Walmart Mexico: AI Enhances Customer Insights

AI and Customer Insights at Walmart Mexico

Customer Experience inspiration, insight, Artificial Intelligence (AI) and customer insights are joined at Walmart Mexico to create a customer-centric culture. Walmart Mexico faced the challenge of fragmented customer insights across departments. To solve this, they created a unified Customer Office to improve customer understanding and offer more personalized experiences, which is important due to rising consumer expectations.

Montserrat Padierna, customer knowledge and experience CoE lead at Walmart Mexico, discussed how the brand used data and technology to strengthen customer relationships at the CX Network All Access: AI + Data in CX webinar series.

Consolidating Customer Knowledge

Customer-centricity is important to Walmart Mexico. Previously, data silos created challenges and gaps in understanding. Three years ago, the Customer Office was formed to consolidate customer knowledge and experience, data, product marketing, and customer service, according to Padierna. This unified CX management approach allowed for a more comprehensive view of customer and member needs.

Padierna stated that being data-agnostic means looking beyond traditional operational data. She added that they combine internal information with external market data, including insights from internet, cell phone, health membership, and financial services. By breaking down data silos and looking at patterns, they gain a holistic understanding of customer behaviors.

Walmart Mexico created five customer personas to understand its diverse customer base. Padierna mentioned Andrea, who represents budget-conscious customers at bodega-type stores. She explained that they analyze shopping behaviors, search terms, seasonal trends, and regional variations to create personalized experiences.

Actionable Insights

To translate data insights into actionable items, Walmart Mexico uses a continuous feedback loop with agile methodologies, working in sprints to define business questions, analyze data, and provide recommendations, according to Padierna.

Key Discovery

Walmart Mexico discovered that customers, especially younger ones, are increasingly shopping at multiple retailers. Padierna noted that in Mexico, younger customers might shop in up to 19 different places, averaging seven. This highlights the importance of creating exceptional, personalized experiences to retain customer loyalty.

Human Touch and Machine Intervention

Walmart International announced Adaptive Retail, which focuses on personalized shopping experiences. Leaders are using technology like generative AI, augmented reality, and immersive commerce platforms to understand customers and offer hyper-personalized experiences across all channels in Walmart U.S., Sam's Club, and Walmart International. They are also considering how to maintain a human-centric brand.

Suresh Kumar, global chief technology officer and chief development officer, Walmart Inc., stated that they start with the human need, and technology is key to the solution. Padierna expressed similar views, emphasizing the balance between the human touch and machine intervention. While adopting AI to process insights and create personas, they remain committed to preserving human connection. They complement AI with customer feedback, focusing on local expressions, sentiments, and regional nuances, aiming to enhance, not replace, the human experience.