Are Online Shoppers Already Tired of Bot Customer Service? 

Are online retailers over automating the customer journey? It’s a question that may require some deeper introspection. While AI assistants and automated chatbots offer retail companies more cost efficient and easily scalable customer service, can too much technology create a barrier between brands and customers, rather than a bridge? When do shoppers prefer automated technologies, and when do they prefer interacting with humans? How do we find the “Goldilocks zone", that sweet spot where business interests and consumer preferences align? 

Are Retailers Leaning Too Much on Automation? 

Automation in customer service isn’t new. Consumers have been using automated interactive voice response (IVR) systems for years. Because IVRs are so widely used, they have become accepted and normalized, yet they’re often viewed as something one must “get through” to reach customer support teams, instead of a useful support channel on its own.  

Now, in the new age of automation, many consumers seem to be feeling the same way about AI assistants and chatbots. When online shoppers were asked about their most recent experience with automated customer support, only 20% said the experience made them more inclined to make a repeat purchase; 29% said they would be less inclined to buy from that company. 

This, however, has not stopped online retailers from investing heavily in AI and automation. According to Honeywell’s latest AI in Retail Survey, 8 out of 10 brands want to increase their AI spending, and understandably so. Economic pressures are placing immense strain on companies, and it only makes sense for them to turn to cost-efficient solutions whenever possible. Gartner predicts AI could lower contact center labor costs globally by almost $80 billion and who can resist such savings amid economic uncertainty and unpredictable consumer spending. 

But will company savings come at the expense of customer happiness? Does it have to be a zero-sum game, or can there be a win-win scenario for both consumers and retail brands? 

What Kinds of Automation Do Retail Consumers Like?  

If you want to be strategic in your deployment, it’s important to know which automated solutions can provide a better customer experience and when certain tasks are best left to human agents.  

According to a survey conducted by Amazon Web Services (AWS), 87% of Americans want immediate responses when they reach out to a company. This is when bots and AI agents can be helpful as a first line of contact, as they can be available any time of day.

AI can also offer speedier resolutions, at least for simple tasks. In the AWS survey, nearly two thirds of online shoppers said they like using Conversational AI for things like checking an online order status, initiating a return, or accessing FAQs.  

Humans still secure the highest trust scores when it involves complex issues or the need for personal advice. In another survey, nearly half of consumers admitted they are still inclined to reach for the phone when they need after purchase support, while only 17% prefer using chatbots. According to respondents, human agents also outperform AI when it comes to empathy or the need to be understood.

Though opinions vary on the effectiveness of CX automation, most respondents agreed on one thing: consumer ‘choice’ is crucial. Over two thirds of customers say they are more likely to spend when they can select their preferred communication channel, with the ability to escalate when needed, which they say is still easier with human agents. 

Finding the “Goldilocks Zone” 

Unless we want AI and chatbots to become the new IVRs - begrudgingly accepted but not universally loved- clearly, there is room for improvement. 

Although retailers may be drawn to the cost savings of automation, we also must factor in the potential damage to loyalty if companies adopt an all or nothing approach. Only a third of consumers think it’s right for businesses to exclusively use automation for certain customer support functions, like returns. 7 out of 10 say they are already frustrated with current virtual agents and half would go as far as switching to a competitor if a business continued to rely on today’s automated service technologies. Over time, this could cost millions in lost sales.  

There must be a way, then, to optimize cost management without damaging customer satisfaction. The answer is always balance. Some online shoppers like using AI and chatbots, and once you know when and where they prefer automation, it’s important to offer those options. But, it should never feel like the only choice. This is the “Goldilocks Zone” – where technology is never a barrier to reaching human support, but another channel shoppers can access, when they want. 

The best way to reach this ‘golden zone’ is to design automations around your customers. This is when an out-of-the-box solution may not be as helpful as something customized to your specific business, and that's when the right technology and CX partner can make a world of difference.

How We Help

We are tech-forward CX provider that can help you build that custom retail journey by strategically integrating AI options and automated call flows into your existing contact center management systems. Based on the common issues and queries we’ve identified in your contact center data, we can determine the exact places where AI agents or chatbots may be better suited and where human interactions are best. Then, we can assign tasks accordingly. We can also explore new, innovative AI tools that enhance both the efficiency and performance of human CX teams. 

It is possible to find the perfect balance, so you can reap the cost savings while avoiding the trap of over automation, giving shoppers better choice, more options, and further reasons to shop with your brand or eCommerce platform. 

Learn more about itel’s AI solutions and how we can strategically deploy AI to optimize your contact center operations.