Future-Proof Your Retail Customer Service Strategy with AI and Tech

Retail customer service expectations are changing.

Customer service isn’t just about having a team on-hand to pick up the phone and answer questions about products anymore. Customers are expecting organizations to blow them away with personalized, multi-stage support throughout their entire journey.

Exceptional retail customer support might start with a customer ordering something online, receiving an instant “thank you” text, followed by a delivery update via retail SMS, before they finally get an email survey asking them for feedback.

It might sound exhausting, but convenient, connected, and intuitive experiences are becoming the key to winning customers hearts. In fact, the quality of a brand’s service now influences 71% of a customer’s purchasing decisions.

If you’re not excelling at every stage, from helping customers find the right products, to tackling problems at speed, on the channel of your choice, you’re going to fall behind.

So, what does it really take to win at retail customer service in this world?

What is Retail Customer Service Today?

If you still think retail customer service is just someone standing behind a counter (or waiting on the end of a phone) to ask, “How can I help you?” Think again.

Customer service in retail now needs to encompass everything your business does to help shoppers get what they need. Your overall strategy should cover:

• Customer Service In-Store: Face-to-face offline support from staff members who understand your products, and your customers.
• Phone and Digital Support: Guidance delivered via phone, email, online chat, social media, SMS, and any other channels your customer uses.
• Full Journey Support: Assistance before, during and after the sale, from the point customers use conversational eCommerce apps to track down the right product, to the stage where they share feedback on social media.

Customers move between channels like it’s second nature. They might browse in-store, buy online, then ask about returns on Instagram DMs. They don’t think in “channels.” They just want help that’s fast, friendly, and accurate. They also expect your company to stick with them through the entire journey, building relationships, not treating them like an afterthought.

Give your customers the personalized support they expect across every channel.

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Why Your Retail Support Services Matter

Excellent customer service has always been important for retail companies. Some of the world’s most successful retailers, from Nordstrom, to Costco and Nike, have risen through the ranks specifically because they’re committed to keeping customers happy.

Now though, as the retail space becomes more saturated, and more complex (with both online and offline shopping), customer service matters more than ever.

Your online or in-store customer doesn’t just remember what you’ve sold them anymore. They remember how you treated them – the efforts you took to improve customer response times, guide them to the right deal, or earn their loyalty.

The stats speak for themselves. More than three quarters of shoppers will go out of their way to buy from a company that offers better customer service.

More than 90% of customers say the service experience is just as important as the product itself. Plus, customers are around 38% more likely to refer you to a friend if you go above and beyond to match their expectations.

That “word of mouth” factor is particularly important now that customer reviews are more public and accessible than ever. If your service strategy is clunky, confusing, or cold, your ability to attract and convert more customers dwindles to nothing.

Strategies for Exceptional Retail Customer Service

So, what does it actually take to optimize online and in-store customer service? Right now, the answer is a combination of things: people, processes, and technology. Let’s start with a few key strategies for enhancing the end-to-end customer experience.

1. Empower and Enable Your Teams

Even with the rise of conversational AI for customer service and bots that automate tasks, your people still influence how customers feel about your brand.

The first thing you need to do is provide the right training programs. Buyers expect retail reps to have in-depth product knowledge, the ability to use tools to troubleshoot and address problems, and the right skills to juggle complex tasks. Your employees should know everything from how to send mass texts about sales, to how to process returns.

Don’t just focus on technical skills though. Train your teams on emotional intelligence. Show them how to use active listening and empathy, and how to connect with customers on an emotional level, regardless of the communication channel. Update your training regularly, and build a culture of continuous learning.

Beyond training, invest in the right tools. Your teams need access to a comprehensive view of customer data. Around 70% of customers say they expect support staff to have access to the same information about them, but they’re often left repeating themselves as they move from one department to the next. Align your teams with end-to-end insights.

2. Personalize Everything

A personal touch goes a long way in retailing. Customer service teams that treat everyone the same will gradually erode brand loyalty. Delivering personalized customer service doesn’t just mean adding a customer’s name to an SMS or email message anymore.

