However, significant gaps often exist between the in-store service and that offered via contact centres, as they are often considered two very separate functions.   

Understanding the Silos: The Gaps Between Employees 

Studies show that up to 49% of companies struggle with breaking down silos when serving customers through various channels. While contact centres invest in integrated solutions like CRM systems and AI tools to support their agents, these employees often lack detailed product training. Conversely, in-store staff receive extensive product training but may lack the knowledge of wider issues such as delivery and ongoing product quality issues. This disconnect results in disparate customer experiences across touch-points when consistency is key. 

Why the Employee Gap is a Problem 

To thrive, organisations must adopt a holistic ‘customer-first’ approach, ensuring all customer-facing staff are equally equipped with training, guidance, and tools. Viewing contact centre agents and in-store representatives as separate entities ignores their shared goal: delivering excellent customer service. 

Merging the Customer Experience Across Channels 

1. Provide Uniform Training 

All customer-facing employees should receive comprehensive training on emotional intelligence, brand ethos and product knowledge. This ensures everyone can handle complaints, guide customers to the best products, and deliver consistent service regardless of the channel. 

2. Empower with Technology 

Equip in-store staff with tools and platforms used by contact centres, like inventory management systems and CRMs. Mobile-ready interfaces enable quick access to necessary information on the shop floor or at a desk. Ensure that contact centre staff have access to extensive product information and easy points of escalation to support customers at the first time of asking.  

3. Foster Collaborative Growth 

Create a unified team by encouraging collaboration across all customer-facing roles. Conduct regular cross-channel meetings to share insights and strategies to enhance the customer experience. This strategic alignment drives innovation and cohesive company culture. 

4. Integrate Customer Feedback 

Gather and integrate customer feedback from both in-store and contact centre interactions. Use this data to continuously refine and improve service delivery across all touchpoints. 

5. Real-Time Data Sharing 

Implement real-time data-sharing solutions to ensure that both in-store and contact centre teams have access to the most current information. This enhances response times and accuracy in customer interactions. 

6. Maintain Unified Customer Profiles 

Develop unified customer profiles that are accessible to both teams. This will personalise the customer experience and ensure continuity across different channels. 

Align Your Teams for Better Customer Service 

In-store and contact centre interactions can be integrated to provide seamless, consistent, and efficient customer experiences. By aligning training, technology, and teamwork, retail businesses can bridge the gap between in-store teams and contact centre reps, ensuring every customer interaction is positive and professional. The more effective you are at aligning your teams, the more your customer satisfaction rates will grow. 

Partnering with an outsourcing expert like DDC Outsourcing Solutions for your contact centre can significantly enhance your customer experience strategy. Benefit from their extensive market exposure and specialised expertise in customer experience (CX). To start that journey, get in touch with DDC today. 

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Recently, a report from the BBC showed just how important this is, drawing attention to the increasing number of complaints faced by broadband and telecom companies in the UK.  

What’s interesting about this report is that while many organisations in the market offer similar services, the level of satisfaction among their customers differs drastically.  

Ultimately, companies can’t avoid receiving complaints but can take the right approach to dealing with them.  

The Value of Effective Complaint Management 

Customers complain about a range of reasons, and those complaints are often more valuable than you’d think. Reports tell us that only a handful of customers actually complain to a company directly; the rest (91%) leave and buy what they need from a different company.  

This means a complaint is an opportunity for you to prevent your customer from abandoning your brand. Studies show that 83% of customers feel more loyal towards brands that actively respond to and resolve their complaints. 

Complaints are also a chance for you to spot problems that might cause other customers to churn before they have a massive impact on your retention rates.  

Even complaints about things beyond your control can be helpful. If you notice that customers regularly complain about service outages and issues, proactively contacting them when there’s a problem with the service could reduce their frustration.  

How to Handle Customer Complaints Correctly: Top Tips 

Dealing with a complaint quickly, effectively, and empathetically can be an excellent way to turn an unhappy customer into a valuable advocate for your brand. One report from the Harvard Business Review found that customers who have their complaints handled in five minutes or less often spend more time with a company in the future.  

So, how do you master complaint management? 

Step 1: Listen and Empathise 

Listening is the key to resolving complaints correctly. It’s easy to get defensive when speaking to a frustrated customer, but they’ve contacted your company for a reason. It’s your job to get to the bottom of the problem with empathy.   

Train your agents to use active listening practices like open-ended questioning to ensure they understand the root cause of the customer’s problems. Collecting details about a customer’s order history, details, previous complaints, and issues will make it easier to resolve customer issues quickly. Plus, it ensures that if, for any reason, an agent needs to transfer a call to someone else, the customer won’t have to repeat themselves and start from scratch—a very frustrating practice that’s all too common.  

