a helpful way to automate the process and generate more Google reviews for your business in the process.

Pro: Textedly integrates with over 3,000 apps like HubSpot, Mailchimp, Shopify, and Facebook, so you can connect every tool in your workflow to save time.

6. Heymarket

MessageDesk is a customer service texting software that offers a shared inbox so customer support teams can unify conversations with one phone number in one inbox.

Heymarket is a business texting platform that lets you connect with customers, leads, and employees on SMS and popular messaging apps like Facebook Messenger, WhatsApp, and Instagram.

Some of Heymarket’s most helpful features for customer service include automated texting through keyword-triggered responses and a shared inbox so your support team can tackle multiple ticket requests at one time. Heymarket also offers AI-assisted messaging so you can create responses faster and more efficiently.

What I like: Heymarket’s AI-assisted messaging helps translate messages in English, French, Spanish, and Chinese which enables your support team to help even more people.

7. Textmagic

If you’re looking for an all-in-one business texting solution, Textmagic is another great option. The platform offers two-way texting, mass texts, SMS marketing, and SMS surveys. Plus, it integrates with other support channels so your support team can take an omnichannel approach to customer service.

Textmagic’s pricing structure is a prepaid service. You choose a credit package based on how many texts you plan to use and only pay for texts you send or receive. Add-on features include dedicated virtual numbers, the ability to send MMS, and voice calls.

Pro: In addition to texting, Textmagic makes it easy to use email or voice for customer service interactions so your team can help customers in whatever way is most convenient for them.

8. MessageDesk

MessageDesk is an SMS inbox for business texting. Like other texting platforms, MessageDesk enables you to text-enable your existing business landline or VoIP phone number or sign up for a new local number.

The platform’s main feature is the team inbox. The shared inbox allows your support team to manage conversations together from one phone number, which helps boost visibility and organization across the customer service team.

Con: You have to talk to a member of the sales team to get started, which may deter some people who prefer self-service.

9. Google Voice

Google Voice is a business communications tool that can be a budget-friendly alternative to full-scale customer service texting software.

Looking for a no-frills business texting option? With unlimited texting and plans that start at just $10 per month, Google Voice is a great option for small businesses and individuals who aren’t looking to add another tool to their tech stack.

As part of Google Workspace, Google Voice is an easy way to set up business communications within your current workflow. Voice integrates with Google Meet and Calendar, so all of your business communications are synched. If you’re already familiar with the Google Workspace interface, you’ll have no issues navigating Google Voice.

Best for: Google Voice is an easy, budget-friendly option for small businesses or individuals looking to set up business calling and texting, especially if you already use Google Workspace products.

10. OpenPhone

If you’re looking for a full-scale communication system, OpenPhone is a business phone system that includes texting. Some of OpenPhone’s most helpful features for customer service texting include auto-replies, saved message templates, and internal threads so your customer support team can handle inquiries behind the scenes.

An example of a customer support member following up with a customer service call via text using OpenPhone’s customer service texting software.

All OpenPhone plans include unlimited calling and texting in the US and Canada, and they start at $15 per user per month.

Best for: Businesses who prioritize both calling and texting will benefit from one connected system under OpenPhone.

Use SMS Support to Meet Customers Where They Are

Customer expectations have evolved with the technology that’s available to them. The more time people spend on their phones, the more likely it is that they’ll want to interact with businesses in the same way.

In my experience, the customer service interactions that were the most positive and memorable for me were the ones that were resolved quickly by friendly and supportive customer service agents. I can’t think of a better way to do this than through texting (because, yes, I am a millennial who hates talking on the phone).

Your business needs to be equipped with SMS support to meet customers where they are and address their issues in a way that’s convenient for them. Customer service texting software enables your support team to resolve tickets swiftly and efficiently without spending all of their time on the phone, which benefits everyone involved.

Customer experience (CX) is the impression you leave with your customers, which results in how they think of you as a brand and ultimately creates brand loyalty. And if I know one thing about customer experience it’s this: measuring with customer experience metrics is important if you want to boost customer retention.

