Big ideas for Retail: 9 key CX trendsAn industry snapshot by Genesys

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Introduction

After sustained social and economic disruption worldwide, many emerging customer experience (CX) trends that would likely have taken years to mature have been fast-tracked into everyday retail.

With millions of non-essential retail stores forced to shutter their brick-and-mortar outlets and even more consumers left with e-commerce as their only route to purchase – we are looking at a very different landscape. One where digital comes first, and loyalty is hard-won but easily lost.

We’re at a crossroads. One path will see retailers learn from these rapid changes and continue to build on the experiences that many consumers now consider normal. But the other may see them pretend as nothing happened and revert to Retail as we knew it in 2019 – which could damaging to their business.

It’s hard to say exactly what the average retail experience will look like in a year from now, but a recent study suggests that 59% of consumers will care more about CX than before disruption began1.

Here are 9 of the trends that, in my view, retailers and brands need to incorporate in their strategies moving forward.

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1. https://www.forbes.com/sites/blakemorgan/2020/04/27/customer-experience- mindset-in-a-post- covid-19-world-an-infograph/?sh=46471ec63d0e

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The continued rise of conversational commerce

The rise of Apple Siri, Amazon Alexa, and Google Home – and their integration in many everyday devices - have been critical in converting consumers to a new interface: voice.

In fact, Deloitte estimates that 30% of e-commerce sales will be generated by voice by 20302.

At Genesys, we feel that voice should be harnessed across all aspects of the customer journey. As we’ve shown with our own contextually aware IVR systems, sophisticated voice tools can rapidly improve the customer experience and cut costs – at the point of order or sale, and beyond.

As voice becomes increasingly prevalent, the savviest retailers will be the ones that still consider it as one-stop in a multichannel, multi-interaction journey. It’s a powerful tool – but one that must be used in the right way to offer the best results.

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2. https://www2.deloitte.com/de/de/pages/consumer-business/articles/sprachassistent.html

Happy agents equal happy customers

It’s been a long time coming, but more and more, we’re seeing retail leadership focus on the importance of elevating the agent experience (AX) in driving customer satisfaction.

At a time of great uncertainty, when many customers may be feeling vulnerable or anxious, positive and empathetic service experiences count for a lot. Your people likely have similar feelings, and they deserve the time and resources to perform their best under extraordinary circumstances.

In response, many retailers are capturing regular employee feedback and acting on it. For example, if your people feel like they’re missing key productivity tools, the data to deliver timely and empathetic interactions, or unable to collaborate remotely – you should know about it.

By listening and responding to their needs, you could see transformative results for your customers and for your bottom line. At Genesys, we call the resulting interactions “connected moments,” and we consider them the bedrock of positive retail experiences.

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“See now, buy now” goes digital

Satisfying shoppers’ desire for instant gratification is no easy task, particularly for fashion retailers. In the words of Tommy Hilfiger: “We realised the consumer wants immediate gratification. When they see something, they want to buy it and wear it immediately”.

Consequently, there’s been a swing towards “see now, buy now,” “shoppable runway shows” and other ways for eager shoppers to buy collection pieces as soon as they are unveiled. But with catwalks temporarily limited to livestreams, contextual commerce helps build engagement.

For example, viewers can engage in live interactions with featured event guests and add products to virtual shopping bags as soon as they appear in the stream3. The music industry is adopting a similar tactic. Many would-be-touring artists are livestreaming gigs on Instagram Live and using contextual prompts to sell merchandise like t-shirts and records4.

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3. https://fashionunited.com/news/fashion/tommy-hilfiger-takes-see-now-buy-now-strategy- to-end-consumer/2020052733724

4. https://www.nme.com/news/music/courtney-barnett-global-livestream-melbourne-royal- exhibition-building-2823419

It’s all getting personal

Personalisation sits at the heart of the retail revolution. Showing customers that you understand them – and know how to serve them – is all-important in keeping them loyal to your brand.

Knowing what a customer bought previously, what they’ve been looking at online, and whether they purchase online or in the store helps to build an understanding of how to personalise.

“Buy it again” offers, personal messages with deliveries, and digital signage technology that incorporates offers sent by beacon are all options to be considered.

