Category: CX

  • Personalized: Customer Strategy in the Age of AI

    On the final episode of 2024, Natalie is joined by authors Mark Abraham and David Edelman to discuss their new book, Personalized: Customer Strategy in the Age of AI.

    📺 This episode is also available as video, so head over to the new Retail Disrupted channel on YouTube to watch the conversation unfold.

    David, Mark, and Natalie discuss how customer expectations are evolving in this digital era, why businesses often get stuck and don’t go far enough when it comes to personalization, and how generative AI will unlock new real-time personalization opportunities for retailers and brands.

    More on the authors:

    David C. Edelman has a history of personalization work spanning three decades. Today, he is a Senior Lecturer at Harvard Business School, an executive advisor and board member to brands and technology providers, and an advisor to BCG. Forbes has repeatedly named him one of the Top 20 Most Influential Voices in Marketing, and Ad Age has named him a Top 20 Chief Marketing and Technology Officer. Together with Mark, David wrote the 2022 Harvard Business Review article (Customer Experience in the Age of AI) that inspired this book.

    Mark Abraham is a Senior Partner at BCG and the founder of the firm’s Personalization business, which he has built into a global team of more than 1,000 agile marketers, data scientists, engineers, and martech experts. Mark’s teams have accelerated the personalization efforts of over 100 iconic brands (e.g., Starbucks, Home Depot, and Google) and built some of BCG’s largest ventures and AI platforms, including Fabriq for personalization. Mark now leads BCG’s North American Marketing, Sales & Pricing practice.

    About PERSONALIZED

    “In a world where consumers expect more—instantly, seamlessly, and the way they want it—personalization is a strategic imperative.”

    Research shows consumers want personalized experiences. A select few companies are rising to the challenge by building trusted relationships through digital channels. They engage with customers throughout their journey and tailor interactions using AI and technology. Most companies do not personalize well, wasting money and effort. Personalization must be a strategic priority. Personalized outlines the Five Promises companies must fulfill: Empower Me, Know Me, Reach Me, Show Me, and Delight Me. With examples across industries, PERSONALIZED helps executives put personalization at their strategy’s center to accelerate growth and capture their share of the $2 trillion personalization prize.

    Thank you to the Retail Disrupted community for an amazing year! Enjoy the festive break and see you in 2025.

    Find out more about the Retail Disrupted Podcast by visiting retaildisrupted.com

  • What Retailers Can Learn From the Navy Exchange

    Rich Honiball is the EVP and Global Chief Merchandising & Marketing Officer for NEXCOM (Navy Exchange Service Command). He joins Natalie on the podcast to discuss:

    • The unique role of military retail, the importance of having a clear mission, and other lessons for traditional retailers.
    • Learnings from the launch of the world’s first Toys R Us department on a military base.
    • Self-checkouts, frictionless experiences, and the importance of customer choice.
    • The power of community and how Gen Z shoppers are redefining store experiences.
    • Why retail was an “accidental career” for Rich and how he hopes to encourage the next generation of retail leaders in his role as adjunct instructor at George Mason University. 

    What is NEXCOM?

    Since its inception in 1946, NEXCOM’s mission has been to provide customers with quality goods and services at a savings and to support Navy quality of life programs.

    NEXCOM’s six primary business lines include the Navy Exchange (NEX), NEXCOM Hospitality Group, Ships Store Program, Uniform Program Management Office, Navy Clothing and Textile Research Facility and the Telecommunications Program Office. Each of its business lines provide the necessary support for the Navy’s warfighters and military families to remain ready and resilient.

    Bio:

    Rich Honiball combines executive leadership, strategic development, and consumer insights as EVP, Global Chief Merchandising & Marketing Officer for NEXCOM, overseeing merchandising and marketing efforts for a $2+ billion global enterprise offering retail, services, food & hospitality. Before NEXCOM, Rich founded PDB Advisory Group & the Brand(Co)Lab, advising CEOs on purpose-driven marketing strategies and brand development. His executive roles at Haggar and JCPenney involved building world-class teams, strategic development, brand growth, and corporate refresh initiatives. He shares his extensive retail and consumer behavior expertise as an adjunct instructor at George Mason University. Rich is an MBA graduate from William & Mary and a BS in Marketing from SNHU. Rich is dedicated to mentoring and has served on several educational and nonprofit boards. Rich is honored for his retail expertise by Rethink Retail, innovative marketing by the CMO Club, and as an ONCON ICON Top 100 Marketer, and he continues to influence the industry while traveling the world.

