Will Generative AI Improve Customer Experiences in Retail

 Useful thoughts and directions.

Will Generative AI Improve Customer Experiences in Retail  by Patricia Vekich Waldron

Customer experience (CX) and customer service leaders gathered in San Diego this week for the Reuters Events: Customer Service & Experience West 2023 conference. The consensus was that customer care is a brand differentiator and strategic focus for companies–especially given that customer expectations, call volumes, service employee attrition and training costs are all up.

In a session titled “Generative AI in CX,” Shawn Strassburg, head of transformation, Best Buy, discussed how the consumer electronics retailer uses artificial intelligence to solve specific CX/contact center business problems.

“Three and a half years ago, where the company made a very on-purpose decision, that we were going to re-envision customer care with a key focus on customer obsession. And really, really understanding your customers’ words, their voice,” said Mr. Strassburg. The retailer is halfway through its transformation.

The company uses a top-down/bottom-up approach to understand customers using data to guide decision-making. Leadership, business, data and analytics, and finance teams secured a top-down commitment and alignment to truly understand customers and the internal customer care processes. Bottom-up insights come from front-line teams, call center agents’ experiences, and customers’ experiences interacting with Best Buy’s CX organization.

Best Buy created a lab staffed with top agents and discovered a disconnect between contact center system data and what was happening as customers called in. To improve agent performance and customer experience, Best Buy implemented AI for real-time audio transcription, automated contact summaries and contact intent detection.

Lab trials have delivered a 25 percent reduction in after-call work (ACW) as call agents no longer must manually compose and enter call history and actions. There was also an 18-second reduction in talk time.

“As we tested it out, we were anticipating about a 15-second reduction in just talk time, not a negative way, but in a super positive way because it was helping to build a foundation of trust and partnership within our agent base and in our customer base,” said Mr. Strassburg.

Best Buy is auditing its systems and processes to identify where to plug in AI capabilities to hear the voice of their customer better, discover the true intent of why they call for service and determine if it has succeeded in resolving issues.

DISCUSSION QUESTIONS: What role(s) do you see generative artificial intelligence playing for retailers looking to improve the customer experience? How does Best Buy’s approach compare to other retailers? ... ' 

How Will Generative AI Shape Retail Customer Service?

Good overview...

How Will Generative AI Shape Retail Customer Service  by Tom Ryan in Retailwire

Customer service reps (CSRs) continue to land on lists of the top ten jobs at risk due to advances in conversational artificial intelligence (AI). Some observers, however, are hopeful the technologies only reinvent the role for the customer’s benefit instead of replacing jobs.

Paul Daugherty, Accenture’s group chief executive, technology and chief technology officer, writing for the Harvard Business Review, predicts AI will automate a few repetitive tasks for CSRs, augment others and add “new, high-value tasks” to the CSR role.

“The ability of generative AI to put massive amounts of information at the fingertips of CSRs greatly increases their capacity to resolve the customer’s problem more thoroughly and quickly than either a chatbot alone or a CSR following a rote script,” said Mr. Daugherty. “But because conversational AI can sometimes produce plausible sounding but nevertheless incorrect, irrelevant, or nonsensical responses, a human must remain in the loop to ensure the accuracy and trustworthiness of machine-generated suggestions and information.”

Writing for Unite.AI, Eli Israelovk, CEO of CommBox, a communications automation platform, said AI could reduce stress and increase job satisfaction for CSRs. “They can deal only with the most complex or valuable calls, while bots and other automated features serve more simple queries,” he wrote. 

Yoon Kim, assistant professor of computer science at MIT, speaking to Scripps News, believes that while humans will be necessary for monitoring, ChatGPT-enabled chatbots “can cover a wider range of customer queries, and moreover, enhance the engagement of the customer with the chatbot, and ultimately widen the scope of problems that can be potentially addressed.”

Artificial intelligence was being  touted for its potential to reduce   waits and problem resolution times in a 24/7 timeframe, tailor responses based on individual consumer preferences and drive down costs even before ChatGPT and the hype around it arrived.

Gartner last year predicted that by 2027, chatbots will become the primary customer service channel for roughly a quarter of organizations. Uma Challa, a Gartner analyst specializing in customer service and support technology, said in a release, “When designed correctly, chatbots can improve customer experience and drive positive customer emotion at a lower cost than live interactions.”  .... ' 

Does Virtual Fitting Room Tech Discourage Sales?

 Worked on the concept.

Does Virtual Fitting Room Tech Discourage Sales?