Of course, only if you are in the wrong, but sometimes, all your customer really wants is for someone to apologise and acknowledge their frustration.  

Studies have shown that customers are more willing to forgive and keep buying from a company that apologises for its mistakes. However, don’t just stop with an apology; thank the customer for bringing the issue to your attention. Then, if possible, it’s time to solve the problem… 

Step 2: Find a Solution 

Some complaints are easy to resolve. If a customer is unhappy with the quality of a product they’ve bought, you can offer them a refund or replacement. Other issues are a little more complex. For instance, a service outage can’t always be resolved quickly. Have clear guidelines available for the team so they know how to handle the issue, clear lines of escalation, and empowerment to make judgment calls to resolve issues to the customer’s satisfaction.  

Step 3: Record Their Feedback  

As mentioned above, complaints are more valuable than they seem. They can offer incredible insights into ways your company can improve and evolve. The only way to detect opportunities for growth is to record your customer’s feedback and look for patterns.  

Examine any complaints you have received and brainstorm ways to prevent the same issue from happening again. Detailed data dashboards can be key to help quickly analyse and action such insight. 

Step 4: Be Proactive  

Complaints might disappear when you solve a customer’s problem, but the frustration they feel towards your company can linger. The best way to repair the relationship is to follow up. Send an email or SMS asking for feedback on how the complaint was handled and if you can do anything else to aid them. Maybe offer a further discount or promotion or flag their account to prioritise care should the issue re-arise. Is it something you are looking to fix on your transformation roadmap, why not keep your customers updated?  

Optimising the Complaint Management Process 

Complaints are important. They offer feedback on your product and service and give you a second chance to retain and develop a loyal customer. However, handling complaints well and consistently can be challenging.   

At DDC OS, we offer a solution. We can provide access to an outsourced complaints service team, expanding your capacity or handling complaints management as a whole, ensuring you can respond quickly and compliantly to customers when complaints arise.  

With a little extra help, you can turn complaints from a daunting prospect into something that helps your company grow.  
 
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Retail, a sector that has always been on the move, is about to undergo even more significant changes. In this follow-up to our previous blog post on the top five retail trends, we explore how these developments could impact customer service and outsourcing. 

Trend 1

In the age of omnichannel retail, the line between physical and digital shopping is blurring. This shift requires a new breed of customer service agents who can thrive in both environments. The evolution from brick-and-mortar stores to online platforms to social media interactions demands a versatile skill set. This transformation might necessitate extensive training and development opportunities to ensure agents can deliver a seamless customer experience, irrespective of the channel. 

Trend 2

AI is no longer the future – it’s the present. With AI tools automating routine tasks, customer service agents can concentrate on resolving complex issues that require a human touch. While chatbots and virtual assistants tackle straightforward queries, human agents will become critical in handling escalated cases and providing personalised service. However, retaining the ‘human’ element in customer service is vital as automation becomes more prevalent. 

Trend 3

The diversification of shopping channels brings its own challenges. Ensuring customer service teams can handle inquiries across all channels will require businesses to develop multi-skilled agents. Whether it’s traditional phone calls, social media interactions, live chats, or even emerging technologies like VR and AR, agents must be adept across platforms. 

Trend 4

Customers are increasingly aligning their purchasing decisions with their personal beliefs and values. As such, customer service agents must embody the company’s ethos, acting as brand ambassadors. They’ll be more than just problem solvers – they’ll be the face of the brand’s values and mission. 

Trend 5

In a world where convenience is king, customer service strategies must evolve. Speedy response times, round-the-clock availability, and efficient problem resolution will become the norm. This shift may demand flexible working hours for customer service agents or the establishment of global service teams to cover various time zones. 

While these trends present a host of opportunities for enhanced, personalised customer service, they also bring challenges. Businesses will need to invest in training and development, reevaluate their work methods, and prioritise value alignment and convenience. 

Prepare Your Business for the Future of Retail 

As 2024 approaches, it’s clear that the retail landscape won’t stand still. To prepare for the future, businesses must adopt a comprehensive approach that appeals to modern customers’ needs and wants. 

With demands at an all-time high, ensuring your business has access to the additional skills and support it may require is crucial. Outsourcing essential processes can help reduce costs and enhance revenue potential. 

Discover how outsourcing can transform your retail business and put you ahead in this ever-changing industry.

1. The Convergence of Digital and Physical Retail 

By 2027, e-commerce is projected to reach a market value of approximately $5.56 trillion, surpassing traditional retail as more individuals embrace online shopping. However, this shift does not diminish the significance of physical retail experiences. 

