Retailers are increasingly turning to AI technology to attract online shoppers this Christmas, amid a significant decline in in-store sales.
A recent study has revealed that 71 per cent of retailers are investing in artificial intelligence within their call centres. This shift comes in response to the lowest shopper footfall in November since the 2008 recession, with expectations of further declines in December.
High street stores are facing unprecedented challenges, with 14 shops closing daily and further closures anticipated in January 2019. Prominent retailers have reported decreases in like-for-like sales, with several stores shutting down more branches. The head of one major retailer has described the trading conditions for the remainder of the financial year as ‘challenging.’
The study, which surveyed 500 call centre operators, 1,000 consumers, and 500 heads of customer service, found that 59 per cent of retailers have implemented chatbots to enhance customer service and productivity. Additionally, 42 per cent use virtual agent-led live chat, and 22 per cent have adopted agent-assist technology.
Dr Tim Denison, director of retail intelligence at a leading performance analysis firm, commented, ‘We’re all part of a ‘now’ society, in which consumers expect a personalised, instant and frictionless experience in which we buy on demand at our convenience.’ He highlighted the importance of AI in improving customer service and experience, noting its potential to handle online shopping queries effectively.
Martin Flick, a CEO involved in the research, stated, ‘With customer experience predicted to overtake price and product by 2020, retailers must be prepared to evolve to offer a more personalised experience, which our research has proved must be quick and convenient for the customer across all channels.’
The financial benefits of AI investment are substantial, with more than a third of surveyed retailers saving over £100,000 annually by adopting AI-enabled cloud contact centre solutions.
As high street retailers grapple with declining foot traffic and challenging trading conditions, the adoption of AI technology appears to be a critical strategy for improving customer service and maintaining competitiveness.