9 EXPERT COMMENTS

DISCUSSION

by Tom Ryan,  University research finds virtual fitting rooms aren’t “uniformly positive” for customers, particularly those customers with unhealthy body image perceptions.

Researchers from Iowa State, using data from an online women’s apparel website in China, found such augmented-reality technology increased sales among shoppers with a low body mass index (BMI) but decreased sales for those with a high BMI. The technology also negatively affected product evaluations and lowered the self-esteem of participants with a high BMI.

The study concluded that shoppers unhappy with their appearance might shift that negative feeling to the product and that the negative perception is stronger in virtual versus physical settings.

“One possible reason for this: There are fewer distractions with virtual rooms,” Huifang Mao, an Iowa State marketing professor, said in a press release. “It’s just your image with the clothes and a white background. When the only thing you are looking at is your own image, you may view it with a more critical eye.”

In physical dressing rooms, there’s more “noise,” visual and audible, including the reflections from the mirrored walls and the presence of other pieces of clothing as well as music played in the store or conversations overheard from other fitting rooms. ... '

Norstrom and Panera Using AI

 AI Usage examples

Nordstrom and Panera Leverage AI and Automation to Enhance Operations

AI AUTOMATION NORDSTROM PANERA BREAD

Mar 30, 2023, by Melissa Minkow

Alexis DePree, chief supply chain officer of Nordstrom, and George Hanson, VP/chief digital officer of Panera Bread, sat down on Monday at Shoptalk in Las Vegas to discuss the bright future that retail can anticipate leveraging artificial intelligence (AI) and automation. 

Both leaders agreed that the key to optimizing operations comes down to leveraging AI and automation for low-value, repeatable tasks so that employees are freed up to engage with customers at a high-value, ad hoc level. Not only does embracing technology in this way improve the customer experience, but it also empowers the workforce, driving employee satisfaction. 

Given Ms. DePree’s focus area, most of the AI and automation-based wins she shared were related to logistics. Nordstrom has been leaning into AI and automation to design unique routing depending on the order, improve rates of return, and maximize storage space. 

“The supply chain used to be set it and forget it. Now it differs with each order,” said Ms. DePree. 

She explained that there is now more complexity in the supply chain and automation has allowed for its movement from a cost center to a value driver. Additionally, since storage density has significantly increased, warehouses are much more economical thanks to the retailer’s advanced technology. 

Panera’s use of AI and automation enables more personalized digital and dining experiences. Mr. Hanson specifically highlighted the brand’s reliance on AI-powered voice recognition in the drive-thru. He also pointed to the use of AI to accommodate customers whose orders require repair by proactively offering a range of options. 

Further, he mentioned how crucial technology is in alleviating “microfrictions” when ordering in the cafe. Panera has recalibrated its use of AI and automation in online ordering, drive-thru and in-cafe operations. Mr. Hanson emphasized that properly allocating resources across experiences has ensured that winning, AI-based app features are brought to life in the cafe ... '

Harry Rosen’s 60-Day Journey to a New Product Category. (Book)

Just reading.   At the link is the excerpt download.

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Download this eBook synopsis of our conversation with Shannon Stewart, Harry Rosen’s Chief Product Officer to learn secrets she revealed behind how they were able to curate and launch 40 brands in 60 days. ... ' 

Stream and Shop Disney?

Seems clever, but what is being sold? 

Can Disney marry streaming and shopping?

12 EXPERT COMMENTS

Can Disney marry streaming and shopping?

Nov 08, 2022, by Tom Ryan  in Retailwire

The Walt Disney Company last week launched a “limited test” in the U.S. that will allow Disney+ subscribers to shop exclusive merchandise from franchises like “Star Wars,” “Black Panther” and “Frozen” through the Disney+ app.

Disney+ subscribers can visit shopDisney.com/DisneyPlusSpecialAccess or go to the details pages for select movies, series and shorts on Disney+ and scan QR codes to get access to purchase merchandise about a week ahead of the general public.

The test is part of a broader effort to integrate Disney’s two main business lines — Disney Media and Entertainment Distribution (DMED) and Disney Parks, Experiences and Products (DPEP) — via Disney+ with a goal of developing Disney+ into a lifestyle brand app.

“It’s the physical and digital aspects of your Disney lifestyle coming together,” said Disney CEO Bob Chapek in mid-October at The Wall Street Journal’s Tech Live conference. Integrating consumer data across divisions and using information about customer habits is expected to support customized products and cross-selling efforts.

In September, Disney offered Disney+ subscribers discounts to Walt Disney World hotels in Florida and has confirmed it is exploring offering members special access to theme parks and resorts.