    Links:

    Connect with Rich on LinkedIn

    Listen to Rich’s Retail Relates podcast

     

    Find out more about the Retail Disrupted Podcast by visiting retaildisrupted.com

  • Relentless Momentum: What I Learned From the Retail Leaders

    Paid Partnership with PMC

    Last month, I had the opportunity to attend PMC’s annual customer event, Relentless Momentum. This was held at Silverstone Museum, an apt venue for a room full of retailers discussing the importance of speed and transformation in an ever-evolving landscape.

    We heard from senior leaders like Nick Beighton, former CEO of ASOS and Matches, Paul Edney, Technology Director, Channels at Primark, Jeanette Copeland, Technology Director at Ann Summers, and Cecile Delforge, Associate Director, Systems Development at the AELTC/Wimbledon.

    The PMC event took place at Silverstone Museum.

    It was an inspiring day, rich with insights and lively discussions about how stay relevant in this digital era. In this post, I’m bringing you the top takeaways and I’d also recommend you check out my podcast episode, Digital Transformation Lessons with Primark and Ann Summers, for a more in-depth discussion.

    Always start with the customer

    It sounds like an obvious one, but retailers must ensure they’re putting the customer at the heart of their strategies. When Beighton was the CIO at Matalan, he would ask himself three questions whenever considering any technology investment: “What’s it going to do for the customer? What’s it going to do for the business? And how much is it going to cost?”

    Ex-ASOS and Matches CEO Nick Beighton is interviewed by PMC CEO Richard Lowe.

    You need to start with the customer, identifying points of friction and opportunities to enhance the experience, and then work backwards from that. As Primark’s Edney said: “Technology enables business change; it doesn’t lead change.”

    Be clear on purpose

    It all begins with what Beighton refers to as the inspiration layer. “You have to be purpose-driven, mission-led, and governed by values,” he said. “If you haven’t got that, or clarity of it, what have you got? Your organization is transactional. And if you have a transactional internal culture then you have a transactional external culture, and customers get it.”

    Primark’s Edney struck a similar tone when advising retailers to consider: “What makes you special? How do you differentiate? What’s beneficial for you and your customers?”

    Embrace continuous evolution

    The only constant in retail is change. Retailers must ensure their businesses are structured in a way that allows them to dynamically respond to such relentless change.

    Ann Summers’ Copeland shared three important digital transformation tips for retailers: “Keep these projects simple. Keep them short to remove fatigue. And know that it’s going to change. Rarely in technology do things last that long,” she said.

    All of the speakers stressed the importance of adopting a test-and-learn approach. Primark’s Edney argued that, although retailers need a long-term vision, it’s impossible to do everything at once. “The way to deliver at pace is to deliver in increments. It’s like a large conveyor belt of change which we ran for two years. We learned over time that the longer it takes to deliver something, the less value it can bring because it’s either outdated or the market has changed or [consumer] perception has changed.”

    Beighton shared how, during his time at ASOS, embracing a WAgile (Waterfall + Agile) approach allowed the business to maintain some control while still being able to quickly respond to changes. “Every day is a work in progress. If you’re not fixing something every day, then you’re not moving the business forward,” he said.

    Understand the need for speed

    Given our proximity to the home of the British Grand Prix, it would have been remiss of us not to talk about speed. “Connectivity and speed of service is key for our customers,” AELTC’s Delforge said. And that’s understandable given the daily Wimbledon queue can reach 10,000 people! She discussed how transitioning to mobile ticketing, including resale, has helped to streamline queuing and improve the overall guest experience.

    Jeanette Copeland, Ann Summers’ Technology Director, shares digital transformation lessons.