Consumers still desire real-world interactions with retailers, especially if it means accessing unique experiences. As we approach 2024, companies must reimagine the integration of the digital and physical realms. This could involve offering pick-up in-store incentives to drive in-store footfall or introducing QR codes in physical stores to enhance the shopping journey by providing additional information and deals.  

An emerging trend expected to gain momentum is the demand for immersive VR/AR experiences that simulate real-world interactions, even in online shopping environments. 

2. The Rise of AI Tools 

AI tools are revolutionizing industries across the board, especially with the rise in popularity of generative AI solutions. According to a recent AI retail survey, nearly half of professionals (48%) believe AI will have the most significant impact on the retail sector in the next 3-5 years. 

The key to success lies in harnessing these resources effectively. In today’s world, where consumers crave personalised experiences, AI technologies can be crucial in delivering tailored recommendations and shopping journeys to buyers.  

By leveraging generative AI tools powered by your own business data, you can engage with customers online, provide prompt responses to their inquiries around the clock, and even offer relevant tutorials and guidance for new shoppers.  

Furthermore, AI can empower customer service and sales agents by providing them with quick access to the information they need to deliver a superior experience. It’s important to remember that AI is not meant to replace human experts; instead, it is a powerful tool to enhance their performance. 

3. Shopping Channels Continue to Expand 

Digital transformation has revolutionised the shopping experience in ways that exceed our expectations. Shopping is no longer limited to traditional e-commerce or physical stores; it now extends to apps, metaverse environments, and even social media platforms as customers embark on their buyer journeys. 

By 2023, the social commerce market reached an impressive milestone, reaching a value of $2.4 trillion. As Generation Z enters the buyer market and the creator economy flourishes with new influences, shopping behaviours are undergoing significant changes, ensuring the continuous growth of social commerce. 

Today’s younger customers seek a seamless buyer journey across the channels they frequent the most. This necessitates companies listing their products on platforms like Instagram, Facebook, and TikTok or creating virtual environments that offer real-time purchasing opportunities. 

The good news is that embracing multiple channels translates into increased sales opportunities for retailers. The more channels they incorporate into their strategies, the wider their reach and the greater their potential for success. 

4. Greater Demand for Shared Values 

Gaining customer loyalty has become increasingly challenging in the retail industry. Economic difficulties and cost of living crises are influencing shoppers worldwide. However, research indicates that organisations can retain their customers by embracing shared values. 

According to studies, approximately 56% of customers feel more loyal to brands that understand and resonate with them. Furthermore, 89% of customers remain loyal to companies prioritising shared values. So, what values should companies emphasise as we approach 2024? An empathetic approach is paramount. 

Given that consumers are facing financial struggles, retailers must make the purchasing process more accessible. Offering buy-now-pay-later options and customisable subscription plans are increasingly valuable. 

In addition, customers expect their favourite brands to contribute to protecting and preserving the environment. Around 4 out of 5 customers are more inclined to purchase from brands demonstrating a positive commitment to sustainability. If your company does not have an environmental, social, and governance (ESG) strategy in place, now is the time to develop one. 

5. Convenience is Key 

Convenience in shopping has always been a popular demand in the retail sector, but its importance is growing as we approach 2024. Even industry giants like Amazon are investing in cutting-edge technologies, such as drones, to enable faster deliveries than ever before. 

Since the pandemic, companies have embraced options like “in-store pickup,” allowing customers to collect their orders at their convenience instead of waiting for delivery. Offering a wide range of delivery options and convenient fulfilment methods has become crucial. 

However, enhancing shopper convenience goes beyond just delivery options. Providing seamless experiences, both online and offline, is equally important. In-store self-service checkout options will be a necessity in 2024, while one-click checkouts online will make purchasing a breeze for customers. 

In the coming years, retailers must thoroughly examine the customer’s buying journey and proactively eliminate any obstacles at each touchpoint. 

By prioritising convenience, retailers can enhance the overall shopping experience and foster customer satisfaction.   

Coming Up Next Week…

We’ll take a look at how these changes might impact customer services and demand for outsourcing services.  

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Black Friday is a phrase that elicits an immediate emotional response from virtually everyone that hears it. These two words can immediately send customers reaching for their wallets, but they also have a habit of creating tidal waves of pressure for business leaders and customer service reps. 

The good news is that Black Friday represents an incredible opportunity for virtually any retailer (online or offline). Even in spite of the cost-of-living issues and economic pressures, online sales increased 23% during Black Friday 2022, compared to the same period in 2021.  

