{"articles":[{"id":215,"title":"AI vs. Humans","title_decorated":"AI vs. Humans: What This Means for Contact Centres","slug":"ai-vs-humans","introduction":"The demand for delivering more efficient and diverse customer service has increased dramatically. Thus, it is essential that customer service companies develop a means of coping. The phenomenon of Artificial Intelligence (AI) is now a greatly debated topic in this area.","category_id":4,"section_id":1,"override_title":"AI vs. Humans: What This Means for Contact Centres","detailed_introduction":"A recent prediction by Frost and Sullivan Contact Centre Research claims that by 2030, the growth rate of AI solutions is set to exceed that of Agent Services^{[1](#1571733324897)}. AI services are often mistaken for computers taking over the professional customer care agent role entire. However, this is not the case. The use of AI aims to enhance the customer experience. Although, in some instances not being able to converse with a live agent may leave customers with a feeling of dissatisfaction, it is often the case that having access to a full range of communication channels used to resolve queries effectively, encourages customers to stay loyal and increase their overall spend. AI has already developed greatly, having great influence over customer service. In the US alone, businesses are losing $62 per year due to poor customer service^{[2](#1571733324897)}. However, unlike live agents, AI technologies have no restrictions, such as time zones or holidays etc. meaning AI technologies are extremely flexible and accessible which can have a positive impact on customer satisfaction. There is large concern surrounding the risks posed by technology to jobs. According to Gartner, by 2020 80% of customer interactions will be managed without a live agent. AI methods, such as chatbots, are extremely pertinent and can greatly benefit a service. However, it is unlikely that the bots will be replacing live agents, they will simply compliment the service. The most crucial tipping points in a customer service experience are factors such as complaints, which being able to reach a real person for is most valued. There is a point in most customer journeys where there is no substitute for talking to a real person, requiring a level of diplomacy a bot would not be able to deliver. Thus, live interaction at crucial stages of the customer journey can be the real make-or-break for the customer. According to IBM, 80% of routine customer queries can be dealt with by the chatbots. This frees up live agents to invest more time in quality work, increasing customer satisfaction. Therefore, the importance of experienced and intuitive human beings cannot be undermined. In simple, changing the role that live agents will play through the introduction if AI technologies could be a huge advantage to a company, improving the service they can deliver. When can we expect these changes? Taking into consideration how far AI has come in the last five years alone, it would not be surprising to see the numbers of contact centres utilising AI solutions to have dramatically increased in the five years to follow. Businesses are realising that this is trend which is pretty much guaranteed to reduce costs and improve overall efficacy and performance against competitors in future markets. The use of bots is not simply a matter of customers being happier, it actually affects their commercial behaviour, making them more likely to remain as a customer, increasing business with the supplier. Thus, it would be a foolish opportunity to ignore. What will these changes mean for you as the customer? The introduction of AI chatbots and so on will mean a smoother and more satisfying experience. The bots will be able to navigate customers around a company website, improve self-service, identify call types and pass contact to relevant channels, as well as, a whole host of other benefits^{[3](#1571733324897)}. With AI technologies dealing with routine transactions, calls regarding more complex issues can be passed on to specialists who excel in that particular field and can resolve the issue effectively. With AI working in tandem with live agents, where data insights are combined with a personable phone technique, the greatest results for customers are achievable^{[4](#1571733324897)}.","thumbnail":[{"id":"QVS3FMhW8","url":"https://s3.amazonaws.com/theretailpsychologist-production/coucou/2019/10/22/091006/photo-1516192518150-0d8fee5425e3.jpg","caption":"","dimensions":{"height":2101,"width":1576}}],"path":"/insights/ai-vs-humans","published_on":"22/10/19","author":"Olivia Nettleton ","management_summary":"The demand for delivering more efficient and diverse customer service has increased dramatically. Thus, it is essential that customer service companies develop a means of coping. With AI working in tandem with live agents, where data insights are combined with a personable phone technique, the greatest results for customers are achievable.","category":{"id":4,"title":"Analysis","slug":"analysis","title_singularized":"Analysis"},"section":{"id":1,"title":"Insights","slug":"insights","intro":"Bite-sized updates on what makes brands and consumers tick, to empower good decision making.","title_singularized":"Insight"}},{"id":259,"title":"Politics of Consumption","title_decorated":"Politics of Consumption","slug":"politics-of-consumption","introduction":"Consumers value their relationship with a brand, and it is this relationship which maintains sales and motivates consumers to repurchase. However, what happens if this trust is broken?","category_id":4,"section_id":1,"override_title":"Politics of Consumption","detailed_introduction":"Following the scandal surrounding Harvey Weinstein in 2017 and the rise of the #MeToo movement, there is a burning focus on accusations within the realms of business, entertainment and even retail. For example, allegations