Although e-commerce continues to grow and innovate at a blistering rate, there are many customers who still want to shop in stores. However, these customers want their shopping experiences to be efficient and experiential with service provided by attentive and knowledgeable sales associates. According to a recent survey by the National Retail Federation (NRF) that surveyed over 3,000 customers across multiple continents, shoppers overwhelmingly desire personalized, in-store experiences. The survey also identified the importance of retailers not implementing a one style fits all service strategy. Technology, for example, is very important to customers, but not every customer responds to the same technology in a similar fashion. Stores are still the top channel for purchases, but retailers who want to stay ahead of the curve, must integrate as many digital customer touch-point opportunities as possible.
The five main takeaways from the NRF survey are:
1) Price is king-
Customers still respond to competitive pricing and promotions. This is why showrooming is such a threat to retailers. Retailers should have a transparent and consistent pricing and promotions strategy across all channels.
2) Exceptional in-store execution-
80% of purchases are still made in bricks-and-mortar stores. In order to keep shoppers in the stores, sales associates must provide an exceptional experience for them. When examining online satisfaction, customers rate the retailer’s returns handling process, price and promotions, ease of checkout and product selection as major factors. What sets the in-store experience apart is the sales associate. Sales associates are often the main touch point with customers. Customers indicated a desire to connect with retail sales associates.
3) Ease and efficiency during checkout-
Store shoppers want to proceed quickly and smoothly through the checkout. They do not want to be sold additional merchandise or have to wait in a long time.
4) To differentiate, reach beyond the basics-
The most requested item, of consumers surveyed, was that retailers provide personalized, specialized store treatment to customers based on loyalty status. Affluent and young shoppers, especially, expect differentiated treatment if they are frequent and loyal shoppers.
5) Shoppers’ expectations vary when it comes to specialty vs. consumable products-
Customers buying regular consumable products have lower expectations of differentiated service than when they are purchasing specialty products. When purchasing consumables, printed materials, product displays, shelf signs, and packaging had the biggest impact on the customer’s decision.
Discussion Question:
What do customers want most from their shopping experience?
SOURCE: National Retail Federation, NRF Proceedings, January 14, 2013