In 2021, UK consumers spent over £9.2 billion during Black Friday weekend. As customers continue to crave great deals to help them overcome the cost-of-living problems, retailers have an excellent opportunity to capitalise on the growing momentum of sales shopping this year.  

However, there’s one thing that business leaders need to focus on before they can discover the benefits of Black Friday bargains for themselves: customer service.  

Customer Service: The Key to Black Friday Success 

Black Friday, while often profitable, can present several challenges to business leaders. The biggest challenge of all is usually maintaining exceptional customer service. In fact, according to some studies, the number of customer support tickets raised during Black Friday can increase by around 50%.  

Overwhelmed customer support employees can often struggle to deliver experiences that live up to customer expectations—leading to a loss in loyalty and massive churn once the sales period is over. However, the brands that can preserve their customer service strategy can see amazing results. 

For instance, one report found that customers who receive “excellent” customer service during Black Friday in the UK spend up to £51 more with each retailer. Additionally, 9 out of 10 people who received great customer service on Black Friday shopped with the same retailer again.  

The question is, how do you manage the influx of customer service requests? 

Top Tips for Handling Customer Service Influxes 

Today’s customers expect amazing experiences from brands on a consistent basis. Even if your teams are overwhelmed by additional support requests, they expect you to be able to deliver the same high-quality support, guidance, and personalised service.  

Fortunately, there are ways companies can prepare for the fluctuations of Black Friday. 

1. 1. Make Accessing Support Simple 

Most customers are in a hurry on Black Friday, eager to take advantage of deals before they disappear. They don’t always have time to search through your website for contact details or track down your business on Google. With that in mind, it’s worth looking for ways to make the path to support as streamlined as possible. Ensure you include regular, visible buttons and links for contacting your team via services like chat or social media.  

Part of making support as easy to access as possible is also ensuring you’re available to respond on all of the channels your customers already use. Google shows that most customers spread their shopping journey across multiple channels, and they want to be able to interact with your company where is convenient to them.   

If you don’t have an omnichannel strategy for customer service already, now could be the perfect time to implement one. Find out where your customers usually look for support, and make sure your in-house and outsourced teams have access to those platforms.  

2. 2. Take Advantage of Self-Service Tools 

Since customers crave speed during Black Friday, there’s a good chance they’ll look for ways to resolve issues rapidly themselves before contacting your team. Around 81% of customers will try to address an issue themselves before contacting a representative.  

Providing your customers with easy access to self-service tools, like FAQ pages and information about your shipping and delivery times, can help to improve customer satisfaction significantly. It also means you can reduce some of the volume of requests coming through to your service team.  

Just remember, not every customer will be able to resolve an issue using self-service solutions alone. Make sure it’s easy for your customers to move from an AI chatbot or FAQ screen into a conversation with an agent as quickly as possible if they need to access human assistance.  

What’s more, remember that your website needs to be configured to effectively manage large volumes of traffic and chat requests. Ensure any of the apps you’re using for things like live chat, click-to-call, or AI-based chatbots can handle an increase in demand.   

3. 3. Be Proactive 

Another excellent way to improve your customer service strategy for Black Friday is to take a more proactive approach to CX. There are various ways you can get one step ahead of potential customer problems. For instance, if you know your customers are likely to have questions about shipping and delivery times, create an FAQ page where they can find answers.  

If you know that you might have issues with supply chain and delivery times, reach out to your customers proactively and let them know what to expect. Customers are more likely to be forgiving of delays when you’re transparent and straightforward.  

4. 4. Use Data to Your Advantage 

One of the best ways to turbocharge your customer service strategy for Black Friday is to take advantage of as much customer data as possible.  

You can more effectively predict what to expect from this year’s sale period by utilising the data you have about website traffic and sales from the previous years. You can use this data to help you prepare for service requests; which channels were the most popular? Which issues were most common? Can you do anything to encourage self-serve of the key issues or make any operational improvements?  

You can also use data from your CRM and similar databases to create more customised offers and personalised experiences for your customers. Find out your core customer segments and email them in advance with specific deals tailored to their interests.  

Don’t Let Customer Service Slide on Black Friday 

If your customer service strategy slips during Black Friday, it can have a long-lasting impact on your brand reputation and ability to convert customers. During stressful periods, customers expect exceptional service more than ever. Failing to deliver true excellence, even during busy times, could mean you lose your customers to your competitors.  

Follow the steps above to improve your chances of excellent results this Black Friday. Feel free to reach out to DDC Outsourcing Solutions to discuss your challenges and how we are solving them for leading retailers.   

The good news is that companies recognise the need for exceptional service, with 65% of brands saying they plan to increase their investment in customer experience solutions during 2023.  

