This time of year retail analysts always like to predict what’s in store for the market. One thing they all seem to agree on is that the physical store isn’t about to disappear from our high street or out of town location. Of course, on-line shopping continues to play a significant role in consumers’ purchasing habits particularly for certain types of products or repeat purchases but those retailers that adapt to the needs of their customers will come out on top. Certainly, the need to distinguish between digital transactions versus brick and mortar sales seems less important today with most retailers realising that a well-integrated omni-channel approach to serving their customers is the best approach. Even Amazon is investing in physical stores. Indeed, the ideal customer is probably one that uses both digital and physical stores of the same retailer. Unsurprisingly, the distinction isn’t important for consumers who just want to be able to buy whenever and wherever they choose. The biggest issue for retailers is not how or where their consumers buy but ensuring that they get the right product to the right customer at the right time from whichever channel they have chosen. Those brands that can deliver products quickly and trouble-free, offering incentives like same day delivery or four hours in the case of one well known brand, or provide reliable estimates of delivery or informative communication on the progress of a delivery are likely to attract loyalty. Efficiency of delivery takes the chore out of the shopping experience and that’s what consumers want.

The mobile phone is probably a bigger disrupter to the industry than even e-commerce has been which still represents a low percentage of total retail sales. Most analysts reflect on the fact that most transactions that end up in store, probably started digitally and increasingly that’s with the use of a smartphone. Using that device in store to compare prices, look at reviews and ask friends for opinions is now a pretty common activity. So, it’s essential that stores have a mobile friendly website.

Consumers define the shopping experience

The old adage that the customer is king is certainly true today because the consumer defines the shopping experience. So, whilst the physical store is still important the store experience is expected to become very different in the future. Consumers will expect more. However, whilst some stores are experimenting with VR/AR, AI and IoT, it’s unlikely that consumers will shop elsewhere simply because they can’t immerse themselves in a VR experience. At least not yet. Shops that offer interesting merchandise and shop assistants that are knowledgeable, aided perhaps by technology, are pre-requisites. Equally while personalisation of the customer experience seems to be a hot topic in retail, using technology to improve inventory visibility, delivery and forecasting are key back-office functions that will have positive effects along with making payments in-store easier and quicker as discussed in the last issue of this magazine.

Consumers want an easy life. Help, beyond simple advice, and installation of certain purchases is becoming an important consideration. Providing demos and tutorials in store is one option. However, IKEA’s purchase of TaskRabbit, the on-demand platform for hiring people to undertake anything from standing in a queue to secure a bargain to now presumably putting together some flat packed furniture, is indicative of the need for retailers to complete the customer experience. Companies like Amazon have stepped up their home goods and installation offerings. Installation services may not be new for certain types of purchase, but they can play a significant role in new and emerging technologies. Even smart-home gadgets which are one of the fastest growing segments require some professional help and this market has been boosted by Voice Personal Assistants like Amazon Echo. Ensuring it works, not only reduces returns but also makes for happy customers.

It may seem obvious but those retailers that make the customer experience a positive one will retain loyalty and increase their revenues. However, sometimes it’s the obvious that gets missed.

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