Customer experience in retail, is the overall journey of the consumer from the moment he or she sees your store to the moment he/she leaves. Due to the prevalence of social media and e-commerce, this journey now includes your website, reviews left on the internet by your previous consumers and online customer service experience.
According to a recent Price Waterhouse Cooper study, 73% of shoppers said retail customer experience is more important to them than price, or quality. Not only did they value positive customer experience, but they found that it influenced their decision on where and what to shop more than advertising did. More than 40% were even willing to pay more for a better customer experience.
No wonder retailers are paying attention to customer experience and there are several start-ups in this space.
Historically retail execution in FMCG (which we’ve covered in previous blogs starting with retail execution, continuing to the first and most important P, Product and ending with Proposition) ensured great customer experience in store. These days, while this still generally holds true, there are more elements that influence customer experience.
So how can you improve customer experience?
Your customer experience strategy should be based on your customer’s journey from when they arrive at one of your stores all the way through to post-purchase. Are there opportunities to interact with your products and services? Is your store inclusive and accessible? How customer friendly is your customer service team and the customer service process? What is the online experience of your store/e-commerce site like for your consumer?
Contactless as well as range customisation for location are key aspects for retail customer experience these days. Ever noticed that the range in each Zara store you step into is different from the rest? By analysing the products most relevant for each store location and stocking products that customers seemingly want at a local level, you can dramatically optimise operational efficiency, reduce returns and increase sales. Now, more retailers are following the trend Zara has set including Sephora and H & M. By customising assortment for each location, retailers can boost brand loyalty and provide a streamlined & relevant customer experience.
Social responsibility & Convenience
These days, supermarkets (ASDA, ALDI, Morrisons, M & S Food, Waitrose) and convenience chains (notably, SPAR with their Eat 17 collaboration) with stores that have packaging free aisles, have also seen an increase in new customers. And now with the increase in prices of day to day groceries, packaging free options may prove to be more affordable than packaged versions due to lower price increases and so may appeal to larger groups of people than just eco-conscious consumers.
Location (for quick impromptu visits), fast delivery and timing of delivery slots have been key drivers of convenience, which has emerged as a very important element of customer experience post pandemic.
Timing of delivery and availability of delivery slots is one of the key reasons Walmart is partnering with Drone Up to deliver grocery orders to parts of Arizona, Arkansas, Florida, Texas, Utah and Virginia.
Social & live sales in e-commerce and in store
Another emerging trend is live shopping. An increasing number of retailers are looking at implementing live shopping solutions on their e-commerce sites. We have now come full circle from door to door salespeople selling FMCG brands to self serve supermarkets and now back to sales people presenting their brands and SKUs online for sales. Not only are several retailers developing homegrown solutions for this, but they are also partnering with start-ups like Shoply and Vurdere.
There are several FMCG companies that have partnered with retailers to display their marketing/sales content on screens below/next to the shelves with their SKUs taking online sales/marketing content to its logical conclusion. For example, Muller partnered with ASDA to display their marketing content on screens close by/below the shelves displaying their products.
There are several CX initiatives by supermarkets that we haven’t covered in this blog. These are simply a few that stood out. If there are any supermarkets or convenience stores in particular that have grabbed your attention with their CX initiatives, please email me with details at firstname.lastname@example.org so we can include them in another blog or cover them in our podcast.