Customer experience tracking can help you improve your practices to cater to the entire customer experience. I like to track certain metrics such as how quickly I can solve a customer’s problem. The quicker I can solve a problem, the more likely a client will stick with my business.

As a small business owner, I’ve learned that positive customer experiences can lead to repeat business, and it’s easier and less costly for my business (and yours!) to retain clients than to seek out new customers.

In fact, 49% of customers are likely to leave a company based on a poor customer experience with the brand. So by lowering the customer effort score (CES) by providing simple, easy-to-use products and services means 76% of customers are more likely to recommend my brand to others.

→ Download Now: Customer Service Metrics Calculator [Free Tool]

With that in mind, let’s review the top metrics you can use to measure — and improve — the customer experience.

Jump ahead:

What is customer experience?

Customer experience (CX) is the journey or combination of interactions a customer or potential customer has with a business.

For me, it’s helpful to think that a customer’s experience starts from the very moment a client becomes aware of my business and follows the purchasing process. Plus, CX includes the weeks, months, or even years later that a customer uses my product or service.

If your business is like mine, you probably work hard to get a customer in the door to make a purchase. But, it’s important to look at the whole picture, too. That might mean providing support to your customers, even years down the line.

Why is this extra effort and money worth it to the business? It costs more money to add a new customer than to retain an existing one, and 65% of people say they’d ditch a brand after a poor experience.

Yikes. I don’t know about you, but I don’t want to end up with a negative review that may deter other customers from doing business with me. Negative customer experiences can be costly!

Measuring Customer Experience

Surveys, journey maps, and a variety of other metrics are necessary for measuring CX. If you meticulously track your metrics, this process is complex and can span several years for some customers. But just because it’s complex and time-consuming doesn’t mean you should write it off. You need this data!

I like to think of customer experience as a puzzle. Customer service is just one piece of the puzzle. You want clients to have positive reactions to your advertising and marketing efforts. They should have an easy time using your products or services. And they should get quick responses from your team. Each of these things are pieces that make your customer experience a positive one.

Ways to Measure Customer Experience

I love surveys, and surveys are one of many ways to measure CX. We’ll dive into specific surveys that help measure customer experience in a few, I promise. However, there are tons of ways you can survey your customers.

For example, you may send out surveys after a customer makes a purchase or interacts with your support line. You might survey clients for feedback on a new product or service. Engaging with customers through surveys can help you get an idea of your business strengths and areas where you can improve.

Creating customer journey maps is another way to measure CX. If you’re nosey like me, customer journey maps can help you figure out how your customers are feeling and why they respond to your business in the way that they do.

This process tracks a customer‘s interactions and can help you pinpoint why a customer doesn’t follow through on a sale or chooses one product over a different one you offer.

For example, you might notice a customer finds you through a social media ad, goes to your website and fills their shopping cart, then doesn’t end up making a purchase. A journey map helps you visualize the customer experience and find points of friction based on customer actions and emotions.

Although 20% of service professionals who responded to HubSpot’s State of Service survey say that measuring the impact of their team’s efforts is challenging, there are plenty of metrics you can use for customer experience tracking. You can (and should!) use a variety of CX metrics together for the most complete picture of the customer’s journey with your brand.

Customer Experience Metrics

As highlighted above, let’s discuss eight key metrics in more detail. Plus, I chatted with a few experts who graciously shared how they use these metrics to effectively improve their customers’ experience. (It’s okay to steal their ideas!) This should help you get a better idea of how to use these metrics in your own business.

1. Customer Satisfaction Score (CSAT)

31% of service professionals who responded to HubSpot’s State of Service survey said one of their goals is to increase their customer satisfaction score. Personally, I’ve found that the Customer Satisfaction Score (CSAT) is one of the most straightforward ways of measuring your customer experience.

While typically used as a customer service metric, CSAT can also give you an idea of the customer experience, considering support interactions are one major component of CX. This is a simple survey that gauges how satisfied a client is following an interaction with your business.

I’m sure you’ve seen CSAT in action. Think of those surveys at the end of customer service calls.

