Understanding the motivations and frustrations of shoppers has always been important, but now thanks to technology there are new ways in which brands can address the unmet needs or issues that may be causing customers to simply walk away from making a purchase. It’s an exciting time to get to know your audience better. You may be surprised to find they aren’t always telling you about their negative experiences.
We recently released our 2023 Customer Service Relevance Report and it had some bad news for retailers: the 4,000 adults across the UK and US surveyed by Arlington Research on Coveo’s behalf rated retail customer service at the top of the list for the worst customer service. In the UK, utilities/service providers beat retail for worst customer service, but only slightly (38% and 37% respectively). In the US, online retail remains the worst for customer service for the second year in a row — 36% this year and 37% in 2022. Utilities/service providers come in second (33%), with health insurance third (29%), and technology providers fourth (27%). Service and support expectations vary by industry, further emphasising the need to create and foster a continual feedback loop with customers so you know where your strengths and weaknesses lie.
If you are assuming customers will tell you about their negative experience, they likely won’t. More than half of respondents said they rarely or never complain about a negative digital customer service experience. The survey also found that the “ghosting” phenomenon has become much more prevalent across demographics, with consumers leaving brands after just two to three negative experiences. This lower tolerance for negative customer experiences translates to poor customer retention and lost revenue.
Gen AI can flip the script on bad retail customer service
Amidst poor customer service ratings, there is one positive finding: optimism from shoppers in regard to the potential for a better retail customer service experience through the use of generative AI tools. The emergence of GenAI is poised to play a major role in improving retail customer service perceptions – 46% of survey respondents reported that they want more intelligent chatbots. Additionally, those surveyed also shared that not being able to find information on their own (43%) was a reason to abandon their shopping journey. If AI can help deliver pertinent information in a timely manner, brands are more likely to keep that shopper.
Intelligent search results can create a better customer experience, and AI is sure to be able to support the creation of more meaningful answers for customers, perhaps taking search results one step further by displaying written answers to common questions. According to our report, 50% of those surveyed say they want to be able to see the actual answer within the search results, not just links. Respondents also said they want to get recommendations for content that has been helpful to others with similar issues, another area where AI could help offer robust information.
Brands can transform the search box into a “cohesive” gen AI experience, fact-checking every result with a single click and protecting organisations from data leaks without compromising performance. One question that is often on shoppers’ minds is – where is my order? A secure gen AI solution that can answer these types of questions is an invaluable tool that will better the retail customer experience, building loyalty in the process.
Gen AI is poised to empower retailers to scale better self-service experiences
The power of generative AI resonates with brands because it can scale. However, it can only work if future enterprise-grade iterations of this technology can eliminate key headaches such as security, privacy, hallucinations, veracity, and a lack of source of truth, which hinder the adoption of generative AI in a brand-safe way.
Our study also unearthed other interesting insights into how customers feel about self-service – for example, 50% say they would prefer no self-service option if it’s going to be a bad experience. When retailers offer self-service tools to support customers, they should be cautious because simply offering the tool and looking the other direction is not an option. According to the survey, 43% of respondents found it frustrating and a reason to leave when they couldn’t find what they were looking for on their own. Brands must deliver a quality and accurate engagement if they want customers to choose self-service.
Report findings illustrate the importance of listening to shopper feedback. Retail brands should take a moment to walk in their customers’ shoes and understand what fundamental customer service areas should be examined. If you’re not supplying your customers with the answers they are looking for, you are missing out on present and future sales.
Customer expectations are constantly evolving, further pointing to the need for an experience layer that works across all channels and sits on a flexible foundational platform that includes intelligent search, machine learning and AI. It’s an opportunity to meet shoppers where they are and proactively answer their needs.
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Jeff Becker serves as the Vice President of Enterprise Sales at Coveo. In his role, he is responsible for managing a group of experienced account executives, working throughout various industries including high technology and retail. Jeff has the expertise and experience building successful sales teams, focusing on positive business outcomes for their clients.
Prior to Coveo, Jeff has over 25 years of experience in various managerial and leadership positions, including 10 years at IBM leading the Watson customer engagement team in the East, Director of Global sales at Sterling Commerce, as well as other leadership positions in customer engagement and consumer goods companies.
