For this blog, the focus of each paragraph details how retailers integrating generative AI into their tech stack can streamline the buyers’ journey and enhance levels of customer satisfaction, particularly during busy times such as peak period.
For retailers today customer satisfaction isn’t just a goal; it’s a necessity for sustainable success. To achieve and maintain high levels of customer satisfaction, they are now turning to generative AI to transform their sales journeys. Without it, both businesses and consumers are at risk of finding themselves“out of their heads”. This article details how the integration of AI into retail tech-stacks is not just a game-changer, but a satisfaction booster for customers.
Supply Chain Optimisation
In the fast-paced world of retail, where customer expectations continue to soar, supply chain optimisation stands as the linchpin in the pursuit of enhanced levels of customer satisfaction. Modern consumers demand not only high-quality products, but also an impeccable shopping experience, which hinges largely on product availability and efficient delivery. Traditionally, forecasting demand has been a complex task fraught with uncertainty.
Seasonal trends, unexpected market fluctuations, and evolving consumer preferences have made this a formidable challenge. However, generative AI brings a new level of precision to demand forecasting, harnessing the power of big data analysis and real-time insights. This transformative technology can predict demand more accurately than conventional methods, aligning inventory levels with real-time market fluctuations.
Studies have shown that businesses that adopt AI in their supply chain management processes experience a decrease in stockouts by up to 30%, ensuring that popular items are consistently in stock and available when customers are looking for them. Simultaneously, overstock scenarios drop by 20%, saving retailers the costs and logistical challenges associated with excess inventory.
Process Automation
Traditionally, retail operations have been marked by a myriad of manual tasks, prone to human error and proving to be time-consuming. However, with generative AI at the helm, these operations are streamlined to perfection. An example of this transformation is the utilisation of chatbots, these AI-driven virtual assistants handle routine customer queries with an impressive. This frees up invaluable human resources to tackle more complex and nuanced customer issues, allowing retailers to make the most of their workforce.
The benefits of this automation ripple throughout the entire customer experience. A 40% reduction in customer response time is a notable outcome of this efficiency. This means that customers’ inquiries and concerns are addressed with unprecedented speed, ensuring that they find resolutions swiftly. It’s this combination of speed and accuracy in dealing with customer issues that leads to heightened satisfaction among shoppers. When customers feel heard and valued, this fosters a stronger sense of loyalty and trust in the brand. It’s not just about providing answers; it’s about making customers’ lives easier and demonstrating a commitment to their needs.
Moreover, the integration of generative AI in process automation goes beyond customer service. It’s applied in various facets of retail operations, including inventory management, order processing, and even data analysis. The result is an overall reduction in operational costs, fewer errors, and a significant boost in efficiency. This, in turn, allows retailers to allocate resources more strategically, ultimately impacting the bottom line. One must also acknowledge the versatility of generative AI. It can adapt to changes, learn from interactions, and improve over time, ensuring that the customer experience is continuously optimised.
Streamlining Peak Period
With the rapid advancements in the retail space, we know that the competition is fiercer than ever. Although there are a bunch of tools and best practices out there for better customer satisfaction, the majority of problems still seem to be the ones we’re used to seeing; high agent costs, struggling to handle spikes, poor chatbot experiences, slow response times and unhelpful FAQ’s.
At the beginning of this year, DigitalGenius conducted a survey, What are Customer Service Leaders thinking in 2023? , where they interviewed 200 Customer Service Leaders to know what was really going on behind the scenes during these peak periods. With everything going on in the world, it was no surprise that eCommerce leaders were also struggling to keep up with customer expectations, especially during peak periods.
The traditional way of coping with peak periods has always been (and still is) to hire extra staff to deal with the increased volumes of customer tickets. DigitalGenius have found that 67% of their respondents hired additional staff or outsourced customer support to an agency. This solution, however, does come with a cost. Businesses that have hired extra staff potentially paid 50% more in salaries over a 3 to 4 month period in the year.
However, we’re not here to talk about traditional methods. With the emergence of Generative AI a new world of customer service is now available to all retailers, no matter the size.
