Happy Friday! ‘This week in CX’ brings you the latest roundup of industry news.
This week, we’re looking at how airline companies are using their social media platforms, research into the use of AI in retail, and how TV ads are appealing to consumers.
Key news
- Facebook parent company Meta this week released an AI-powered translation engine that can more easily translate languages across text and speech. Meta’s newest engine can translate spoken words from one language to another without having to first convert to text behind the scenes, among other advancements.
- Small basket orders are appealing to shoppers who buy groceries online. It reduces the likelihood of perishable items going past their best in their homes. Small basket orders are also attractive to shoppers who prefer not to think too far ahead when it comes to their meal plans. Webretailer.com has looked at the online grocery retailers with the lowest spend needed for small basket orders. The report found that Amazon Fresh was by far the most convenient online grocery retailer for shoppers with small basket orders. The subsidiary company of the e-commerce giant Amazon required that shoppers spend as little as £15 to be eligible for a home delivery.
- In a new project called Visualising AI, Google DeepMind asked 13 artists to dream up over 100 artworks that explore themes like digital biology, the interplay of AI and society and artificial general intelligence. The pieces were “inspired by conversations with scientists, engineers, and ethicists” at the company.
- Rising interest payments are putting UK companies at a higher risk of missing their debt payments, the Bank of England has warned.
Commentary share: Quick delivery brands facing layoffs
Getir delivery firm cut more than a tenth of its workforce. In response to this, we have comment from James Turner, Founder and CEO of Delineate
“On-demand grocery seems to be at a tipping point– the appetite for quick delivery items is growing but the market is crowded and consumers are looking to buy with brands they trust. Perhaps Getir’s struggles indicate a lack of consumer understanding, or how to differentiate their brands in a crowded market. It’s not just about knowing what your consumers are buying, or simply about price; it’s about understanding consumer preferences and habits and ensuring offers are tailored to in-the-moment demand. Real-time insights that help brands understand these key moments are a way for brands like Getir to understand better. Failing to do so will leave brands at the back of consumer’s mind.”
What does social media look like for airline companies?
Emplifi have released a comprehensive analysis of social media activity for global airline brands – focusing on customer engagement KPIs for X (the company formerly known as Twitter), Facebook, and Instagram. The goal was to better understand how airline brands are leveraging social media to handle customer care during a year of extreme growth.
Emplifi found the airline industry has a solid response time to customer care inquiries conducted over social platforms. On average, only 25% of customer questions posted in comments on an airline’s public posts receive responses.
Not only are airline brands failing to address customer questions on their social accounts, but they are also experiencing a significant dip in positive sentiment on X. When looking at the most mentioned airline brands on X, Qatar Airways wins the top spot.
After being deeply impacted by the pandemic, the travel sector is making massive strides toward recouping losses and re-establishing its financial stability. The International Air Transport Association (IATA) has reported an impressive surge in airline ticket revenue, reaching nearly record-breaking levels of $805 billion for the year 2023. However, challenges persist, particularly in customer service—a key area of business that has major implications for airline brands. With 86% of consumers willing to abandon a once-trusted brand after just two negative customer experiences, airlines especially are under increasing pressure to provide seamless and stress-free travel experiences.
How quick are responses?
When compared to other industries, the airline industry falls on the lower end of the social care spectrum. The airline industry answers 40% fewer questions, on average, compared to telecom companies.
Though a majority of questions go unanswered, the airline industry does excel in response-time speed. For X it’s 1.2 hours, and Facebook is 4.8 hours, second only to the telecom industry.In response to the pandemic’s disruptions, the number of questions posed to airlines via social media surged, aligning with lockdowns and travel restrictions in early 2020. Remarkably, the peak questions during the pandemic gradually diminished in the summer months of 2023. July marked the lowest number of average questions (17 for the month) directed at airlines via X. February experienced the highest number of average questions (38 for the month) worldwide.
The outlook of AI in retail is a mixed one
41% of UK shoppers believe that AI is having a positive impact on their retail experiences. Despite this, 70% prefer brands that offer personalised recommendations – a common use case for AI in retail.
These findings come from a new study by SAP Emarsys, which surveyed over 2,000 UK shoppers. The research suggests a clear conflict between consumer concerns about AI and their desire to reap the real-world benefits of its use. This is highlighting an opportunity for retailers to educate and convert loyal customers.
According to the research, 25% are worried that AI will negatively impact their shopping experiences. 91% say they’d rather interact with humans than AI. Interestingly however, 31% can tell the difference between a human and an AI chatbot online.
According to Emarsys’ analysis, this negativity is often because consumers don’t see that AI is behind their best experiences. While shoppers value personalised content, custom recommendations, and speedy checkouts, few realise that AI is behind these advancements.
The research also highlights that many consumers are concerned about the use of data collection for AI. 60% want retailers to strike a better balance between collecting their data and improving their shopping experiences.
Emarsys advises that retailers must educate their customers on the value of their data to elevate their experiences across websites, apps, and even mobile wallets.Kelsey Jones, Global Head of Product Marketing at SAP Emarsys explains, “The benefits of AI in retail can’t be overstated: not just for brands but, for customers as well. It’s clear that, at present, shoppers aren’t entirely convinced on AI’s value – but when used responsibly, AI can truly enhance user experience in everything from receiving the right recommendations to easy purchasing processes.”
Traditional TV ads are bringing brand recognition again
New research from Amazon Ads reports that 59% of UK consumers are streaming TV for more than one hour each day. This is rising to more than nine in 10 consumers (93%) aged 18 to 34 years. With so much time being spent watching streaming TV, 49% of UK adults sampled said they have discovered a new brand after seeing ads while streaming TV during the last year. A figure which rises to 74% among adult Gen-Z and millennial audiences (those aged 18-34 years old).
In encouraging news for brands, 89% of respondents said they are receptive to streaming TV ads that are interesting, relevant or help to keep subscription costs down. Conversely, the same sample said that they are likely to skip ads that are that are too long (38%), not interesting (40%) or not relevant to them (36%). This places the emphasis on advertisers to ensure they’re reaching the right audiences, with relevant content.
“Engaging advertising starts with great content. Customers want to be served content they love, while doing the things they love – like watching streaming TV, listening to music, or shopping. If brands want to engage new customers while they stream they must prioritise finding new, innovative ways to deliver streaming TV ads and connect with audiences in a way that enhances the overall viewing experience.”
Phil Christer, Managing Director, Amazon Ads UK.
By embedding advertising within streaming TV content, such as through brand funded programming, brands can connect with audiences in a natural and engaging way. 28% said they would buy a product directly after seeing it within content they are already watching – whether that’s through product placement or a brand funded programme. Among 18–34-year-olds this increases to 44%.
The research also found that streamers spend up to three minutes searching for information about a product or brand after watching an ad. This places the emphasis on advertisers to make the transition from content to commerce as seamless as possible.
For brands looking to convert their streaming TV ads in to sales, the effectiveness of different types of advertising varies depending on the age of the audience the advertising reaches. For example, 34% of adult Gen-Z and millennials said they were likely to buy a product they liked after seeing it included within an interactive streaming TV ad. This is compared to just 10% of those aged 55+. In contrast, 19% of those aged 55+ said they would be likely to make a purchase if they saw a product they liked in a standard ad that automatically plays during streaming TV content.
Thanks for tuning into CXM’s weekly roundup of industry news. Check back next Friday for the latest updates of the week!