Believe it or not, the 2022 holiday shopping season is nearly halfway through—and it isn’t even Black Friday yet. This year, more retailers pushed their holiday promo dates earlier than ever: Walmart announced its Top Toy List at the end of August; Target kicked off its Target Deal Days on October 6; and Amazon started its “Prime Early Access Sale” on October 11. That’s not to mention the scores of smaller chains and independent stores that have followed suit. The reason? Retailers are worried that rising inflation, economic uncertainty, and lingering supply chain trauma will drive down holiday spending. However, earlier sales are only part of the story. To keep cost-conscious shoppers engaged beyond the doorbusters and early bird deals, businesses are getting creative. In an age where consumers are valuing experiences over than things, retailers are taking note and doubling down on customer experience (CX). And they’re getting some serious help from technology—in the form of artificial intelligence and automation.
Inflation and economic uncertainty are reshaping consumer priorities.
Rising prices and talk of the dreaded R-word—recession—are making consumers increasingly bearish—right when stores are looking for a bump in year-end sales. In a poll commissioned for CNBC by Morning Consult, 80% of consumers expect their holiday shopping to be affected by inflation. And Bankrate found that 95% of consumers plan to employ a money-saving holiday shopping strategy as a result of rising prices. That doesn’t bode well for retailers. In fact, Bain & Co. predicts a modest sales growth rate of 7.5% over last year. When adjusted for inflation, that number slumps to just 1% to 3%.
However, Deloitte offers a more optimistic assessment—at least when it comes to online sales. Its analysts predict that e-commerce sales will grow by 12.8% to 14.3% during the 2022-2023 holiday season. While convenience is certainly a factor (online sales, which have been rising steadily for years, spiked during the 2020 Global Pandemic), so too is growing consumer preference for personalized experiences that feature curated content and contextual customer support.
Consumers aren’t the only ones putting experiences first.
In addition to giving consumers more personalized online shopping experiences, retailers are also hiring additional customer service agents for the busy holiday season—or at least they’re trying to. Customer service—which has been dogged by higher call volumes, record burnout and turnover rates and an increase in verbal abuse by customers—continues to reel from the effects of the Great Resignation. And with more remote work options available to agents, fewer are lining up for high-stress holiday call center jobs. Those that do have higher employee experience expectations than in previous years.
Retailers are creating better experiences for everyone—with technology.
How are retailers delivering tailored customer experiences and keeping customer service staff engaged—all during the busiest shopping season of the year? With artificial intelligence (AI) and automation technology. Using AI-enabled CX tools that analyze customer behavior, preferences and more, businesses are now able to cater to customers’ desire for a hyper-personalized and frictionless experience. At the same time, by automating many of the “behind the scenes” processes that slow the customer journey, they’re able to eliminate many of the friction points that frustrate customers and agents alike.
As retailers brace for a holiday season like no other, many are betting on experiences to drive customer value and loyalty. Sales and promos may draw shoppers in, but it’s the customer experience that will ultimately keep them engaged and willing to spend. In a year where the stakes are higher than ever, those with the best CX tools will win the day.
As Chief Marketing Officer, Annie leads the marketing and communications team responsible for building reputation, engagement, and demand across the globe. Annie also leads acquisition integration. Prior to this role, Annie spent three years as both the Chief Marketing and People Officer for Uniphore, which included leading all functions of marketing and HR. Before joining Uniphore, Annie was part of the leadership team at NIO, a next generation car company, leading US marketing and communications from startup through a successful IPO. Previously, Annie held various strategic communications and marketing roles for the global technology giant Cisco for nine years. Throughout her career, she has counselled and partnered with some of the world’s most senior corporate and government leaders and their teams. She has a passion for building companies, great spaces and achieving incredible things with stellar teams. Annie is an advisory board member for the Leavey School of Business at Santa Clara University. She resides in Saratoga with her husband and three young children.