Amazon and Apple have bundled discounts and streaming videos and music offerings but haven’t directly linked product selling to their shows. Netflix also has products available at Walmart, Target and online, but does not link them to broadcasts.

Furthest along appears to be Comcast’s NBCUniversal (NBCU), which in 2019 began introducing shoppable content aligned with shows. Viewers scanned QR codes on their TV screens to be funneled into an e-commerce storefront. More recently, the service has been extended to a “Shop the Scenes” virtual shopping platform.   ...  '

Amazon Goes Healthcare

Natural next step?

Is Amazon on the verge of reinventing American healthcare?

Jul 22, 2022

Amazon.com yesterday said that it has reached a deal to acquire One Medical, a “technology-powered national primary care organization” that combines in-person, digital and telehealth services to care for patients.

The $3.9 billion all-cash deal, if approved by One Medical’s shareholders and federal regulators, makes clear that Amazon is serious about being a major disruptive force in the consumer healthcare market. One Medical CEO Amir Dan Rubin will remain in that position should Amazon take control.

“We think health care is high on the list of experiences that need reinvention,” said Neil Lindsay, SVP of Amazon Health Services. “Booking an appointment, waiting weeks or even months to be seen, taking time off work, driving to a clinic, finding a parking spot, waiting in the waiting room then the exam room for what is too often a rushed few minutes with a doctor, then making another trip to a pharmacy — we see lots of opportunity to both improve the quality of the experience and give people back valuable time in their days.”

Amazon has been inexorably pushing into healthcare going back to 2018 with its acquisition of Pillpack, an online pharmacy that delivers pre-sorted doses of prescribed medicines in envelopes to customers.

Two years later brought the launch of Amazon Pharmacy, which offers free unlimited two-day deliveries of prescriptions to Prime members and discounts on medications not covered by member’s insurance. ... ' 

by George Anderson in  Retailwire   .... '

Retailwire Research on Retail Digital Transformation.

Always interesting regarding retail research activities.

Retailwire: Research    https://www.retailwire.com/  

Our recently released study, "The Beating Heart of Digital Transformation," confirms that retail planning, analytics and business intelligence apps are indeed fueling the changes rolling out at record pace in the industry. We've got two convenient ways for you to learn the key takeaways from our research.

See the on-demand webinar for a summary presentation of the results and great insights and advice from our expert panel.

Watch the recorded webinar 

Read the report ,  for a thorough look at how advanced retailers have become in their integration of these tools into their departments, their satisfaction level with the methods being using and what hurdles stand in the way of progress.

Download the report

Thanks for your interest. Please let us know your thoughts on the findings.

Regards,  Rick Moss, President, Co-founder, RetailWire

Will Amazon sell Marijuana?

Is this imminent?  Certainly there will be negative publicity,  regardless if it is fully legalized by congress.  More generally cannabis?     Is Amazon the likely the supplier that would be most likely retailer to take on such negative wind?  Today they are already selling most anything that is legal.  They are already taking on selling strongly regulated goods like pharma.  Is this different?   Implications and possible boycotts?  More retailer expert comment below. 

Will Amazon become the Amazon of weed if Congress legalizes it?,   Jun 03, 2021,   by George Anderson in Retailwire

Amazon.com stated earlier this week that it supports the Marijuana Opportunity Reinvestment and Expungement Act (MORE Act), proposed legislation that would make the sale and consumption of cannabis products legal across the country. The House of Representatives passed the MORE Act last year but it went nowhere in the Senate where it did not have the requisite 60 votes to pass.

Amazon’s statement included a change in personnel policy that would end the pre-employment testing for the drug for certain positions. The company has decided that it will treat cannabis in the same manner it does alcohol when it comes to its testing procedures.

While the news is significant based on the retailing and technology giant’s economic clout and its role as an employer, it may be causing ripples within the cannabis industry for other reasons.  ... "

Albertsons Tests Electric Truck Fleet

 Only two Volvo trucks for now.

Albertsons takes first baby step towards an electric truck fleet by George Anderson in Retailwire

Albertsons Companies is serious about cutting costs and reducing its environmental impact. The grocery giant, which last month committed to emission targets that support the goals of the United Nations’ Paris Agreement, announced the addition of two fully electric trucks to its fleet.

The two Volvo VNR Electric vehicles will join Albertsons’ fleet of around 1,400 Class 8 trucks ferrying products from the grocer’s distribution centers around the U.S. The trucks will connect to electric-powered transport refrigeration trailers to maintain the integrity of products being moved. Albertsons operates 20 grocery banners in 34 states and Washington, D.C., including Safeway and its namesake chain.  ... " 

Amazon Alexa Crowdsources New Products

Interesting approach will examine further and post here.  Thoughts about usefulness?

