Antony Wildey, vice president, global sales consulting, Oracle Retail, explains that with the reopening of retail, the role of the store and the associates need to morph to serve the new shopping experience. As the new customer journeys and shopping experiences evolve, execution is everything.
The recent crisis has unraveled business processes and societal norms alike, leaving retail in a state of uncertainty. We refer to the near future as the New Next, because there is nothing normal about it. There is no clear roadmap for what lies ahead, but technology makes it possible for retailers to operate with business agility and extend resources to introduce new customer journey's as the shopping experience continues to evolve.
One thing is obvious; retail struggles to survive without the power of the physical store behind the digital experience. Consumer shopping habits have changed, but no one knows if these changes are temporary or forever. With the reopening, the role of the store and the associates need to morph to serve the new shopping experience. As the new customer journeys and shopping experiences evolve, execution is everything.
Improving the customer journey should come from improving the customer experience. Customers are showing that they value a great customer journey through their wallets and where they shop, and retailers are catching on. Gartner's 2019 Customer Experience Management Survey determined 74% of CX leaders anticipated increasing CX budgets, compared to 47% in a 2017 survey. While a traditional digital journey (order online, ship to home from a distribution center) is the least expensive operational journey, we saw firsthand that digital alone is not the answer during this crisis.
The key to success for retailers is a flexible and sophisticated omnichannel operation. Even leading retailers like Tesco had to rethink online shopping and delivery to vulnerable shoppers to ensure they received timely service. Traditionally, Buy Online Pick Up In-Store has been the most profitable for the retailer. If a consumer comes to the store, the average order value will increase. According to First Insight's consumer spending survey, 89% of women and 78% of men who visit physical storefronts revealed that they add additional items to their cart beyond what they were intending to purchase. In comparison, only 67% of men and 77% of women reported that they have added extra items to their online shopping carts.
New journeys must emerge that respect social distancing, consider contactless experiences, and still allow for discovery in the shopping experience. The risk of a poor customer experience rises as the permutations of shopping experience develop, but so will innovations in process and technology that help ease and enhance the journey.
Retailers need an integrated and coordinated experience that creates transparency and flexibility to fulfill the order from multiple locations to meet the customer's needs. In a time of uncertainty, consumers want a predictable shopping experience, not delays.
Moving forward, retailers need quick and comprehensive offerings that allow them to see business value in a matter of weeks, not months. During this time, retailers need to consider awakening their dark stores, planning their inventory strategies, creating a walk through store reopening checklist and tuning solution parameters.
As the culture of shopping changes in the short- and long-term, retailers need to evolve in parallel. They need to take quick action as they plan ahead, create confidence and continue to build resiliency.
Antony Wildey is vice president, global sales consulting, at Oracle Retail.
As the Vice President of the Retail Sales Consulting, Antony Wildey leads a global team of retail solution experts who provide industry and technical expertise to solve retail business pains across the enterprise.
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Privacy PolicySeptember 9-11, 2024 | Charlotte, NC