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The Fast Company Impact Council is an invitation-only membership community of leaders, experts, executives, and entrepreneurs who share their insights with our audience. Members pay annual dues for access to peer learning, thought leadership opportunities, events and more. Whats in a claim? Sometimes a product cant be defined by its claim, and that has become a huge problem for the consumer packaged goods industry. Take Dr. Bronners and Scrumbles, for example, which both recently announced theyre dropping their B Corp certification for what they perceive to be weakening standards that allow greenwashing. The changing claims landscape What B Lab Global has done is admirable. In 2006, they set out to recognize businesses that were a force for goodmeeting high standards of social and environmental performance, transparency, and accountability. They deserve credit for their part in starting a global movement that redefined the role of business in society and helped usher in a new era of capitalism where purpose and profit are both priorities. But something pivotal happened along the way that revolutionized how deeply were able to understand products, yet B Corp and many of todays product claims dont account for it: the proliferation of data. Consumers initially saw the “B” and assumed it signified health, sustainability, or ethical practices. But as access to information increased, people started digging deeper. And what did they find? Sometimes, not much. The B Corp label, like many generic claims, became an umbrella term indicating different things to different peopleor nothing at all. A consumer reckoning is here This problem isn’t unique to B Corp; its a symptom of a larger consumer reckoning. Consider the term “clean beauty.” It lacks a standardized definition, leaving its meaning up to interpretation. For some, it equates to products with safe ingredients; for others, it might be about sustainable packaging. But even safe and sustainable are too vague to tell us what we really want to know, such as if a fragrance is allergen-free or if its packaging is compostable. Shopping has almost become a guessing game; but its one the modern consumer refuses to play. I had my own aha moment when I was pregnant with my first daughter and started to become hyperaware of what ingredients and materials were in the things I was putting in and on my body. Through my extensive research, I quickly discovered how much of what were exposed to is toxic to human health and even started an Excel spreadsheet of what to avoid, that I consulted every time I made a purchase. Its what led me to found Novi Connect, which gives brands and retailers the tools to provide data, signals, and even stories to consumers about their products. Ten years ago, this might have sounded excessive. But today, more consumers are demanding this level of transparency. They want clarity and precision, not ambiguity, and its time for brands and retailers to deliver. The power of granular data Heres the good news: They can. With the proliferation of data and AI, we’re rapidly moving beyond binary labels and embracing a world of sophisticated, specific product attributes. This granularity allows brands and retailers to cater to the nuanced values of their customers. My favorite illustrative example of how this can show up is glycerin. Glycerin is one of the most benign, noncontroversial ingredients and is present in almost every product we use. But based on how its made, it can cater to consumers with very different values. If its derived from plants, that means its vegan; but that also typically means its derived from palm oil. Was the palm oil responsibly sourced? If so, that claim can be made to provide assurance that no deforestation or unfair labor practices were used in the production of the glycerin. Or, maybe no palm was used and the glycerin was derived from a less common feedstock like coconut oil. Now a palm-free claim can be made, which might be important to those looking for products that align with their environmental values. These are the questions shoppers are asking, and theyre demanding verified answers before deciding where to spend their money. The retailer responsibility While consumers are driving this change, the onus is on brands and retailers to embrace it and figure out how to make it work for their customer, and ultimately, their business. Its important to note that there’s a delicate balance between presenting information for a seamless shopping experience and providing detailed product claims. Amazon is a poster example of what this can look like. They use the green leaf symbol to provide a high-level signal and draw the customer in, then also allow you to explore the details of why a product earned that designation. Their program includes 55 unique certifications a product can qualify for. That might sound overwhelming; but it takes into account that not all shoppers care about the same things, and not all certifications are relevant for all products. With this system, its easy to identify products that meet your personal criteria, whether youre focused on ingredient health and safety; carbon emissions and reduction; agriculture and how products are grown and processed; and so forth. You can see how this approach respects the buyers need for both simplicity and depth. And Amazon is strengthening their bottom-line in the process, driving double digit increases in both page discovery and sales with their badge program. Thats how you align purpose and profit. When companies properly leverage data to enable people to shop with purpose by aligning purchases with beliefs, it creates a more personalized shopping experience that keeps the customer coming back. In today’s market where there are endless options and instant access to information, loyalty is paramount. After all, if you don’t have repeat customers, you don’t have a business. So the choice is clear: Embrace transparency or risk irrelevance. The future of retail belongs to those who empower consumers with the truth. Tell them exactly whats in a claim. Kimberly Shenk is cofounder and CEO of Novi Connect.
