High street retailers have recently faced increasing competition from online outlets such as ASOS, Boohoo and Pretty Little Thing, forcing brick-and-mortar brands to innovate and diversify to maintain customer loyalty and satisfaction. This innovation includes the likes of M&S introducing self-service checkouts for clothing, brands offering pre-paid returns, and the introduction of in-store stock check machines, making shopping quicker and easier. The advent of Artificial Intelligence (AI) has created a huge potential for stores to deliver an efficient, simple and personalised customer experience on the high street, however, consumers are still wary of this technology.
A recent study by UserTesting revealed that three in five (60%) high street shoppers think human customer assistants are more reliable than AI. This is despite four in five (80%) shoppers saying their experiences of AI have been overwhelmingly positive. So what can high street retailers do to hit that sweet spot? It’s clear shoppers still value and desire a ‘human’ experience in store, but with retailers constantly looking to improve their services, they should explore how they can use AI to enhance existing services, rather than replace human assistants altogether.
Seamless Checkout Experiences
It’s clear shoppers understand the benefits of technological advancements–90% said in-store technology makes transactions faster, and smoother and makes the entire shopping experience more convenient. To support this, 50% were most excited to use technology such as self-service check-outs, through a machine or in-app. By leveraging AI, high street shops can cut queue times with seamless, automated, self-checkout experiences. The addition of functions such as mobile payments and app item collection services will only enhance this.
Customer Identification and Personalisation
As customers enter the store, AI can help high street shops understand and recognise individual customers. With facial recognition technology, retailers can curate tailored product suggestions and promotions based on preferences and habits. In future, AI could analyse a customer’s purchase history to identify and recommend products they would like, and then direct them where to find those products in store. These can be communicated to customers either through in-store consoles or through human customer assistants, keeping the human interaction that many customers continue to desire from their shopping experience.
Smart Shelves
AI can also enhance the customer experience from behind the scenes. Smart shelves can use AI to monitor stock levels or identify misplaced products in stores. This real-time data can ensure customers find the products they came looking for, and help reduce frustration with low or no stock issues.
AI-Powered Try-On Experiences
Half of respondents (50%) said they were excited to use AI-powered virtual try-on experiences in stores. Try-on experiences are familiar to online shoppers, but an in-store try-on service would be a significant retail innovation. The experience could begin online when a customer searches for an item and the website informs them it is in stock in their size to try on. Once in-store, the customer is then directed to the exact item by an integrated AI stock management system. Should there be any issues with the fit, AI can suggest alternatives to employees so they can better assist the customer.
UserTesting’s data highlights the growing demand for AI integration on the high street, with shoppers seeking expedited, streamlined, and hassle-free transactions in physical stores. Although businesses may be inclined to embrace radical technological advancements through AI implementation, it is crucial to consider the potential challenges faced by customers. It is imperative for these businesses to recognise that customers value AI as a tool to enhance existing services, rather than a substitute for human assistants. Prioritising experience research prior to implementing such technology enables businesses to optimise the customer experience, address pain points, and refine outdated processes, ultimately ensuring the delivery of unparalleled service to their consumers.
Michelle Huff, Chief Marketing Officer at UserTesting