The bad news is that many companies still don’t know where to get started with their strategies to boost client satisfaction. As the landscape we know continues to change at a phenomenal rate and customer expectations evolve, it’s challenging to determine where organisations should be focusing the majority of their efforts. Fortunately, if we look at the current patterns in the customer service landscape and the statistics surrounding CX, we can see some emerging trends. 

Here are 5 of the key customer service trends businesses will need to prepare for in 2023:

1. Customer Service Channels Continue to Evolve 

First, companies need to be prepared for the channels they use to interact with customers to change more aggressively in the years ahead. Over the last couple of years, we’ve seen a range of new platforms for customer communications emerging around the world.  

Consumers have started connecting with brands on social media, interacting via video, and even using instant messaging tools like What’s App. Going forward, experts predict the lines between the digital and physical world will become increasingly blurred, thanks to the emergence of the “metaverse” and XR technology. “Phygital” experiences, which blur the line between physical and digital with AR-enhanced apps, and QR codes, are likely to increase in the years ahead.  

We’ll also see a larger number of companies investing in extended reality to meet their customers in the digital world. Brands like Nike, Wendy’s and Gucci have already started expanding into these areas.  

2. Hyper-Personalisation Becomes Crucial 

Consumers are becoming increasingly less enamoured by their favourite brands. Customer satisfaction levels have dropped to their lowest point in 17 years, and clients are becoming increasingly frustrated by one-size-fits-all experiences. Analysts like Gartner believe the companies who will succeed in the years ahead are those who focus more aggressively on “hyper-personalisation”. 

Companies will need to think more carefully about how they can transform customer service experiences to suit the individual needs of each user. This will mean not only giving customers more say over how they interact with a brand (in person or on digital channels) but also providing each customer with unique offers, guidance, and support during their purchasing journey.  

Going into 2023, we can expect to see more companies exploring ways to help customers have more of a say in the services, support, and offers they get.  

3. Companies will Leverage AI for Proactive Service 

Demand for artificial intelligence in the customer service landscape has been increasing rapidly in the last few years. Brands have begun to learn that leveraging AI allows them to provide more personalised and unique experiences to their users across virtually every channel. Already, we’re seeing companies utilise intelligent tools to automate customer service requests, route conversations to the right agents, and analyse sentiment during conversations.  

As customer expectations continue to evolve, one key area where business leaders are likely to increase their investment in AI is to develop proactive services. Artificial Intelligence can use historical information to pinpoint trends and patterns and provide business leaders with insights into how they can solve customer issues before they even begin.  

Moving forward, we’re likely to see more companies looking for ways to get one step ahead of their customer needs with proactive support, assistance, and sales.  

4. Automation Will Continue To Increase 

As staffing concerns and shortages continue to wage war on company productivity levels, countless businesses have begun turning to automation to reduce the pressure on their teams. Intelligent chatbots and conversational AI tools have emerged as valuable resources for businesses looking to reduce the number of support and service requests actually requiring human interaction.  

At the same time, businesses are also leveraging automated systems to help reduce the number of repetitive tasks their team needs to complete daily. The right systems can automatically store information, record conversations, and even follow up with customers without the need for human input. This gives team members more time to focus on the conversations that really matter.  

In 2023, these intelligent automation tools will likely become indispensable tools for companies that need help making the most of their human resources. Unfortunately, they won’t be able to address the staffing shortage alone, which leads us to our final trend prediction. 

5. Service Teams Will Invest Substantially in Outsourcing 

While automation and AI will go some way towards empowering companies to accomplish more with fewer employees, they won’t eliminate the need for informed, educated, and empathetic human interactions entirely. As consumers continue to demand more hyper-personalised and engaging interactions across every channel, companies will still need to ensure they have access to the right human resources. 

Since cost constraints and severe skill/people shortages will make it difficult for business leaders to hire full-time employees to fill the gaps, many will begin looking into outsourcing strategies to augment and supplement the workforce.  

For those who are looking to engage with outsourcing for the first time, those returning to the solution, or those looking for a hybrid approach, DDC OS can support you from a range of global locations to suit your requirements.  

Get in touch to learn more.  

In the UK, 81% of consumers have said they’re planning to shop more during the Black Friday period to help manage the cost-of-living crisis while still ensuring they can stock up on gifts. All over the world, these trends can present excellent opportunities for retailers to increase revenue and loyalty. However, it’s crucial to have the right plan in place to handle this demand.  

