AI Insights
Consumers don’t trust AI to make purchases for them
Consumers are not putting their money where their mouth is - at least when it comes to AI guided purchases. A study from Omnisend found:
- 66% refuse to let AI make purchases for them, even if it promises better deals
- 38% appreciate AI’s ability to tailor recommendations
- 31% like how AI speeds up the shopping process
Customers may appreciate help from AI shopping assistants, but lack of trust in how AI handles personal data is holding them back from further use.
This may change over time. For now, leveraging AI to the level of your consumers’ comfort is the way to go.
Verizon latest to launch AI Assistant
Verizon is launching a generative AI assistant for small businesses that will handle questions over text message.
Does this sound familiar? It should, because last week I covered Meta’s new AI assistant for its social media platforms, geared toward small and medium sized businesses.
Last week I said:
“Your org may be tempted to leverage multiple AI tools… AI is supposed to help deliver a seamless experience for customers. A unified omnichannel solution, rather than fragmented tools, creates a more cohesive customer experience.” (you can go check!)
Perhaps it’s easier to see the possibility of a disjointed experience. A company may have three different external-facing chatbots or AI agent tools - one on their website, the Meta one, and the Verizon one. What happens if the different tools provide different answers, because they’re not pulling from a centralized system? Your brand makes a poor or inconsistent impression while your human agents are left to clean up the mess.
Small businesses often make it work with simpler tech tools as they have to watch their margins closely. But when it comes to AI powered CX tools, this is an area you can’t afford to get wrong.
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CX Insights
Frontier launches promo to swipe Southwest customers
Another throwback: last week, I covered Southwest Airlines’ controversial decision to end its long-standing free checked bag policy. Now, competitor Frontier Airlines is capitalizing on the moment by offering free seat assignments and carry-ons for select bookings—and even a free checked bag for summer flights. With major airlines embracing à la carte pricing, budget carriers like Frontier and Spirit are flipping the script to attract cost-conscious travelers.
CX leaders: Keep a pulse of what your competitors are doing and strike when they make a big change or outright drop the ball. Partner with your cross-functional teams internally to execute campaigns that allow you to position yourself based on a higher level of service - they just might get some buzz.
Experiential store design in beauty
This week, Bath and Body Works announced they rolled out some new store designs to attract Gen Z customers. Ulta’s turnaround plan for recovering lost market share involves leaning on the newly created chief retail officer role to streamline operations and improve the in store experience.
Experience is critical in beauty; consumers want to see, touch, and feel their cosmetics and personal care products. Gen Z prefers shopping in-store, seeing it as an experience. The brands that hone this will come out ahead.
Across industries, with the rise of e-commerce, it’s important to remember that the in store experience is even more critical. If people are coming into your store, it’s likely because they want or need to be there rather than just as a way to make a purchase.
Take a step back before you jump in with this method! AI is supposed to help deliver a seamless experience for customers. A unified omnichannel solution, rather than fragmented tools, creates a more cohesive customer experience. Avoid the pitfalls of siloed, inefficient support systems.
Golden Nuggets
Qualtrics bets its new 'empathetic' AI agents can fix customer service
11 Ways to Reduce Average Handling Time (AHT) in 2025
Why the future of customer experience demands the experience supply chain