Another critical aspect is timing. By connecting sales, service, and marketing with real-time customer insights, you can create end-to-end customer journeys that deliver the right messaging, in the right place, at the right time – every time.

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Did you know...?

83%80%

of consumers say they’d share their data in return fora more personalised experience

of consumers are more likely to buy from a brand that provides personalised experiences5

5. https://www.epsilon.com/us/about-us/pressroom/new-epsilon-research-indicates- 80-of-consumers- are-more-likely-to-make-a-purchase-when-brands-offer-personalized- experiences

Silo mentality is still alive

Overcoming a silo mentality has always been key to unlocking true cross-channel success. Unfortunately, it’s a problem that global retailers are still struggling with.

For many retailers, customer information remains siloed within departments, meaning service agents cannot access a single, 360-degree view of the customer journey. The result is always the same: patchy, unsatisfying customer experiences that erode loyalty and trust in equal measure.

Thankfully, the normalisation of connected, cloud-based platforms helps put an end to siloed operations. I’m seeing more forward-thinking retailers putting customer data to good use, empowering agents to deliver the seamless, intelligent experiences customers expect.

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Responsible retail matters more than ever

Some call it the “Greta Thunberg effect” or the “Blue Planet 2 effect”, but the pressure on retailers to be more socially conscious and ethically transparent has been a long time coming.

Global disruption has only accelerated this trend, with consumers increasingly choosing to shop with retailers that align with their social, political, and ethical values. According to Boston Consulting Group (BCG), 83% of Brits want companies to do more to “integrate environmental considerations into their products and operations.6”

We expect that more retailers will continue to make sustainable changes to their supply chain, and incorporate their stance into their public facing image.

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6. https://www.forbes.com/sites/catherineerdly/2020/12/18/four-trends- that-will-shape- retail-in-2021/?sh=774f28765add

Friction-free retail takes priority

We all know people hate to queue. And the most innovative retailers understand that every second saved is another customersatisfied.

But the notion of friction-free retail must now also account for customer safety. If shoppers can complete in-store transactions quickly and without making physical contact with a kiosk or cashier, then you’re getting it right. The rising popularity of Buy Online Pay In-Store (BOPIS) is a testament to this, with 90% of retailers planning to implement BOPIS by 20217.

The frictionless concept also extends to the contact centre. Using a toolkit that includes our Robotic Process Automation (RPA) and blended AI capabilities, retailers can pre-sort enquiries. This means routine interactions are handled by the bots, while human agents field more complex issues.

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7. https://retailtouchpoints.com/resources/90-of-retailers-plan-to-implement-bopis- by-2021#:~:text=By%202021%2C%2090%25%20of%20retailers,Mobile%20POS%20 devices%20(87%25)%3B

Customers want to serve themselves

Not every customer is receptive to 24/7 connectivity or one-to-one engagement with service agents and cashiers. And for younger generations, the idea of calling an agent seems positively draconian.

In fact, few millennials even use their allocated voice minutes allowances. And why would they when chatbots and automated self-service apps are freely available? But what does this mean for retailers with contact centres primarily driven by spoken service calls? We must meet a balance.

For routine issues that can be solved quickly - like confirming return requests - AI-powered chatbots can take over. But more complex issues - such as complaints or logistical challenges - can be routed to service agents to deliver the attention and empathy required.

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Did you know...?

83%of consumers will useself-service options

when available.

Only 30% of retail customers had contacted customer service directly without attempting to self-serve8.

8. https://cfigroup.com/resource-item/retail-report-may-2020/

Innovation is now experience-led

In summary

Customer expectations only ever move in one direction – up. And it’s these expectations that are helping shape new connected technologies, rather than the other way around.

Wearables, augmented reality, and facial recognition capabilities are fast becoming mainstream methods to enhance customer journeys. Just look at the beauty industry, where 3D foot scanning, kinetic shop displays, and selfie-analysing technology offer a sign of things to come.But even in the presence of such impressive technological disruption, it’s important we don’t forget: understanding the customer journey is integral to the innovation process.

It’s been a tough, albeit transformative, time for Retail. And there’s no denying there’s incredible innovation afoot.

But let’s make sure we can walk before we can run. Sound data strategy, insights into customer journeys, and the removal of internal silos are essential first steps. Without these building blocks in place, the path ahead will be fraught with risk.

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