Category:
E-Commerce
The Fast Company Impact Council is an invitation-only membership community of leaders, experts, executives, and entrepreneurs who share their insights with our audience. Members pay annual dues for access to peer learning, thought leadership opportunities, events and more. Retail is at a turning point. AI is no longer a futuristic idea or marketing buzzwordits a business necessity. Consumers expect intelligent, seamless, and personalized experiences at every touchpoint. The brands that deliver on those expectations will win. Those that dont will fall behind. Still, when I talk with retail leaders, I hear the same concerns again and again: How do we make AI feel natural, not robotic? Can it really drive salesor is it just a cost-cutting tool? How do we integrate AI without blowing up our current operations? And beyond the contact center, where else can AI have real impact? These arent just passing questions. Theyre real blockers, slowing down progress. Thats why we launched an AI Lab webinar series, and write articles like this to get information out publicly with practical, business-first answers. AI needs to do more than automate Retailers have dipped their toes into AIautomated chatbots, product recommendations, predictive analyticsbut too often, these tools operate in silos. That leads to clunky experiences and limited impact. The mindset is shifting. Its no longer just about efficiency. Its about impact. AI shouldnt only reduce costs. It should increase engagement, drive revenue, and build customer loyalty. Here are three principles weve seen drive real success: 1. AI should sell, not just support Traditionally, retail AI has played defensehandling order tracking, return policies, and FAQs. But its time to put AI on offense. Think of guided selling: AI that acts like a smart associate, asking about customer preferences, budget, or styleand responding naturally. Its the digital equivalent of a great in-store experience. One example: A luxury jewelry brand used conversational AI to recommend add-ons and upgrades based on a customers past purchases. The result? A 30% boost in upsellswith zero human agent involvement. The takeaway: AI can drive conversions and revenue. It just needs to be designed with that goal in mind. 2. Proactive > reactive Most AI waits for customers to initiate the conversation. Thats a missed opportunity. Take cart abandonment. Nearly 70% of online carts are abandoned before checkout. AI can spot hesitationlingering on the checkout page, revisiting itemsand respond in real time with: A one-click checkout to reduce friction A last-minute incentive A helpful AI assistant offering answers AI shouldnt just respond when customers get stuck. It should help them move forward. 3. AI that works with people, not instead of them The most successful retailers dont replace humansthey empower them. Think about frontline staff. AI can handle the repetitive stuff so humans can focus on high-value interactions: complex purchases, emotional moments, loyalty-building conversations. It also works the other way. Human agents generate valuable dataabout buying habits, objections, preferencesthat AI can learn from and use to personalize future experiences. Thats the real win: a human-AI partnership that gets smarter over time and drives better outcomes across the customer lifecycle. Rethink the AI roadmap Too often, brands start with customer support because it feels safe. But forward-thinking leaders are broadening their lensand seeing greater return. Were working with retailers that are embedding AI into every stage of the customer journey: Pre-purchase: Digital consultations, guided product discovery, preference-based recommendations In-purchase: Smart upsell suggestions, checkout support, frictionless payments Post-purchase: Delivery updates, service requests, loyalty rewards, re-engagement And heres the kicker: these touchpoints dont need to be siloed. The right AI platform can stitch them together into a seamless, personalized journey. What makes the difference Three things separate retailers who are winning with AI from those still spinning their wheels: Start with the customer, not the tech. Dont ask, What can this tool do? Ask, Where is the customer getting stuckand how can we help them move forward? Design for outcomes. If your AI project doesnt tie back to a business metricconversion, lifetime value, customer satisfaction (CSAT)youre flying blind. Make it measurable. Set clear goals. Track impact. Optimize based on results. This isnt about proving AI works in generalits about proving it works for your brand. Final thought: Innovation without disruption AI doesnt need to blow up your tech stack. It should integrate with your existing systems, layer in intelligence, and get smarter over time. We call it innovation without disruption. You dont have to rip and replace. You just have to start with the right mindsetand the right partner. AI in retail isnt just about answering questions. Its about asking the right onesand making sure your tech stack is ready to answer them in ways that actually move the business forward. John Sabino is CEO of LivePerson.