For example, after a customer talks to a live representative via online chat, they can rank the support agent’s response based on how satisfied or helpful the solutions are. Or, after a client purchases a product or service, you can ask how satisfied they are with that product or service.

Calculating CSAT

To calculate CSAT, all you need to do is send a survey immediately following a purchase or interaction. This survey will ask how satisfied a customer is with their experience on a corresponding scale. The CSAT is the average score of that survey.

Featured Resource: Customer Survey Templates

customer survey templatesDownload for Free

Pro Tip: Edita Vaskeviciute, Director of Customer Support at Omnisend, says her team relies on the CSAT.

“We use the Customer Satisfaction Score (CSAT) to measure the satisfaction level of customers after contacting our customer support team regarding inquiries or issues with the Omnisend product,” Vaskeviciute says. 

This enables her team to identify areas for improvement, track customer sentiment over time, and make data-driven decisions to enhance the overall customer experience.

“The best tip is to listen to your customers, consistently analyze the feedback they provide, and use it to improve your products, services, and support processes,” Vaskeviciute notes

2. Net Promoter Score (NPS)

Net Promoter Score (NPS) is one of the main methods to measure customer experience. Your NPS will let you know the percentage of customers that love, are neutral, or aren’t a fan of your brand. I understand that it might sting to learn that some customers aren’t a fan of your brand, but this information is vital so that you can make crucial changes to improve the customer experience.

Calculating NPS

To calculate NPS, you’ll send a survey to your customers with an NPS question asking them how likely they are to recommend you to a friend, on a scale of 0-10. Scores 0-6 are detractors, scores 7-8 are passives, and scores 9-10 are promoters.

Your NPS is the percentage of detractor responses subtracted from promoter responses.

With this score, you can instantly tell how many customers are happy enough with their customer experience that they’ve become ambassadors for your brand.

Featured Resource: Net Promoter Score Calculator

net promoter score calculator

Download for Free

Pro Tip: Paige Arnof-Fenn, Founder & CEO at Mavens & Moguls, says that although the net promoter score isn’t a perfect indicator of the customer experience, it’s still a beneficial metric.

According to Arnof-Fenn, NPS is a simple way to get a quick read on consumer sentiment, allowing it to be widely embraced and implemented to make sure their customers are happy. And even though NPS is not a perfect tool, it’s still valuable to companies where most business comes from word of mouth.

“Customer satisfaction and NPS matter because repeat customers and referrals are key, the most cost-efficient way to build a business and scale your brand in my experience. Would they recommend it to others? This is important to understand for insights into why your brand matters,” Arnof-Fenn says.

3. Customer Effort Score (CES)

If your customers are anything like me, they want simple interactions. Your website should be easy to navigate. Your products should be easy to assemble and use. And your customer service team should be easy to connect with for the client.

You can use a Customer Effort Score (CES) survey to allow customers to rank an interaction with a company or its products and services as easy, neutral, or difficult.

Calculating CES

To calculate CES, you take the sum of your customer effort ratings and divide it by the total number of survey responses you received.

If customers are ranking a product difficult to use, you want to innovate ways to make it more user-friendly. Like if it‘s hard to find the menu on your website, you’ll need to redesign the site or install a simpler template to improve the CX.

Pro Tip: Will Yang, Head of Growth and Marketing of Instrumentl, says his team keeps track of the customer effort score to measure their customer’s effort levels when it comes to interacting with the company.

“The customer effort score (CES) helps us measure how easy it is for customers to deal with our company. High customer effort leads to dissatisfaction and affects loyalty. The use of CES in identifying the pain points along our customer journey aids in streamlining our processes and making interactions more effortless. This analysis often results in simplified user interfaces and fewer steps involved in critical processes.” Yangl says,

4. Customer Lifetime Value (CLV)

Customer Lifetime Value (CLV) tells you how much one customer has brought to a business in the entire relationship. In other words, how much they’re “worth” to a business. The calculation also takes into account how much a business is spending to keep that customer.

