Is This the End of In Store Customer Service and Retailing as We Know It?
You would think traditional retailers when confronted with the undermining of their traditional in store purchasing business models would be reaching out for new ways to create value for their customers……
Although most retailers agree delivering a superior in-store experience will rescue the physical store from the fate of the last buggy whip company. I find it strange that they continue to offer customer service that borders on a slap in the face.
A recent survey released by Motorola has found that the number of shoppers who prefer to rely on their own mobile devices, rather than shop assistants, to guide their purchasing decisions has reached a level that for retailers can only be described as “a major wake up call”.
There are a couple of facts from the research that suggest retailers may have given up on providing better in store service.
Firstly about 50% of Millennials (Gen Ys) and more than a third of Gen X shoppers suggest it’s easier to find information on their mobile devices than from a store associate. Since the Millennials are gradually overtaking baby boomers as the biggest consuming group, retailers are saying to their future target customers – there really isn’t much point in coming to the store after all.
The second interesting fact is that store managers agree – and are convinced in even greater numbers than their customers – that mobile devices provide better information. More than 60% of managers were of this view!
The Motorola research also revealed that the shopping experience improved when sales associates themselves used mobile technologies.
Digitally-enhanced service is clearly a direction being taken by many leading-edge retailers who are already shifting to mobile checkouts and other technologies that bypass or supplement humans to provide product information.
What is the future of store based retailing?
The shift in retailing appears to be heading in a smaller number of viable directions:
The first is technology-based self-service, with people being largely phased out of store operations. This is already starting to happen at super markets and other high volume retailers.
The second is real value-added in-store customer experiences provided by passionate “brand ambassadors” – for example Lululemon and Apple in which store associates are so highly trained, informed and motivated that they can make customers feel good enough about the experience to make additional purchases.
The third will be specialty retailers in high traffic tourist areas that will continue to relie on holiday shoppers and serendipitous purchases. The local cannery row and fisherman’s wharf areas in Monterey California come to mind….
Consumers appear to be losing faith in the ability of retailers to deliver on the promise of people powered service.
What do you think? How will store based retailers survive in the future?
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