The Three Ways Ai Is Impacting Customers and Retailers This Holiday Season
This post is part of a series sponsored by IBM about Five Ways Marketers Can Win the Holidays
Artificial intelligence (AI) is impacting the way consumers are shopping for the holidays. It is also driving how companies are operating in order to deepen customer relationships. According to Lauren Kindzierski, VP at HGS, “Forward-thinking companies are already using a combination of bots and brains to deliver next-generation customer experiences and optimize operations.”
Cognitive and machine learning is powering
- How customers find gifts? Customers are looking for ease and convenience when holiday shopping. They want an experience that is personalized to their needs. The expectation is that each stage of the journey will be seamless. Voice is driving the beginning stage of their journey. According to Accenture, a majority of consumers are already using or would like to use a number of technologies that are powered by AI. Sixty-eight percent of those surveyed indicated that they were using or wanted to use Google Home, compared to 71 percent for Amazon’s Alexa. Similarly, voice-search enabled digital assistants such as Apple’s Siri and Microsoft’s Cortana and are becoming the go-to search mode for mobile. This trend is here to stay beyond the holidays. ComScore says that by 2020, 50 percent of all searches will be voice searches.
- Where and how customers buy? AI can help companies manage data and allow them to be predictive of customer
behaviour. By leveraging information about weather, location, and preferences, it can help to create an optimal shopping experience. For retailers, AI can improve supply chain management. It can provide insights in to managing inventory levels and streamlining shipping management. The result is the right items are available and can be shipped to customers in a timely fashion.
- How companies manage customer service? During the holidays there is an increased need for seasonal staff to handle customer service issues. For companies, AI is playing a key role in handling many of the basic requests. IVR’s and chatbots powered by AI are handling tasks such as updates on orders, sharing return policies and answering
FAQ’s. According to Narvar, customers are not noticing the difference. Their research found that 38% of consumers didn’t know whether a live chat or messenger app was a human being or AI. Only 10% knew it was not human. Gartner predicts that by 2020, the customer will manage 85% of its relationship with an enterprise without interacting with a human source.
To find out more about the five ways marketers can win the holidays, check out this series by IBM covering: 1 – Bridge Digital & Physical Experiences, 2 – Predict the Future to Improve Your Impact, 3 – Market in the Moments that Matter, 4 – Discover the Best Path to Purchase, and 5 – Get Alerted to High-Impact Situations.
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