How to Create the Omnichannel, Customer-Centric Retail Experience of the Future
(Source: Blake Wisz on Unsplash)
Brought to you by WBR Insights.
After their dramatic shift to digital shopping channels during the COVID-19 pandemic, retail customers have changed for good. According to professional services network Ernst & Young, "The consumer is changing fast, but they have three core demands: make my life easier, make it feel better and make it more fulfilling."
Customers expect the ease, convenience, and enhanced shopping capabilities inherent in digital experiences to be present across their shopping channels—including in physical stores. As such, retailers must now focus on building customer-centric rather than channel-centric experiences to meet customer demands.
Here are just a few ways retailers can make this possible.
Start with a Customer-Centric Company Culture
Most retailers will tell you that they are customer-centric, but this isn't always the case. The term doesn't necessarily mean bending to the will of every customer—any retail employee who's spent time on a sales floor will tell you that the expression "the customer is always right" isn't always true.
Customer-centricity is about recognizing the value of customers and aligning products, services, and processes to match and show appreciation for that value. The benefits of customer-centricity include happier customers, more revenue, and longer customer loyalty.
Customer-centricity stands apart from channel-centricity, but also product-centricity. Instead of focusing solely on the products being brought to the market, the retail brand instead focuses on what customers want, both in terms of products and their retail shopping experience.
Developing a mature customer analytics apparatus is just a start. Once retailers determine what customers want, they must adapt their online and in-store processes to meet those needs. This often means rethinking long-standing processes, whether it's a returns policy or even the way store associates greet customers as they step through the door.
Empower Stores with Customer Data and Personalization Tools
The future of the retail experience is extremely personalized, and not just for online shoppers. Retailers have been making progress in bringing the same personalization tools they can provide online shoppers into their physical stores, and only recently has it become feasible to do so.
For example, many retailers are now providing stores with quick access to customer information, so they can match customer expectations in real-time. In the future, these capabilities must be streamlined so there is as little friction as possible in the in-store buying experience.
In a recent article, Sajal Kohli, McKinsey & Company's Global Retail and Consumer Packaged Goods Practices Leader, envisioned what personalization might look like in a physical retail setting in 2030: "As soon as I go in, they'll know exactly when I was there last and, therefore, what my replenishment needs would be [...] But that's not the main reason I would go to the store, because I could do that off my mobile device, right? The reason I would go in is because they would actually draw me in by saying, 'New products, new brands, just for you, customized, personalized. Come have a look.'"
While this type of personalization may be as far as a decade away, it's now a perfectly reasonable prospect for enhancing the retail customer experience. In the meantime, retailers can use the tools they have at hand, such as by providing store associates with handheld devices running software that provides recommendations for promotions, discounts, and products based on each customers' unique data.
Provide Customers with Digital-First Capabilities
If there's any good indicator of the digital and physical retail divide, it's the phenomenon of "showrooming." This is when customers go into a store to browse products, then leave the store to order those products online.
Although some customers who engage in this activity simply want to see the products before they buy them, others are using two different channels in their journey because each has its own capabilities. Customers can gather a great deal of information about the retailers' products online, but in-store, they may be limited in what types of information they can gather.
One way to create a truly omnichannel customer experience is to give in-store customers the same capabilities they have online. That means enabling them to view reviews of products as they are shopping in-store, look at feedback from other customers, and even compare products side-by-side without having to search for them to do so by hand.
Customers can also be provided with in-store search tools that allow them to see whether items are in stock and even locate them within the store. Other technologies, such as in-store robotics and AI-based shopping assistants, can enhance the experience further.
Although these capabilities may seem like they require a significant technology investment, most of today's customers have a supercomputer in their pocket that they can use to engage in these activities. All retailers need to do is give them the means to do so, whether it's through a downloadable app or location-based retail store services.
This way, retailers can align customer purchasing paths to suit the most common buying behaviors.
Reimagine the Customer Loyalty Program
Customer loyalty programs aren't new, and many consumers have a sizable collection of discount cards in their wallets. But the retail customer of the future expects a better type of loyalty program than those they are used to.
According to Forbes, "You need to start with a solid infrastructure. In this case, that's the ability to integrate different marketing technologies across your ecosystem. You also need data to drive your decision-making."
By understanding their customers' demands and buying behavior, retailers can tailor promotions and loyalty experiences to encourage engagement. Customers must be able to see real and immediate value from opting into a loyalty program. Otherwise, they might feel that they've simply been cheated into surrendering their personal information.
Finally, there's something to be said for getting rid of the loyalty card altogether. Most people hate searching through their wallets so they can get a few cents off their in-store purchase. Instead, retailers must make redeeming loyalty rewards a seamless process, whether it's through a smartphone app, location-based technology, or some other type of automation.
They can also consider ditching discounts altogether in favor of other types of loyalty initiatives, such as subscription programs, exclusive invitations to in-store experiences, and other incentives.
Don't Miss the eTail Virtual Summit & Expo for eCommerce & Omnichannel Innovators
Retail leaders understand that customer buying behavior has surpassed the online/brick-and-mortar barrier. Today's retail customers expect a range of support, personalization, and shopping capabilities to be available to them, regardless of what channel they use to shop.
Customer-centric retail experiences are the path forward for bridging the online and in-store gap. They are also going to be a hot topic at the next eTail Virtual Summit & Expo, happening online from June 29th to July 1st.
Register free today to claim your spot and start building the new customer experiences.