Dive Brief:
- Walmart saw its customer experience scores rise more than 140 basis points in FY 2024 due to investments in technology that aided employee productivity, EVP and CFO John David Rainey said during a Q4 2024 earnings call Tuesday.
- Store associate-facing tools played an important role, particularly during the holiday season. The retailer’s net promoter score typically dips during Q4, but improvements to pickup and delivery capabilities led to three year highs, according to CEO Doug McMillon.
- Executives credited these improvements to investments in generative AI, RFID and automation, in particular. These technologies gave workers more accurate inventory information and let them spend more time helping customers.
Dive Insight:
Walmart sees “big opportunities” to improve experiences for customers and associates alike through the rollout of generative AI, according to McMillon.
Walmart has rolled out its My Assistant generative AI tool to all associates. The retailer originally provided the tool to workers in non-store roles in August, with an emphasis on using the tool as a creative partner.
On the customer side, McMillon cited the success of the GenAI search feature, introduced last month. One of the top searches in February was “help me buy a Valentine's Day gift,” which returned a curated list of potential options rather than forcing customers to search item by item.
“The way generative AI helped us really improve a solution-oriented search experience for customers and members is the thing that we're most excited about,” McMillon said during the call.
A combination of RFID and automation aimed at streamlining inventory also resulted in better customer experiences for both Walmart and Sam’s Club. The pairing improved inventory accuracy for associates, leading to better customer experiences, McMillion said.
Reducing the volume of inventory in a store — along with digital tools that help associates determine where things are and where they need to go — improves in-stock rates while helping workers focus on directly assisting customers, executives said.
“I can't overemphasize the importance of inventory levels being down 4.5% and what that does for a store manager, a team lead, for the coaches that are in the stores who need to take care of what a customer needs right now,” said John Furner, president and CEO of Walmart U.S., during the call. “They're able to do that much more accurately.”
