Navigating Unprecedented Challenges: How Cloud Contact Centre and AI Technology Empower Retailers in 2023

In the rapidly evolving landscape of retail and eCommerce, 2023 presents a set of challenges that may well be the sector's toughest to date. With shifting consumer behaviours, supply chain disruptions, and heightened customer expectations, retailers are under immense pressure to adapt or face the risk of obsolescence.

The disappointing news about Wilko in recent weeks has only served to further underline that the challenge is very, very real (and that there is very little room for sentimentality in retail). As recently as November 2022, Wilko said it was developing an omnichannel model to improve the customer experience and make it easier for customers to shop online. Sadly for Wilko it appears this was too little, too late. And there will doubtless be more casualties to come, unless retailers can adapt and evolve rapidly.

But in the face of adversity lies opportunity, and the combination of cloud contact centre and AI technology provides a beacon of hope for retailers striving to not only survive but thrive in these challenging times.

The Unprecedented Challenges

The retail and eCommerce sector has always been dynamic, but the past year has brought about change at an accelerated pace. Consumer attitudes and demands continue to shape the ways in which retailers need to adapt, whilst an undercurrent of supply chain disruption has damaged reputations and impacted customer loyalty.

Consumer Attitudes

Consumer behaviour and attitudes have transformed enormously due to the lingering effects of the pandemic. Deloitte's 2023 report on the retail industry confirms that customer expectations have shifted dramatically, with consumers now demanding a seamless shopping experience across both physical and digital channels. This means retailers are coming under more and more pressure to provide personalised interactions, efficient fulfilment options, and exceptional customer service to meet these ever-evolving demands.

In addition, consumers are demanding increasingly personalised and efficient interactions, making customer service a pivotal aspect of the overall shopping journey. IBM's 2023 customer experience index highlights this need for quick and efficient customer service, revealing that 61% of customers prefer self-service options, like AI-powered chatbots, for simple enquiries. IBM also reports that 59% of consumers believe companies need to improve their digital customer service options.

Blurred Lines – Hybrid Retail

The line between physical and digital shopping continues to blur, with consumers expecting a seamless omnichannel experience. Recent research by Salesforce emphasises the importance of technology in meeting customer expectations. According to its report, 78% of customers now expect companies to provide consistent experiences across all channels. Additionally, 71% of consumers say that technology has significantly changed their expectations of how companies should interact with them.

Retailers are also being forced to rethink the purpose of their physical stores and real estate. Beyond transactional spaces, stores are now interactive showrooms, experiential spaces, and service centres. The focus is shifting from purely driving sales, to creating memorable moments that resonate with customers.

Supply Chain Disruption

The past couple of years have witnessed a perfect storm of supply chain disruptions, reshaping the landscape of retail and eCommerce in unprecedented ways.

Beyond the pandemic, the last year was marked by a series of unexpected events that further strained supply chains. From the Suez Canal blockage, which disrupted the flow of goods on a global scale, to war in Ukraine, and extreme weather events impacting transportation and production, retailers found themselves navigating uncharted territory. The Ever Given incident in the Suez Canal alone disrupted an estimated $9.7 billion worth of goods per day.

Supply chain disruptions during the pandemic and beyond have also triggered changes in consumer behaviour, as shoppers faced empty shelves and extended delivery times. These experiences led consumers to explore new options, such as seeking alternative brands, adopting online shopping, and becoming more conscious of shopping locally.

And as UK retailers edge ever closer to peak trading season, these concerns (and opportunities) amplify.

The Role of Cloud Contact Centres

Cloud contact centres are an essential tool for retailers in facing down these unprecedented challenges. In the modern retail landscape, delivering an exceptional customer experience is no longer a luxury. It's a necessity. But traditional call centre solutions, often confined by physical infrastructure and limited scalability, struggle to meet the demands of today's retail environment.

Modern cloud-based technologies like Zoom Contact Center, and Amazon Connect provide the agility and flexibility needed to adapt to fluctuating customer demands, scale operations rapidly, and provide consistent service across multiple channels.

