Hello Reader,

Here's a summary of the user experience and customer service stories we've been chatting about with our clients this week...

Artificial Incompetence: The Dark Side of AI in Customer Experience

Shep Hyken explores how “artificial incompetence” - poorly implemented AI systems - can damage customer relationships and brand reputation. When companies deploy AI without proper testing or human oversight, the resulting frustration creates worse experiences than having no automation at all.

Key takeaways:

• Poor AI implementation creates “artificial incompetence” that frustrates customers and damages loyalty more than traditional service gaps

• Companies must thoroughly test AI systems with real users before full deployment and maintain human oversight for complex issues

• The best AI implementations blend technology with human support, creating a seamless experience that enhances rather than replaces the human touch

Discover Shep Hyken’s complete analysis of AI pitfalls and practical strategies for avoiding artificial incompetence in your customer experience in the original article: https://hyken.com/customer-service-strategies/artificial-incompetence-undesirable-version-of-ai-and-cx-risks/​

Reputation Management as a Critical CX Component

Dan Gingiss examines how reputation management has evolved from a PR function to an integral part of customer experience strategy, with companies now required to actively respond to feedback across multiple digital channels.

Key takeaways:

• Customer reviews significantly impact purchase decisions, with 94% of consumers avoiding businesses with negative reviews and 79% trusting online reviews as much as personal recommendations.

• Companies must monitor and respond to feedback across multiple channels, including review sites, social media, and customer support interactions, to maintain a positive reputation.

• Proactively requesting feedback from satisfied customers helps balance the natural tendency for dissatisfied customers to leave reviews, creating a more accurate representation of your business.

Learn more about implementing effective reputation management strategies in your CX program by reading Dan Gingiss’s full article at https://dangingiss.com/reputation-in-customer-experience/​

Why Nordstrom Continues to Win Customer Loyalty

​Nordstrom has built an enduring reputation for exceptional customer service through its commitment to personalization and empowering its employees. The retailer’s success stems from a customer-first philosophy that permeates every aspect of its operations.

Key takeaways:

• Nordstrom empowers employees with decision-making authority, enabling them to solve customer problems without management approval—creating memorable experiences that drive loyalty.

• The company’s legendary return policy demonstrates trust in customers and removes purchase anxiety. It's a bet on long-term profits that helped justify the Nordstrom family's decision to take the company private.

• Personalized service remains Nordstrom’s competitive advantage, with associates who remember customer preferences and provide tailored recommendations that online retailers can’t match.

Learn more about Nordstrom’s customer experience strategies and how they might apply to your business in Stacy Sherman’s full article at DoingCXRight.com.