Much has been written about the future of retail outlets in the context of growing numbers of online transactions. Though less than one in five transactions takes place online, there are certainly parallels with the banking industry where the branch is now viewed as part of an omni channel approach to service delivery and this has had implications for customer expectations. In retail too, shoppers demand the highest levels of customer service, online and offline.
Research indicates that the store retains a key role at a time when Internet usage is increasing, and people are discovering new ways to do business. What is important is the way stores adapt to the digital environment and embrace change to create new experiences.
Accenture has reported that 60 percent of Generation Z prefer to purchase instore and research carried out in the US has identified a trend for webrooming, whereby 65 percent of customers investigate products online prior to purchasing offline at a physical store (selligent.com)
Why do people continue to favour the offline option? What draws them to the store and what can retailers do to ensure the physical outlet continues to attract customers?
For many (49 percent) a key factor is instant gratification, where the customer can take the product away immediately, coupled with touching and feeling the item, which was important to 73 percent of respondents. This was also confirmed by Mindshare's Future of Retail research which concluded that 83 percent of respondents believe stores are important because of the 'see, touch and feel' factor. Other positives include easy product search and efficient store layout. For 48 percent of US consumers (Mood Media) the ability to browse and discover new things drives them to shop instore.
But there are downsides, 60 percent suggested that the biggest turn off in-store is having to stand in line waiting to be served while others (33 percent) suggested that staff being unable to assist was a significant inhibitor.
Research from Mood Media - The state of Brick and Mortar 2017 - shows that speaking with a shop
assistant is important for 26 percent of people in the US compared with 32 percent in in the UK and France. Meanwhile, an enjoyable atmosphere and experience were very important for one in three 18 to 24-year olds.
44 percent of store customers would repeat visit if they have received a personalised experience. It's also interesting to note that people felt they were twice as likely to get a personalised service instore rather than in an online environment.
It has been suggested that in the current environment the key to enhanced store visits is creativity - delivering memorable, meaningful occasions. The selligent article (13 Match 2018) quoted Gfk research as saying 27 percent of people would be more likely to visit if the store offered a virtual reality experience. In a similar vein a 2017 (26 October) article in Campaign suggested that gamifying stores could go some way to creating a more entertaining and welcoming environment.
Other ways of attracting customers include regular changes to the layout (constantly 'reinventing' the store) ensuring there is always something new to see, specialist events and the establishment of in-store communities.
For me there are a number of key takeaways
Physical stores continue to have a key role
- You need to free up staff and enable them to provide a personalised service
- It is important to make the best use of store space
- Elimination of queues is an important element of customer service delivery
- Those that embrace new technology will gain competitive advantage
And that's where Glory come in. Wherever you look, cash still accounts for significant numbers of transactions in retail stores. Automating these transactions frees up retail staff to enable a more personal and effective in-store experience, reduces queues, and can potentially free up space for more innovative customer facing activity. Deploying the right technology can empower the physical store and act as a catalyst for change.
