New Verint Research Shows Automation to Work Around Staffing Shortages is Key to Retailers Winning Over Shoppers This Holiday Season

Rhea-AI Summary

Verint (NASDAQ: VRNT) highlights the pressing need for retailers to adopt automation as they face significant labor shortages ahead of the holiday season. Over 60% of retailers struggle to find qualified staff, while 45% have challenges filling contact center roles. The survey shows that 94% plan to hire seasonally, yet many lack sufficient HR resources. With only 34% using chatbots effectively, Verint urges retailers to automate customer engagement and streamline hiring processes. Enhancing automation can alleviate staffing pressures and improve customer experiences.

Positive

• 94% of surveyed retailers plan to hire new workers for the holiday season.
• Automation is in place or planned for critical retail functions like order tracking (81%) and inventory management (81%).
• Survey indicates that leveraging private messaging could enhance customer engagement.

Negative

• Over 60% of retailers are struggling to find qualified candidates.
• 45% face challenges filling contact center and back-office positions.
• Only 34% of retailers effectively utilize chatbots in their engagement strategy.

Retailers Must Embrace Automation Throughout the Retail Enterprise; Biggest Gaps Lie in the Contact Center, the Hiring Process, and Private Messaging for Customer Engagement at Scale

MELVILLE, N.Y.--(BUSINESS WIRE)-- As U.S. retailers prepare for the busy holiday shopping season, more than 60 percent say they are challenged to find qualified candidates to staff their stores, while 45 percent are struggling to fill contact center and back-office positions. These sobering statistics are from new research from Verint^® (NASDAQ: VRNT), The Customer Engagement Company^™.

Faced with labor shortages and challenged to meet consumer demands for superior shopping experiences across numerous engagement channels, Verint says this year’s holiday shopping season may be a reckoning for retailers in realizing the new reality of the automation imperative.

“Staffing shortages in stores, in the back-office, and contact center roles will challenge retailers in their efforts to provide exceptional customer experiences to satisfy shoppers during the busy holiday shopping season this year,” says Verint’s Jenni Palocsik, vice president, marketing insights, experience and enablement. “Leveraging automation is absolutely critical to fill workforce gaps and create a connected customer engagement strategy of humans and bots.”

While 94 percent of retailers surveyed plan to hire new workers for the holiday season, nearly 30 percent report not having enough Human Resources (HR) staff to handle the number of vacancies that need to be filled. Automation that helps retailers expand their organizational capacity to interview and qualify candidates can provide relief in this area.

The survey found that automation is either in place or planned for retail activities such as tracking orders (81%), inventory management (81%), sending customized offers or recommendations (79%), and processing returns (69%). Just 56 percent of respondents currently have automation in place for customer support, and 21 percent plan to implement it while 23 percent don't use or plan to use that type of automation.

Retailers can leverage powerful private messaging channels as the means to ubiquitously connect with shoppers at any place and any time, yet 61 percent of retailers surveyed are missing out. Of the 39 percent of retailers engaging with customers via private messaging, 81 percent have automation on that channel, which can automate customer engagement at scale via bots.

Retailers also need to scale customer interactions, which requires bots to be on the frontline of the workforce. However, only 34 percent of retailers said that chatbots play a key part in their engagement strategy, which means 66 percent either don’t use any kind of bot, or they only play a minor role in customer engagement. Two-thirds of retailers with more than 1,000 employees are missing the opportunity to use an incredibly powerful tool that is vital for modern digital customer engagement.

Verint recommends that retailers consider the following:

Automate contact center operations. By automating responses to common queries or deflecting conversations to FAQs or community forums, the pressure on human agents is reduced, leaving them free to handle more complex issues, as well as lowering the cost to serve and creating a more seamless customer experience.

Employ intelligent hiring solutions for streamlined staff acquisition and assessment. A virtual interviewing and hiring process creates an extra layer of evaluation by pre-assessing candidates and reducing the workload on HR and hiring managers. Intelligent hiring solutions that streamline the hiring process are becoming fundamental to talent acquisition strategies.

Lean into private messaging and automation to scale this highly personalized channel. Bots can automate the use of private messaging channels at scale for customer communications in areas such as customized offers and recommendations and returns.

Meet capacity through conversation containment. Service bots and virtual assistants help brands manage high-volume, low-effort queries. Used as a frontline triage, bots should resolve repetitive, simple issues while highly skilled agents are dedicated to high-value interactions—creating big savings in customer service costs.

To learn more about how retailers can optimize customer engagement strategies, relieve hiring pressures, and achieve exceptional return on investment though intelligent automation, download Verint’s Customer Experience Holiday Survival Guide.

About the Survey Methodology

Two surveys were conducted by a third-party research firm from Sept. 23 through Oct. 5, 2022. Survey respondents were from U.S. organizations with at least 1,000 employees selling retail products and services to consumers in physical stores and/or online. More than 200 organizations participated in each survey.

About Verint

Verint^® (Nasdaq: VRNT) helps the world’s most iconic brands – including over 85 of the Fortune 100 companies – build enduring customer relationships by connecting work, data and experiences across the enterprise. The Verint Customer Engagement portfolio draws on the latest advancements in AI and analytics, an open cloud architecture, and The Science of Customer Engagement^™ to help customers close The Engagement Capacity Gap^™.

Verint. The Customer Engagement Company^™. Learn more at Verint.com.

This press release contains “forward-looking statements,” including statements regarding expectations, predictions, views, opportunities, plans, strategies, beliefs, and statements of similar effect relating to Verint Systems Inc. These forward-looking statements are not guarantees of future performance and they are based on management's expectations that involve a number of risks, uncertainties and assumptions, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. For a detailed discussion of these risk factors, see our Annual Report on Form 10-K for the fiscal year ended January 31, 2022, and other filings we make with the SEC. The forward-looking statements contained in this press release are made as of the date of this press release and, except as required by law, Verint assumes no obligation to update or revise them or to provide reasons why actual results may differ.

VERINT, VERINT DA VINCI THE CUSTOMER ENGAGEMENT COMPANY, BOUNDLESS CUSTOMER ENGAGEMENT, THE ENGAGEMENT CAPACITY GAP and THE SCIENCE OF CUSTOMER ENGAGEMENT are trademarks of Verint Systems Inc. or its subsidiaries. Verint and other parties may also have trademark rights in other terms used herein.

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Media Relations

Sue Huss

sue.huss@verint.com

Investor Relations

Matthew Frankel

matthew.frankel@verint.com

Source: Verint

FAQ

What are the main challenges retailers face according to Verint's survey?

Retailers are mainly challenged by labor shortages, with over 60% struggling to find qualified staff and 45% facing difficulties in filling contact center roles.

What did Verint recommend for retailers to improve customer engagement?

Verint recommended automating contact center operations, employing intelligent hiring solutions, and utilizing private messaging for personalized customer communications.

How many retailers plan to hire for the holiday season?

According to the survey, 94% of retailers plan to hire new workers for the holiday season.

What percentage of retailers currently use chatbots in their engagement strategies?

Only 34% of retailers reported that chatbots play a key role in their customer engagement strategy.

How does automation impact hiring processes for retailers?

Automation can help retailers streamline the hiring process, reducing the workload on HR and enabling them to manage staffing needs more effectively.