It’s a good customer experience metric because you can see over time whether a customer is satisfied and making more purchases or if they spend less with your business.

Calculating CLV

To calculate CLV, you multiply the customer value times the average customer lifespan.

Typically, the better the CX, the higher the CLV. But if you start to see the customer spend less over time, you can determine why and create solutions to raise the CLV.

Pro Tip: Tom Golubovich, Head of Marketing at Ninja Transfers, says the customer lifetime value is an important metric for his customer experience team.

Golubovich says, “Customer lifetime value is important to us as we were one of the first companies to bring DTF Transfers to market. We want to ensure that our customers remain loyal and continue to come back time and time again.”

Golubovich notes that his team looks at customer reorders by account and the customers who have signed up for the “Ninja Rewards” program. “Ninja Rewards” is a loyalty program that allows customers to 5x points on every order while accessing promotional rewards. 

“We identified who were the most valuable customers to our business not just by looking at the customer lifetime value of existing orders and making projections but by sending out a survey and having customers self-identify … how much they were looking to spend on DTF transfers within the next 12 months,” Golubovich says. 

According to Golubovich, this allows his team to pivot our marketing strategies to focus on this more lucrative demographic.

5. Customer Churn Rate

Churn rate is the percentage of your customers or subscribers who cancel or don’t renew their subscriptions during a given time period.

20% of service professionals find it challenging to prevent customer churn. While churn is inevitable, it’s still important that you learn why churn is happening in your company so you can reduce it as much as possible.

Calculating Churn Rate

To calculate your churn rate, designate a time period and tally up the total number of customers you’ve acquired and the number of customers who churned during that time period.

Then, divide the number of customers who churned by the total number of customers acquired, and multiply that decimal by 100% to calculate your churn rate.

This metric should help you nail down why customers are leaving. Is it because of a lack of engagement? A poor user experience? Or perhaps it’s a lack of support? Either way, measuring and analyzing your churn rate will help you figure out how to reduce it.

Pro Tip: Derek Bruce, Operations Director at First Aid at Work Course, understands how useful the customer churn rate is to any business.

“A recent report suggested that a 5% drop in churn can increase profit by 125%, so this is an important area for improvement,” Bruce says. “A high churn rate soon after initial training might indicate an absence of value in the post-training support, so we introduced follow-up webinars and refresher courses, reducing our churn by 4.8% within 12 months.”

In the early years, Bruce says his team focused on the acquisition of new customers as opposed to the retention of old customers, which led to a temporary increase in churn.

“An important learning was that retention of customers is as important, if not more so, than continually acquiring new ones,” he says.

6. Customer Retention Rate

Customer retention rate is essentially the opposite of the churn rate, and 31% of service professionals say increasing customer retention is an important goal of theirs. This CX metric measures how many customers a business retains over a set period of time and helps determine customer loyalty.

Retention rate is slightly more challenging to calculate, though, because you will need to take into account the customers you retained, the customers you lost, and the customers you gained in a set period of time.

Calculating Retention Rate

To calculate retention rate:

  • Set the time period, which could be a week, a month, a year, etc.
  • Start with the number of customers you have at the end of that set time period.
  • Subtract new customers gained during the set time period.
  • Divide the resulting number by the number of clients you had at the beginning of the time period.
  • Multiply the result by 100 to get a percentage.

Ideally, you want a high retention rate while also bringing in new clients that later become loyal customers. If you have a low retention rate but high sales, you’ll want to determine why customers are making one or few purchases and then leaving your business.

Pro Tip: Joel Wolfe, President of HiredSupport, keeps a regular check on their customer retention rate. This helps his team understand the degree of satisfaction that customers drive from HiredSupport’s products. 

“It’s a great way to understand what needs to be improved and what’s causing low retention rates. A great way to measure this metric is choosing a specific time period for analysis. It can be monthly, quarterly, or even annually, depending on the business cycle,” Wolfe says.

7. Customer Journey Analytics

Another technique to measure the customer experience is to use your analytics to look at the customer journey. 23% of service professionals have made it their goal to better understand the customer journey for a better customer experience.

