Happy Friday! ‘This week in CX’ brings you the latest roundup of industry news.
This week, we’re looking at how retailers can meet the needs of online UK consumers, new research into the entire digital employee experience journey, and the role of emerging technology in the relationship between businesses and consumers.
Key news
- A range of companies in Ireland are becoming landlords for their staff, as the country’s high cost and short supply of housing hits business. Ryanair, fast-food chain Supermacs, hoteliers Killarney Hotels Collection, food wholesalers Musgrave and care-home group Windmill Healthcare are just some of the companies buying and renting properties to house staff, Bloomberg reports.
- More companies are looking to hire based on skills over academic pedigree – a move that research shows increases potential talent pools and addresses racial and economic inequities. But one recent study featured in Harvard Business Review found that actual hiring is still happening within the traditional, smaller talent pool.
4 ways that retailers can reach the UK’s cash-strapped shoppers online
According to a global survey conducted by Capterra on 5,585 regular online shoppers, lowering prices and offering loyalty programs are essential in meeting the needs of UK consumers, as are prioritising SEO and optimising mobile experiences.
As more UK retailers enter the digital arena and the cost-of-living crisis impacts consumer behaviour, standing out in the e-commerce space is increasingly tough. Based on the responses of 499 online consumers in the UK, these are the needs retailers must address:
- Focus on marketing lower prices ahead of quality: Sustained periods of inflation and less disposable income leave many with little choice but to sacrifice quality and choose more affordable alternatives. The majority (66%) of UK consumers say price has been the most important factor when buying products online in the last year and the reason that motivates UK consumers to repeatedly buy from the same retailer is price (83%), ahead of quality (80%).
- Leverage loyalty programs for repeat customers: 49% of UK shoppers say loyalty or rewards programs are a factor that motivates them to repeatedly buy from the same brand and they appear to be effective: 83% of UK respondents said they participate in loyalty or rewards programs for supermarkets, which happens to be the category where most consumers (63%) tend to buy from the same brand instead of exploring different ones.
- Prioritise search engine visibility efforts: Three-quarters (75%) of consumers start their online searches on internet search engines, underscoring the value of search engine optimisation (SEO). As search engines continue to refine their algorithms with AI and machine learning, the value of online retailers delivering highly relevant, personalised results will intensify.
- Offer mobile-friendly and responsive websites: Smartphones have become the primary device for online shopping, being used by nearly half (47%) of respondents. As 71% of UK respondents prefer to finalise their purchase of products on individual retailer websites or apps, retailers must offer mobile-first and responsive websites that can be navigated from their phones.
Almost one third of UK respondents feel burnt out when they don’t have the right tools in the workplace
Coveo released its fourth annual Coveo EX Industry Report. The report, “Can GenAI Empower Employees to do More on Their Own?,” is based on a survey of 4,000 U.S. and U.K. adults aged 18+ who use a computer in their work for companies with 5,000+ employees.
Conducted in partnership with Arlington Research, the research examines the entire digital employee experience journey, exploring the effect of information flow on work quality and ultimately customer experience. The report also dives into how GenAI trends are shaping employees’ expectations of the digital workplace – and how some are breaking the rules, known or not.
Findings reveal that employees are optimistic about GenAI solving the information gap by speeding up answer finding. In fact, more than two-fifths (42%) say finding relevant information faster or personalising the intranet for their own specific needs would help in their everyday work.
Notably, more than half of field support and 50% of sales expressed the desire to use GenAI to better serve customers and prospects. Additionally, 40% of those in customer service and support said generative tools can help them spend less time searching so they can resolve cases faster.
Key findings include:
Humans preferred – employees continue to be the foundation of a great customer experience, but many feel they are not well equipped to meet this challenge.
When customers do prefer self-service, 64% of them say the experience would be improved if they had a human on standby should something go wrong. Unfortunately, employees don’t feel well-equipped to meet those customer needs.
Lacking the right information at work leads to frustration and burnout.
With increasing workplace data, employees feel overwhelmed when they can’t find what they need to do their jobs. One-third (34%) reported frustration and burnout due to inadequate tools, and 30% felt less confident in their work quality and information sharing.
While companies evaluate GenAI tools, employees are forging ahead using publicly available (and potentially untrustworthy) tools.
Compounding the situation, the use of non-permitted tools is high amongst those in IT (24%), and executive leadership or software development (21%). While executives and the tech savvy see the potential in GenAI, this only further emphasises that companies must clarify the rules and risks around the use of public generative tools. Of note, such public tools can retain enterprise information — and even train their models on it.
Employees often can’t tell if they’ve encountered a GenAI hallucination.
One-quarter of respondents said they had, while almost a third were unsure. These realistic hallucinations are hard to spot and can pose a significant risk to companies already facing information overload, potentially bogging down employees with inaccurate information and potentially making their way to customers.
Employees are keeping guardrails up due to a lack of trust in GenAI tools.
Over one-third (36%) always fact-check generated answers. Both staff and management trust enterprise-approved tools more than public ones but still fact-check (38% for management, 34% for staff). While curious about GenAI, employees seek a reliable tool they can trust.
The role of emerging technology in the relationship between businesses and consumers
In today’s interconnected world, the search for happiness continues to be a timeless pursuit for both individuals and societies alike. From personal relationships to professional endeavours, we all strive to find joy and fulfilment in our lives.
When it comes to business, customer service is one of the key factors that can make or break a customer’s happiness. In an effort to uncover what truly makes people happy, NICE has released its first-ever International Happiness Index, highlighting the role of emerging technology in the relationship between businesses and consumers – specifically, how AI can make for more positive customer experiences, impact overall consumer happiness and drive a business’s long-term success.
According to the Index, based on a survey of over 4,000 consumers in the UK and US, a staggering 97% of Brits reported that they experience happiness when they receive good service, but only 36% feel happy with the current state of customer service. However, perhaps surprisingly, a good experience doesn’t necessarily come at a cost to businesses, with 66% of UK customers stating that they are just as happy receiving friendly interactions as they are discounts or freebies, and nearly half feeling very happy due to simply receiving an authentic ‘thank you’.
AI has a big part to play in increasing customer satisfaction: 76% of Brits believe using digitisation and AI in customer service can make them happier, particularly in terms of resolving issues faster (selected by 41%), followed by not having to repeat themselves (36%). The use of AI in this space is also good for UK business, as Brits are willing to pay on average 43% more for good service (and would stay loyal to brands that provide it), with Gen Z being the age group willing to pay the most at 56%. But companies need to be careful: a poor experience can lead to consumers avoiding a brand for up to 10 years.
The Index also ranked consumer happiness and a willingness to pay more for good service by city, with Birmingham ranking highest in the UK, well above Manchester, Leeds, Glasgow, Belfast and London, showing that the West Midlands are on the whole more content than their neighbours to the North and South.