Retail Leaders Will Embrace AI to Elevate CX

The retail industry is gearing up for an artificial intelligence-first revolution, with customer experience (CX) at the center of this massive shift. AI is poised to become an essential instrument for retailers, enabling them to outpace competitors, provide standout personalized services, and keep CX at the core of their business strategy, creating a flywheel effect on revenue.

One of the most significant benefits of AI for retailers is its ability to hyperpersonalize the shopping experience. By analyzing data on customer behavior and preferences, AI-powered systems can provide personalized recommendations and tailored promotions that resonate with individual shoppers. In fact, the Zendesk 2024 CX Trends Report shows over 70 percent of customer experience organizations think that AI will benefit their business by adding a personal touch similar to the warmth and familiarity you get from human service.

Ian Hunt, director of customer services at Liberty London, sees AI as a key tool for delivering a curated and personalized service. "Liberty is all about delivering a personal service," he says. "I see AI enhancing that personal service because now our customers will be interacting with a human who is being put in front of them at the right time with the right information."

Liberty London's integration of AI has not only led to heightened satisfaction and a rise in one-touch ticket resolutions, but has also relieved customer service agents of routine tasks, enabling them to concentrate on more impactful responsibilities. Consequently, this initiative has contributed to an impressive 11 percent reduction in ticket resolution time.

By integrating AI with human expertise, retailers can elevate the shopping experience to new heights. For example, AI-powered chatbots efficiently manage routine questions about order status, returns, and other transactions, allowing human associates to concentrate on delivering personalized styling advice and tackling complex issues. This synergy not only tailors the customer journey, but also streamlines operations and reduces costs. Automated systems like chatbots and virtual assistants handle high volumes of inquiries, providing tailored recommendations without human input.

Meanwhile, AI equips agents with rich contextual information, ensuring that when customers do seek human interaction, or for specific high-value situations where personal touch is key, even new agents are well-prepared to offer a distinctive and valuable customer experience. The CX Trends report also reveals that a significant 81 percent of retail CX leaders who have implemented generative AI in their customer experience strategies are seeing a positive return on investment. This further highlights the potential for AI to transform the retail industry and deliver tangible business benefits.

Retailers that embrace AI stand to gain a significant competitive advantage in the ever-evolving retail landscape. The future of retail lies in successfully blending AI capabilities with human touchpoints to create a seamless and personalized shopping experience.

Teresa Anania is senior vice president of global customer experience at Zendesk, a service-first CRM company that builds support, sales and customer engagement software designed to foster better customer relationships.