No longer a futuristic concept, digital avatars have stepped firmly out of the realm of sci-fi and into our lived realities. Market-leading brands like Qatar Airways, Kiehl’s and Carnegie Mellon University are already leveraging AI avatars to redefine customer engagement. HYPERVSN’s lifelike digital avatar – which combines artificial intelligence with a 3D holographic, hyper-realistic body – has been put to work in a range of real-world scenarios, including as the technology behind Capgemini’s ELLEM. With the market set to grow 47% year-on-year until 2031, this is no passing fad. To inform the uninitiated, we’ve collated 10 statistics that illuminate just how revolutionary this technology will be for customer experience.
Keeping Up with Customer Desires
Perhaps one of the most convincing arguments that digital avatars are here to stay is quite simply that customers want them! While transparency, good data practices and building trust are key concerns, the rise of GenAI has created a world in which consumers now expect it to be used to deliver customer service excellence.
1. 87% of support teams say customer service expectations have increased in the past year (Intercom).
Customers have always desired speedy, competent, friendly service – but what that looks like has changed vastly over the years. Their expectations are now informed by what’s possible in the age of AI – according to Intercom, 68% of support teams confirm this.
2. 51% of consumers say they prefer interacting with bots over humans when they want immediate service (Zendesk).
Due to these consumer desires – and the savviness of today’s customer – they actually prefer dealing with bots over humans. Consumers are, however, growing more knowledgeable of AI’s benefits beyond speed – hyper-personalisation, accuracy, data-driven recommendations. Digital avatars build on these capabilities, infusing interactions with the warmth and feeling of human-human encounters. This combination of efficiency and emotion set the stage for digital avatars to become consumers’ first choice for a range of tasks and interactions.
3. 72% of consumers say they would pay more for a premium experience when doing business with a company (Qualtrics).
This seems like a no-brainer but what’s interesting is what these customers go on to describe as a premium experience: getting help from customer service, getting the right products and receiving useful updates. Besides providing a dire commentary on the current state of customer experience, this highlights the gains businesses can make from investing in digital avatars for customer experience.
Boosting Business Bottom Lines
For innovative business leaders looking to gain internal buy-in and demonstrate a clear return on investment, the numbers are promising. Across industries, digital avatars drive engagement and efficiency, ultimately boosting the bottom line.
4. 95% of decision makers at organisations with AI report cost and time savings
(Salesforce).
With digital avatars handling the menial, time-consuming tasks traditionally managed by human staff, huge savings are being made. Not just this but 92% of the same organisations say generative AI helps them deliver better customer service, so it’s a win-win!
5. 75% of CX leaders see AI as a force for amplifying human intelligence, not replacing it (Zendesk).
Far from stealing the jobs of customer experience teams – sales, marketing, customer service – digital avatars implemented strategically should augment the work of these teams. By allowing human talent to dedicate time to more complex, creative, high-level tasks, businesses gain greater value from their workforce.
6. When customers feel emotionally connected to a brand, they spend up to 67% more and are up to 70% more likely to convert versus fresh prospects. (Tangiblee).
As well as saving businesses money, digital avatars make them more money too. The challenge with standard chatbots is the lack of emotional connection. HYPERVSN’s 3D holographic avatar gives customers a friendly face and voice to connect with, building emotional resonance. And in the realm of customer experience, emotion is the ultimate driver of loyalty and sales.
Making Business More Human
It may seem counter-intuitive, but the rise of digital avatars in business could indeed make customer interactions feel more human. With empathy encoded in their (digital) DNA and the absence of human concerns like tiredness, stress and being overworked, AI avatars have huge capacity for kind, caring service – or at least the appearance of it.
7. 86% of customers surveyed said that if there was an emotional connection with a customer service agent, they would be willing to continue to do business. However, only 30% felt the companies they had interacted with during the past year had made that connection (Forbes).
While some worry that AI taking over customer communications will mean it loses its human touch, the reality is that many customer interactions are already frustrating, cumbersome and impersonal. Digital avatars present us with the opportunity to re-inject empathy and humanity into these touchpoints.
8. 68% of immersive experience attendees reported a stronger emotional connection to brands (Single Grain).
Digital avatars elicit a greater emotional response than a standard text-based chatbot due to their immersive nature. Being able to see and hear a lifelike avatar, appearing right in front of you, creates a visceral experience – one that is uniquely capable of fostering deep, memorable emotional connection.
A Solution for Every Audience
AI-powered digital avatars embody a versatile, accessible solution for all types of audiences. Intuitive enough to appeal across generations and cutting-edge enough to engage younger demographics. Fun and novel for consumer settings, practical and useful for professional ones. The applications of this transformative tool are limitless.
9. 72% of millennials are more inclined to engage with brands that offer unique, immersive experiences (Seeker.io).
In fact, HYPERVSN’s own consumer research found that 45% of 16-25 year olds, 47% of 25-34 year olds and 40% of 35-44 years olds not only enjoy immersive experiences but expect them from their favourite brands. Digital avatars present a highly effective way to engage younger audiences – a pressing challenge for many marketers and a huge win for brands who get it right.
10. 70% of B2B marketers are using AI for personalisation, resulting in a 35% increase in engagement rates (SuperAGI).
Digital avatars aren’t just for consumer businesses. According to SuperAGI, B2B marketers are already seeing benefits from using AI for personalisation, while sales teams are seeing a 50% increase in appointments. With digital avatars able to take on tedious B2B sales tasks such as lead nurturing or following up on leads that went cold, they have the potential to be as transformative in B2B industries as they are in B2C.
Outlook for the Future
These ten stats only just start to paint the picture of the huge potential of AI-powered digital avatars. Their power to manifest change becomes even clearer when we look at their impact in specific industries; improving medical education, making travel hubs safer and easier to navigate, providing practical and emotional support to students. We are undeniably at a point of unprecedented change in customer experience, and HYPERVSN stands proudly at the forefront of this evolution. Get in touch to explore how digital humans could fit into your business and redefine your customer experience.