    Copeland, meanwhile, shared how Ann Summers, completed a 12-month digital transformation project in just four months. Despite implementing a best-in-class integration platform, Ann Summers encountered significant issues, including underutilisation, difficulties in hiring and retaining experienced developers, and high operating costs. “You know that kitchen drawer that everyone has that’s got all the cables and cellotape and fuses in it? We kind of pulled it all out, straightened it up, and put it back in there.”

    The result? A more cost-effective and efficient solution that delivers better business outcomes.

    Ignite cultural change

    The most successful retailers understand the importance of bringing your people with you on any digital transformation journey. At ASOS, Beighton instilled a values-driven culture where employees were encouraged to always be authentic, brave, creative, and disciplined. As CEO, he would meet all new starters every Wednesday at 4:30pm, encouraging them to ask him questions.

    “Smart people understand that influence scales whereas control is finite,” Nick told the room. He argued that businesses should focus more on outputs than inputs.

    Edney also shared how Primark’s culture has evolved since embarking on its digital transformation journey four years ago. “It was never a one-off. It was a new way of working. It was all about a new ethos, a new culture.”

    Never too late to innovate

    There is no standing still in retail. As we’ve already touched on, customer centricity and perpetual innovation are key pillars for any winning retail strategy.

    That said, not everyone can achieve first-mover advantage and there is value in being deliberately late, whether that’s Primark launching click & collect or the digitization of Wimbledon. Early adopters don’t always win.

    As AELTC’s Delforge said, “We never stop innovating but we’re never going to be the first to do something. We are risk-averse and prefer to deploy proven technology.”

    That’s especially understandable in Wimbledon’s case. As one of the most-watched sporting events in the world, broadcast to over 200 territories, there is absolutely no margin for error.

    For more information on PMC, visit: PMC – Technology Services for Commerce | IT Support and Services

  • Decarbonising Deliveries

    Murvah Iqbal, co-CEO and co-founder of HIVED, is on a mission to revolutionise the delivery industry. Founded in 2021, the all-electric delivery start-up has already distributed millions of parcels across London for major brands including ASOS, Uniqlo, Nespresso and Zara, and is backed by investors like Maersk Growth, Pale Blue Dot and Planet A Ventures.

    In this episode, Murvah shares her entrepreneurial journey, which began when she took over marketing and branding for her uncles’ fast-food chain at just 15 years old. She discusses the importance of decarbonisation in retail and how HIVED’s “sustainability-as-standard” approach differentiates them from competitors.

    Murvah also shares her views on the evolving expectations of consumers, particularly Gen Z, when it comes to delivery, how to address some of the legacy challenges of the final mile, and what regulatory changes she’d like to see to support the growth of green delivery. Murvah and Natalie also discuss the need for collaboration within the industry and the role of technology in improving delivery efficiency. 

    Connect with Murvah on LinkedIn.

    Find out more about the Retail Disrupted Podcast by visiting retaildisrupted.com

  • Marketplaces are the New E-Commerce

    Marc Vicente, Group Digital Director at Kingfisher, joins Natalie for a comprehensive discussion around e-commerce, AI, marketplaces, retail media, and more.

    They explore:

    • Why omnichannel retailers are now embracing the marketplace model
    • The role of physical stores in e-commerce
    • Innovative partnerships: Deliveroo and the importance of speed
    • The significance of Black Friday for Kingfisher and why it starts earlier every year
    • Retail media: monetizing the marketplace and understanding the 3 stages of retail media implementation
    • From chatbots to personalized recommendations and visual search, how is Kingfisher enhancing the customer experience with AI?
    • The future of retail: what is Marc most excited about for 2025 and beyond?

    Marc’s bio:

    Marc leads the digital transformation and oversees the strategy and operations at one of the largest home improvement retailers in Europe – which has 82,000 colleagues across 2,000 stores in eight European countries, and a number of retail banners including B&Q, Screwfix and Castorama. Before Kingfisher, Marc spent 15 years delivering disruptive technology-based growth in senior international roles such as Chief Operating Officer and Executive Officer at Rakuten Europe and Chief Operating Officer at Cdiscount.com, the French e-commerce leader.

