By Mike Myer, CEO and Founder, Quiq
In the constantly evolving retail landscape, one thing remains unchanged: Excellent customer experience is the cornerstone of success. As businesses strive to meet the increasing demands of modern consumers, innovative technologies are emerging as game-changers. Among these, Generative AI (GenAI) stands out as a powerful tool that’s reshaping the retail industry.
How powerful?
According to a recent report by McKinsey, GenAI could add up to $4.4 trillion annually to the global economy. In the retail sector alone, it’s projected to generate between $400 billion to $660 billion in value. These staggering figures underscore the transformative potential of GenAI in retail operations.
And we are seeing real evidence of the transformative impact of GenAI in the work we’re doing for our customers at Quiq through what we call customer-centric AI for CX. That’s why I’m excited to define this term further and share how harnessing GenAI can empower retailers to make customers happier.
Did you know? 80% of retail executives expect their businesses to adopt AI automation by 2025. (Source: Analytics Insight)
What is Customer-centric AI for CX?
You know you should always put the customer first and ensure they get the service they need, whether that’s from AI or human agents. Customer-centric AI for CX means that the AI you harness is in service to customers and specifically designed to elevate the customer experience.
There are three pillars beneath customer-centric AI for CX:
1. People
2. Process
3. Technology
Let’s take a closer look at how each pillar works to make your customer-centric AI experience successful and derisks implementing GenAI.
1. People Drive Customer-centric AI for CX
To create impactful customer-centric AI for CX in the retail industry, you need the right expertise to build your experiences. Whether you are building an AI solution in-house from scratch, looking to buy one from a vendor, or hoping for a blend of build and buy, make sure that your team has a deep understanding of how the fast-moving field of GenAI works and how to best harness it for your retail customers across the entire customer journey. Prioritize vendors that have a proven track record in CX and a clear process for staying ahead of the latest in GenAI.
2. How Process is Critical
Not only are there change management processes to consider when introducing new technology like customer-centric AI for CX, but there’s also the ongoing management, observability, and iteration to think through. Unlike other AI assistant vendors, Quiq has opened the AI black box and invites customers to be involved in as much or as little of the creation, deployment, and management of their custom AI assistants as they need.
3. Technology Can Make or Break Customer-centric AI for CX
You don’t want to risk your brand with unproven AI. There’s nothing less customer-centric than having a customer-facing AI assistant hallucinate and misrepresent — or even damage — your brand. For the best CX, you should look at GenAI solutions with built-in safety checks and guardrails. With Quiq, you have access to a complete AI for CX platform and the set of tools we use to build AI assistants, giving you total control and full visibility to customize, just as you would if you were building internally. The Quiq platform gives teams a massive headstart with built-in scalability, observability, analytics, hallucination prevention, and more.
At Quiq, our people and processes enable you to drive revenue, reduce costs, and improve CSAT scores. And our technology is innovative – we were the first to deploy an LLM-powered Customer AI Assistant and continue to lead the market in deployments.
Why Customer-centric AI for CX is a Retail Game-Changer
When it comes to running a large retail business successfully, it’s critical to create seamless journeys across channels, stages of the customer relationship, and between humans and AI. Customer-centric AI for CX is a retail game-changer precisely because it facilitates smoother, more connected experiences and faster resolutions. And applying AI throughout the customer journey—from pre-sale questions and transactions to post-sale interactions—has the power to turn it into a continuous, revenue-driving loop.
Here are other crucial ways GenAI can transform your retail operation:
- Personalization at scale: AI enables retailers to offer highly personalized experiences and product recommendations to each customer.
- Omnichannel integration: AI can help create a seamless experience across various channels (online, mobile, in-store), ensuring consistent customer interactions and data flow, based on their preferences, browsing history, and purchase patterns.
- Real-time customer insights: AI-powered analytics can provide instant insights into customer sentiment, allowing retailers to address issues and improve their offerings quickly.
- Enhanced in-store experiences: AI can power smart fitting rooms, automated checkout systems, and personalized in-store recommendations, blending the convenience of online shopping with the tactile experience of physical stores.
- Help employees work more efficiently: By focusing on empowering associates with AI, retailers can not only improve customer service but also enhance employee satisfaction and productivity.
Key Statistic: 78% of retail executives plan to invest from $500,000 to $5 million in AI this year. (Source: Chain Store Age)
Looking ahead, we can expect to see more retailers adopting customer-centric AI for CX. If you’re a retailer considering GenAI right now, here are the top 3 pieces of advice I have:
1. Look for efficiency before growth.
When you identify an efficiency opportunity first, you can focus on an area with clear and measurable ROI that you can later leverage to fund future projects. This was the case for one of our biggest retailer clients, who recognized the importance of improving the customer experience in-store while bringing greater efficiency to employees.
2. Adopt a crawl/walk/run framework for GenAI.
Whether you decide to build or buy your GenAI solution, we always recommend a crawl, walk, run framework to reduce any risk. This approach will look different for every brand. Where your brand starts to crawl will be dependent on your specific level of comfort with AI, internal resources, AI use case, and budget. For example, one of our large retail clients collaborated with Quiq as a strategic partner to mitigate potential risks. By leveraging Quiq’s expertise and insights, the team navigated the challenges of a GenAI build with ease to create both happier customers and employees.
3. Work your way up the channel stack.
Start with one channel that makes the most sense for your crawl, walk, run GenAI approach. You’ll want to begin by evaluating your current channels to see if any of them make sense for AI. Then, look at which digital channels your customers are on most frequently and prioritize adding them. Remember only to add channels you can effectively support and scale with AI. One of our retailer customers demonstrated a progressive approach towards leveraging AI not only for efficiency gains but also for revenue generation. By empowering store associates with AI, the company is now transforming its in-store experience, enabling consultative sales, and enhancing average order values.
How to Learn More About Customer-Centric AI for CX
If you’d like to learn more, join me for an exclusive panel discussion featuring Natasha Bialecki, Staples’ CX Specialist, at the upcoming Execs In The Know Customer Response Summit in Palm Springs. Don’t miss this opportunity to stay ahead of the curve in retail innovation. We look forward to seeing you there!
If you’re interested in diving deeper into GenAI, download our complimentary ebook, Two Truths and a Lie: Breaking Down the Major GenAI Misconceptions Holding CX Leaders Back. It’s your definitive guide to navigating the complexities of generative AI in customer experience. This ebook demystifies the most common GenAI misconceptions, providing clear, actionable insights to help you confidently integrate GenAI into your CX strategy.
Quiq is an AI for CX platform and the leader in customer-centric AI for CX. Quiq creates best-in-class solutions that enable seamless customer journeys across channels and between AI assistants and humans. Built by CX and AI experts, Quiq delivers on the promise of generative AI by driving revenue, reducing costs, and improving CX outcomes. With Quiq’s AI Studio, enterprise brands get the best of “build” with control and customization, and the best of “buy” with expert assistance, security, and scalability. The world’s leading brands, including Volvo, IHG Hotels & Resorts, and Terminix, trust Quiq to improve CX outcomes. Learn how your team can be their best with https://quiq.com/.
