Between January and October 2020, more than 20 North American retailers filed for bankruptcy. Even the most well-established brands have been struggling with the pressures of COVID-19, failing to react quickly enough, implement innovative processes, and future-proof their strategies.
Retail customer service needs a makeover – one of innovation and disruption – in order to inspire loyalty and engagement in the current climate. Executives must be brave enough to question their infrastructure’s suitability for a global pandemic (few are up to it) and rise to the task of brand renovation, increased automation, and iterative innovation in order to shield from future disruption.
Reimagining retail customer service
For a long time analysts have been suggesting that the death of the high street is close. Now more than ever, there is a credible risk that this could become reality. Retail executives should now be looking at how they can reimagine their CX offering, in two key ways:
- E-Commerce
A recent study from Coresight Research showed that two thirds of consumers are continuing to avoid public places, even when restrictions are relaxed, with shopping centres top of the list of places that they will not venture to.
And according to McKinsey, e-commerce spend was up 30% from the beginning of March through mid-April in the US, with consumers spending $350 billion online in the first six months of the year. It should come as no surprise that online shopping is dominating in a world where convenience is now a requirement rather than a preference. There is no alternative route for traditional retailers besides e-commerce. For those which have resisted it to date, the time is now to invest, and for even the most advanced of e-commerce brands, you must also invest to stay ahead of the growing pack.
- Experiential retail
Since 2017, almost 10,000 retail locations in the US have closed due to their inability to compete with the speed of digital innovation. Retailers have been struggling to innovate their customer experience infrastructure, and according to Brian Solis, 84% of customers say the experience a company provides is as important as its products or services. It should come as no surprise, therefore, that luxury brands are now adopting the experiential retail model to combat customer losses. In a tightened economy, their expense becomes a deterrent rather than attraction. Strengthening the overall customer experience will drive footfall and increase the duration a customer stays in store – more time spent, more money spent. Concept stores, which are stores selling a unique selection of products which are all connected to a single theme, with in-store music, events or pop-ups all tie in to this, are prime examples of agile and tailored CX.
But experiential retail is far from the exclusive domain of luxury. In a post-pandemic world where consumers have had time to think, consider, research, and dream of their return to retail therapy – they are going to be extremely selective with where they spend their money. To recoup losses from lockdown, you develop a CX that stands out from your neighbours.
Whichever route you choose to reimagine, the CX toolkit offers myriad benefits for organizations which use it well:
- Greater customer value proposition
- Boosts sales and customer advocacy
- Improved crisis management
- Builds customer retention and loyalty
- Increased brand equity.
Continue the debate at the NG Retail Summit EU or NG Retail Summit NA, GDS Summits, where we bring together senior retail executives who are actively seeking to share, learn, engage, and find the best technology solutions.
GDS Group hosts experts to help experts. We strive to provide an atmosphere for our attendees that enables them to confidently lead their companies through major transformation projects. For information on upcoming events, view our Digital Summits. To remain current on our activities, visit GDS Group on LinkedIn | Facebook | Twitter.