Your customer journey map can answer questions about customer motivations, needs, and pain points. It‘ll also help you understand all the touch points a customer experiences on their journey. And this is how you’ll gather your customer journey analytics.

Analyzing the Customer Journey

To analyze the customer journey, you’ll probably want to start by pulling data from your social media, ads, website, company events, product reviews, onboarding, customer loyalty programs, emails, and surveys. Then, you can create a page or tab on your customer journey map dedicated to reporting the metrics of your touch points, so you can evaluate your customer experience.

Featured Resource: Customer Journey Map Templates

customer journey templateDownload for Free

Pro Tip: Most of the experts I chatted with had quite a bit to say about customer journey analytics, so that tells me this is one of the most important metrics you can gather.

Bruce says when his team collects customer journey analytics, they start by examining every touchpoint a customer has had with the brand, from the very first visit to the website to online course registration — all the way through to course completion and beyond. 

“It’s about really looking at how the customer is engaging with us. We must understand their journey so we can see where we can improve it,” Bruce says. 

For example, Bruce recently saw that, during the registration process for one online course, there was a very high drop-off rate. So, his team incorporated suggestions from their analytics and introduced a simplified registration form, as well as clear instructions on how to fill it in. This resulted in a 2.5% increase in course registrations. 

“We also once launched a marketing campaign promoting advanced first-aid training. The messaging of this campaign was not a good fit for our customer base, despite it being a very relevant course for our existing audience,” Bruce says.

Bruce notes that they had a lot of people signing up for the course because it was a hot topic, only to see a dip in the satisfaction scores afterward. Bruce notes that the messaging for the campaign resonated poorly with those who signed up. 

“Now, we have learned to tailor our communication strategies towards specific customer segments depending on their needs during different stages of their journey,” he says.

8. Customer Support Ticket Trends

48% of service professionals found that the number of customer service requests they received in 2023 increased. You can take a look at your customer support tickets to pinpoint trends impacting the customer experience.

Are there recurring issues that cause pain for your customers? If so, try to improve them as they come up. You might decide you need to create clearer instructions, explainer videos, or product tweaks because of the trends you identified.

Analyzing Customer Support Ticket Trends

Key customer support ticket metrics and trends to analyze are first response time, average handle time, and first call resolution. These analytics can help you improve the customer experience from a customer support perspective.

Pro Tip: Smitha Baliga, CEO/CFO of TeleDirect Communications, says looking at their customer support ticket trends is a great way to identify areas of need.

Baliga says, “[Customer support trend tickets] are reviewed to gain insights into ticket volumes, common issues, handle times, and resolution rates. This analysis helps us identify areas where we may need to provide more self-help resources, enhance our products, or provide additional training to deliver faster and more effective support.”

How to Accurately Measure Customer Experience

CX metrics are the key to effectively measuring the customer experience. You can use a combination of surveys, retention and churn rates, and customer trend data to determine how satisfied your customers are at every step of the journey — and whether or not they’re willing to come back or refer your brand to others.

Start customer experience tracking so you can make the business improvements necessary to retain more clients and generate more revenue.

Editor’s note: This article was originally published in October 2022 and has since been updated for comprehensiveness.

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A few years ago, I checked into a flight the night before a trip and noticed a baggage charge. Surprised, since my rewards credit card usually covered this, I jumped to Google for an explanation. Like 81% of customers who try to solve issues themselves first, I scoured the airline’s FAQs and Reddit, but found no answers. Instead of packing, I spent my time searching until I finally found a 1-800 customer support number.

Taking a deep breath, I dialed. Navigating endless menus, enduring repetitive hold music, and repeating my issue to multiple agents, I grew increasingly frustrated. Then, I got disconnected and had to start over. It was a nightmare, leaving me thinking, “There has to be a better way.”

And there was.

AI customer service software, a solution that understands and values your time, was the answer to my customer service woes. AI customer service software has revolutionized how businesses interact with customers.

