Driving customer and business value through generative AI in food retail

You can delight your customers with AI.
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A leading UK food retailer is using Generative AI to take the customer experience to new heights and lower costs

The challenge

The company was looking for new ways to unlock the next level of transformation in pursuing excellence in their customers’ experience.

Without putting limits or restrictions on the approaches they might take, they wanted to understand the ‘art of the possible’ – all the potential options they should be considering to unlock the next level of transformation in pursuing customer experience excellence.

The opportunity

The KPMG in the UK team collaborated with the retailer’s global business services function to transform service delivery and reduce costs, beginning with an AI prototype that would reduce the workloads of contact center agents by deflecting straightforward customer enquiries to automated channels. By doing so, the company could then deliver an enhanced experience to customers who have more complex questions that require human support from the company’s experienced contact center colleagues.

The transformation process began with the deployment of a five week accelerated program to identify potential AI opportunities to optimize cost and value in the contact center. It included an evaluation of the current service delivery performance; a functional maturity assessment; extensive KPI benchmarking; contact center immersion observations.

The outcome

A robust customer, employee, and business value case for AI transformation was developed along with a high-level customer lifecycle framework based on best practices.

An AI technology prototype was developed that leveraged virtual agent chatbots and interactive voice response (IVR) to demonstrate “the art of the possible” – what was realistically achievable in transforming the retailer’s customer experience and creating value for both the customer and the business.

A £16m cost-savings opportunity in service delivery has been identified (with the potential for savings of £80m+ across the enterprise), and the workload of customer service agents is to be reduced with 21 percent of phone interactions being handled by next-gen IVR and 26 percent of text conversations being handled fully by next-gen chatbots.

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Tim Knight

Partner, Customer Advisory

KPMG in the UK


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