    Connect with Marc on LinkedIn. 

    Find out more about the Retail Disrupted Podcast by visiting retaildisrupted.com

  • Stop Making Customers Think in Channels

    Paid partnership with Manhattan Associates

    At the recent Manhattan Exchange in Barcelona, Natalie had the opportunity to sit down with Pieter Van den Broecke, EMEA Leader, Supply Chain Commerce Strategies, at Manhattan Associates. They discussed opportunities with AI, rethinking the post-purchase experience and achieving a truly unified commerce offering.

    AI isn’t exactly a recent development. Why all the hype now?

    You’re right. In fact, during World War II, artificial intelligence was used to mobilise troops!

    Retailers have used AI for decades to help them make decisions in a world of constraints. A machine can only produce 100 bottles of champagne in an hour. A ship moving goods from China to the port of Barcelona takes three weeks. Retail operations are all about fulfilling demand to the consumer, while dealing with many real-life physical constraints and uncertainty. AI helps businesses to work around those constraints and make sure that the right product is getting into the hands of the right consumer at the right time.

    Generative AI is, of course, what’s new. By providing insights based on collective memory, Gen AI helps operational engineers to design the right solutions for the business. Gen AI can assist in building solutions by taking over configuration tasks, testing, and even coding certain elements of the system.

    Pieter Van den Broecke, EMEA Leader, Supply Chain Commerce Strategies, Manhattan Associates

    I can see how Gen AI drives operational efficiencies for retailers. But how does it improve the experience for the customer?

    When we talk about the online customer experience, we’re really referring to the “order and fulfilment experience”. When customers change their minds or when things go wrong, they want an immediate solution and ideally through self-service. This is where Gen AI comes in. Gen AI chatbots, for example, can deal with very complex queries in real-time. A customer simply needs to say, “Hey, I placed an order a week ago and I’m still waiting on delivery.” Or “Remind me what items I ordered again – was it a blue shirt or a red shirt?”.  So it’s very natural, personalised and, most importantly, it’s contextually and factually correct.

    In those cases where the Gen AI chatbot can’t solve a customer query, a conversation summary is produced and passed on to a real human being. This allows the customer support team to continue the conversation without having to go through the questions again, saving both the retailer and customer time.

    Let’s talk about the post-purchase experience. What are the benefits of allowing customers to modify their online orders?

    Sometimes we change our minds and need to cancel or change an order. By facilitating late order cancellations, ideally before the order has been shipped, the retailer is firstly improving the experience for the customer by removing the need for a return and also by being refunded immediately. The retailer benefits by keeping the product in stock and commercially available, plus the delivery (and potentially return) costs are eliminated. And of course, it’s a more sustainable way of retailing if we don’t have to deliver something that would ultimately be returned. It really is a win for the consumer, a win for the planet and a win for the retailer.

    What exactly do we mean by unified commerce and can you give us an example?

    Unified commerce is putting customers at the centre of the retail brand experience. Customers don’t want to think in channels and retailers shouldn’t be forcing that on them, but it still happens too often today.

    As a retail organisation, it’s critical to really think from the ground up with a unified commerce mindset. You have to embrace technology with your heart and mind. It’s not an afterthought. Your digital core has to be strong, at any level of the organization, and with the consumer in the centre.

    You might have heard about a concept called Omnicart, which is a shopping basket that can be filled digitally. If you opt to collect the goods in-store, that digital shopping basket then becomes a physical one, unifying the customer’s journey. This means that orders initiated in any channel can be completed, returned or exchanged in any other channel, and it also gives store associates greater upsell/cross-sell opportunities.

    There’s a huge opportunity to unify promotional activity here. Traditionally, promotions have been very channel-specific but technology is breaking down those silos. So, if a customer sees a 10% discount online for an item, this can also be applied to an in-store purchase along with any other discounts on different items. I think this is a really nice example of stretching people’s minds on what unified commerce can look like in practice.

    In one sentence, what is the most important thing that retailers can do after reading this?

    Identify the biggest friction that you create for your customer and start addressing this immediately.

    This is an abridged version of Pieter’s interview with Natalie on the Retail Disrupted podcast. Listen to the full episode here.

  • Digital Transformation Lessons with Primark and Ann Summers

    Paul Edney, Technology Director Channels at Primark, and Jeanette Copeland, Technology Director at Ann Summers, join Natalie to discuss lessons from their digital transformation projects. They explore:

    • The rationale behind Primark’s click & collect roll-out and how it’s enabling the retailer to engage with new customers.
    • How Ann Summers completed a 12-month transformation project in just four months.
    • 2025 strategic priorities for both businesses.
    • Working backwards from the customer, testing and learning, embracing failure – how digital transformation requires cultural change.
    • The importance of speed to market while balancing cost and flexibility. Is WAgile (waterfall + agile) the new way of working?
    • From virtual sizing tech to in-store payment innovation, which technologies are the retailers excited about for the future?

    Today’s episode is sponsored by PMC and was recorded live at the PMC customer event at Silverstone Museum. 

    From supporting end-of-life legacy systems through to providing the latest digital retail solutions, PMC helps you take control of your technology and drive your own agenda. PMC has proudly supported the commerce sector for over 20 years, and our specialist domain knowledge, experienced teams, and proactive approach makes us the partner of choice for delivering customer-centric transformations. For more, visit PMC. 

    Bios:

    Paul Edney, Technology Director Channels, Primark
     
    Paul is a senior IT leader with 20+ years of experience, specialising in retail, ecommerce, and transformation. He excels at crafting strategies that enhance customer experience and operational efficiency. As Technology Channels Director at Primark, he leads global tech initiatives, overseeing system integrations, re-platforming, and business transformation to drive growth and innovation.
     
    Jeannette Copeland, Director of Technology, Ann Summers
     
    Jeannette leads the technology division at the iconic Ann Summers brand, spearheading digital innovation since 2022. With over 20 years of experience in IT, she has held key roles at Joules and Systemax Europe Ltd, specialising in ERP, data integration and business intelligence.

    Find out more about the Retail Disrupted Podcast by visiting retaildisrupted.com

  • From Cinnabon to Carvel: How GoTo Foods is Driving Global Growth

    Dave Mikita is the President of International and Retail Channels at GoTo Foods (formerly Focus Brands). He joins Natalie on the podcast to discuss how GoTo Foods has grown to become the world’s #2 food & beverage licensor and what the company has in store for the future. They explore:

    • Beyond buying power, what are the benefits for franchise partners? Dave discusses how GoTo Foods provides support on consumer insights, site selection, supply chain, new product development, menu innovation and more.
    • How the GoTo Foods franchise model differentiates overseas.
    • Bricks and mortar reinvention – how GoTo Foods is repurposing its QSR and fast-casual places.
    • The symbiotic relationship between bricks & mortar locations and licensed retail products on grocery shelves.
    • How to drive global growth while remaining locally relevant (from offering rolls with less sugar in Cinnabon Japan to cream cheese-filled pretzel sticks at Auntie Anne’s in Hong Kong!)

    GoTo Foods is the owner of seven iconic brands: Auntie Anne’s, Carvel, Cinnabon, Jamba, McAlister’s Deli, Moe’s Southwest Grill, and Schlotzsky’s. For more, visit: www.gotofoods.com

    Bio

    Dave Mikita is the President of International and Retail Channels at GoTo Foods (formerly Focus Brands). In his role, Dave leads both the Company’s Retail Channels business as well as its International Franchise business unit. The company’s Retail Channels business, currently ranked as the #2 Food & Beverage Licensor in the world, drives over $1.5 billion in retail revenue globally, and the International Franchise business includes over 2,000 franchised locations operating in 60+ countries.

    Prior to this role, Dave served as the President of Retail Channels, bringing over 20 years of operations, marketing and business development experience in both Retail and Foodservice Industries. Dave has been at GoTo Foods (previously Focus Brands) since 2012, assuming increasing levels of responsibility within the Retails Channels team, and in 2017, he assumed complete responsibility for all functions of the business unit while leading the group to double-digit growth.

