The future of retail runs on UC: enabling AI, omnichannel and seamless CX

The future of retail is being shaped by macroeconomic trends, consumer buying behaviours, and new online spaces. William Rubio, Chief Revenue Officer at CallTower, explores these trends, highlighting the role of Unified Communications as a Service (UCaaS) in improving customer experience (CX) to address them.

From global macroeconomic headwinds to shifting consumer behaviours, retailers today face complex challenges. Many are struggling to keep up with the rapidly evolving demands these trends create.

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While the communications systems retailers use might not seem like the obvious solution, many organisations are finding that they are. Using Unified Communications as a Service (UCaaS) is helping retailers to reduce operational costs and enhance customer experience, while also addressing declining sales by capitalising on new digital-first channels.

H2: The vibes are off

UK retailers have been impacted by negative global forces for the last few years. Supply chain disruptions and inflation have contributed to price increases that have impacted consumer confidence, with three in five people saying that the UK economy is worsening, and 43% saying they are reducing spend on everyday items.

Some have called it a ‘vibecession’ – the feeling of being in a recession although we’re not currently in one. But the writing is on the wall. There is a cost-of-living crisis, and people have been worried about spending.

Like consumers everywhere, retailers need to look at their finances. They need be honest with themselves about their bottom line and how they can improve it. In many cases, this will require finding new avenues for sales, or even products. But it must also include opportunities for cost management, margin improvement, and efficiency through automation.

This is one of the first areas that UCaaS can help. The vast store of data made available through UCaaS can be analysed and used for marginal gains, while automating repetitive tasks to reroute resource to higher-value tasks will significantly improve cost efficiency.

Being honest means taking a hard look at suppliers too. Consolidation of suppliers and services can drastically reduce costs and simplify licence management. It also gives retailers who need a bit of breathing room the flexibility to scale back and align their comms costs with actual usage.

H2: The shape of buying trends and how CX can fight back

In 2024, the second-hand online marketplace Vinted had its first-ever profitable year after sales increased by almost two-thirds. At the same time, according to Nielsen IQ research, 53% of retailers expected private-label products to be their top driver of growth that year. Consumers are looking for lower-cost alternatives to the products they typically buy, whether it’s through the second-hand market or via the booming ‘dupes’ market.

How big a problem is this? Well, according to Statista 41% of consumers have purchased a dupe and would do so again, while 30% haven’t yet but would consider it. Retailers need to find ways to appeal to this significant share of their potential customers. Many are prepared to shop around if they’re not already.

One strategy is to ensure the promise of the ‘real deal’ lives up to its price point. For many, the two things clearly don’t match, so closing the gap is key. Here, again, is where UCaaS can help. By reducing costs as previously mentioned, but also by improving customer experience.

UCaaS can elevate your customer experience by integrating several communication channels, including voice, video, chat, and socials, into a consistent omnichannel service. Ideally, there will be zero friction between the channels, and agents and back-office staff will have a unified view of the customer’s data, history, and even their current sentiment. When done well, this increases first-call resolution rates and reduces handling times, which we know has a big influence on customer satisfaction. As customer satisfaction scores increase, and buyers feel confident that their issues are frequently addressed, your brand becomes dependable. For many products, coming from a dependable brand can close the gap between price and perceived value – nine out of ten consumers say trust in a brand is an important consideration, with 71% saying it’s more important now than ever before.

H2: New opportunities from UCaaS digital-first channels

Retailers who’ve being paying attention to the boom in dupes will have noticed not just a change in sales figures, but also a change in where people are purchasing products. The massive amount of dupe videos, whether on Instagram, TikTok, or YouTube is one example of the broader growth in social commerce.

Social sales are expected to more than double to reach £16 billion within the next three years, which represents another opportunity for retailers if they can integrate their social channels with their communications systems. Businesses can monitor and engage with customers directly on the platforms they spend time on, using a wealth of data from digital interactions to personalise the customer experience to provide a service that stands out from competitors.

Standing out is becoming harder, however, as personalisation is becoming an expectation. McKinsey research shows that, in online and offline channels, 71% of consumers now expect personalised interactions, and 76% are frustrated when they don’t receive them. As retailers try to keep up, those that want to differentiate themselves are turning to ‘hyperpersonalisation’. This is essentially the combination of customer data with powerful forms of AI, such as conversational AI, to create incredibly tailored customer interactions across more channels. Already this is helping retailers to increase customer loyalty and retention rates, enhance CX and differentiate themselves as a result.

H2: Moving forward

Whether customers find you on TikTok or walk into your shop, they want to feel understood. Shoppers are price-conscious and sceptical about the value of many products. And who can blame them? The economic environment has been scary for many; much more than just a bad vibe.

But when retailers bring their communications channels together, they’re not just saving operational costs – they’re creating new experiences that connect with people. By analysing data, personalising experiences, and showing customers that you understand their needs, retailers can build lasting relationships with their customers. In an era of discounts and dupes, those relationships may be what separates thriving retailers from simply surviving ones.

To find out more, visit CallTower here.