of sexual and racial misconduct against the highly successful Arcadia Group owner, Sir Philip Green, has led to Beyoncé being encouraged to withdraw her commercial partnership with Green; her sportswear line ‘Ivy Park’ which aims to empower women and support black community issues, now sitting uncomfortably alongside Green’s accusations. In reality, people are beginning to comprehend the harm to a brand caused by these kinds of accusations and allegations. From a retail perspective, the damage caused by allegations of this kind not only affect internal stakeholders (employees), but they also have the potential to influence the behaviour of external stakeholders, i.e. customers. In this article, we will examine the strains placed on the relationship between the brand and consumer, and a few top tips for recovery if a brand comes under fire. The introduction of social media has changed the face of consumer culture. It is no longer down to the company to control its message, instead social media has the ability to adapt messages with the click of a button, with many valuing social media as a credible source of a wider range of news and information^{[1](#1571757771358)}. To keep up with this, it is of upmost importance for brands to establish and maintain a reputation of clarity, trustworthiness and responsibility with their consumers, as this will increase the chances of a brand being consistently portrayed in a positive light. Establishing a positive relationship between a brand and a consumer is essential as it increases the chances of consumers being forgiving of brands’ mistakes. For example, although Thomas the Tank Engine found themselves tangled in accusations of lead poisoning, the brand is still one of the most recognisable and purchased brands to date. So, how did they manage to recover from these accusations under the same conditions in which so many others fail to recuperate their reputation? It takes years to build up a reputation and it only takes minutes to destroy it, so how is it possible to recover? These are the burning questions which some brands have faced, are facing, and may face in the future. The key: think of the connection between a brand and a consumer as a relationship. We will explore how to do this next. Like any good relationship, the first and most important factor for brands to consider is trust. For a brand, this can be achieved by rebuilding a trustworthy image^{[2](#1571757771358)}. For example, in February of this year, Abercrombie & Fitch won the title of ‘Most Hated Brand in America’ under former CEO Mike Jeffries who made a series of discriminatory policies, from releasing racist T-shirt to barring certain workers from customer-facing roles based on their looks. As a result, the success of the brand plummeted with profits plunging 77 percent that fiscal year. However, since Jeffries was ousted in December 2014, the company has begun to show that it is responding to how consumers are changing, emphasising diversity and inclusivity. Although there is still a long way to go for the brand, efforts have been made to build a trustworthy image which slowly seem to be paying off. Nevertheless, these accusations were exceptionally extensive and so whether these efforts are enough to return the brand to its former success is still unknown. Still, the fact that the brand have slowly started to make steps in the correct direction despite the weight of the allegations, highlights the sheer power of building trust between a consumer and a brand in an attempt for a brand to recover from accusation. Secondly, honesty is essential. If companies generate beliefs of safety, honesty and reliability, then a brands’ trust will flourish^{[3](#1571757771358)}. Communication between a brand and their consumers should be of forefront attention and it is vital to always tell the truth. Brands should act quickly and confidently as denial of responsibility can result in a much greater cost to their reputation and a loss of customers. For example, after the Volkswagen scandal in September last year when it was revealed that diesel-powered cars which intentionally faked emissions tests were being sold, consumers were left wanting answers. However, Volkswagen were slow in revealing information, creating a veil of secrecy which encouraged greater reputational damage to the brand. This lack of communication and reluctance to own up to their mistakes, meant that the mistrust between the consumers and the brand was left to grow, intensifying the damage. On the flip side, a case in which a brand was able to use effective communication to rebuild their brand was Alton Towers. After the tragic incident which left individuals with limbs needing to be amputated, Merlin’s chief executive Nick Varney immediately took full responsibility and kept the consultation with lawyers to a minimum as “we didn’t try to hide behind lawyers,” he said^{[4](#1571757771358)}. By acting quickly and confidently, the brand held honesty in the pole position and were swiftly able to rebuild trust with their consumers. From this we can see that communication and honesty are key factors that brands should consider if trying to recover their reputation. The relationship between a brand and their consumers is key to a brand’s success. Not only does this relationship increase sales and customers, but it also increases the chances of a brand bouncing back after an incident. The two ways in which a brand can harness this relationship is through trust and honesty, like any good relationship. Consumers want to associate themselves with a brand whose image is trusted and who is honest with them. When brands put in the right time and effort into building a strong relationship with consumers, then consumers are likely to hold their loyalty to a brand over any ‘speed bumps’ in the road which brands may