Software

How to leverage AI, automation to prevent common customer experience challenges

By blending the precision and scalability of automation with the empathy and creativity of human agents, retailers can remain agile, resilient, and prepared to meet the ever-changing demands of the retail landscape.

Photo: Generated by AI. Adobe Stock.

February 12, 2025 by Ed Durbin — Vice president and general manager of industry strategy for retail and consumer goods, Talkdesk

Retailers often face common customer experience challenges, particularly during peak periods when demand surges. Issues such as delayed responses, errors in order fulfillment, and inconsistent service can impact customer satisfaction and loyalty.

However, for retailers with limited resources during non-peak periods, managing one-day events like Valentine's Day or Mother's Day can also be particularly challenging. These events bring sharp, short-term surges in demand that can strain fulfillment operations, customer support, and overall service quality.

The role of agent-assisted technology

AI and automation provide a powerful solution to this challenge, by enabling retailers to do more with less. Automated tools can handle repetitive tasks like order processing and inventory updates, ensuring accuracy and speed, and AI-powered chatbots and virtual assistants can manage increased customer inquiries without requiring additional staff.

For smaller retail teams, predictive analytics powered by AI can anticipate demand patterns and allocate resources effectively. These technologies allow retailers to maintain exceptional customer experiences, even with limited resources, while ensuring that seasonal events translate into lasting customer loyalty.

This capability is particularly impactful during the high-demand one-day events that take place during non-peak periods of the retail calendar, such as Valentine's Day and Mother's Day, as it enables retailers to handle spikes in inquiries and orders without compromising customer experience.

Empowering temporary agents

For retailers that may be relying on temporary agents, who often face steep learning curves, this technology proves invaluable. While these agents undergo training, they can lack deep familiarity with the brand and its products, which can result in inconsistent service quality and increased errors.

By offering real-time guidance during customer interactions, this technology can suggest contextually appropriate responses and actions. This not only helps maintain brand consistency, but also significantly reduces the risk of service errors.

With instant access to information about customer orders, histories, and product details, this means that even less experienced agents can resolve issues as effectively as seasoned staff. Bridging the gap between training and on-the-job performance can empower retailers to deliver seamless service, no matter the size or experience level of their team.

Changing consumer habits and expectations

Agent-assisted technology is also essential when it comes to meeting customer expectations within the retail sector, which have transformed with the rise of e-commerce. Today;s customers demand seamless, efficient, and transparent service across all channels.

One major challenge that retailers are facing is managing the growing volume of returns. Customers often order products online only to find they don't meet their expectations once they arrive, so the returns process must be seamless and integrated across all touchpoints, no matter if an item is returned in-store or via shipping.

While returns can't be avoided altogether, AI can help to bring the number down by helping customers to make more informed purchasing decisions and providing them with all of the information they might need before placing their order. In fact, our research shows that 69% will return fewer products this year because they will have more resources to guide their purchases.

By providing better pre-purchase information, AI not only lowers the number of returns being made, but also fosters customer satisfaction and loyalty.

Building transparency and trust

Transparency is a cornerstone of effective CX strategies, since proactive communication minimizes frustration and builds trust. For instance, if an order is delayed, notifying the customer promptly, rather than waiting for them to reach out, prevents any frustration from escalating.

Automated notifications via text or email can keep customers informed about their order status, from processing to shipping and delivery. Should delays occur, sharing an updated timeline and explanation helps maintain customer confidence and reduces the burden on call centers.

By automating basic communication functions, brands can keep customers informed and free up agents to handle more pressing issues.

The future of CX in retail

As customer expectations evolve, retailers must adapt by embracing CX strategies driven by technological innovation. Tools like AI-powered agent assist, self-service platforms, and real-time communication systems have shifted from being optional enhancements to essential components of modern retail operations. These technologies not only improve efficiency but also play a pivotal role in delivering the seamless, high-quality experiences that customers now expect.

The integration of AI into CX operations enables retailers to anticipate customer needs, personalize interactions, and provide consistent support across multiple channels. This is particularly vital for retailers that are navigating limited resources during non-peak periods, as AI helps optimize operations without compromising service quality.

Looking ahead, successful CX strategies will require striking a balance between automation and the human touch. While AI excels at managing routine inquiries and equipping agents with actionable insights, human interaction will continue to be irreplaceable for resolving complex issues and building genuine emotional connections with customers.

By blending the precision and scalability of automation with the empathy and creativity of human agents, retailers can remain agile, resilient, and prepared to meet the ever-changing demands of the retail landscape.

About Ed Durbin

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