Deloitte: AI Can Help Retail Improve CX and Add Value
A new report from global consulting firm Deloitte discloses that AI and cloud-based platforms can help retailers achieve agility in the marketplace and elevate CX, adding value to the overall shopping experience of customers.
The report, Accelerating Retail Personalization at Scale, created in collaboration with Oracle Retail and MIT Technology Review Insights, addresses the emerging uses of technology to help retailers cope with industry changes in the face of increasingly sophisticated consumer expectations.
In particular, AI can help analyze consumer behavior and identify key segments, enabling retailers to target valuable customers through loyalty programs, launch contextually relevant digital marketing campaigns, and drive more informed buying decisions with personalized customer service, the report notes.
“Whether they are shopping online, in-store, or the spaces in-between like pop-ups, customers increasingly expect a more personalized, omnichannel experience from retailers,” says Jeff Warren, vice president at Oracle Retail. “The rise of AI and cloud technology offers a huge opportunity to not only analyze consumer behavior, but also to put that insight into action to provide online shoppers more relevant offers and suggestions, and empower store associates to deliver a higher-value, more informed customer experience.”
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Modernizing aging technology and adopting best practices for a customer-centric approach can help retail become more nimble and agile, the report states. And tools such as AI-powered merchandising, automated pricing, smart beacons, and demand transference models are examples of applications rewriting the rules for retailers.
All told, using AI and cloud-based platforms in retail will not only break down silos to decrease operational costs but also enhance the shopping experience to build greater customer loyalty.
“Technology has the power to augment the customer experience and anticipate industry trends, but none of that is possible unless you can shift core retail processes and re-examine organizational structures,” says Rudy Kulas, a managing director at Deloitte. “It’s crucial that retailers find balance between caring for your customer and their preferences, while also ensuring the AI-generated recommendations and personalized messaging match the customer’s actual needs and add real value to the overall shopping experience.”
Officevibe: High Investments in EX Lead To Increased Employee Productivity
Organizations that make substantial investments in employee experience (EX) are more likely to see significant returns across their business outcomes in areas such as employee productivity and customer satisfaction, reveals a new report from Canadian software firm Officevibe.
Findings from the report, based on the results of a survey of more than 1,160 US and Canadian business leaders directly involved in managing EX solutions for their organizations, draw connections between employee engagement and business success. For example, 54% of high-investing organizations see an upturn in customer satisfaction. Moreover, high-investment entities are 45% more likely to see improvements in key metrics, such as higher employee productivity, lower absenteeism, and decreased turnover.
In contrast, low-investment organizations use more methods to collect EX data, are less confident about the accuracy of the data, and struggle to translate the data into actionable insights, the report indicates.
“It’s table stakes for employers to measure employee engagement today,” says Julie Jeannotte, human resources (HR) researcher at Workleap, the parent company of Officevibe. “But organizations that move beyond measurement to intentionally take action on their engagement data truly understand the connection between employee experiences and business outcomes. Our research validates this by showing that higher investments lead to lower employee turnover, increased productivity, improved customer satisfaction, and a significantly more positive outlook among employees.”
The findings can be found in the report, The Potential of Employee Experience in Lean Times, developed by Officevibe in partnership with Austin, Texas-based marketing consulting firm The Starr Conspiracy.
Execs In The Know: Customer Service Must Be Solid for CX To Be Exceptional
Consistent and high-quality experiences at every customer touchpoint are the keys that enable brands to achieve exceptional CX and continued customer loyalty, reveals a new study from Execs In the Know, the global community of CX leaders focused on providing excellence in customer service and support.
The report, Experience & Loyalty Insights: A Research-Based Review—Retail & eCommerce, was released in partnership with global digital business solutions provider Conduent. While covering the commercial, government, and transportation sectors on the whole, the report focuses on the retail/e-commerce industry vertical.
In comparing the various industry verticals, several differences emerge, the report observes. The standout characteristics of retail/e-commerce brands include channel diversity, a proactive approach to economic uncertainty, and satisfaction among CX leaders with their technology stacks.
Findings also show that consumers in general are pleased with the customer care they receive from retail/e-commerce brands. For instance, 42% of consumers feel that retail/e-commerce brands are providing “Better” or “Much Better” customer care compared with that seen 3 years ago prior to the pandemic. Even so, consumers continue to seek faster, simpler transactions, more consistency across channels, and easier access to live support, according to the report.
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Among retail/e-commerce brands, 69% have seen improvement in the key performance indicators (KPIs) of their critically important programs during the past 12 months. Their biggest challenge in the year ahead, the report notes, will be cost containment, including the management of rising operational costs.
“This report opens an exciting and new avenue of research for our community,” says Susan McDaniel, co-founder and COO of Execs In The Know. “Loyalty is an important topic, not just for our friends in the retail/e-commerce vertical, but across industries. Many of the findings contained in this report translate well on a cross-industry basis, providing a clear picture of what loyalty means to consumers, and how brands can cultivate more loyal customers.”
Ryan Collins, vice president and general manager of CX management solutions at Conduent, agrees.
“A key takeaway from the research is that the fundamentals of customer service must be solid,” Collins says. “Emerging technologies and communications channels are only beneficial and further enhance customer experience if they are implemented strategically and complement the work of agents. They must remain focused on people, processes, training, and creating exceptional experiences for customers, and then integrate new solutions to meet changing expectations.”
Author Information
Alex is responsible for writing about trends and changes that are impacting the customer experience market. He had served as Principal Editor at Village Intelligence, a Los Angeles-based consultancy on technology impacting healthcare and healthcare-related industries. Alex was also Associate Director for Content Management at Omdia and Informa Tech, where he produced white papers, executive summaries, market insights, blogs, and other key content assets. His areas of coverage spanned the sectors grouped under the technology vertical, including semiconductors, smart technologies, enterprise & IT, media, displays, mobile, power, healthcare, China research, industrial and IoT, automotive, and transformative technologies.
At IHS Markit, he was Managing Editor of the company’s flagship IHS Quarterly, covering aerospace & defense, economics & country risk, chemicals, oil & gas, and other IHS verticals. He was Principal Editor of analyst output at iSuppli Corp. and Managing Editor of Market Watch, a fortnightly newsletter highlighting significant analyst report findings for pitching to the media. He started his career in writing as an Editor-Reporter for The Associated Press.
