Australians increasingly turn to AI chatbots for holiday shopping

Chatbots are changing how we shop, from the way we select a gift, virtually try on clothes, scan the best deals and visually search for items through Google lens. Amazon is now offering AI-initiated purchases and automatically generated buying guides which offer everything from TVs and dog food to face creams and shoes, with these guides pointing out specific features, use cases and answers to common questions.   

Aussie shoppers are also quickly getting used to these technological advances in the retail sector shopping, with new research showing nearly one-third of Australian shoppers are now more open to using chatbots this year, compared to last Christmas. 

The Zendesk study also shows it's not just young people who are likely to use AI chatbots for their holiday shopping, those aged 55 plus also expressed openness in utilising chatbots to find the best deals.

Richard Valente, Executive VP of Business Solutions at TP, one of the global leaders in customer support, says despite the increasing adoption of new technology in the sector, many Australian consumers are concerned about the rapidly changing shopping experience.

"As AI and automation become more common in the retail sector, there is a growing concern that customers will lose that personal touch and empathy we have been accustomed to at the checkout," says Mr Valente.

"It's actually quite the opposite, these advancements can lead to more engagement and interaction opportunities for retailers to provide a better and more personable experience," he says.

This is also something that shoppers aren't willing to leave behind. TP data shows one in two consumers now say they are more mindful about getting good quality and price and ultimately choosing brands that provide good customer care.

The key is using these advances in the retail sector to enhance human assistance, not remove it, says Mr Valente.

"With repetitive tasks automated, employees can be more present on the shop floor or online, adding value by being available to customers," he adds.

"Instead of just assisting at the end of a customers' retail journey, employees can now become engaged earlier, spending time answering questions, giving personalised suggestions, and ensuring a positive shopping experience."
 
"AI systems are also contributing to more efficient checkouts. While video centralised assistants and chatbots are revolutionising the shopping experience by providing purchase suggestions, recommending products or quickly searching for product availability."

"The rapid advances in this space provide an effective outcome for the shopper, while also ensuring a lower cost to the retailer."
 
How retailers can provide top customer service in new automated world:

• Incorporate a CRM: Customer relationship management (CRM) systems are fundamental in managing customer data and interactions. By leveraging CRM, businesses can anticipate needs and address issues proactively, ensuring a smoother customer journey.
• Invite customer feedback: Encouraging customer feedback is an essential step in offering excellent customer service. Feedback can be invited through various channels, such as email surveys, social media, or directly on the e-commerce platform.
• Implement omnichannel tracking: Omnichannel tracking provides a cohesive view of the customer's journey across various channels, including social media, online stores, phone support, and email. 
• Implement customer loyalty programs: Customer loyalty programs are an effective way to reward returning customers and encourage continuous engagement with the brand. Loyalty programs incentivise repeat purchases and help cultivate long-term customer relationships, boosting customer retention and loyalty.
• Hire the right Customer Support Team: The quality of the customer support team is important in providing top service. Hiring an excellent customer service team involves selecting individuals with empathy, strong communication skills, and a customer-centric attitude.
• Introduce self-service options and FAQ pages: These empower customers to find answers to their queries quickly and independently. These can significantly enhance customer satisfaction by offering fast and immediate assistance while reducing the need for direct contact with support experts.
• Utilise automated communications: Chatbots and automated responses help manage large volumes of customer inquiries, ensuring each customer receives a prompt response, and allows human agents to meet customers and focus on more complex tasks.