You should be using your CRM system to track customer preferences, purchase history, and feedback, so you can take a proactive approach to improving their customer journey. For instance, with a Zendesk SMS integration, you can pull information from a customer’s profile to automatically message them when a product they like comes back in stock.

With AI-driven analytics, you can predict customer needs in advance and suggest products or deals to them based on their profile. This level of personalization doesn’t just make customers happier; it increases sales and lifetime loyalty.

3. Build a Customer-Centric Culture

Read through the customer success stories of major retailers known for their customer service, and you’ll notice a trend. All of these companies have a customer-centric culture.

That doesn’t just mean everyone constantly lives by the “customer is always right” mantra. It means that business leaders and employees actually care about keeping buyers happy.

Leaders constantly rave about positive customer satisfaction scores in all-hands meetings. Employees track their personal reviews in real-time dashboards, and get rewards when they pass their benchmarks. Teams from all departments work together to share ideas on how they can remove friction points for buyers, and improve retention rates.

Look at Zappos, for instance. The company trains absolutely every employee on customer service best practices (including developers). That ensures everyone knows that the customer really does come first.

4. Be Proactive, Not Just Reactive

Good retail customer support means solving problems quickly. Amazing support means finding ways to stop those issues from happening in the first place. If you’re already using AI in customer service, you already have the tools you need to figure out what your customers need. Scan through your data, common customer queries, and complaints.

Find out where you can get a head start. For instance, you could use a Shopify SMS integration to automatically send order update messages to customers before they ask about them, or notify them about delays.

If you know your customers always struggle with return policies, outline them in depth on your website, or create a bot that can help guide buyers through the process. If you discover certain groups of customers always buy more of a specific product, send specific messages to them when those items are on sale.

5. Nurture Loyalty (Think Long-Term)

Your sales team should be focusing on attracting and converting customers. Your ecommerce and store customer service teams should concentrate on keeping them. After a customer buys something, don’t wait for them to contact your team with an issue.

Use SMS engagement tools to reach out and ask them if they have any questions, or share links to onboarding guides and tips. Pay attention to the buyers that show you the most loyalty, and reward them. Invite them to join loyalty programs where they can earn points or prizes for every purchase. Ask them to refer their friends for extra treats.

You could even ask your most loyal customers for tips on what you should add to your next sale, or which products you should be stocking next. Show them you actually value their input, and they’ll be more likely to stay with you.

Leveraging Technology in Retail Customer Support

Technology is one of the most valuable tools you have, whether you’re trying to improve customer service in store, or online. In 2025, smart retailers aren’t asking “Should we use tech?” They’re asking, “How can we use tech to make things easier, faster, and better for real people?”

Here are some of the most impactful tools you might want to focus on.

1. AI-Powered Chatbots and Virtual Agents

Modern chatbots aren’t the clunky pop-up bots customers used to ignore online. Conversational AI in ecommerce and retail has introduced an era of bots that can actually understand and connect with customers.

AI can help both your customers, and your support agents. Around-the-clock, they can respond to common questions on your customer’s channel of choice, in their preferred language. They can even share personalized recommendations based on purchase history.

AI tools can also help agents find the right information in a knowledge base when they’re answering questions, or save them time on taking notes, so they can focus on the conversation at hand.

Around 29% of retailers are even using AI to create digital shopping assistants that follow customers through their journey, answering questions and offering suggestions on-demand. These agents can help customers print a shipping label, renew a subscription, discover a new deal, or figure out a return.

2. Omnichannel Communication Options

Customers can bounce from your SMS call center solution to your email inbox, through to an in-person conversation with a rep like it’s nothing. They don’t just want you to be available on all of the channels they prefer, they want you to connect the dots in that journey.

The last thing any customer wants is to repeat themselves as they move from one channel to another. That’s why you need an omnichannel system that merges all customer interactions and data into a single dashboard.

