The retail market for customer care offers significant growth opportunities. Despite being one of the most challenged markets at the start of the COVID-19 pandemic, the disruption created many silver linings, such as significantly reducing the competitive inertia many industries had in contact center innovation. Beyond navigating issues such as contactless delivery, or simply sprucing up eCommerce, retail establishments had to innovate or stagnate. In many cases, this meant going out of business. In late 2020 and throughout 2021, Frost & Sullivan conducted numerous studies on digital transformation across industries and the impact of COVID-19 on businesses and the contact center. “The Changing State of Retail Customer Care: Growth Opportunities Arise in the Dynamic North American Retail Market” was published in December of 2021. Now, Frost & Sullivan offers this follow-on report, which incorporates data from primary and secondary sources. Digital transformation was a central component of Frost & Sullivan’s 2021 “The Changing State of Retail Customer Care” report and remains core in 2022. Digital transformation and AI applications were well underway pre-COVID-19, and they continue to have a deep impact. This trend fits well with consumer predilection for self-service options, researching, and getting feedback on goods and services before they engage with a business—and wanting that information to flow seamlessly as they move from an online experience to an in-person experience. Retail has entered the era of phygital experiences for consumers who move fluidly between online and in-person interactions. This report details additional examples of retail transformation that include (but are not limited to) the following: • Adding new customer interaction channels, including short message service (SMS) and social messaging (Facebook, Twitter, LINE, WhatsApp, Instagram) • Adding AI to maturing channels, such as chat and email • Adding conversational AI to self-service channels, including bots, IVR, and IVAs • Enhancing proactive outbound contact with additional capabilities (voice and SMS) • Extending proactive and interactive customer contact two-way, from the contact center to brick-and-mortar retail establishments • Integrating knowledge management systems (KMS) to enhance self-service channels and back-up agents when self-service is not enough • Infusing newer technologies into the retail environment, including smart mirrors and smart shelves in-store as well as interactive mobile apps with conversational AI and knowledge management (KM) • Adopting advanced analytics for increased personalization and customization, customer sentiment, preference management The report concludes with a discussion of 3 actionable growth opportunities that industry participants must consider when strategizing ways to deliver a competitive retail customer experience. Author: Nancy Jamison