How Saks Fifth Avenue is revolutionizing Customer Experience with AI

Harnessing AI to Transform Luxury Retail -

Meeting the Demands of the Modern Shopper - 

The world of shopping has undergone a dramatic transformation. Gone are the days when the ideal customer would spend hours in stores, sifting through countless options to find the perfect outfit. Today’s modern shoppers are hard to impress, often having a clear vision of what they want even before stepping foot in a store. Even more convenient is online shopping, where customers can find their desired outfit in just a single click from the comfort of their homes. As more customers shift to online experiences, retailers have little time to captivate and persuade them to make a purchase. As shoppers become increasingly selective in their choices, it is crucial for businesses to evolve and meet these heightened expectations. Leading the way in this transformation is Saks Fifth Avenue, the premier luxury designer brand.

Saks Fifth Avenue's move into AI –

Once known for its classic brick-and-mortar shopping experience, Saks Fifth Avenue has recognized the necessity of adapting to the rapidly evolving retail landscape and has undergone a remarkable transformation, evolving from a traditional retail model to a cutting-edge, AI-driven enterprise. This shift began in 2021 under CTO Mike Hite, who recognized the need for a more agile data infrastructure to overcome challenges posed by outdated systems. Recently Saks has partnered with Salesforce to transform its luxury shopping experience using Salesforce’s Data Cloud, Customer 360 apps, and Agent Force. With this partnership, Saks is accelerating its efforts to match the high-quality in-store shopping experience with the one customer have online.

Personalising Interactions with Customers -

• Saks is leveraging Agentforce, Salesforce’s AI solution, to deliver tailored experiences by collecting and analyzing various customer data points. While providing millions of customers with unique, world-class experiences was previously unattainable, the integration of AI has made this a reality. Now, Saks can send personalized notifications to customers, reminding them of upcoming birthdays and inviting them to explore new collections.
• The AI agent can recognize text and images, allowing customers to simply take a photo and inquire about items in similar colors or patterns. This intuitive interaction streamlines the shopping experience, making it more engaging.
• The availability of this customer-centric information empowers in-store service representatives to suggest style options and recommend products based on individual client profiles. It allows the executives to have a deeper and more impactful conversation with the customer.

Elevating Customer Service with AI –

• When customers reach out to Saks, customer service agents benefit from data-driven recommendations powered by Large Language Models (LLMs). Incoming inquiries are intelligently routed to the appropriate service executive based on the nature of the question, allowing for tailored responses generated from customer data, previous cases, and knowledge articles. This streamlined process ensures that all customer calls are summarized, enabling service representatives to anticipate needs and determine the next best action. Saks employs various tools for real-time Natural Language Processing (NLP) and sentiment analysis, helping to identify the optimal moments for escalation and ensuring that customers receive the necessary human touch.
• During a recent keynote at Dreamforce, Salesforce highlighted Saks's AI-powered agent, "Sophie," as a prime example of enhancing customer interactions. Sophie is designed to engage in meaningful conversations, addressing customer complaints with empathy and offering actionable next steps. For instance, when a customer’s desired product was out of stock online, Sophie quickly located the nearest physical store, confirmed product availability, and assisted the customer in placing an order for offline pickup.
• Salesforce CIO Juan Perez aptly underscores the role of AI agents, noting that it’s often impractical for a human to possess all the knowledge needed to deliver an exceptional experience. AI agents fill these gaps by leveraging data to create more personalized interactions, ensuring that customers feel valued and understood.

Personalisation is the Key –

Today’s shoppers expect more than just products; they want experiences that feel tailored just for them. In fact, a recent Forbes study found that almost half of customers are willing to share personal details for a more personalized experience. Saks Fifth Avenue is leading the charge in meeting this demand, using advanced generative AI and data insights to create a shopping experience as unique as each of its 4 million loyalty members.

By tapping into customer data from both online interactions and in-store visits, Saks isn’t just following trends—it’s setting new standards in personalization. As other brands navigate the competitive landscape, Saks’s approach is a compelling reminder: putting the customer first, and making their experience feel special, is what truly builds loyalty.

About Saks Fifth Avenue - 

Saks Fifth Avenue, established in 1924, is a luxury department store celebrated for high fashion and exceptional service. Known for its iconic flagship on Fifth Avenue in New York City, Saks offers a curated selection of designer apparel, accessories, and beauty products.