Category:
E-Commerce
Weeks after ordering all Food and Drug Administration employees back into the office, the agency is reversing course, allowing some of its most prized staffers to work remotely amid worries that recent layoffs and resignations could jeopardize basic functions, like approving new medicines. An internal email obtained by The Associated Press states that FDA leadership are allowing review staff and supervisors to resume telework at least two days a week. The policy shift was confirmed by three FDA staffers who spoke to the AP on the condition of anonymity to discuss internal agency matters. The message was sent Tuesday to some of FDAs hundreds of drug reviewers. Staffers said a similar policy was communicated to reviewers who handle vaccines, biotech drugs, medical devices and tobacco products although not necessarily in writing. Its the latest example of the Trump administrations chaotic approach to overhauling the federal health workforce, which has included firings, a scramble to rehire some employees, and then additional layoffs last week of an estimated 3,400 staffers, or more than 15% of the agencys workforce. When FDA employees were called back to the agency’s headquarters last month they confronted overflowing parking lots, crowded offices and broken or missing supplies. A spokeswoman for Health Secretary Robert F. Kennedy Jr. said the administration is returning to pre-COVID telework arrangements for reviewers, whose read and write work output is tracked in 15-minute increments to ensure productivity and accountability. While many agencies switched to telework during the pandemic, the FDA began embracing the practice a decade earlier. The flexibility was seen as a competitive perk for recruiting employees who can often earn more working in industry. Last week’s cuts included entire offices focusing on FDA policy and regulations, most of the agencys communication staff and teams that support food inspectors and investigators. Senior officials overseeing tobacco, new drugs, vaccines and other products have also been dismissed or forced to resign. Staffers have described rank-and-file employees pouring out of the agency. Former FDA Commissioner Dr. David Kessler called the cuts “devastating, haphazard, thoughtless and chaotic” during a House hearing on Wednesday. When Kennedy announced plans to eliminate 10,000 staffers across the federal health workforce, he noted out that FDA medical reviewers and safety inspectors wouldn’t be impacted. In February, HHS was forced to recall some probationary employees who were fired, including hundreds of medical reviewers at FDA, who are largely funded by industry fees, not federal dollars. But last weeks cuts combined with resignations and retirements have raised a new threat: that FDA funding could fall so low that it short circuits a long-standing system in which companies help fund much of the agency’s operations. Nearly half the FDA’s $7 billion budget comes from fees collected from drug, device and tobacco companies. The agency uses the money to hire thousands of staffers to quickly and efficiently review new products. For example, about 70% of the FDAs drug program is financed by user-fee agreements, which must be reauthorized by Congress every five years. But the agreements stipulate that if FDAs federal funding falls below set levels, companies are no longer required to pay and, in some cases, can claw back their money. The threshold requirements are designed to ensure Congress continues funding FDA, rather than relying entirely on the private sector. FDA and industry groups are supposed to begin negotiations later this year to renew several user-fee agreements, including those for drugs and devices. I dont think the agency nor regulated industry can afford for user fees not to be reauthorized, said Michael Gaba, an attorney who advises FDA-regulated companies. Whatever the reasoning behind the telework shift, former federal officials say its a sign that recently confirmed FDA Commissioner Marty Makary is trying to retain and rebuild agency staffing. Makary made his first appearance at FDA’s headquarters last Wednesday, one day after the mass layoffs. According to the memo obtained by the AP, Makary signed off on the return to telework for some employees. Dr. Makary needs to rebuild teams and restart the engine of productivity lost to weeks of job insecurity, uncertainty and shortages of team members, said Steven Grossman, a former HHS official. Turning commuting time back into work time is a great first step in achieving both. The Associated Press Health and Science Department receives support from the Howard Hughes Medical Institutes Science and Educational Media Group and the Robert Wood Johnson Foundation. The AP is solely responsible for all content. Matthew Perrone, AP health writer
Category:
E-Commerce
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