It should give you a central environment for tracking past purchases, previous issues, current conversations, and more. Implement omnichannel correctly, and you’ll save your customers time and headaches. But you’ll also make life easier for your teams, who won’t have to spend as much time jumping between apps.

3. XR for Immersive Customer Service in Store and Online

Extended reality (mixed, virtual, and augmented reality) experiences are becoming increasingly popular for enhanced retail customer service. In store, XR apps can help customers gather information about products and services without having to look online.

Some companies even have virtual “try-on” booths, where customers can experiment with new outfits without having to actually touch the merchandise.

Online, XR experiences offer an intuitive try-before-you-buy experience. For instance, Warby Parker lets customers try on glasses in AR using their phone camera. IKEA lets customers drop digital sofas into their living rooms.

Tools like this give customers more confidence when they’re buying products, and seriously reduce return rates. They’re also great for differentiating your company from the competition.

4. Self-Service Technologies: Empowering Customers

If you’re wondering how to improve customer service in retail, and your customers mostly visit you in-person, self-service is a great way to start. Simple self-service options, like kiosks and mobile apps, allow customers to find information and complete transactions instantly.

Instead of having to wait in an exhausting queue just to ask a rep if a product comes in another color, they can use an app on their phone to ask a bot instead. You could even create an app that allows customers to place that order and have it shipped to their home directly, if you don’t have an item in stock.

If you’re investing in customer service for small business growth, great self-service experiences will do more than impress your customers. They’ll also reduce the strain on your team members, so they can focus their energy on the tasks that matter most.

5. Customer Feedback Collection Tools

The only people who can really tell you how great (or terrible) your retail customer service strategy is, are your customers. You should be listening to them. Make it easy for them to give you feedback. You can use AI tools for customer service to gather reviews and ratings from customers automatically, after every purchase or interaction.

You could even use your business texting solutions to create workflows that encourage customers to share their ideas on where you can improve. Even in-store, you could set up suggestion boxes, or use QR codes to direct customers to survey.

Don’t just collect feedback, listen to it, and act on it. Thank customers for positive reviews, and when you get complaints, use them to your advantage. Respond quickly with empathy and real solutions, and you’re far more likely to keep customers around.

Retail Customer Service Examples to Learn From

So far, we’ve spoken a lot about retail and customer service strategies, as well as the tools you can use to upgrade your efforts. But if you’re still looking for inspiration, sometimes the best bet is to take a closer look at companies already leading the way.

Here are some great examples of retailers transforming customer experiences:

H&M: Reducing Cart Abandonment

Global fashion retailer, H&M had a lot of problems with high cart abandonment rates when it jumped into the world of ecommerce. To counteract the issue, they invested in AI for customer experience – specifically, an intelligent agent that can provide personalized outfit recommendations, answer questions about sizing and delivery, and deliver dynamic promotions. The result was higher conversion rates, and a stronger customer satisfaction score.

Sam’s Club: Simplifying Self-Service

Sam’s Club changed the self-service game when it introduced its Scan & Go system across all of its 600 stores. The AI-powered technology allows customers to scan items with a mobile app, pay digitally, and exit the score, without ever having to visit a checkout. This tech massively increased customer satisfaction, and boosted efficiency for the entire customer experience team.

Chewy’s: Personalization at Scale

Online pet retailer Chewy is renowned for its personalized approach to retail customer service. Customers get support on every channel, and the company even proactively reaches out to customers about events they might be interested in. They even have personalized SMS templates, emails, and letters they send to customers referencing their pet by name, or celebrating their birthday.

Trends Shaping Retail Customer Service

Retail customer service expectations might be evolving, but the strategies and tools companies are using to delight their audience are transforming too.

