AI & IT systems crucial for retail success on Black Friday

Black Friday, a staple event in the retail calendar, prompts both trepidation and opportunity for retailers as they navigate the bustling shopping period.

With substantial sales at stake, the challenges of modern technology and customer engagement come to the fore. Insights from industry experts highlight the importance of robust IT systems and the emerging role of artificial intelligence (AI) in enhancing the retail experience.

Colin Crow, Managing Director at Nexer Enterprise Applications, emphasises the crucial role of reliable IT infrastructure in the frenetic weeks leading up to and following Black Friday.

He states, "An IT failure can wreak havoc for retailers without warning." This is now a scenario that major supermarkets and airlines have encountered all too often.

Crow advocates for "robust, resilient, up-to-date IT systems" paired with "responsive support" to mitigate potential disruptions. He points out that navigating issues such as warehouse inventory versus store purchases and cybersecurity threats are business-critical. Failure to address these can result in missed sales opportunities, posing significant commercial risks.

This caution against complacency in IT preparedness is echoed for cybersecurity threats as well. Retailers are urged to ensure that their systems are agile and their IT support robust enough to resolve emerging issues swiftly, thereby safeguarding sales during this crucial period.

Meanwhile, Eric Jorgensen, Vice President EMEA at Zendesk, sheds light on the evolving digital landscape, particularly the integration of AI in customer service.

As retailers gear up for one of the busiest shopping days, there is an increasing push towards technologies that enrich customer interactions and handle heightened shopping traffic efficiently.

Jorgensen stresses that, despite these advancements, consumer scepticism persists. Research from Zendesk reveals that only 10% of UK consumers plan to use AI tools during this period. This reticence is partly attributed to past disappointments, with 48% of UK consumers finding digital assistants unhelpful compared to 23% globally.

Jorgensen suggests that retailers must earn consumer trust in AI technologies to leverage their investments fully. Evaluating and standardising digital assistants to ensure they furnish accurate, relevant information is vital. The personalisation capability of AI is particularly pertinent, as nearly two-thirds of consumers expect a tailored service from AI applications. According to Zendesk, companies that embrace personalisation through AI can achieve 33% higher customer acquisition rates and 22% higher retention rates.

Educating consumers about AI's potential benefits could also bridge the trust gap. Jorgensen advocates for clear communication about how AI tools can streamline shopping, personalise experiences, and secure better deals for customers. Understanding these benefits might encourage more consumers to engage with AI tools, especially since a significant portion of consumers, 34% in the UK, express willingness to use AI for securing the best deals.

As Black Friday approaches, retailers are advised to integrate AI with human support to enhance customer service further, ensuring a seamless shopping journey. Following the event, analysing customer feedback can offer invaluable insights for refining AI systems and enhancing trust, ultimately leading to improved customer loyalty and service efficiency in subsequent events.