The ability to meet the demands of today’s customer has never been more critical to business survival.
Customers now want to shop in many ways and expect to get the same ‘store experience’ across all channels. Technology is radically changing the face of the retail customer experience and the pace of change is getting quicker by the day. Retailers need to embrace it now more than ever if they want to survive.
With reports showing that more customers than ever are turning to the web as their destination of choice, large high street retailers through to small independent chains need to have an effective and functional online web store. Retailers such as Sports Direct, Staples and Argos clearly demonstrate to the rest of the industry the true profit potential of investing in the e-store experience.
MULTI-CHANNEL INTEGRATION IS THE KEY
Typically, retailers have managed web stores and bricks and mortar stores with different management structures and disciplines. Both independently delivering customer service and ensuring the level of service not only is maintained but also increased is a crucial component to the success of this integration.
Tesco, Next and Homebase are all examples of retailers who have truly embraced the cross-channel service model and are clearly reaping the benefits.
A CUSTOMER CENTRIC STRATEGY
Customer centricity is the true driver of the need to integrate online and offline systems. This leads to the seamless integration of many systems – accounts package, PoS solution, inventory management, web store(s), warehouse management system, ERP and CRM.
To truly deliver the customer experience, the EPoS solution and webstore(s) need to be completely integrated, delivering a strong message to customers from a marketing perspective through to social media applications such as Facebook or Twitter. Front end or customer facing solutions must be the first components on the road to customer centricity, followed closely by all traditional back office applications supporting this activity.
CONTACTLESS PAYMENTS ARE THE FUTURE, BUT NOT JUST YET
Contactless payments are the next step in electronic payments, revolutionising the way consumers will interact with retailers.
They will enable goods of £10 or under to be purchased using ‘touch n go’ credit or debit cards. Also known as ‘wave and pay’, these cards are a method of paying for everyday items, such as coffee or newspapers, simply by swiping your credit or debit card across a reader.
Some experts believe that by the end of 2011 70 per cent of debit cards and 45 per cent of credit cards are expected to be contactless enabled in the UK. Personally, I do not see the majority of retailers adopting contactless payment systems for at least three-five years.
COSTS PER TRANSACTION BECOMES A REALITY
With an uncertain future ahead, a pay-as-you-sell solution that enables retailers to pay less for their EPoS systems when their sales are down will enable them to deal with the critical issue of stabilising cash flow – something which could mean make or break for many retailers.
2010 saw the introduction of cost per transaction EPoS systems like Cervello, which is the first solution of its kind to offer high functionality, but without any upfront license fees.
RETAILERS WILL NEED TO KEEP UP WITH CONSUMER THIRST FOR SOCIAL MEDIA
Mobile technology is giving retailers a new way of communicating with customers. Ocado is one of the biggest apps and Tesco has its loyalty barcode on a phone. But how many use Facebook or Twitter with customers, because these are the ways they want to be communicated with?
A recent survey found 83 per cent of consumers wanted seamless connection between web and mobile phones, which emphasises why retailers across all sectors should perform health checks on their online customer interaction and use of social networking sites.
BUT BRICKS AND MORTAR STORES WILL NOT DIE OFF
Despite the growing demand for the online shopping experience, the high street store is certainly not dead. Moreover, customers want to engage with a hybrid retailer that is able to combine the experiential benefits of the bricks and mortar store experience with the flexibility and 24/7 nature of the web.
Today’s consumer is informed and has access to various sources of information via the internet to research and buy products, but the bricks and mortar store will always exist for the following reasons:
• Having researched the item, customers prefer to ‘want it now,’ so whether this is achieved via reserve and collect or by driving to the store and making the purchase, immediacy will drive bricks and mortar sales.
• Some products are very personal and therefore the product’s condition needs to be seen and considered in person, even if it has been researched previously.
• Customers look to the retailer for expertise and knowledge, so speaking to a member of staff in a store will again instil confidence in the customer purchase.
The primary objective is to provide customers with the ability to interact in any way they want, allowing them to order from their Xbox, computer or mobile phone if they wish.
Ultimately, customers want the complete view and it will be up to retailers in 2011 to find innovative ways to deliver exactly that.
CTS Retail is a retail business software and systems specialist.