→ Access Now: 50 Customer Service Email Templates [Free Resource]

In this piece, we‘ll explore how AI reshapes customer service with top-tier software that promises efficiency, personalization, and satisfaction. Based on thorough research and hands-on demos, I’ll provide honest reviews to help you understand these tools and choose the best fit for your needs. Let‘s dive into how AI isn’t just changing the game — it’s redefining it.

Table of Contents:

What Is AI Customer Service Software?

Imagine a world where customer service is swift, efficient, and available 24/7. Sounds like a dream. That’s the promise of an AI customer service platform. But what exactly is it?

AI customer service software leverages artificial intelligence to streamline and enhance how businesses interact with customers. For instance, imagine a customer contacting a company’s support team with a complex issue. The AI system, using machine learning, natural language processing, and data analytics, quickly understands the problem and provides a personalized solution. This starkly contrasts the traditional method, where the customer had to wait for a human agent to understand the issue and then offer a solution.

From chatbots handling routine questions to AI-driven analytics predicting customer needs, this tech is transforming the customer experience. HubSpot’s State of AI Survey shows that 71% of customer support specialists agree that AI/automation tools can help improve customers’ overall experience with their company.

AI customer service software is designed to enhance the customer experience. It aims to reduce wait times, provide accurate information, and personalize interactions. With AI-powered chatbots or virtual assistants, customers can get immediate responses instead of being put on hold. These intelligent tools can handle everything from answering FAQs to troubleshooting issues, freeing up human agents to tackle more complex problems.

An AI customer service platform isn‘t just about automating tasks — it’s about creating a seamless, satisfying customer journey. Let’s delve deeper into how it works and explore some of the top solutions available in the market today.

reasons to use ai customer service software

Why Use AI Customer Service Software?

Improved Response Time

One of the most significant benefits of AI customer service software is the drastic reduction in response time. I’ve seen firsthand how AI-powered chatbots can handle multiple inquiries simultaneously, providing instant responses that keep customers satisfied.

According to HubSpot’s research from the State of Service 2024 report, 80% of customers expect their service tickets and requests to be resolved immediately. This expectation is well-met with AI, as 46% of service professionals using AI customer service platforms report significantly improved response times, and another 46% report somewhat improved response times. AI ensures your business can meet these expectations, significantly improving overall customer satisfaction.

24/7 Availability

AI doesn’t need to sleep. One of the game-changing aspects of AI customer service software is its ability to provide support around the clock. We’ve all experienced how frustrating it can be to need help outside of regular business hours and not get it. AI eliminates this problem by offering 24/7 support, ensuring customers can get assistance whenever needed, which is especially helpful for businesses with a global customer base.

According to Salesforce’s State of the Connected Customer report, 77% of customers expect to interact with someone immediately when they contact a company. An AI customer service platform meets this demand, ensuring that every customer query is answered, regardless of the time of day.

Enhanced Personalization

I’ve always valued customer service that feels personal, and AI customer service software takes this to the next level. AI systems can help by analyzing customer data to provide customized responses and recommendations, significantly enhancing the customer experience. I’ve seen how AI can remember past conversations and preferences from my interactions, making every exchange feel unique and customized.

According to Zendesk, 59% of customers think businesses should personalize their experiences based on the data they’re collecting on them. And according to HubSpot data from the State of Service 2024 report, 78% of customer service professionals say customers expect more personalization than ever before.

By utilizing AI, businesses can provide a more personalized and engaging experience for their customers, ensuring they feel understood and valued every step of the

Increased Efficiency

Efficiency is another major advantage I’ve observed with AI customer service software.

AI is great at handling routine tasks, which means human agents can concentrate on more complex issues that need a personal touch. This not only speeds up the resolution process but also reduces operational costs.

HubSpot’s findings indicate that businesses using AI for customer service can handle a higher volume of queries without compromising quality, improving overall efficiency. According to the State of AI Survey by Hubspot, 78% of customer support specialists agree that AI/automation tools can help them be more efficient.

Data-Driven Insights

Finally, AI customer service software provides invaluable data-driven insights by analyzing customer interactions to identify common issues and trends. These insights inform business strategies and decision-making. For example, businesses can track customer sentiment, common issues, and agent performance with HubSpot’s AI features.

According to HubSpot’s State of AI Survey, 42% of customer service pros using AI tools to collect and analyze feedback report significant improvements in customer experience. This capability allows businesses to proactively address problems and enhance their services.

Pro tip: Some AI platforms highlight unresolved customer questions, helping identify content gaps that need addressing.

By incorporating AI into your customer service strategy, you can harness these benefits to improve the customer experience, increase efficiency, and foster greater satisfaction and loyalty. Tools such as HubSpot’s AI-powered Service Hub offer extensive features to help businesses efficiently manage customer interactions.

Having explored the benefits of AI in customer service, let’s dive into the top AI customer service software solutions available today. These tools are designed to optimize your customer service operations and deliver exceptional experiences. Based on my research and hands-on demos, here are my top picks:

1. HubSpot Service Hub

If you’re wondering how AI can help small businesses, look no further. As a small business owner, I find HubSpot’s Service Hub incredibly user-friendly. Its integration with other HubSpot tools makes it seamless to manage customer interactions across different channels. The automated ticketing system ensures no customer query is overlooked, and the live chat feature is responsive and intuitive. HubSpot’s data shows that customer service pros who use their chatbot to automatically respond to requests can save about two hours and 20 minutes each day on average.

The knowledge base feature enables businesses to generate comprehensive articles and FAQs, effectively reducing repetitive queries. Customer service professionals who use HubSpot AI to write responses to customer service requests save an average of one hour and 50 minutes per day. Overall, HubSpot’s analytics provide deep insights into customer interactions, helping businesses continuously improve service quality.

Screenshot of HubSpot AI chatflow options in Service Hub

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What I like: HubSpot’s Service Hub stands out for its comprehensive features, including automated ticketing, live chat, and a robust knowledge base.

Best for: Small to medium businesses looking for an all-in-one solution.

Pro tip: Utilize the built-in reporting tools to gain insights into customer satisfaction and agent performance.

Demo: Watch a demo of HubSpot’s Service Hub.

2. Fin

Intercom’s Fin AI is a comprehensive AI customer service platform featuring an AI Agent for customer interactions, an AI Copilot to assist agents, and an AI Analyst for leadership insights. I’ve found its intuitive design and customization options particularly beneficial for managing complex interactions.

The AI Agent handles customer inquiries efficiently, while the AI Copilot supports agents by suggesting responses and next steps. The AI Analyst provides detailed analytics, enabling businesses to continually optimize their customer service strategies.

Screenshot of FIN AI agent and chat screen for customer service

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Best for: Intercom’s Fin AI is best suited for tech-savvy businesses that want advanced features and customization in their customer service operations. It’s particularly effective for companies that handle a high volume of complex customer interactions and need a robust solution to manage and streamline their support processes.

Fin AI‘s ability to integrate seamlessly with the Intercom platform makes it ideal for businesses already using Intercom’s suite of tools.

What I like: Intercom’s AI chatbots are highly intuitive and can handle complex customer interactions efficiently.

Pro tip: Use Intercom’s A/B testing capabilities to optimize chatbot interactions.

Demo: Watch a demo of Intercom’s Fin

3. Zendesk AI

Zendesk AI is a versatile platform with various AI-driven features such as the Answer Bot, AI-powered knowledge management, and predictive analytics.

The Answer Bot uses machine learning to respond instantly to customer inquiries, reducing the workload on human agents and ensuring quick resolutions. Additionally, Zendesk’s AI can analyze customer interactions to identify trends and common issues, providing valuable insights that can inform strategic decisions.

The platform’s predictive analytics capabilities help businesses anticipate customer needs and proactively address potential problems, enhancing overall customer satisfaction.

Screenshot of Zendesk’s AI customer service software

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What I like: Zendesk AI offers a comprehensive suite of AI-powered tools designed to enhance customer service efficiency and effectiveness.

