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Is the human touch in retail becoming obsolete?

Published: November 25, 2024
Author: HFVC

How will the customer journey be impacted by the retail industry’s growing emphasis on leveraging AI and other technologies to improve consumer engagement? How crucial is human interaction to the customer experience?

Even though I own a technology company, I still believe that salespeople have a significant impact on the customer journey. Retailers have long recognized the value of an informed and charismatic salesman in an offline setting, and even artificial intelligence will never be able to completely substitute this degree of involvement and instruction in an online setting.

Francesca Danzi, the former global director of customer experience at Burberry, who played a key role in the company’s revolutionary digital transition in the early 2010s, and I recently spoke about this subject. “The goal is to use technology to enhance the human experience, not to replace it,” she stated.

Seventy percent of all retail sales still take place offline, despite significant technology advancements, investment, and the quick rise in digital commerce. Additionally, e-commerce sites are seen as successful when they receive only 1% to 2% of online traffic, but brick and mortar stores typically receive 20–50% of traffic.

Adopting new technologies is only one aspect of the shift from traditional to omnichannel retail strategy. It necessitates a fundamental shift in how companies perceive their business practices and consumer relationships. Danzi points out that a lot of brands first prioritized data and technology, sometimes ignoring the “people element.” Over time, they came to understand that empowering staff members and promoting a human-centric approach are essential for a successful implementation.

Danzi underlined, “We realized that even the most amazing technology won’t deliver the intended results if we don’t focus on the people (sales staff) element.”

The importance of interpersonal communication in retail

It is impossible to overestimate the importance of human interaction in retail. By providing individualized experiences, instant access to in-depth product knowledge, and the capacity to establish rapport and trust with customers, salespeople can read customers and tailor their approach accordingly. Larger basket sizes, more client loyalty, and higher sales conversions are the results of these factors.

Technology’s contribution to improving the human touch

Instead of replacing the human element in retail, technology should be viewed as a tool to supplement and improve it. Salespeople can provide more individualized recommendations by using AI’s useful data and insights. Regular questions can be answered by chatbots and virtual assistants, freeing up salespeople to concentrate on more intricate and valuable exchanges.

Additionally, the in-store experience can be brought online by technology like virtual shopping experiences and live video calls, which let customers communicate with informed salespeople from the comfort of their homes. By fusing the personal touch of human engagement with the effectiveness and convenience of technology, this hybrid method makes the most of both worlds.

A human-centered strategy for transforming retail

It’s critical to keep a human-centric strategy as shops continue to negotiate digital improvements. This entails making training and development investments for staff members and cultivating a culture that prioritizes client interactions. and using technology to complement human interaction rather than to replace it.

In the digital age, retailers who successfully combine technology and a human-centered approach will be in a strong position to provide outstanding customer experiences, foster loyalty, and achieve long-term growth.

The future of retail will surely be shaped by technological developments, but the human touch will always be vital. Retailers can build a smooth and captivating customer journey that propels success both online and offline by striking a balance between technical developments and human contact.

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