Deploying intelligent virtual assistants will allow you to elevate your customer experience without upping your headcount. Has there ever been a harder time to be in retail? Unfortunately, for many local brands and businesses, the answer is no.
‘Lack of clarity over the path ahead’ is engendering caution in many Australian consumers, as they continue to worry about the cost of living and the security of their jobs, according to the NAB Consumer Sentiment Survey Q2, 2024.
‘While expectations for further increases in cost of living have become entrenched, consumers continue to adjust to these recurring challenges by taking greater control of household budgets, cutting spending in most areas’, the Survey report notes.
Retail spending in May 2024 totalled $35.9 billion nationally, with most discretionary categories remaining in decline. Department store spending was down 1.7 per cent and clothing footwear and accessories dropped by 0.2 per cent, according to data from the Australian Bureau of Statistics.
Australians doing it tough means retailers are too, Australian Retailers Association Chief Industry Affairs Officer Fleur Brown observed, upon release of the figures.
‘While food spending remains constant as a staple, there has been a shift towards more affordable and value-oriented products in recent months,’ Brown noted in a statement.
‘…The ongoing cost-of-living pressures, interest rate ramifications and increased cost of doing business make it a challenging period – particularly for those in the discretionary retail sector and small to medium size businesses.’
Keeping the customer satisfied
Against this backdrop, retailers are having to work harder than ever, to attract customers to their online and bricks and mortar outlets – and to entice them to open their wallets when they do drop by.
Offering a consistently excellent customer experience is one way brands can capture mind and market share but, in today’s times, that’s no mean feat. Here in Australia and around the world, online giants such as Amazon, eBay and ASOS have been delivering slick, seamless service for years and it’s become what customers now expect and demand, from retailers of all stripes and sizes.
Those that don’t provide it are likely to see a decline in foot traffic and clicks, as shoppers take their business to more customer-focused competitors.
Historically, improving customer service and experience has meant employing additional staff, to work both on the shop floor and in the back office dealing with enquiries and concerns, and dispatching orders and processing returns at speed.
But, with revenue static and margins under threat, increasing the headcount isn’t a viable course of action for many local retailers.
Augmenting your workforce with intelligent virtual assistants
Fortunately, there is another option, and one that’s far more cost effective than hiring more help. Intelligent virtual assistants (IVAs) powered by Conversational AI can perform many of the functions of their human counterparts, including sorting out queries and complaints from customers.
Their sophisticated natural language processing capability makes it possible for them to ‘understand’ context, participate in dynamic conversations in natural language and provide appropriate, useful responses.
IVAs can be deployed instore to support human shop assistants with tasks such as checking stock levels and providing customers with information about product features and click and collect availability.
Behind the scenes, retailers can put them to work driving traffic to their web sites and stores, and generating repeat business with push notifications and personalised offers that reflect customers’ purchasing patterns and preferences.
Keeping up with the competition
Around the globe, ahead-of-the-curve retailers are already using IVAs to perform and resolve a host of tasks and issues. And they’re finding the IVAs are able to do so efficiently and economically. Fewer customers queuing for service, online and in real life, is contributing to better outcomes and an improved customer experience.
And that customer experience will keep getting better and better, courtesy of the fact that Conversational AI-powered IVAs ‘learn’ from their interactions with shoppers. That means that, just like their human counterparts, their ability to respond to enquiries and resolve issues improves the more time they spend on the job.
Surviving and thriving in all sorts of times
As cost-of-living pressures continue to bite, many Australian retailers will struggle to keep the doors open during the next 12 months. Harnessing the power of IVAs can help your business stand out from the competition by elevating the customer experience you’re able to offer. If you’re serious about maintaining sales and profitability through FY2025, it’s an investment you can’t afford not to make.
Paul Rilstone is vice president for Australia and New Zealand at Kore.ai.