comment When I was in Los Angeles last week, two issues dominated the local media. A nascent winter storm — bringing snow back to Southern California after more than 30 years — and the rapid rise of Generative Artificial Intelligence. The latter not only shook Silicon Valley to its foundations, but also the trading floors of Wall Street. Because the expectations of this "chic piece" new technology are quite high.
Many experts see her as the "game changer", which will fundamentally change the balance of power between the tech giants, between tech companies and nations, but also our everyday social actions. The traditional service sectors in particular – including retail – are already seeing the storm brewing. The powerful “convenience platforms” – like Amazon, Google and even Microsoft – have a superweapon in hand and the battle for consumers’ favor is about to begin.
Like a true sci-fi movie, people will be able to use intelligent chatbots and virtual assistants to communicate their desires for the day as soon as they get out of bed, or even the shopping lists autonomously from these intelligent bots fill it out without even thinking about it. Consumers will soon disappear completely from the retailer’s field of vision. So how do you then get customers into your (physical) shop or into your shopping street? By making skillful use of human qualities.
The great comfort shift: silent but predictable
While it doesn’t seem like much is changing yet, it’s fair to say that something very profound is going on under the radar. You should be prepared for this. We’ve already seen how digitization – with online shopping in its wake – has torn holes in our malls. Now another dimension is added to this digitization: the imitation of human intelligence – only faster. It is also called artificial intelligence (AI). Though AI has been with us for a while – to dictate what ads we see on social media or how creditworthy we are with the bank – companies like OpenAI (in collaboration with Microsoft) have now developed a smarter version, called generative AI . While normal AI programs are designed to recognize patterns and make targeted predictions, generative AI is a special category that can itself generate completely new content in the form of text, images or audio. Last fall, we were introduced to ChatGPT, which creates a comprehensive or summarized answer, composes poetry, or writes complex essays. Before that, we were also able to marvel at the creative visualizations by Dall-E. Dall-E, also an OpenAI generative AI, is a text-2-image tool that maps text input in a specific style and shape.
Generative AI is primarily associated with internet search (information retrieval) today, but it will soon find its way into other applications as well. Think of a virtual voice assistant that will help you as an e-stylist update your wardrobe while you speak. He recommends you outfits based on your taste and the new trends. Or order that one outfit you previously saw on TikTok or Instagram, have it adjusted if necessary, and have a courier deliver it to wherever you are. All of this is done in a smooth and fluid process that does not require you to personally intervene, but is done with your consent. In short: convenience in every respect.
That’s what we "The Big Convenience Shift" name: All the previous services and counters that were necessary to put you, the consumer, in physical contact with a new pair of trousers or a new dress have completely shifted to a convenience platform, i.e. completely into a smart convenience Solution integrated, which is also fixed within a contact moment. This saves time, effort and possibly money. Because that’s what convenience platforms are all about: saving consumers money, time and effort. The current generations of generative AI tools are not yet ready to do their jobs smoothly and without errors, but experts assume that they will be in a year or two. Analysts from management consultancy PwC predict that AI will give the global economy a $15 trillion boost by 2030. That’s a number with 12 zeros!
And while convenience platforms save us time, money, and energy in meeting certain needs, consumers will in turn want to spend those funds on other needs, such as entertainment. The younger generations in particular are turning to the Experiences market these days. According to ChatGPT, the market for experiences will grow to over $12 trillion by 2030, which has also been confirmed by other market research institutes such as Euromonitor and Allied Market Research and is in line with expectations. And in entertainment, the need for real (inter)human activities is particularly central.p>
Experience in pedestrian zones and shopping centers
Meanwhile, I read in the Dutch media how our local shopping centers are struggling with declining footfall, especially medium-sized shopping centers. Even in big cities, some well-known shopping streets – like the Leidsestraat in Amsterdam – are having problems with declining footfall. This is contrasted by the great successes of The Mall of The Netherlands and Hoog Catharijne in Utrecht in terms of visitor numbers. In all these malls, entertainment plays an important role in the mix of facilities. This is also the case in the Westfield Century City Mall in Los Angeles, also from the Unibail-Rodamco-Westfield Group, which is behind The Mall of the Netherlands and Hamburg-Überseequartier. There is a beautiful mix of retail, gastronomy, entertainment, sport and lifestyle in this stunning architectural concept. These include an impressive theatre, pop stage, botanical lounge areas, hip restaurants, sports clubs, chain retailers, boutiques and concierge services.
All of this guarantees several hours of pure entertainment, while spreading your time, money and efforts over all these meeting places as much as possible. The mall is a real destination. And in doing so, they have a clear profile for their target audience. The entertainment and dining options exude a hip vibe, complemented by a businesslike tone — concierge in suits and shortcuts in route planning — to ensure a seamless experience for visitors from the nearby business district.
Even mid-sized malls can spice up a physical visit with entertainment, like Gelderlandplein in Amsterdam Buitenveldert. This shopping center presents itself as a place of convenience with a touch of luxury. There is also a good mix of restaurants and shops here. The offer is aimed primarily at the older and wealthier residents of the district, who like to shop and stroll there. But business people and students from Freie Universität also like to come here. For convenience, there are free shuttle buses between Gelderlandplein, the Zuidas business district and nearby hotels. The management of the Gelderlandplein is clearly pursuing a strategy to create hustle and bustle.
Shopping streets are essential for the quality of life of a city or a village. While business associations are often active to represent the general interests of shops and restaurants, it can be helpful to set up an experience committee to develop a clear profile with an enjoyable customer experience. This ensures the unmistakable message and promise that there is more to the center or street in question than just functional facilities.
Physical Retailers: Harnessing Humanity
Once customers have entered the store, they should also feel that their physical presence means they have come to the right place to enjoy themselves or to receive a dignified and personalized service. Human contact is very important here, as is the way you manage to stimulate your happiness. I experienced it myself in the Ralph Lauren dressing room in Los Angeles. Before I could try on a polo shirt, I was allowed to sit down on a comfortable Ralph Lauren sofa. While waiting a while for my dressing room to be prepared, I was allowed to choose a cocktail with refreshments from a special menu. You are not rushed at all as the longer you stay there the better for sales and cross-selling.
You can also use every moment of contact with your customers in and around the store to establish a personal connection. For example, I once stood in front of the window of a special gift shop that was very reminiscent of a Wunderkammer. The proprietor was on the phone inside but saw me looking inside. She immediately hung up and came out to greet me. Obviously, she didn’t know I was looking out of pure curiosity, but she recognized that my interest was a reason to take another step in. That happened too. And over a cup of coffee, I got to know them and the story behind their brand. Also the story of the designers and artists whose creations I was allowed to touch, smell and taste. Touched by this whole experience, I left the store with a gift for a friend who has a birthday soon anyway. Such an overall experience adds value to a physical presence over an online fix moment via Amazon.
Time will tell if artificial intelligence is a game changer or much ado about nothing. In this very turbulent market, however, it is always advisable to address the human side of the customer, because this is how you make contact and stay in touch over a longer period of time.
This is a contribution from Melvin van Tholl, Customer Experience Architect at Bloody Believers, a creative-strategic agency that helps brands and companies to develop groundbreaking solutions for their customer experience. Van Tholl works for companies both in the Netherlands and abroad. In this series, he takes you into the wonderful world of consumers and shows you how you can make your company future-proof from the customer’s point of view.
This translated and edited post previously appeared on FashionUnited.nl.