As tempting as it might be to double down on your marketing and try to cultivate additional sales during the holiday, the promise of short-term revenue wins shouldn’t come at the expense of long-term loyalty. After all, while 58% of consumers say they’re willing to accept long waiting times and delays during the holidays, only 8% will accommodate bad customer service.  

Perfecting Customer Service at Peak Times 

Peak periods, ranging from Christmas to Black Friday to other seasonal events, can be a double-edged sword for brands. On the one hand, they’re a chance to connect with engaged customers and accelerate sales. On the other hand, they can often lead to issues with inconsistent customer service and overwhelmed operational facilities.  

Implementing an enhanced sales strategy for the holiday season means not only creating the right marketing campaign but also ensuring you have the right resources on-hand to support an increase in demand. More sales mean more questions, service requests, and demands from consumers.  

If you can’t handle this extra pressure, pushing your business beyond its limits could cause more damage than good. In 2020, a report found that around 50% of Brits began actively avoiding companies with bad service at Christmas, leading to a loss of around £1.9 billion for those brands.  

Before you dive head-first into a peak retail season, you’ll need to ensure you’re not over-promising and under-delivering. Ask yourself: 

• What do customers expect from you? Start by assessing the kind of expectations you’ve already built in terms of customer experience for your customers. Does your company offer ultra-fast delivery, convenient returns, and rapid customer support? If so, can you continue to deliver on the same promises as demand increases?  

• Do you have a stable supply chain? Do you have what it takes to continue delivering products to a higher number of customers? If your current suppliers are unable to deliver on-demand, do you have backup options in place? How will you deal with popular goods going out of stock during the holiday period? How are you going to manage fulfilment and ensure items arrive at customer destinations on time? Even if the answer is no to some of the above, you can alleviate some inbound traffic by proactively updating your customers and them offering options.

• Can your existing team members handle extra work? Any increase in sales will automatically lead to an increase in work for your team members. If your staff are already overwhelmed, how will you provide additional support? In-house recruitment, outsourcing partners? Short-term solutions can pose a range of problems.  

Plan for Peaks Beyond the Holiday Season 

While the holiday season may be the most common time for many businesses and retailers to experience a peak in demand, it’s important to remember that there are other peaks to think about too. Different brands have different peaks and troughs depending on their industry and target audience. A sports company might see an increase in sales around annual competitions, while a florist may have additional demand during Mother’s Day and Valentine’s day.  

There are even instances in which retailers can manufacture peaks and demands with sales, events, and clever marketing. Ensuring you’re effectively prepared for the unpredictable nature of retail is crucial to ensure you retain loyal customers. Because of this, simply hiring seasonal staff for a couple of months each year may not be the most cost-effective and resourceful strategy. Could it be tied into other activities? Where else could you benefit from support? Can you create long-term solutions to short-term demand?  

Rather than having to find, hire, and train temporary team members on a consistent basis, many brands will benefit from creating more consistent agreements with third-party customer support agents, which allow them to structure a steadier flow of orders and maintain customer satisfaction throughout the year. Companies could even assign their outsourced specialists to different tasks each month to ensure they’re leveraging their available resources effectively.  

A consistent and holistic strategy will allow brands to manage not just holiday peaks but unexpected changes in customer demand whenever they might happen. Make sure you can always take full advantage of peak sales times without compromising on customer service.  

To learn more about the work DDC OS do in retail, please get in touch. 

Countless “traditional” brick-and-mortar stores transitioned to hybrid and omnichannel selling in 2021 and 2022, introducing new ways for customers to shop online, leverage delivery services, and even take advantage of click-and-collect opportunities.  

While softening restrictions in 2022 have allowed some companies to re-open their physical locations, retailers’ challenges are far from over. Not only do these companies need to adhere to new customer expectations for contactless, personalised service, but they’re also now dealing with a different set of threats imposed by impending recessions and energy crises.  

So, what will these changes mean to the future of retail? 

The Impact of Rising Energy Costs on Retail 

At present, the biggest threat facing stores strong enough to survive the pandemic comes in the form of rapidly rising energy costs. Throughout the United Kingdom, energy prices have soared to record-breaking levels, leaving many unable to pay their monthly bills. These huge energy costs aren’t just a major concern for consumers; they present a significant problem for business leaders too, who are already struggling with depleted post-pandemic budgets.  

According to one report from the Federation of Small Businesses, around 15% of SMBs believe they may have to either downsize or close completely due to spiralling energy expenses. With the energy pricing cap set to continue rising into 2023, the issue could soon become a lot worse.  

It’s not just niche businesses feeling the pinch either. The Association of Convenience Stores, which represents around 48,000 stores in the UK said energy bills had soared to an average of around £45,000 for some smaller members. Collectively, the ACS says its members are facing energy bills worth approximately £2.5 billion.  

