E-commerce continues to grow at a double-digit pace and yet more than 80 per cent of retail sales are still made in bricks-and-mortar stores – even higher for jewellery purchases. The reality for retailers is that their customers are rewriting the old rules of business.
Future survival and success will depend not upon a sale today but a winning customer experience (CX) formula. The future success and survival of traditional stores requires a CX formula that transcends products, displays, store designs and even the people in the store.
In the face of e-commerce, stores can no longer compete on lowest price or largest selection. Stores must differentiate by providing something consumers can’t get online – CX. Like a theatre experience, great stores require three ingredients to create a consumer experience: a stage, actors and a script.
Stage – a retail store is a stage, including how it is arranged and optimised for the consumer to engage with products. Retailers are moving from displaying products on shelves to interactive store designs where consumers can touch, feel and play with products.
Actors – the actors of retail are the staff on the floor. Today’s multi-channel shoppers research facts online then come to stores to engage with staff on how to find the best solutions.
Script – any theatre production with the best stage and best actors is still not a compelling experience without a great story. What is the compelling script that engages consumers to explore, purchase, and return to a store? Without a story, stores are just showrooms.
The Walt Disney Company is a master of CX and describing the ‘magic’ of Disney would take volumes. What business has a better stage than Disney World? Each park is built upon decades of experience and loaded with ways to engage visitors. What business has better actors than Disney staff? Not only do they wear elaborate costumes to mimic characters the world loves but they are trained for weeks on how to stay in character. The real secret sauce at Disney is the underlying premise that people are not customers but guests and there are many scripts for each visit.
The hardest mission of any retail store
Engaging customers with experiences is not new and there are stores all over the world diligently training their employees to greet and engage customers in particularly proactive ways. Breaking down the ingredients of CX remains a challenge for businesses everywhere but it can be summarised into just five little letters: G-U-E-S-T. These five letters represent critical behaviours to help businesses engage today’s consumers.
G is for greet – asking “Can I help you?” doesn’t cut it anymore. To engage consumers these days requires a sincere greeting complete with eye contact. The best staff welcome guests to the store and introduce themselves by name before inviting them to explore.
U is for understand – this is probably the single most difficult and overlooked step. Understanding is not trying to tell customers about all of the product features. Rather, it is about asking open questions and having staff listen until they understand what guests value so they can personalise a solution that best fits their needs and lifestyle.
E is for excite – retailers are beginning to understand that stores are not just warehouses. They need to be designed and equipped to engage consumers; however, the key is to let the guests touch and play. Let customers drive the experience, not sales staff.
S is for solve – customers seek personalisation more than ever. They are not looking to be sold; they are looking for staff who will treat them like guests, and help them purchase solutions that will solve their specific problems.
T is for thank – when treating guests at home, one would always thank them for coming and welcome them back, so why should this be different in store? Sincerity and thoughtfulness are the foundation of building strong relationships.
This all sounds so elementary so why are numerous retailers failing to provide the basic features of good customer experiences? What unsuccessful stores are missing is the fact that today’s multi-channel consumers have changed their behaviours and their expectations. Consumers are the new POS, not the stores or the shelves.