Is the human touch in retail on a path to becoming obsolete? | Voices

With an increased focus on using AI and other technologies to enhance customer engagement in the retail sector, how will this help the customer’s journey? How important is human touch for the consumer experience?

Despite being a technology entrepreneur, I am a strong advocate for the power of the salesperson in the customer journey. Retailers have long understood the power of a knowledgeable and engaging salesperson in the offline environment, and this level of engagement and education is just as important in the online experience — something that even AI can never fully replace.

I recently discussed this topic with Francesca Danzi, the former global director of customer experience at Burberry, who was instrumental in executing Burberry’s groundbreaking digital transformation in the early 2010s. As she put it, “the goal is to enhance the human experience using technology, not to replace it.”

Despite extensive technological growth and investment, and a rapid increase in digital commerce availability, 70% of all retail sales still occur offline. Furthermore, brick-and-mortar conversion rates average 20-50% of traffic, while e-commerce venues are considered successful at just 1-2% of online traffic.

The transition from traditional to omnichannel retail strategies involves more than just adopting new technologies. It requires a fundamental change in how brands view their operations and interactions with customers. Danzi highlights that many brands initially focused on technology and data, often neglecting the “people element.” Over time, they realized that a successful execution requires empowering employees and fostering a human-centric approach.

“We realized that without focusing on the people (sales staff) element, even the most incredible technology won’t deliver the intended results,” Danzi emphasized.

The value of human interaction in retail

The value of human interaction in retail cannot be overstated. Salespeople are able to read customers to optimize their approach, providing personalized experiences, immediate access to expert product knowledge, and the ability to build rapport and trust with consumers. These factors lead to higher sales conversions, larger basket sizes and greater customer loyalty.

The role of technology in enhancing the human touch

Technology should be seen as a tool to augment and enhance the human touch in retail, rather than replace it. AI can provide valuable data and insights that enable salespeople to offer more personalized recommendations. Virtual assistants and chatbots can handle routine inquiries, freeing up sales staff to focus on more complex and high-value interactions.

Moreover, technologies like live video calls and virtual shopping experiences can bring the in-store experience online, allowing customers to interact with knowledgeable salespeople from the comfort of their homes. This hybrid approach leverages the best of both worlds, combining the efficiency and convenience of technology with the personal touch of human interaction.

A human-centric approach to retail transformation

As retailers continue to navigate digital advancements, it’s crucial to maintain a human-centric approach. This involves investing in employee training and development, fostering a culture that values customer relationships. and leveraging technology to enhance – not replace – the human touch.

Retailers who successfully integrate technology with a human-centric approach will be well-positioned to deliver exceptional customer experiences, drive loyalty and achieve sustainable growth in the digital age.

Technological advancements will undoubtedly shape the future of retail, but the human touch remains irreplaceable. By balancing technological advancements with human interaction, retailers can create a seamless and engaging customer journey that drives success both online and offline.

Jamila Jamani is the founder and CEO of Parla Retail, a one-t0-one live commerce platform designed to replicate the in-store experience online, providing a more personalized and interactive shopping experience.