If government bodies don’t step in to reduce the expenses these companies face, the average UK consumer could find themselves with a lot fewer options in where to shop going forward.  

The Trends Likely to Emerge Going Forward 

While it’s difficult to know for certain what the new energy crisis challenges will mean to the future of retail and commerce, there are some trends which are likely to be important for today’s companies. First and foremost, the transition away from in-person retail into omnichannel and digital commerce is likely to continue as fewer businesses can afford to run their own physical location. 

During the pandemic, many businesses already began creating e-commerce versions of their stores to give consumers a way to continue purchasing essentials when brick-and-mortar locations were closed. The use of e-commerce opportunities may continue to accelerate as businesses look for ways to reduce the overheads associated with running a physical store.  

Outside of the transition to more digital commerce options, we’re also likely to see an increasing focus on customer experience to help “recession-proof” struggling businesses and maintain customer loyalty as retailers are forced to raise their prices. If bills continue to accelerate for retail stores, there’s a good chance the cost of common products will also rise to ensure these businesses can stay open. Unfortunately, many consumers will quickly abandon a store with rising prices.  

Fortunately, better customer service could be the answer. According to one study by Ipsos, around 70% of women and 75% of men say they’re more likely to continue buying products from brands even after they raise their prices, if they feel “valued” by the company.  

Ipsos isn’t the only group to establish the benefits of maintaining high levels of customer experience in an economic downturn either. Leading analysts like McKinsey and Forrester have found customer experience leaders have 3 times higher total returns than their counterparts during difficult periods.  

What Does the Future Hold for Retail? 

With economic uncertainty on the rise, along with business energy bills, retail companies have a number of challenges to deal with in the pipeline. However, there may still be ways for these companies to protect themselves. Embracing new forms of digital commerce and doubling down on excellent customer service will give more organisations hope for the future.  

There has never been as much choice as there is today; the world of e-commerce has ballooned, which means that there are seemingly endless options at the click of a button. The pandemic has only accelerated this trend, and, as a result, some of the best-known brands globally have seen a considerable peak in sales. For example, in September 2021, Boohoo reported a record £976 million in sales over the previous six months.  

Competition is tough, so retailers must make sure that they meet consumers’ current needs and even the future needs they don’t yet know they want. Additionally, modern customers are increasingly concerned with the environment and sustainability. Developing an offering covering all these bases is taxing on retailers’ resources, particularly for less established brands. Consequently, retailers are turning to partnerships more than ever before in order to resolve these challenges. 

Collaboration is the Key  

There are multiple benefits to partnerships that can help us manage the biggest challenges set to hit retail in the coming years:  

• Recruitment, Floor Space, and Infrastructure. 

One challenge that every organisation is up against is finding enough skilled people to facilitate the number of roles available. For example, it has been commonplace for some companies to partner with department stores or other retailers by utilising some of their store space to sell products. This means that existing staff are upskilled to be able to support a level of customer queries for partners.  

Another way to tackle recruitment challenges is to partner with an outsourcing organisation, such as DDC OS. Slight sales puns aside, outsourcing has been a huge supplier of customer services for many years, giving brands strategic insight and access to a skilled workforce, all without the pains of resources and intricacies of contact centre management.  

Back to physical retail space, despite high street struggles, we still see mega supermarkets appear on what sometimes feels like a weekly basis. Interestingly though, we are witnessing the collaboration of brands sharing floorspace (or what is known as brick-and-mortar benefits) and, in turn, footfall, infrastructure and setup costs. Take Asda and Greggs, for example, which became the first supermarket to open the bakery goods counters within its own stores. There’s no doubt we’ll see more and more of this in the coming years.  

• Technology 

The challenges of keeping up with the fluid world of technology are plain to see. The sheer cost of reimagining your tech offering every few years is enough to scare even the most established organisations – the cost of not investing is even scarier. So, to help share this burden, we see a rise in collaborations:   

Take Virgin Media and O2 – a broadband giant and a mobile giant, working together to offer customers the ultimate bundle. Rather than competing and investing huge sums to do so, together, their offering has sent ripples through the telecoms market.   

Taking a more physical view of how technology partnerships can work, we shift our gaze to the US, where Walmart and Verizon have joined forces. The 5G rollout is well underway, and what would be a costly release for Walmart in its superstores is instead handled by their mobile partner, who in turn benefits from more users and exposure thanks to Walmart’s customer base; a win-win.   

• Brand building for specific demographics. 

We have all become increasingly more aware of the impact our actions are having on the planet. For some brands, attaining a green image is a vast and costly task, yet there is hope in the shape of collaboration.  