- Free Up Customer Support Agents with Automation
The first option that comes to mind when dealing with the increase in tickets during peak, and to free up agents from dealing with mountains of simple, repetitive queries is automation. By automating the responses to common customer questions and deflecting questions away from agents, those agents are then free to focus on adding value to the conversations they are having with customers.
Having a tool in your tech stack that will automate these tickets will also enable you to train your human agents to upsell and cross-sell which most likely will have an impact on revenue.
- Personalised Customer Experience
What would you say your CSAT score would look like if you could answer your customers’ questions about sizing, product availability, make product recommendations and do cross-selling, during the busiest times of the year? This is all possible with an AI tool at your disposal, you have the potential to elevate customer satisfaction to new heights and foster stronger, more lasting customer relationships.
- Returns & Exchanges
Peak periods can be a challenging time for both retailers and customers, particularly when dealing with returns and exchanges. However, with the assistance of intelligent generative AI tools, businesses can create scenarios where return requests, exchanges, or issues related to damaged items can be efficiently handled without the need for human intervention. These tools can mimic the workflow that a human agent would typically follow, resulting in expedited customer service. As a result, this approach not only provides customers with faster assistance but also allows human agents to allocate their mental capacity and available time to more valuable tasks, improving overall operational efficiency.
Post-Sale Customer Care
Let’s begin with a reference to some compelling statistics from Zendesk: “73% of business leaders acknowledge a direct correlation between customer service and business performance, with 60% emphasising that high-quality customer service enhances customer retention.”
Post-sales customer care is undeniably crucial. It serves as a catalyst for customer retention, encourages repeat business, cultivates positive word-of-mouth, and extends the overall customer lifetime value. However, given the rapid evolution of technology and shifting customer expectations, businesses must navigate the terrain of post-sale customer care without unsettling existing customers or disrupting established systems. This is where AI steps in.
With the advent of generative AI, businesses, especially those in the e-commerce sector, are keen on integrating AI into their tech stacks and leveraging its capabilities.
The benefits of incorporating AI into your tech stack are manifold, including round-the-clock support, task automation, proactive customer service, multilingual assistance, and personalised customer experiences. Let’s delve deeper into these advantages.
- 24/7 Support
Incorporating AI-based customer service tools means your business never sleeps. There are no waiting times for approvals, no sick days, and no backlog of tickets. As observed by DigitalGenius, our customers have witnessed improvements in their customer service agent teams’ mental well-being. Their CSAT scores have seen positive enhancements, with customers appreciating the round-the-clock service.
- Proactive Customer Service
Your chosen AI tool should empower your eCommerce business to proactively engage with customers. This includes addressing their pre- and post-purchase queries through generative AI, providing timely shipping notifications, and more.
- Tracking and Warranty Issues
Generative AI-powered chatbots excel in assisting customers with warranty claims and return processes. They rely on website information to answer questions, guide customers seamlessly, and gather essential details. These chatbots also offer proactive services by integrating with shipping carriers.
- Multilingual Support
Language barriers are a thing of the past. Large Language Models (LLMs) have become a standard feature in AI tools, making it effortless to cater to customers in multiple languages and expand your customer base.
In summary, Post-Sale Customer Care is evolving with AI at the helm, and those who harness and enhance these generative AI tools gain a significant advantage. By combining automation with personalisation, accessibility, and efficiency, businesses can create a superior customer experience. This technology not only enables businesses to meet but also to exceed customer expectations, fostering long-term relationships and brand loyalty in the fiercely competitive world of eCommerce.
As generative AI continues to reshape the retail landscape, its impact on customer satisfaction is undeniable. From optimising supply chains to automating processes, streamlining peak periods, and enhancing post-sale care, generative technology is the driving force behind happier customers. Retailers integrating AI into their tech stacks are witnessing impressive results: fewer stockouts, faster query resolutions, and a reduction in customer response times. This delights customers whilst strengthening brand loyalty. As the retail world continues to evolve, businesses can’t afford to overlook the transformational potential of AI. It’s not just an option; it’s the key to unlocking the highest levels of customer satisfaction, setting the stage for long-term success.
SIGN UP TO OUR NETSUITE AI ASSISTANT WAITING LIST BELOW:
