25th June 2024

5 Real Life Use Cases for Retail CX

Customer experience (CX) in retail has undergone a significant transformation in recent years, primarily driven by the explosive growth of eCommerce. Customers now have heightened expectations regarding service and convenience, influencing their loyalty and shopping behaviours.

Here, we explore five real-life use cases demonstrating how improved customer experience can enhance retail operations.

1) Where is my order?

WISMO, or "Where is my order?", is a common inquiry in retail, accounting for over 35% of customer service calls. This issue becomes more complex when third-party carriers are involved. According to a survey by Royal Mail and IMRG, over 80% of customers expect tracking updates directly from the seller, not the carrier.

WISMO inquiries along with WIMR (Where is my return?) can be costly for retailers, both in terms of customer service resources and customer satisfaction. Each WISMO call costs an average of €5.50 to resolve, adding up quickly for businesses handling thousands of orders monthly. Furthermore, poor handling of these inquiries can lead to a loss of customer loyalty, with 85% of consumers indicating they would stop purchasing from a retailer after a poor delivery experience.

Integrating solutions like Twilio Flex with e-commerce and delivery management platforms can significantly reduce WISMO issues by providing real-time tracking, offering AI-powered self-service through chatbots, and proactively engaging customers with delivery updates. This approach meets the preferences of the 67% of people who favour self-service for tracking their orders. By automating these processes, retailers can ensure timely and accurate information delivery, thereby enhancing customer trust and loyalty.

2) Marketing promotions

SMS marketing remains a powerful tool for retail customer engagement. With a high open rate, SMS messages are a direct and effective way to reach customers. Platforms such as Twilio enable retailers to send SMS at volume for various purposes, including promotional discounts, onboarding messages, and seasonal campaigns.

These SMS campaigns can include interactive elements where customers can interact and reply directly to the messages. Responses can be managed through automation, AI or by live agents, ensuring customer queries are addressed promptly. For instance, onboarding messages can guide new customers through their first purchase, while reactivation campaigns can encourage previous customers to return with special offers. Ongoing and seasonal promotions can keep customers informed about new products and sales, driving engagement and boosting sales.

Moreover, customer loyalty campaigns can be tailored to reward frequent shoppers, further strengthening their connection to the brand. The ability to personalise these messages ensures that customers receive relevant and timely information, enhancing their overall shopping experience.

3) Introduce more self-service options

Expanding self-service options can significantly improve customer experience in retail. Modern consumers prioritise speed and ease and providing them with initiative self-service tools meets these expectations. AI-powered chatbots and online portals can handle a wide range of inquiries, from product information to order tracking and return processes.

By implementing self-service options, retailers can reduce the burden on their customer service teams, allowing them to focus on more complex issues that require human intervention. This not only improves operational efficiency but also speeds up response times for customer queries. For example, a well-designed chatbot integrated into the retailer's website can provide instant answers to common questions, reducing the need for customers to make phone calls or send emails.

Additionally, self-service portals can be used to facilitate returns and exchanges, providing customers with a hassle-free experience. Automated systems can guide customers through the return process, generate return labels, and provide updates on the status of their return or refund. This level of convenience is crucial in today's competitive retail environment, where customer satisfaction is key to retaining loyalty.

4) Customer loyalty

Loyalty programs are a proven way to enhance customer experience and drive repeat business. By offering rewards and incentives, retailers can encourage customers to return and make more purchases. Modern loyalty programs go beyond simple point-based systems, incorporating personalised rewards and exclusive offers.

For example, a tiered loyalty program can provide increasing benefits as customers spend more, encouraging higher spending levels. Personalised rewards, such as birthday discounts or early access to sales, make customers feel valued and appreciated. Additionally, integrating loyalty programs with mobile apps allows customers to easily track their points and rewards, enhancing convenience and engagement.

One significant advantage of modern loyalty programs is the ability to recognise whether a customer is new or returning and route them appropriately. This recognition allows for tailored interactions that enhance the overall customer experience. For new customers, personalised welcome messages and introductory offers can create a positive first impression. For returning customers, acknowledging their loyalty with exclusive offers and early access to new products can strengthen their connection to the brand.

5) Data-driven opportunities

Being data-driven is essential for retailers to make informed decisions, optimise operations, and enhance customer experiences. Twilio Flex Insights provides comprehensive visibility into customer interactions, offering valuable insights into shopper preferences and behaviours.

The platform enables real-time monitoring of key performance indicators (KPIs) such as average handling time, call resolution rates, and customer satisfaction scores. This helps retailers identify inefficiencies in their operations and improve service quality. It also supports data-driven decision-making, enabling better inventory management and resource allocation based on demand forecasts.

By segmenting customer data, Flex Insights facilitates personalised marketing and targeted promotions, enhancing customer engagement and loyalty. Retailers can tailor offers and communications to specific customer segments, improving the overall shopping experience. In summary, Twilio Flex Insights empowers retailers to harness data effectively, stay competitive, and meet customer needs efficiently.

Twilio Flex and amazing customer service go hand in hand

Improving customer experience in retail is not just about meeting customer expectations but exceeding them. By addressing common issues like WISMO, leveraging SMS marketing, introducing self-service options, personalising shopping experiences, enhancing loyalty programs, and being data driven, retailers can significantly enhance customer satisfaction and loyalty. Investing in these strategies ensures customers have a positive and memorable experience, driving repeat business and long-term success.

It's important to note that Twilio isn’t about ripping and replacing your existing systems. No huge overhaul is needed. Instead, Twilio connects all your data points to create a single customer view, providing a "single pane of glass" for customer service teams. This unified view allows your team to access all relevant customer information in one place, enhancing efficiency and service quality.

Twilio also enables you to easily add new communication channels, ensuring you can provide a true omnichannel experience. Whether through SMS, chat, email, or social media, Twilio’s flexibility ensures your customers can interact with you through their preferred channels, enhancing their overall experience and building stronger, more loyal customer relationships.