Omnichannel Consistency and Accessibility

Cloud contact centres enable retailers to establish a unified, omnichannel presence, ensuring that customers receive consistent experiences across various communication channels. Whether customers prefer getting in touch via phone, email, chat messages, or social media, cloud-based solutions centralise these interactions, allowing agents to access a customer's history and preferences in real time. This enables a seamless transition between channels, eliminating the frustration that customers might experience when repeating information.

Scalability and Flexibility

Retailers often face fluctuations in customer enquiries due to factors like seasonal demand, promotions, or unforeseen events. Cloud contact centres offer the scalability and flexibility needed to swiftly adapt to these changing circumstances. With cloud-based solutions, retailers can easily scale up or down their customer service operations without the limitations of physical infrastructure. This agility ensures that retailers can provide timely support during peak periods without compromising on quality.

Remote Work Enablement

The ability to provide uninterrupted customer service, regardless of location, has become essential in the wake of recent global challenges. Cloud contact centres enable remote work for customer service teams, ensuring that customer enquiries are addressed even during disruptions. This capability enhances business continuity and safeguards the customer experience, regardless of external factors that might affect physical operations.

Personalised Interactions

Cloud contact centres empower agents with access to comprehensive customer data, allowing them to provide highly personalised interactions. By understanding a customer's purchase history, preferences, and previous interactions, agents can tailor their responses and recommendations, creating a more engaging and relevant experience. This personalisation fosters customer loyalty and increases the likelihood of repeat business.

The AI Advantage

In 2023 Artificial Intelligence (AI) technology can play a major role in enhancing customer experience and optimising operations for retailers.

Consumer Self-Service

AI-powered chatbots such as Zoom Virtual Agent are becoming increasingly sophisticated, providing immediate responses to routine enquiries, and freeing up human agents to focus on complex and sensitive interactions. With performant self-service now a reality, retailers can confidently leverage these tools to provide instant answers 24/7, and also provide proactive notification of supply chain delays or issues, reducing customer frustration and preventing unnecessary contact.

Clone Your Sales Advisors

AI chatbots can leverage consumer data, history and context to offer web-based support including personalised product recommendations and promotions, simulating the personalised assistance of an in-store salesperson. These automated chatbot journeys can intercept customers on a retailer's website and help to drive-up sales performance, repeat purchases, and to promote recommendations to buyers.

Understand Why Contact Occurs

AI-driven analytics such as Xdroid and Contact Lens can provide valuable insights into customer behaviour and preferences. By analysing patterns and trends, retailers can fine-tune their strategies, offering the right support at the right time, and through the right channels.

Predictive analytics can also help anticipate demand fluctuations, enabling better inventory management and optimised supply chain operations.

Surviving and Thriving

In the face of unparalleled challenges, the integration of cloud contact centre and AI technology offers retailers a lifeline. With the power to streamline operations, enhance customer experiences, and adapt to rapidly changing circumstances, these tools are now vital for survival in the modern retail landscape.

The ability to provide exceptional service, regardless of the channel or location customers choose, and to leverage AI-driven insights to make better-informed decisions, can set retailers on the path not just to survive, but to thrive in the years ahead.

As we navigate this era of unprecedented change, forward-thinking retailers are recognising that embracing technology is no longer a choice. The retail and eCommerce sector of 2023 and beyond demands innovation, and those who harness the potential of cloud contact centre and AI technology will emerge as leaders, resilient in the face of adversity and well-equipped to meet the ever-evolving needs of the modern consumer.

About Acceleraate

We are CX and customer service optimisation experts, and specialise in solving problems by uniting cloud technology with smart and straightforward thinking. We focus on helping businesses reduce effort, improve loyalty, and maximise cost efficiency.

With over 15 years of hands-on experience designing, implementing, and managing cloud contact centres and AI solutions for some of the UK's best-known businesses and brands, Acceleraate delivers CX strategy, implementation, system integration, optimisation, and managed services for business.