Just some of the most significant trends worth watching right now:

• Agentic AI: If you thought that conversational AI for retail was transformational, just wait until you see what’s coming next. Agentic AI in retail will pave the way for intelligent assistants that can automate virtually every stage of the customer journey. These tools can answer questions, solve problems, and make decisions on their own, without constant prompts and hand-holding.
• Experiential Retail: Forget boring aisles and beige lighting. Shoppers today want experiences, not just transactions. Experiential retail experiences are becoming more exciting, with the rise of extended reality, and phygital experiences. Some companies are even experimenting with holograms, and hybrid events.
• Hyper Personalization: AI and behavioral data have made true personalization possible, and essential and expected. One-size-fits-all is out. Personalized everything is in. Now companies can personalize everything from their eCommerce SMS templates, to their checkout experience, and beyond.
• **Voice of the Customer: **You can’t improve what you don’t measure. Leading retailers are implementing VoC programs to track feedback and make better decisions. This means constantly gathering insights about call center customer experiences, buying journeys, and even interactions with AI bots.
• Evolving Channels: Companies aren’t just supporting customers across multiple channels anymore; they’re empowering them to do more on the channels of their choice. For instance, customers can now make a purchase straight from an RCS message, or online app, leave feedback, and track an order in real-time.

Overcoming Challenges in Retail Customer Service

Before we wrap up, it’s worth noting there are still a lot of complex challenges that companies face when it comes to improving retail customer support. The good news is these hurdles aren’t insurmountable. For instance:

1. High Staff Turnover and Burnout

Retail has always struggled with turnover, but today’s always-on, omnichannel environment can wear down teams a lot faster. Training your teams on how to use technology that can streamline their workflows is a good first step.

For instance, conversational AI lead generation tools can save sales teams a lot of time on prospecting, while AI summarization tools can help with repetitive tasks like taking notes and updating CRM platforms.

Another good strategy? Recognize wins. A shoutout in a team meeting or a surprise gift card can go a long way toward retention.

2. Balancing Automation With the Human Touch

Customers want fast, efficient help, but not at the expense of empathy. Getting this balance right is tricky. Use bots for simple things, like automating common SMS customer service tasks (responding to queries about orders or return policies).

Route emotional or complex issues to humans. In all situations, make it easy to reach a human agent. No one wants to fight a chatbot when they’re frustrated.

3. Maintaining Service Quality During Peak Periods

Black Friday. Holiday rush. Back to school. These spikes stress systems and staff. The best strategy is to get one-step ahead. When you’re doing research to build your ecommerce SMS marketing guide, pinpoint the dates when you’re likely to have the biggest rush.

Use temporary bots to help scale FAQ handling during peak times, or hire additional part-time employees. Make sure your systems are prepared to handle a higher number of queries too. Don’t lose customers to lagging systems.

Give your customers the personalized support they expect across every channel.

👉 Schedule a demo

Building a Future-Proof Customer Service Strategy

Your approach to retail customer service will define your future. It’s not just your products or pricing that matters anymore. It’s how you support and empower your customers through every stage of their buyer journey.

You’re going to need a blend of the right tech, processes, and people to make sure you can live up to ever-evolving expectations in today’s retail space.

The good news? If you put in the work, it will pay off. Start by auditing your current service approach. Where are the gaps? Where can you be faster, more helpful, more human?

Want to start updating your customer support strategy with more connected channels, conversational AI, and intelligent insights? Contact Clerk Chat, and learn how our platform helps retailers scale, thrive, and excel.

FAQs

What is retail customer service?

It’s the support and assistance provided to customers across all stages of the shopping journey, before, during, and after a purchase. This includes help in-store, online, via live chat, SMS, email, or social channels.

Why is retail customer service important?

Because experience is everything. Studies show that 73% of customers will switch to a competitor after just two bad experiences, and 76% will spend more with brands that offer great service.

How does technology improve customer service?

Tech like AI chatbots, CRM platforms, and omnichannel tools help retailers respond faster, personalize more deeply, and offer round-the-clock support without overloading human teams.

What role does personalization play?

A big one. Personalized experiences boost loyalty, increase conversion rates, and make customers feel seen. In 2025, it’s expected, not optional.

How can small retailers keep up?

Start simple. Use affordable tools like chat widgets, SMS platforms, or survey apps to deliver fast, human help. Focus on the basics: speed, empathy, and consistency.