Despite Advances in AI, Retail CX Still Needs a Human Touch

While artificial intelligence has made significant advancements this past year with new apps such as ChatGPT and Jasper, the reality is that human interactions still cannot be directly replicated through technology. An overreliance on chatbots to replace humans is a potential pitfall for many retailers.

Sure, the addition of AI and virtual agents is extremely helpful in decreasing labor costs and serving more customers both online and in-store. However, when used improperly, innovation can come at the cost of an absence of humility, empathy and real understanding within conversations.

Despite benefits such as operational convenience and speed of AI and real-time data to help manage workflow during peak shopping and travel seasons, potential grievances and frustrations that come with only speaking to chatbots have often proved problematic. With this understanding in mind, it's ideal for retailers to fold a human-centric approach into their tech and overall customer experience (CX) strategies.

AI vs. Empathy

There’s a time and a place for going all digital, but great CX cannot be accomplished without a true balance between AI and the human touch. This starts with looking at existing CX strategies and determining where chatbots, IVAs and other automation solutions would work best. A smart place to start is using chatbots for mundane and frequent customer issues. Therefore, agents aren’t stuck responding to repetitive and easily solved requests that aren’t a good use of their time.

For customers in a stressful situation (e.g., their package getting lost, stuck or delayed due to supply and shipping issues), the last thing they want is to be stuck in a virtual conversation with a bot. Human agents should always be reserved for high-value conversations, allowing a true balance between digital and voice. In fact, 60 percent of high-value CX transactions are being solely handled by voice and AI despite the fact that customers will want an empathetic and emotional response during those interactions. Providing empathy for a customer can make them feel valued and resolving their concerns is considered a top priority for retailers.

Embracing the 'Intelligence' in AI

One of the excuses of organizations looking to phase out live customer service agents is that consumers expect quick and easy answers for their concerns and a human can’t always meet this demand. Those retailers also forget that AI can augment a service agent’s own capabilities. This is particularly true when the CX agent has access to historical data collected on customers, including their past interactions with the brand or specific needs and preferences. Forward-thinking sellers will give agents real-time access to that specific intelligence via their work application during calls, use it to personalize their interactions with customers, and provide customers with better resolutions to their shopping concerns.

Self-Service and Consumer Shopping Preferences

Customer service used to revolve around lengthy phone calls, frustrated human reps, and tedious time sucks. Now, shoppers have email, web portals and mobile applications to serve themselves. In fact, many consumers prefer self-service due to ease and efficiency, whether buying online, tracking a delivery, or filing for a return. However, despite this “do-it-yourself’ preference shared amongst consumers, human interaction will still be essential in solving a problem, getting the right nuance in conversation, or answering a confusing question — especially those more complicated or sensitive in nature.

The No. 1 priority for retailers right now, especially in times of uncertainty with consumer spend fluctuating, is taking care of customers — ensuring they feel cared for and that they spend their money wisely. By integrating human interaction and AI, retailers make their customer experience more rewarding for consumers and for their brand reputation as well.

Nick Delis is senior vice president of international sales at Five9, a call and contact center as a service (CCaaS) provider.