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Top Headlines In Customer Contact News This Week | 3/18/2024

The AI revolution is being televised, 'money dysmorphia' enters the economic lexicon, and customer dissatisfaction at Walmart gets tense.

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Welcome back to “Top Headlines In CX News This Week” here at CCW Digital where we’ll be handpicking and highlighting the most interesting news stories in customer contact and business just for your learning pleasure.

The official start of spring always brings about a giddy feeling that spurs change, action movement and energy in our personal lives. In the CX world, that “must move now” feeling works just the same, as this week we see job cuts, customer service fisticuffs and AI shake ups move the economic sector in new ways. As we move into yet another pandemic-conscious vernal equinox, we’re also seeing the slow winter death of some of our favorite pandemic fads. Goodbye social distance crafting, hello budget balancing…

AI Innovation Expands To More Of Customers’ Favorite Brands 

“The AI-revolution is in its early innings, but innovation and disruption are increasing dramatically,” writes Andrew Rocco for Yahoo! Finance. “For investors, it is important to track the industry climate, as often, these innovations lead to the next big stock market winners.” 

Some of the winners in recent days are popular names in the world of ecommerce, digital technology and media. Klarna, Apple, Microsoft, and Google are all in the process of advancing their AI integrations in ways the brands hope will appeal to and address customer expectations of tech-savvy products.

An example:

“Klarna’s customer service AI chat is doing the equivalent work of 700 full-time agents, is on par with human agents in regard to customer satisfaction score, has led to a 25% drop in repeat inquiries, and customers now resolve their errands in less than 2 mins compared to 11 mins previously.” 

While we already know that not all AI is created equal, those looking to cash in on the peak of automation–or learn from another organization’s failures and success–should continue to keep their fingers on the pulse in this regard, for sure. 

A Social Media PSA: Beware Of ‘Money Dysmorphia'

Social media has long gotten a bad rep for fueling body dysmorphia, FOMO, depression and more in teens and young adults. In fact, even old social media users can fall victim to these cyber risks at a time when digital is ever-growing and all-reaching.

“A prolonged period of high inflation and instability has chipped away at most consumers' buying power and confidence,” reports CNBC.

“Roughly one-quarter of consumers feel less satisfied with the amount of money they have because of social media…that can even lead some to overspend on big-ticket items such as a vacation, home renovation or luxury goods because of the pressure to keep up with the ‘digital Joneses.’"

Considering that more than half of Americans earning more than $100,000 a year say they live paycheck to paycheck, the digital disconnect between money saved and expenses shared online is making it harder for customers to get the most out of their experience (or feel like they have) whether it’s a grocery run or a few days’ vacation. 


Joann Files For Chapter 11 Bankruptcy As Pandemic Crafting Fizzles Out

Long gone are the days of trying every craft imaginable to entertain ourselves during lockdown: according to the Associated Press many consumers “are now sacrificing these artsy activities to spend money on experiences outside of the house, such as going out to eat or attending sporting events.”

After these changes over the years, Joann’s Fabric is feeling it with over $2.44 billion in total debts. The brand, citing numbers from October 2023, filed for Chapter 11 bankruptcy on the heels of a steep drop in sales especially as competitors like Dollar General, Hobby Lobby, Michael’s and Target are also edging. 

As we’ve newly discovered with “money dysmorphia,” customers don’t just want more bang for their buck–they want to know that they actually really are saving money or spending it on post-worthy experiences that confirm that they aren’t in all that much economic strife. 


Walmart CX Ends In Arrest, Highlights Trend Of Customer Service Strife

No-cutsies is something we all took seriously in childhood, but some adults are taking that meaning to the next level. According to court documents, a woman was arrested in Fargo, North Dakota for allegedly attempting to stab another woman in line for customer service at a local Walmart.

“The victim allegedly said she was saving a spot in the customer service line for a family member but then found them further in the line,” reads the report  “When the victim went to be with them, another woman started making comments and racial references and continued her racial comments while waving something in the victim’s face. The victim said the woman pulled a knife out and tried to stab her, before the victim ran away.” 

Now, we all know that the customer service or return lines at stores like Walmart can be long, move excruciatingly slowly, and drive any person to the point of anger or agitation–especially when someone jumps in front of them. However, instances of violence and aggression from customers and agents in-store have been mounting.

Earlier last month CCW Digital reported on a shooting that occurred in a Dunkin’ Donuts, and customer horror stories have been circulating since the pandemic began. CS teams that have trained their employees on de-escalation tactics may want to double down, especially when it comes to in-person customer engagement.

Unilever And Ben And Jerry's (Banana) Split To Streamline Brand Management

Were you today years old when you learned that Ben and Jerry’s parent company is–well, was–Unilever? Yes, the same brand that encompasses Hellman’s mayonnaise, Dove beauty products, Seventh Generation cleaning products. It turns out that B&J’s, Breyer’s, Magnum and Talenti are all under the Unilever umbrella along with other non-dairy products like Vaseline and Peposdent.

As we can see, there is a lot going on in the Unilever universe, hence why this week the brand announced it would cut 7,500 jobs and spin off its ice cream unit, which includes Ben & Jerry’s, to reduce costs and simplify its portfolio of brands.

The New York Times notes that “the ice cream division faced the highest input-cost inflation in Unilever’s portfolio last year, the company said in an earnings report last month. It passed on some of those costs to consumers, prompting them to buy less or switch to cheaper brands, leading to a ‘disappointing year with declining market share and profitability,’” according to the brand. 

As more companies gain hope that customers will assume the cost differential of production for name-brand goods in a competitive market like ice cream, other lesser-known brands are finding success in being the good-enough alternative that satisfies a consumer sweet tooth without breaking the bank. 

Photo by @jpvalery on Unsplash.

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