Glossary

AI hallucination

An AI hallucination is a false or fabricated response an AI presents as fact. Learn why it happens, the types, and how to reduce it in customer service.

AI orchestration

AI orchestration coordinates AI models, agents, and tools to work as one system. Learn how it works and what it means for customer service.

Agentic AI

Agentic AI is software that pursues goals end-to-end, planning, acting, and adapting across tools. Get the full definition and CX use cases.

Agentic customer service

Agentic customer service is AI that resolves issues end-to-end by acting across business systems, not just responding. Definition and capabilities.

AI agent

What is an AI agent? Definition, examples, and uses.

Conversational AI

Conversational AI enables computers to understand and respond to natural language. Learn how it works and how it's used in customer service.

Conversion rate optimization

Conversion rate optimization increases the share of visitors who convert. Learn the CRO formula, core tactics, and how service quality affects conversion.

Customer churn

Customer churn is the percentage of customers a business loses over a given period. Learn how it's calculated, what causes it, and how to reduce it.

Customer effort score (CES)

Customer effort score (CES) measures how easy it was for customers to resolve an issue or complete a task, scored on a 1–7 scale.

Customer experience

Customer experience is the sum of every interaction a customer has with a brand. Learn what shapes CX, how to measure it, and why service matters.

Customer journey mapping

Customer journey mapping documents every interaction a customer has with a brand. Learn what it includes, the types of maps, and how service teams use it.

Customer lifetime value (CLV)

Customer lifetime value (CLV) is the total revenue expected from a customer over time. Covers the formula, how to calculate it, and what drives CLV.

Customer retention

Customer retention measures how well a business keeps its customers over time. Learn how to calculate retention rate and what drives long-term loyalty.

Customer satisfaction score (CSAT)

What is CSAT? Customer satisfaction score explained.

Customer service automation

Customer service automation uses technology to handle support tasks without agent involvement at every step. Learn how it works and what to watch out for.

Deflection rate

Deflection rate measures support inquiries resolved without an agent. Learn the formula, benchmarks, and what to measure when customers come first.

First contact resolution (FCR)

First contact resolution (FCR) measures the share of support issues resolved on the first try. Learn the formula, benchmarks, and how to improve it.

Generative AI

What is generative AI? Examples, uses, and benefits.

Gross merchandise value (GMV)

Gross merchandise value (GMV) is the total value of goods sold before returns or discounts. Formula, examples, and how it differs from revenue.

Grounding in AI

Grounding in AI anchors a model's responses to verified knowledge, not training data. Learn how it works and why it matters for CX accuracy.

Helpdesk

A helpdesk is a centralized support system that routes and resolves requests. Learn the types, features, and where ticket-centric models fall short.

Interactive voice response (IVR)

Interactive voice response (IVR) is an automated phone system that lets callers self-serve or get routed to the right agent without dialing twice.

Knowledge base

A knowledge base is an organized, searchable library of company information used by employees and customers to find answers without help.

LLM (large language model)

A large language model is AI trained on huge text datasets to read, write, summarize, and answer questions. See how LLMs work and where they are used.

Net Promoter Score (NPS)

Net Promoter Score (NPS) measures customer loyalty by asking how likely customers are to recommend a brand, scored as a number from -100 to +100.

Natural language processing (NLP)

Natural language processing (NLP) enables computers to understand human language. Learn how it works and how it powers customer service AI.

Omnichannel customer service

Omnichannel customer service connects every channel into one conversation so customers never repeat themselves. Learn how it works and what it requires.

Prompt engineering

Prompt engineering is the practice of designing AI instructions to get accurate, useful, on-task responses. See the techniques and how it works.

Retrieval-augmented generation (RAG)

What is RAG? Retrieval-augmented generation explained.

Service level agreement (SLA)

What is an SLA? Service level agreement explained.

Sentiment analysis

Sentiment analysis classifies messages as positive, negative, or neutral. Learn how it works, its uses in routing and QA, and what drives accuracy.

Ticketing system

A ticketing system converts customer requests into tracked records. Learn how ticketing works, its key benefits, limitations, and how AI is changing it.

Voice AI

Voice AI uses speech recognition and LLMs to handle calls naturally, resolving routine issues and passing complex ones to agents with full context.

Voice of the customer (VoC)

Voice of the customer (VoC) is a process for capturing customer feedback to improve CX. Learn collection methods, key metrics, and how to act on insights.