Roll back the years, Body Shop was making waves in the cosmetics industry. By highlighting how ethical they were, they, in turn, were displaying how lacking some cosmetic firms were with their own practices (at least in the eye of the customers). Impressed by their work, L’Oréal bought Body Shop in a huge deal, in turn showing a massive investment in ethical cosmetics and gaining an existing customer base and chain of stores. Natura have of course since purchased the Body Shop brand from L’Oréal.  

Ok, maybe a buyout isn’t the best example of collaboration. But, as ‘environment’ and ‘sustainability’ continue to gain airtime in boardrooms up and down the land, we see new articles every day highlighting the latest projects and partnerships.  

Take Tony’s Chocolate – their passion for improving the supply chain in the cocoa industry is inspiring. Aldi, possibly the UK’s biggest disrupter in the supermarket game, has partnered with them by first joining Tony’s Open Chain, which facilitates their supply chain’s goal. This was then followed by launching a chocolate bar partnership with them, the first in the UK.  

So, if you’re looking to increase your green credentials and appeal to conscious customers, ask yourself, who can I partner with?  

In a post-Covid world (still an uncertainty even today), things will continue to change quickly and remain challenging, and handling this as a retailer, regardless of size, will be testing. Therefore, partnerships are more appealing than ever.  

Collaboration felt like the ideal place to conclude this short blog series. We hope you have enjoyed the topics covered; we’d love to hear your take on any of the areas important to you. Moreover, we’d love to hear about your services that will help take retail forward.  

As we continue to develop in the wonderful world of retail, we will share more thought pieces with you. Why not get involved?  

With thanks, 

Team DDC.  

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DDC OS in Retail 

AI is here and here to stay…  

With higher volumes of online shopping comes more data, which means the emergence of Artificial Intelligence. The next generation of insights is here, and their ability to create tailored customer experiences are exciting. As per DataRobot, at least 70% of retailers are expected to adopt AI in the next two years. Here’s why:  

Utilise your existing data – many retailers have data-rich processes but are yet to unlock its potential, with 2/3 retailers claiming their greatest challenge is utilising their data. The uses can be endless; from planning your upcoming promotions and when to run them to choosing your next store location, data enables you to work smarter, not harder.  

Operational excellence – what operational team hasn’t questioned what can be done better? How many hours have been spent pouring over data looking for quick wins, big wins and that extra 5%? AI is helping retailers discover three times the gains in their efficiencies, saving time, resources, and even cash. 

Increase your revenue – each element of a retailer’s processes is under scrutiny to be more cost-effective, including any investments. Thankfully, AI is proving to increase revenues up to 31%.  

The Power of Personalised Marketing  

Setting yourself apart from the crowd could be as simple as understanding your customers better. In fact, according to recent data, a massive 80% of consumers are more likely to buy from brands that offer a personalised experience. Fortunately, you can use data-driven insights to determine what it is that your customers expect and need from you.  

Inevitably, more customised content increases your marketing spend, but the added value for customers could be the difference between them spending with you or a competitor. Insider Trends offered the following insight into how retailers are creating this more customised experience:  

• Create personalised recommendations based on customers’ search histories.  
• Customise your website based on the customer profile so they can access relevant items quicker.  
• Show products suited to their sizes and tastes. (Maybe you’ve already noticed a little note on your recent shopping experiences online: ‘you usually purchase this size’).  
• Advertise on their social media feeds based on their viewing of your website.
   

The possibilities that come from social media alone are endless. Facebook IQ’s report on the next era of hybrid shopping encapsulates the power of social media platforms perfectly: ‘With social feeds increasingly curated to personal tastes, these platforms act as tailored catalogues for shoppers to find products or brands that they may never have known existed before. It works too: 84% of shoppers purchased in-store after finding or discovering the item on social media.’ 

If that list isn’t exhaustive enough, we are seeing the entire marketing mix (the 4 P’s) utilised –let’s look at the product element. Customisable products and solutions are more popular than ever. Even major global brands notorious for their consistency are offering levels of personalisation. Take McDonald’s; whilst no longer in play; they launched the “create your taste” option across restaurants worldwide, letting customers build their perfect McDonald’s burger for the first time, a great example of mass personalisation.  

We don’t have to look in great detail to find many more current options for personalisation, from designing your own football boots with Nike, editing your Moet Champagne label, and getting your name on a jar of Nutella or a Dairy Milk bar.  

On that note, we’re heading to the snack cupboard as we look towards the next instalment which focuses on the role of collaboration in the future of retail.  

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DDC OS in Retail