Reflecting on the vibrant discussions at the recent CX Retail UK Exchange in London, one debate stood out: How far should retailers push technology in this age of automation, analytics and AI? Is an overreliance on technology in customer operations the answer or does the absence of a human face or voice risk alienating customers?
The event commenced with a compelling presentation by Tara Ballarotto, CX Consultant, who emphasized stepping back from the tech hype, considering customers as humans and valuing authentic human interaction. Conversely, multiple success stories highlighted how next-generation technology is unlocking new possibilities for retailers. For instance, SJ Grabiec, Global Head of CX and Fraud at AllSaints, spoke about how the company is leveraging Generative AI (Gen AI). Richard Lim, Chief Executive at Retail Economics, discussed the broader benefits of digital transformation.
These perspectives illustrate the dichotomy of technology as both an opportunity and a risk. Which perspective is correct? Ultimately, there isn't a single definitive answer. Customer Experience (CX) has always been a complex blend of technology and human interaction. From the earliest cash registers and contact centers to chatbots optimized by data scientists, there has always been a balance to strike – an equilibrium shaped by the availability of skilled labor and advanced systems. Technological advancements will continue to re-define this balance, influencing how tasks like query handling, personalization and loyalty management are executed. Today, most organizations find that new technologies help them achieve more with less across the CX spectrum, but this journey is not without its challenges.
Three key considerations stand out :
1. Timing:
Although some platforms and channels can gain popularity overnight, customer expectations about how they want to engage with retailers gradually evolve. While there are clear differences between demographics, both retailers and their customers are learning how and when to use new channels such as virtual agents, voice commerce, personalized apps or augmented reality. Customer attitudes toward technology change over time.
2. Brand:
The appropriate mix of technologies varies by brand. Retail brands emphasizing luxury, compassion and authenticity must be particularly cautious about the risks of insensitive over-automation. The technology mix must also be tailored for retailers or e-commerce players with multiple brands or a 'house of brands' structure.
3. Cost:
Technological advancements are dramatically lowering the cost of automated work. A chatbot powered by a Gen AI large language model is significantly cheaper than inferior chatbots from a decade ago. This cost reduction makes highly automated or analytics-rich approaches to CX more accessible and financially viable than ever.
As a result, the trend across retail is strongly toward increased automation, with high-touch, human-centric customer engagement becoming a premium service. This pattern will not be universal, and human interaction will remain integral to many CX tasks that customers value and are willing to pay for. In other instances, customers may prefer or seek out more automated interactions. In a well-managed retail CX operation, this shift will allow scarce CX talent to focus on areas where the human touch is most impactful.
In the coming months and years, finding the right balance between human and machine interaction will be a fundamental challenge for even the most robust retail CX teams.
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