Matt Bentley is the Chief Data Scientist at Scorpion, leading AI and machine learning product development.
Consumers expect immediate access to information, creating new demands for service providers. For home service businesses, delayed communication means lost revenue. A study from Scorpion of nearly 1,000 homeowners shows that 90% of consumers expect a response within 24 hours—many preferring same-day. More critically, 54% select a provider within four hours, making response speed a decisive factor.
However, many small- and mid-sized businesses (SMBs) struggle to meet these expectations. Limited hours and outdated methods lead to missed leads and eroded customer trust. Larger competitors, equipped with dedicated call centers and AI, widen the gap. To compete, more SMBs are rethinking their customer engagement strategies using conversational AI.
Conversational AI uses natural language processing and machine learning to deliver human-like responses. These systems should understand intent, context and emotion—building trust and driving conversions.
Challenges Of Traditional Customer Engagement
While large enterprises deploy the latest technology and dedicated teams to manage customer interactions, many SMBs rely on outdated tools, creating critical challenges:
• Availability: Without 24/7 support, opportunities are lost outside business hours.
• Missed Leads: Seventy-three percent of consumers prefer businesses offering multiple communication channels, such as chat, text, email and phone.
• Inefficiencies: Relying solely on human agents can be expensive and slow, often falling short of expectations.
Transforming Customer Engagement
As SMBs shift toward AI-powered customer engagement to meet demands and stay competitive, there are best practices they must consider. The key is deploying conversational AI that truly “gets it,” understanding the nuances of human interaction and responding with empathetic and helpful answers.
Here’s how the right AI can transform customer engagement:
1. Immediate, 24/7 Support
Unencumbered by business hours, AI chat can provide meaningful ways for people to interact with your business anytime. But the difference between a good AI chat and a bad one is how it interacts. AI should engage customers in a real conversation, offering instant, context-aware answers about services, pricing and scheduling.
2. Smarter Lead Conversion
AI chat should do more than answer questions—it should drive business growth. AI chats that increase lead conversion rates truly engage with customers. It anticipates needs, understands preferences and creates a smooth journey instead of making users feel like they’re filling out a form.
3. Competing At Scale
AI tools help level the playing field between SMBs and large competitors, eliminating the need for massive call centers to deliver top-tier customer service at a fraction of the cost. However, poorly designed AI chat can be just as damaging as slow response times.
AI solutions should personalize interactions based on customer data, past conversations and real-time context so customers feel heard and valued without needing a human every time.
Implementing Conversational AI
Adopting AI is more than just adding a chatbot—it’s about building a seamless, automated customer experience. Here’s how SMBs can start:
1. Implementing AI Chat
AI chatbots are fantastic tools for providing instant answers, qualifying leads and scheduling appointments without the need for 24/7 human support. However, it’s crucial to choose AI that doesn’t sound robotic or transactional. The goal is to ensure every inquiry is addressed promptly with meaningful responses.
When introducing AI chatbots, align your internal teams on the kinds of inquiries the AI should handle. This discussion helps prepare for the integration and ensures the chatbot can appropriately manage routine queries.
Additionally, consider upskilling customer service representatives so they can focus on complex interactions that AI can’t address. As you launch the AI system, keep testing and gathering feedback to refine responses, ensuring it meets your business needs and aligns with expectations.
2. Integrating With CRM And Marketing Platforms
AI works best when connected to your CRM and marketing platforms. AI-driven lead tracking and scoring help SMBs prioritize high-value customers and allocate their resources with greater intention and care.
Before jumping into integration, align your teams on what success looks like. Work with your customer service, marketing and tech teams to define clear goals for AI integration, such as improving lead conversion or reducing churn.
Additionally, ensure your customer data is organized and accurate, as AI will perform best when working with clean, structured data. Once the AI is in place, your team may need to adjust workflows to incorporate AI-assisted lead prioritization and automated follow-up. This shift will help employees focus on the most impactful tasks.
3. Automating Reputation Management
Online reputation drives consumer choice, with 91% looking at online reviews before hiring a contractor. But customers can tell when AI-generated responses are generic or insincere.
To ensure AI-generated responses resonate with customers, collaborate with your marketing and customer service teams to create personalized response templates that reflect your company’s voice. AI should also be set up to monitor social media and review sites, which allows you to address any concerns proactively. For any negative or complex reviews, set up a process to flag them for human intervention.
Looking Ahead
Choosing the right AI is just as important as adopting AI in the first place. In today’s on-demand, digital-first economy, the businesses that thrive will be those that invest in AI solutions that engage customers with real, human-like conversations—not just canned responses.
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