Michelle Kelly shares insights into how the retail sector can better connect with customers through AI-driven solutions
As a Retail Expert at 8×8, Michelle Kelly has bold opinions on the future of customer experience in retail. From clarifying whether we are finally saying goodbye to email to highlighting the role of AI in shopping experiences, Michelle shares valuable insights for retailers. But first, we learn more about her career history and evolution to her current role at 8×8.
“I have always been a creative at heart, and my career has predominantly centered around retail from the beginning. Back in South Africa, I started my journey in the mobile telecommunications retail space, where we focused on building mobile commerce solutions and driving digital transformation for our customers. We also developed self-service apps at a time when these innovations were just emerging, along with e-commerce platforms that made it easier for our customers to interact with us. Upon moving to the UK and joining 8×8, I have continued this ethos of exploring how technology can simplify the customer experience. My focus remains on leveraging technology not just for technology’s sake, but to put our customers first.”
8×8 is a global business communications platform provider with a core mission to bring all conversations together on a single platform, integrating Unified Communications (UC), contact center, and CPaaS Intelligent communication solutions. “I form part of the product marketing team at 8×8, where we focus on vertical markets. As for me specifically, I specialize in retail, engaging with retailers to understand their unique challenges and provide them with solutions that help to maintain their customers’ loyalty and drive sales growth.”
Throughout the years she has spent working in communication-based roles, Michelle has seen many trends come and go. Upon looking at the current landscape and future of customer experience in retail, Michelle has concluded that e-mail is falling out of favor as a form of communication. “Technology has evolved tremendously, and as a result, customer expectations have changed too. Today, customers seek faster, more personalized interactions with the brands and retailers they love. Although e-mail is still a common communication tool, it is quite slow and customers are frustrated with emailing their inquiries and simply hoping that someone will get back to them. Getting an automatic reply indicating that their query will be addressed within 48 hours is simply not enough anymore. This slow response time is negatively impacting retailers’ customer satisfaction scores, which are very important to them. To address these challenges, retailers are increasingly adopting solutions such as in-app messaging and communicating with their customers through platforms like WhatsApp and RCS as they come out in the UK and US. These approaches offer more personalized brand experiences, particularly for the younger consumers who are slowly but surely becoming the dominant force of this shopping environment,” she explains.
As in many industries, AI is making waves in the retail sector. Michelle elaborates on the rise of the personal AI shopper and its implications for retail. “So much is happening in AI at the moment. Just a couple of years ago, interacting with an AI bot as a consumer often meant dealing with a monotonous chatbot on a retailer’s website. However, that experience has evolved way beyond that now. In retail, AI is no longer limited to basic chat functionalities; it now includes features like uploading photos and receiving contextual assistance. For instance, customers can upload a photo of themselves, and an augmented reality (AR) bot can then provide personalized recommendations for outfits based on upcoming weather, events they may be attending, and regional fashion trends since after all, styles in London can differ significantly from those in New York. This tool offers a much richer contextual experience. I have also seen other examples where customers can take a photo of their lounge or dining room, and retailers will then automatically style the space and offer some decorating advice. Naturally, if the customer likes the suggested items, they can then buy them. This approach enhances the entire shopping journey,” she says.
Despite the rapid advent of AI tools and their widespread adoption in the retail sector, Michelle firmly believes that voice will remain the gold standard. “Voice communication is still going to thrive, even if customers might be interacting with an AI voice rather than talking to a real human. I think this is because it is a lot easier and more fluid to communicate through voice just like when talking to another person than via text communication, for instance. When people have something to say, it is quite often more accessible to articulate it verbally than to type it out. As an example, if retailers shift to using voice AI assistance, consumers and shoppers will be able to directly communicate with these AI agents to discuss their issues. The AI agent will then respond in a nice, natural way, all while providing detailed explanations. If it still cannot resolve the issue, it can seamlessly just hand over the interaction to a human agent.
“Furthermore, I believe AI agents will be a significant help to global retailers who operate in multiple languages. This opens up a whole new world where retailers do not necessarily need to hire agents based solely on their language skills, as they now have AI agents that are able to speak a variety of languages and support their diverse clientele effectively,” she highlights.
The retail sector has an exciting future ahead, driven by ever-evolving technologies designed to streamline the customer experience. However, while AI is omnipresent across every system and platform, Michelle emphasizes to retailers the importance of not buying any AI solution just for the sake of technology alone. “Rather than doing that, retailers should develop a strategic game plan to clarify what they are working towards. Once they have defined what they want to achieve, they can select the tools that will empower them to deliver those results. Today, many customers are starting to use tools like ChatGPT for research, which means that retailers must position themselves similarly to how they adapted when Google became the next best search engine. This will ensure that they remain competitive against other brands.
“Other factors retailers should consider when it comes to AI include hyper-personalization. Indeed, consumers now expect a higher level of personalization than just emails that mention their names. Instead, they want hyper-tailored experiences, with brands that know their specific needs and preferences and send them promotions based on where they live. For example, if I were a Sephora customer, I would expect them to know that I have sensitive skin and that I need anti-wrinkle cream. This level of personalization is what customers are seeking, and it’s a trend that I think retailers need to look at,” she adds.
Having already shared numerous invaluable insights, Michelle concludes our interview with one crucial message for all readers to take into account: “Customer experience has traditionally been viewed as a cost center, but leading retailers need to start recognizing their customer support as a profit center. To successfully embrace this shift, retailers should engage proactively with their customers through platforms like WhatsApp or in-app messaging, fostering a relationship that encourages loyalty and increased sales. It is no longer sufficient to provide reactive support; instead, adopting a proactive approach will encourage customers to purchase from them and remain loyal over the long term.”