Amazon is using crowdsourcing to create new products   by Tom Ryan  in Retailwire  with further expert comment at the link. 

Amazon launched a new program, “Build It,” that in a crowdsourcing scheme enables consumers to vote on which Alexa-enabled products will be developed.

Built It represents the extension of Day 1 Editions, an invitation-only program that offers a select group of consumers the chance to purchase an in-development product at a special price. In exchange for the discount, the buyers provide early feedback to Amazon so the team can review any flaws while gauging potential demand for a rollout. Day 1 Editions led to the 2019 launch of Echo Frames smart eyeglasses and Echo Loop smart ring.

Build It, which is open to anybody, is more geared toward accessing potential demand and apparently creating some buzz around launch.

Consumers participating in the program are offered a chance to pre-order in-development products at a special price as long as enough others pre-order, mimicking a Kickstarter campaign. If the concept reaches its pre-order goal in 30 days, Amazon will build it and those pre-ordering over the 30-day period receive the item at the discount price. The price increases when fully rolled out.  ... ' 

Pandemic Holiday Retail Post Mortem

What Just Happened?  Good overview by a number of experts on retail process.  Join us in January for a recap of the craziest holiday season on record.  Wed., Jan. 27 – 12 noon ET/9 am PT

(Can't make it? Register and we'll alert you when the recording is available.)  Register Now:

All attendees will get a copy of the full research report. Join us live for the analysis, panel discussion and audience Q&A.

Amanda Nichols  Sr. Manager, Industry Marketing, UKG   Rob Snyder  COO & Co-founder, SYRG, Bob Phibbs  President/CEO,  The Retail Doctor, Moderating:  Al McClain  CEO, Co-founder, RetailWire

Grab a virtual seat for this holiday post-mortem of seasonal hiring, staffing and in-store safety, based on a just-completed pulse survey of retail managers conducted by UKG, with additional analysis from the workforce gurus at SYRG. You'll get reactions to the findings and advice as well in our panel discussion featuring Bob Phibbs, The Retail Doctor — insights that will help retailers streamline and optimize workforce operations in the year ahead. 

We’ll do a prior-year comparison to reveal:

How stores changed their approach to seasonal hiring and staff engagement;

How associate performance impacted store success;

To what extent COVID-19 had a direct impact on store operations (and staff morale), and;

Whether managers deemed their stores fully prepared for the holiday rush.   ... 

Oracle Ebook

Just taking a look at this:

Ebook via Retailwire

Building Your Business Around Your Customers, Not Channels
How to Calculate the Real Cost of an Ecommerce Solution
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Today more than ever, it's all about the customer. The expectations customers place on retailers are motivating retailers to deliver a best-in-class customer experience across channels. To achieve that goal, it's about simplicity in business process execution. With the right systems in place, retailers can remain agile, efficient and profitable.

Download this ebook to see how retailers deliver on long-term loyalty and customer experience success.

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Amazon Wants to Take Facial Recognition Regulation Lead

A number of experts from the retail sector have comments in the full article:

Amazon wants to take the lead on regulating facial recognition tech   byTom Ryan in Retailwire

In unveiling its new hardware devices in Seattle on Wednesday, Amazon.com CEO Jeff Bezos made a surprise appearance and told reporters the company is working on facial recognition legislation that it plans to propose to lawmakers.

“Our public policy team is actually working on facial recognition regulations, and it makes a lot of sense to regulate that,” Mr. Bezos said. “It’s a perfect example of something that has really positive uses, so you don’t want to put the brakes on it. But at the same time, there’s also potential for abuses of that kind of technology, so you do want regulations.”

Amazon’s legislative ideas haven’t been revealed. In February, Amazon in a blog entry offered some suggestions including ensuring facial recognition tools comply with laws, maintaining human reviews to double-check findings and requiring signage where the technology is used. .... " 

Sams Pilots Makes Scanning more Efficient

The difference here is simple,  users don.t have to search for a barcode.   And we assume that this will work with sometimes non barcoded product like produce?  Have used Scan & Go at Kroger.    Will customers notice?  How different will be this be than Amazon Go?  The tests indicate considerably less time to scan.

Will new Scan & Go tech turbocharge Sam’s checkouts?  by Matthew Stern in Retailwire  with further expert commentary.

