Happy Friday! ‘This week in CX’ brings you the latest roundup of industry news.
This week, we’re looking at AI’s improvement on retail experiences, the most stressful professions in the UK, consumers seeking more than just brand rewards, and the significance of voice channel in customer service.
Key news
- A new study has revealed that just over half of the population are economically active, while 39% are inactive. Excluding full-time students, 95.12% of people are in employment and 4.87% are looking for work. On the other hand, 19,117,521 (39%) are economically inactive, with the most popular reason being retirement. Those who are retired make up 54.99% of those who are economically inactive.
- The UK government has allocated £55m to combatting shoplifting, an escalating issue amidst rising living costs. Alongside proposals for tougher penalties in England and Wales, aligning with Scotland’s existing laws, an amendment to the criminal justice bill could see offenders face up to six months in prison and unlimited fines. Additionally, a new standalone offence on assaulting retail workers may lead to offenders wearing electronic tags to prevent them returning to those stores.
- Despite positive economic indicators, a new phenomenon dubbed the “vibecession” has emerged, reflecting widespread pessimism about personal finances. A recent survey found that roughly half of adults worldwide are stressed about money, with inflation and rising prices their the top concerns. Experts suggest that the pandemic, workplace pessimism and negative news stories have contributed to this sinking feeling. While there’s no easy fix, some say that the vibecession serves as a reminder that the economy is ultimately about people’s real experiences, not just abstract data points.
52% of UK shoppers think AI has improved their retail experiences
More than half (52%) of shoppers think artificial intelligence has improved their retail experiences — up from just 40% in 2023. That’s according to new research from SAP Emarsys.
The new research, which surveyed over 2,000 UK consumers and 250 UK marketers, found that 33% of consumers believe AI has made shopping easier (up from 26% in 2023). Nearly a third (29%) also feel that AI is helping to make their retail experiences more personal (up from 22%), while 35% say AI helps them to find new products (up from 26%).
As a result of these benefits, just 20% of shoppers now oppose greater integration of AI into retail — a major boost in consumer demand.
But it’s not just shoppers who benefit. Nearly three quarters of UK marketers (69%) have increased their investment in artificial intelligence in 2024. Of these, 50% attribute a boost in customer engagement to AI, while another 50% report a boost in customer loyalty.
The Most Stressful Professions in the UK
April is Stress Awareness Month, organised by the Stress Management Society, a non-profit organisation founded in 2003 who aim to help people improve their wellbeing, resilience and happiness. Their work often focuses on stress in the workplace.
BusinessComparison has used data from the Labour Force Survey to assess which sectors and career paths experienced the most and least stress over the last 5 years to find the most ‘stressed profession’.
In 2023, the professionals most likely to have experienced stress were those in customer service occupations – over a quarter said they had been affected at 27%. This percentage is more than double the national average.
The next most stressed-out workers were those in services occupations, at 23.6% – closely followed by cleaning occupations (22.9%) and storage occupations (21.7%). Web and multimedia design professionals also experienced a higher-than-average percentage of stress, at 20.9%. Regulatory associate professionals experienced the highest increase in stress over the last year, rising by 8.8% from 9.2% affected in 2022 to 18% in 2023.
The profession with the next highest increase in stress was managers and directors in transport and logistics, the percentage rising by 7.7% to 17.2% last year. 7.6% more of those in housekeeping and related services experienced stress in 2023 than in 2022, with the percentage rising to 12.9%.
In 2023, the percentage of medical practitioners admitting they had felt stressed increased by 6.3% to 17.2%.As well as experiencing the highest level of stress, customer service operations staff also reported the fifth biggest increase in stress, as it rose 5.6% between 2022 and 2023.
Brits seek more than just rewards: good deals and treating employees fairly are top concerns
The number of British people who expect to be rewarded for their loyalty to brands has increased significantly in the last three years. Young adults aged 18 to 24 are particularly keen on rewards programmes. Over half (51%) believe being rewarded for loyalty is among the top three ways brands can support society during crises, significantly surpassing their US counterparts (39%).
These are among findings from the latest Value Shift research from Hall & Partners, which interviewed 4,000 consumers in both the UK and US about what matters most to them when they purchase consumer goods and services.
Loyalty programmes gain traction
Being offered good deals and incentives was the most meaningful intervention a brand could offer for 60% of UK consumers. Second was being rewarded for brand loyalty (52%) and in third place was supporting staff and keeping people employed (45%). For the host of UK retailers – including Aldi, Tesco, Co-op and M&S – who have recently announced salary increases, this is a sign that they recognise how important their social responsibility is to retain customer footfall.
Three years ago, when Hall & Partners last reviewed how consumer values had shifted, being rewarded for loyalty was the least significant factor when choosing a brand, with just 17% of global consumers claiming it was the most important intervention a brand could make.
This research suggests that consumers have no wish to receive their rewards at the expense of a brand’s employees being treated unfairly, or worse losing their jobs. And they are increasingly prepared to switch when brands don’t play fair.
Brand loyalty in the face of financial pressures
While 73% of consumers prefer trusted brands, products, or experiences, a similar percentage, 75% also shop around for the best price. Additionally, nearly half of consumers (48%) are open to switching to a better-suited product. This trend is understandable in the context of the UK’s persistently high cost of living, despite a slight easing in inflation rates. It underscores the balancing act consumers face between their loyalty to beloved brands and the necessity of making cost-conscious decisions.
Voice Channel Continues to Prevail in Customer Service
In an era dominated by digital interactions, the enduring significance of the voice channel in customer service has been highlighted by a survey of 1,000 consumers conducted by ContactBabel.
As part of their whitepaper, Voice: Its Place in a Multichannel World, evaluagent sheds light on the state of customer service today, revealing why CX cannot afford to hang up on the voice channel. This challenges preconceived ideas about the decline of phone interactions in favor of digital channels.
Contrary to expectations, the voice channel continues to handle approximately 65% of contact center traffic in both the US and the UK. This persistence defies assumptions that younger generations avoid phone calls, as even millennials and Gen Z gravitate towards voice for resolving complex issues.
The key driver behind the dominance of the voice channel is its unparalleled ability to deliver first-contact resolution, a factor highly valued by customers. Real-time problem-solving and reassurance provided by human agents over the phone cannot be replicated by digital channels.
However, despite its effectiveness, the voice channel faces challenges such as increasing speed-to-answer metrics and rising costs per call. Still, customers endure these friction points because they trust that voice interactions will lead to satisfactory solutions. The future of customer service lies in embracing a balance between voice and digital technologies. By leveraging the strengths of each channel, businesses can meet customer expectations for human connection and solve issues much faster.