Customer Service

Unlocking exceptional customer experience in retail

Research reveals consumers are willing to pay a premium for products from companies that demonstrate a deep understanding of and care for their customers.

Photo: Adobe Stock (AI Generated)

June 17, 2024 by Samir Gosavi — Chief Business Officer, LTIMindtree

In the competitive retail sector, customer experience has become a pivotal factor.

Modern consumers seek more than just products; they are buying experiences. Research shows consumers are willing to pay a premium for products from companies that demonstrate a deep understanding of and care for their customers.

Retailers aiming for long-term loyalty and a competitive edge need to forge emotional connections with their customers. With a concerted focus on CX, businesses can chart a path toward industry-leading revenue growth and customer loyalty.

Here are the five pillars of unlocking the full potential of CX in retail.

1. Transform the shopping journey with generative AI

Over two-thirds of consumers expect brands to anticipate their needs. In today's saturated market, AI-driven personalization is essential.

Retailers must integrate digital technologies, data analytics, and Generative AI to stay competitive and meet escalating consumer expectations. Modernizing outdated systems is crucial for enabling seamless online shopping and personalized experiences, which are key to thriving in the digital landscape.

2. Enhance consumer engagement with connected intelligence and edge computing

Retailers must engage consumers across various channels, including mobile, e-commerce, and immersive technologies like AR/VR. Connected intelligence, which integrates data, technology, and processes across channels, is vital for delivering comprehensive digital commerce experiences.

For example, edge computing at grocery stores like Whole Foods and Amazon Fresh is revolutionizing the checkout process, allowing customers to shop and leave without traditional checkouts, enhancing customer convenience significantly.

3. Advance retail with immersive technologies

Immersive technologies such as augmented reality and virtual reality offer interactive and personalized shopping experiences. AR lets customers visualize products in their homes, while VR, as used by Nike in its Nikeland virtual world, allows customers to design footwear and engage in interactive activities, offering a unique shopping experience.

4. Realtime analytics for comprehensive customer insights

Retailers are leveraging data analytics to obtain a 360-degree view of their customers, enabling personalized experiences through AI-driven technologies like machine learning and natural language processing.

Overhauling inefficient systems and addressing fragmented e-commerce ecosystems are critical for providing consistent and integrated customer experiences.

5. Streamline operations with composable architecture

API-driven composable architecture allows retailers to manage and customize their online stores efficiently. This approach reduces dependencies within systems, facilitating quicker adaptations and cost reductions. Walmart, for example, uses API integration to enhance its digital and physical retail synergy, maintaining its status as a top retailer through optimized supply chain management and innovative customer engagement strategies.

Closing thoughts: Surprising and delighting consumers

Harvard Business Review reports that hundreds of "emotional motivators" drive consumer behaviors. Across all categories in Harvard's research, some of the key motivators valued by consumers are their desire to "stand out from the crowd," "have confidence in the future," "enjoy a sense of well-being," "protect the environment," and feel senses of "well-being," "freedom," and "belonging."

With retail giants like Walmart and Amazon setting the bar for CX, it is now more important than ever for retailers to deliver personalized experiences, contextualized offerings, and frictionless customer journeys that drive brand loyalty and retention.

Consumers want to be surprised and delighted by personalized recommendations, loyalty reward programs, and conveniences such as multiple product return options. From brick-and-mortar locations to virtual stores online, retailers must deliver fully integrated shopping experiences across all channels and devices.

Achieving these benchmarks requires retailers to reimagine their technology foundation and aggressively pilot new projects that will enable their organization to use digital technologies like GenAI, ML, NLP, and deep learning more effectively. But the potential rewards – more flexibility and responsiveness to customer demands – make the journey more than worth it.

About Samir Gosavi

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