This spring, Sam’s Club will begin piloting an upgrade to its Scan & Go technology that is meant to enable customers to scan purchases even faster while they shop.

The new solution uses machine learning and computer vision to identify products when a shopper points their smartphone at them, according to TechCrunch. In Sam’s Club’s standard app, users are required to find a barcode on the product and scan it before putting it into their cart. The item is then added to their digital cart so they can pay via app. The ability of customers to scan each item without flipping them around to search for a barcode cuts down demonstrably on the time it takes.

A demonstration video (see t the link) indicates that on a test item, the new app takes only 3.4 seconds to scan, down from 9.3 seconds when a customer has to search for the barcode. The technology came out of the Sam’s Club Now high-tech test store in Dallas, which opened last year. The first tests of the new technology will be at this store.  ... " 

On Amazon Scout for Product Discovery

Did lots of work with systems that would search for items in stores.    Here the next step.   Is this search in a virtual space?   And what other kinds of curation of the search is also at play?

Is Amazon on the right path to improved product discovery with Scout?
by Ken Lonyai in Retailwire

Jeff Bezos has said, “To invent you have to experiment and if you know in advance that it’s going to work, it’s not an experiment.” By that definition, Amazon Scout is an enormous experiment. 

Scout (amazon.com/scout) is a new visual search engine within Amazon. It’s aimed at categories where visual appeal is a big part of shoppers’ selection criteria, so furniture, women’s shoes and lighting are early subjects. Shoppers choose a product subcategory and then give a thumbs up or down to each image. It seems like a simple and intuitive method of culling preferred items from a list of possibilities, but without a rework, I believe it will be a failed experiment. 

The system utilizes machine learning to make replacements to the displayed assortment based on similarities or contrasts to the user-ranked item. The more rankings, the more tuned the selection until, in theory, the product choices displayed are largely purchase candidate items that meet the shopper’s desires. .... " 

Amazon Shifts to Subscription for Prime Pantry

Seems more practically useful,  to larger and more systematic users.

Amazon shifts to a subscription model for Prime Pantry
by Tom Ryan in Retailwire with further comments.

Amazon’s Prime Pantry service is shifting to a $5 monthly subscription model from the $6 it currently charges per box.

Prime Pantry, launched in 2014, offers “low-priced, every-day essentials in everyday sizes.” Items include non-perishable goods such as detergent, paper towels, canned foods, breakfast foods, beverages and beauty and personal care items.

The programs selling points include offering savings without the need to buy in bulk and eliminating the need to visit stores for regularly-purchased items. Products arrive in one to four days. The Prime Pantry’s micro-website states, “Skip the trip to the grocery store and let us do the heavy lifting.” ... ' 

Blockchain for Retail

Had conversation on this space recently and received some eye-rolling about the hype the space has received.  Its not the same thing as the get rich quick world of 'BitCoin', just uses the same underlying tech., so deserves a closer look.   Reminds me of early reactions to the Web, claiming it was frivolous and dangerous.  Took a some time to convince management it could be an important future.  Worth reading the whole thing  and the expert comments.  There is interest and experimentation happening now.

How will blockchain disrupt retail?  by Tom Ryan in Retailwire
' .... “Blockchain can help retailers garner greater trust and brand loyalty throughout the product lifecycle, as it can tell consumers not just where an item was made, but also who it was made by, the conditions they worked in and how much they were paid,” wrote Kati Chitrakorn for Business of Fashion. It can also detect interruptions or bottlenecks so that retailers can re-route shipments or advise customers of delays.

A new IBM survey of 203 organizations in the consumer industry found only 18 percent currently using blockchain, but almost 70 percent expect to have a blockchain production network within three years. The top areas blockchain is expected to benefit: product safety and authenticity, supply chain optimization, finance/operational processes, regulatory compliance, promotional strategy management, customer engagement and co-creation. .... " 

Retailwire Survey on AI and the Supply Chain

Of interest, requires registration:

Study Results:: A.I.’s advancing role in fueling the retail supply chain
See results of RetailWire’s study of nearly 200 retail industry execs and managers

In the last decade, tech developers have increasingly turned to artificial intelligence (A.I.) when seeking ways to improve supply chain processes. A.I. holds great promise for a wide range of retail applications, but as theory advances into retail practice, operators need a grasp of how to prioritize new investments.

Read the results of RetailWire’s just-released study, conducted in coordination with IBM, in which we sought to fill in this knowledge gap. We surveyed nearly 200 retail industry execs to gauge their familiarity with the application of A.I. to retail, and how they hope to use A.I. to address current and future challenges. ....  "