Best for: Businesses of all sizes looking for a robust AI-driven customer service platform.

Pro tip: Leverage Zendesk AI’s predictive analytics and machine learning capabilities to predict customer needs and enhance service delivery.

Demo: Explore the interactive demo here.

4. Salesforce Einstein

Salesforce Einstein is a powerhouse for AI-driven customer service. Its seamless integration with Salesforce CRM allows for a unified view of customer interactions, which I’ve found incredibly valuable for maintaining consistency across channels.

Einstein’s predictive analytics are particularly impressive, helping businesses anticipate customer needs and address potential issues ahead of time. This approach can improve customer satisfaction and reduce the workload on support teams. The automation features streamline many routine tasks, freeing up agents to focus on more complex issues.

Salesforce Einstein is an invaluable asset for large enterprises with complex customer service needs.

Screenshot of Salesforce Einstein AI customer service software interface

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What I like: Salesforce Einstein integrates seamlessly with Salesforce CRM, offering powerful AI-driven insights and automation.

Best for: Large enterprises using Salesforce CRM.

Pro tip: Utilize Einstein’s predictive analytics to proactively address customer needs.

Demo: Watch the Salesforce Einstein demo.

5. Ada

Ada’s simplicity and quick deployment are standout features. The demos show that within a short time, businesses can have a fully functional AI chatbot capable of handling a variety of customer inquiries. I like the ease of customization, which allows companies to tailor the chatbot to address their most common customer questions effectively.

Despite its simplicity, Ada’s performance is robust, consistently providing accurate and helpful responses. This makes it an ideal solution for startups, where quick implementation and immediate results are crucial. Ada proves to be an efficient and reliable tool for enhancing customer service operations.

Screenshot of Ada AI customer service interface and chat

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What I like: Ada is known for its ease of use and quick deployment, making it perfect for businesses looking to start using AI customer service quickly.

Best for: Startups and smaller teams.

Pro tip: Customize Ada’s chatbot with your FAQs to maximize its effectiveness right from the start

Demo: Sign up to get a demo here.

6. Freshdesk AI

Freshdesk AI, the omni-channel customer support platform powered by Freddy AI, is designed to make customer support smarter and more efficient.

Freddy AI learns from past interactions to suggest relevant responses, speeding up resolution times and providing a better customer experience. It works across various messaging platforms like WhatsApp and Facebook, so customers can get help where they prefer. Freddy also gives agents a unified view of interactions, making it easier to respond effectively. Plus, its analytics help identify and address common issues.

The analytics provided by Freddy AI offer insights into common customer pain points, helping businesses refine their support strategy. Overall, Freshdesk AI offers a robust and cost-effective solution for those on a budget.

Freshdesk AI customer service ticketing interface

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What I like: Freshdesk AI offers powerful automation features like Freddy AI, which can handle a wide range of customer queries.

Best for: Companies needing robust automation at an affordable price.

Pro tip: Leverage Freddy AI’s analytics to identify and address common customer pain points.

Demo: Request a Freshdesk demo here.

Transforming Customer Service With AI: Key Takeaways

Exploring AI customer service software has shown me just how transformative these tools can be. AI dramatically improves response times and ensures 24/7 availability, which is crucial for meeting modern customer expectations. The ability to personalize interactions and gain deep insights into customer behavior is particularly impressive.

Among the top tools, HubSpot’s Service Hub stands out as my favorite. Its user-friendly interface, seamless integration with other HubSpot tools, and comprehensive features make it an excellent choice for small to medium businesses. The AI-powered analytics and automation capabilities significantly enhance service quality and efficiency.

Another standout is Intercom’s Fin AI, which excels in handling complex customer interactions with intuitive design and customization options. Its advanced features, like A/B testing and detailed analytics, allow businesses to continually optimize their customer service strategies.

Adopting AI in customer service isn‘t just about keeping up with technology trends — it’s about fundamentally transforming how you interact with and support your customers. These tools offer remarkable opportunities to improve efficiency, personalize experiences, and proactively address customer needs, setting a new standard for exceptional customer service.

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