    Before GoTo Foods, Dave held leadership roles at The Coca-Cola Company, The Home Depot, and several early-stage, high growth businesses. Dave received his undergraduate degree in Industrial Engineering from The Pennsylvania State University and his Master’s in Business Administration from The University of Virginia. He resides in Atlanta with his wife and three children.

    Connect with Dave on LinkedIn.

    Find out more about the Retail Disrupted Podcast by visiting retaildisrupted.com

  • Gen AI’s Impact on Customer Service

    Paid partnership with Manhattan Associates

    Last week, I travelled to the beautiful city of Barcelona to attend Manhattan Exchange. This is Manhattan Associates’ annual European conference and always a great opportunity to hear directly from some of the region’s biggest retailers and brands. So what stood out for me this year?

    There were a few distinct themes that permeated throughout the event – unification of physical and digital commerce, store employee empowerment, and the need for both retailers and technology companies to continue to “shatter the status quo”, in CEO Eddie Capel’s words.

    But what really sparked my interest was learning more about generative AI’s impact on customer service. Real-time responsiveness is very much a trend to watch for 2025. Here are my top takeaways:

    • Retailers are increasingly comfortable experimenting with gen AI but most of the use cases that we talk about today are centred on e-commerce operations – writing marketing copy, coding, creating images, etc. So, it was interesting to hear how European retailers are now encouraging staff to use gen AI in-store. Using voice, rather than text, this enables store associates to quickly identify solutions and better serve the customer. Expect a whole lot more of this in the coming months.
    • There was a clear consensus that AI chatbots in their current form (ie. not the gen AI kind) are an abominable experience for the customer. They often spit out generic or irrelevant information, or redirect the user elsewhere, all of which lead to customer frustration and potentially lasting brand damage.
    • Gen AI chatbots, meanwhile, are going to be a gamechanger. This next iteration of the chatbot, like Manhattan Active Maven, can resolve more complex issues. For example, instead of just asking “Where’s my order?”, customers can ask things like: “What size was that polo shirt I ordered last year?” or “Remind me how much tax I paid on that purchase.”
    • One of the top reasons customers get in touch with a contact centre is because they forgot to add a discount code at the checkout. This can be quickly resolved by a gen AI chatbot. Similarly, if a customer changes their mind after making a purchase – for example, they want to modify or cancel the order or alter their fulfilment method – this is another easy task for gen AI that benefits the retailer, customer, and planet.  
    • Traditional chatbots can handle between 20-30% of inbound customer queries without any human intervention. With gen AI chatbots, this rises to more than 50%, freeing up staff time to focus on more valuable tasks like upselling or dealing with more complex customer issues.
    • Gen AI chatbots will drive efficiencies and improve the customer experience, but they won’t replace humans. For example, gen AI will draft an email for a contact centre employee to send to the customer following an interaction, but the employee can tweak this and must sign it off before sending. Similarly, the tool will generate post-interaction notes, saving employees another 45-50 seconds each time. 

    • However, sometimes no AI is needed at all, and customers just want a human – albeit one that is still very much tech-enabled. We heard how a major European retailer allocates a QR code to each store employee, allowing shoppers to scan the code and continue the conversation with that member of staff after leaving the store. Now, as Green Retail World editor Ben Sillitoe pointed out on my podcast recently, we might not be rushing to scan the QR code of staff at our supermarket checkout, but for those more considered, bigger-ticket discretionary purchases (think fashion, beauty, luxury, home, electronics) this is exactly the kind of innovation retailers should be pursuing.

    For more on Manhattan Associates, visit www.manh.com

  • Gen AI Chatbots, Empowering Staff and Sustainability

    Live from Barcelona, Green Retail World’s Editor Ben Sillitoe joins Natalie on the podcast to share what they learned at Manhattan Exchange this week. They explore how generative AI chatbots are going to revolutionize customer service, why the days of frontline staff being told to “sell, not think” are over and what sustainability looks like for retailers in 2025.

    If you missed the episode with Manhattan Associates’ Pieter Van den Broecke, you can catch up here.

    Links:

    Manhattan Associates
    Green Retail World

    Find out more about the Retail Disrupted Podcast by visiting retaildisrupted.com