face. ","thumbnail":[{"id":"qKZ8pZIT1","url":"https://s3.amazonaws.com/theretailpsychologist-production/coucou/2019/10/22/152641/photo-1529107386315-e1a2ed48a620.jpg","caption":"","dimensions":{"height":500,"width":750}}],"path":"/insights/politics-of-consumption","published_on":"22/10/19","author":"Olivia Nettleton ","management_summary":" ","category":{"id":4,"title":"Analysis","slug":"analysis","title_singularized":"Analysis"},"section":{"id":1,"title":"Insights","slug":"insights","intro":"Bite-sized updates on what makes brands and consumers tick, to empower good decision making.","title_singularized":"Insight"}},{"id":246,"title":"The impact of social media in retail","title_decorated":"The impact of social media in retail","slug":"the-impact-of-social-media-in-retail","introduction":"Social media has changed the way we live. It is no surprise then, that retail has too been affected by social media channels. ","category_id":null,"section_id":1,"override_title":"The impact of social media in retail","detailed_introduction":"It is now commonplace to tweet to your local supermarket with a complaint about damaged food, or like a photo posted by your favourite fashion brand on Facebook. While social media has impacted retail in a variety of different ways, the most substantial route is undoubtedly through providing retailers with new avenues to engage with customers, and with publicity opportunities. With over 60% of US millennials following one or more brands on Facebook^{[1](#1571753851822)}, retailers are able to communicate with consumers with more ease than ever. In addition, these platforms are regularly checked, so the likelihood that their message is seen is relatively high compared to other marketing tactics. For brands with millions of followers, the marketing reach is extraordinary. Retailers use these platforms to interact directly with their customers, in a way that strengthens the business-consumer relationship, and strengths positive association individuals have with the brand. If customers enjoy the content a brand is providing on social media, they will develop positive attitudes towards the brand, and feel more closely connected. The link between attitudes and behavioural intentions is well documented in the field of consumer psychology, which in this case relates attitudes to the likelihood of a purchase. Furthermore, direct links to products are often provided, meaning customers can go straight from browsing their Facebook newsfeed to checkout. Social media very neatly taps into another important aspect of consumer behaviour, and that is social proof. It is well known that as human beings, we are heavily influenced by the beliefs and behaviours of others, and use this to guide our own actions. This is reflected in social media; people are far more likely to try a new product or brand if one of their friends likes the brand^{[2](#1571753851822)}. In other words, if all of your peers follow a certain brand on Instagram, you’re likely to view that brand in a more favourable light, and are more likely to buy their products. So, the social validation that is sought by consumers before they make a purchase can easily be provided through social media. The same principle is used in key influencer marketing on social media. This is when a brand targets an individual who is popular among their desired audience, and who embodies the values of their brand, in order to promote their products. This has been used extensively with apparel retailers on Instagram. For instance, Australian swimwear brand Triangl owe much of their success to Instagram^{[3](#1571753851822)}, where they effectively built their brand through employing online bloggers and Insta-famous females with high numbers of followers to upload pictures of themselves wearing eye catching bikinis. Each ‘influencer’ had its own devoted and trusting collection of followers, meaning the brand quickly became appealing to vast group of people. Triangl now have over 3 million followers on Instagram and Facebook, are popular with the likes of Kendall Jenner and Miley Cryus, and made a whopping $35 million in 2014. A social media success story indeed. So, social media serves its use as a platform for brand engagement and social influencers, but it also impacts retail as means of reputation management. Retailers can no longer get away with bad service or unsatisfactory products, as customers take to social media to complain, and hence damage the brand’s reputation. It’s no wonder then that retailers have taken to the internet to carefully monitor and manage their online reputation. Indeed, one London School of Economics study found that reducing the amount of negative talk about a brand by just 2% led to a boost in sales growth by 1%^{[4](#1571753851822)}. So although there is far more scope for a retailer’s reputation to be spoiled, by carefully replying to aggravated customers and publicly reversing any wrongs, retailers have the opportunity to control how they are viewed dealing with any issues. Social media has enabled retailers to communicate with their customers in many new ways, and as long the content remains relevant and appealing to consumers, it is likely to continue to have a significant impact on the retail world. ","thumbnail":[{"id":"84F6rAXXw","url":"https://s3.amazonaws.com/theretailpsychologist-production/coucou/2019/10/22/142112/pexels-photo-267350.jpeg","caption":"","dimensions":{"height":650,"width":896}}],"path":"/insights/the-impact-of-social-media-in-retail","published_on":"22/10/19","author":"Olivia Nettleton ","management_summary":"","category":{"id":1,"title":"Insights","slug":"insights","intro":"Bite-sized updates on what makes brands and consumers tick, to empower good decision making.","title_singularized":"Insight"},"section":{"id":1,"title":"Insights","slug":"insights","intro":"Bite-sized updates on what makes brands and consumers tick, to empower good decision making.","title_singularized":"Insight"}}]}