How Can Retailers Provide a Cohesive Brick-and-Mortar and Online Experience?
While cyber sales have started to overshadow window shopping, retailers cannot neglect their brick-and-mortar locations. As the e-commerce boom continues, retailers should focus on their competitive advantage—being able to provide superior customer service—to create a seamless brand to customer experience. By finding that leg-up to co-exist with online sales and mobile shopping, retailers can control the brand image that resonates with customers.
Let’s take a look at the most recent holiday shopping season, where sales account for between 20 and 40 percent of typical retailers’ total annual sales. Although one quarter of Americans surveyed said they never miss or usually visit at least one store on Black Friday, in-store sales were down by 3 percent, or $1.7 billion. However, the season wasn’t a total flop: online shoppers—a record breaking 66 million—were accountable for $1.2 billion in retail sales, up 15 percent over last year (National Retail Foundation).
Taking this consumer behavior into consideration, retailers are working to create a seamless experience when conducting business and serving customers, meaning: streamlining where inventory can be searched, bought, returned and exchanged; brand planning and merchandising; and sales support and branding all under one roof: enter the omni-channel experience.
Consumers don’t see the walls that retailers are trying to break down as different channels; they only interpret the ease or enhancement retailers are making to benefit their shopping experience—and compare this experience to others that may be lacking these advancements. Retailers who were asked to assess the value of multi- vs. single-channel customers yielded conclusive feedback: consumers that connect with retailers via multiple selling channels are more profitable than ones who don’t (RSR).
It’s clear retailers recognize the need for a strong omni-channel offering, however those surveyed identified that not even a single operational process has been fully synchronized. So now that it’s established that merging the digital and physical selling worlds to create enterprise-wide visibility and exude one seamless customer experience is key, the question is: how?
People, processes and technology are all needed to break down these retail barriers and transform store-only models into a new-age brand experience. Agility is a key component to long term success in today’s retail landscape, and implementing new ideas and technology, while training employees to understand it all, can be difficult. Almost every function on the retail floor has some impact or dependency on technology in the data center. By adopting a centralized, command center approach under a single provider’s care, retailers can begin their transition into an omni-channel offering. Cost-effective service desk and support systems for various in-store technologies are able to support thousands of store locations worldwide and manage a wide range of vendors, and exponentially more products.
Employees can assist customers and provide a hands-on experience, while the command center can perform some of the following tasks to keep stores, inventory, planning and merchandising streamlined across all channels.
Consolidate in-store technology, such as POS systems and scanners; technology management; incident management and service all under a single provider’s support and care.
Proactively monitor in-store technology to keep availability high and mitigate potential breakdowns before they occur
Handle all administration, maintenance, system upgrades and patches
Available via a hotline for store employees to call if something goes wrong with an in-store system, such as a POS malfunction or a kiosk with a frozen screen
Over the past five years we’ve seen the number of retailers who operate in multiple channels double, so it’s apparent that mastering the omni-channel operation is not a luxury, but a necessity to survive in the retail industry. Upon initial implementation of a command center, we’ve seen the number of technological issues per store per month decrease by 50 percent. From an ongoing, monitoring standpoint, we’ve seen these issues reduced per store by at least an additional 15 percent—across thousands of stores within a chain.
As the adoption of a command center will help move your store forward with immediate fixes like POS malfunctions/upgrades and consolidated technology, a bigger picture solution will need to be applied in the future. By breaking the cycle of comparing online shopping vs. catalogue vs. in-store shopping, the brand’s channels will dissolve into a centralized seamless shopping experience.
Once a store can successfully operate as an omni-channel operation, phase two begins, which includes analyzing the aggregated data from these channels to create a 1:1 relationship with your customer. This means knowing your customers’ preferences, how they like to be communicated with, mobility options, how to promote sales or relevant purchases, payment preferences, and more.
First comes the omni-channel experience, and then comes leveraging big data to create a meaningful customer relationship. Despite technological advances, the bottom line is that brick-and-mortar retailers are here to stay, and now is the time for retailers to act. A command center has many benefits to a retailer as illustrated above, but technology is rapidly changing and retailers need to stay innovative to increase their competitiveness and ensure a smooth transition to omni-channel provider; otherwise they risk being left behind.
Author: Paul Wolf, Director, Retail Services, Xerox
Since the invention of Xerography over 75 years ago, the people of Xerox (NYSE: XRX) have helped businesses simplify the way work gets done. Xerox has 21 years of retail industry experience helping retailers reduce cost-to-serve, launch new services in existing markets, improve customer retention, analyze their business, grow in emerging markets, integrate near-shore and offshore service delivery, and manage the customer experience through self-service models. Xerox offers tailored solutions for online stores, restaurants and brick and mortar retailers, including: department, merchandise, convenience and specialty stores with an integrated suite of customer care, communications and transactional services. Xerox’s Retail Store Command Center, a centralized service desk and support system for all various in-store technologies consolidates technology management, incident management and service under one experienced technology vendor’s care.
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