Monthly Archives: January 2019

Let’s give retail its pride back

rs blog

Whilst technology can provide speed, convenience and even a wow factor, people are still the key to successful retailing and good sales people give shoppers a reason to visit

Looking at all the analysis and commentary relating to the ‘golden’ quarter trading figures, published in January by the UK’s major retailers, it’s clear that after a dismal November, retailers had to play a game of catch up in the closing stages of 2018. Whilst there were some positive stories such as the ‘very strong’ Christmas eve sales at John Lewis, it was less rosy for many other retailers and in 2019 it will continue to be a tricky path to success.
As we are constantly hearing, UK high street retail is taking quite a bashing but are we really surprised? How long could retail sustain so much online competition?

Everywhere you look another coffee shop or restaurant is opening to fill the empty nests left by retailers of old. We’ve seen changing retail patterns before for example during recessionary times, but this feels very different, almost like self-harm. We’re seeing a complete transition in retail in the UK. Brexit uncertainty is damaging consumer confidence and the media isn’t helping the plight of retail when all you hear is doom and gloom. The notion, right or wrong, sinks into the public psyche. Businesses are going bust, estates are shrinking, and consumers are opting to head online. It’s not a pretty picture and there needs to be a considerable amount of effort into halting the slide.

Whilst some retailers are taking an innovative approach to how they engage with their customers on the high street, many appear to need additional inspiration. I’ve read many articles lately that talk about how technology and innovation will transform the in-store shopping experience and save the high street; self-service checkouts; robot assistants; augmented and virtual reality.
However, a recent study we conducted, titled ‘Service not Sci-fi’ revealed that despite living in a world driven by technology, most people don’t want technology at the sacrifice of humans’ opinions and experience. Only 30% said they would like to see ‘smart pricing’ initiatives adopted by retailers, where prices change in real time depending on demand, 22% smart mirrors that show a 360 view of themselves, 16% a virtual reality changing room, 14% augmented reality to help visualise products in the home and 9% a talking robot assistant.

An astonishing 81% of UK shoppers claim the personal touch has disappeared from retail customer service in modern Britain, with almost a third (32%) blaming an over reliance on technology for this decline. And when asked what makes a great bricks and mortar shopping experience, 49% of those polled said it was down to having good staff on the shop floor, staff that know the products (49%) and staff that go the extra mile (47%).

Consumers want to do business with real people and have real conversations. And businesses take heed – a third of Brits say that the personal touch is more likely to make a repeat purchase, and more than a fifth (22%) claim they always spend more money in a shop if they are served by a good assistant, imagine converting that to sales? Over a third (34%) of shoppers stated that a poor experience has driven them to buy from another retailer, not great in the current climate.

So perhaps retailers have got their strategy wrong? Whilst technology can provide speed, convenience and even a wow factor, people are still the key to successful retailing and good sales people give shoppers a reason to visit. If bricks-and-mortar retailing is to thrive it needs to recognise that there is a changing role for stores. There needs to be a shift from transactional retailing to experiential. There needs to shift from till operator to sales consultant. This requires good teams on the shop floor and with all the negative commentary surrounding the high street it is difficult to attract talent but perhaps this is where retailers should focus their efforts?

Retail remains a rewarding career where those involved take pride in the service they provide. This culture should be representative of all retailers, however that’s about culture not proposition. With a change in mindset for both the retailers and their store teams, then it’s possible to bring back the pride in delivering the optimum customer journey and in doing so enhance the experience for all.

To read the full article visit Retail Sector.

For more information on Gekko’s recent ‘Service not Sci-Fi’ study please visit our Research Page.

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Consumers want ‘real people not robots’ from retailers

ert blog

A study launched this week by Gekko, a marketing agency, titled – ‘Service not Sci-fi’ reveals that UK shoppers would rather deal with real people not robots or artificial intelligence when it comes to shopping.

The study found that 81 per cent of UK shoppers claim the personal touch has disappeared from retail customer service in modern Britain, with almost a third (32 per cent) blaming an over reliance on technology for this decline. And half of those polled think that companies in the UK are using technology to save money, rather than improve customer experience.

Despite living in a world driven by technology, most people don’t want technology at the sacrifice of humans’ opinions and experience. Only 30 per cent said they would like to see ‘smart pricing’ initiatives adopted by retailers, where prices change in real time depending on demand, 22 per cent smart mirrors that show a 360 view of themselves, 16 per cent a virtual reality changing room, 14 per cent augmented reality to help visualise products in the home and nine per cent a talking robot assistant.

When it comes to buying online, 43 per cent of UK shoppers have had their screen freeze while trying to make a purchase, so when asked what makes a great bricks and mortar shopping experience, 49 per cent of those polled said it was down to having good staff on the shop floor, staff that know the products (49 per cent) and staff that go the extra mile (47 per cent). Coupled with this, 61 per cent of the nation would prefer to deal face-to-face when complaining, 59 per cent when enquiring or trying to find out more about a product and 73 per cent when getting a refund.

And businesses take heed – a third of Brits say that the personal touch is more likely to make a repeat purchase, and more than a fifth (22 per cent) claim they always spend more money in a shop if they are served by a good assistant, incrementally adding to sales. Over a third (34 per cent) of shoppers stated that a poor experience has driven them to buy from another retailer.

The research also highlights the impact of the decline of the local shop, with a quarter of Brits saying they miss shopping somewhere where people recognise them, 16 per cent confessing they preferred the days when they could talk through a purchase with a someone in-store, and a quarter saying online shopping is less fun than buying something in a real shop. The convenience of a store’s location is also stated as important by 43 per cent of respondents, which means that as retailers consolidate their estates, many will notice the effects, further emphasising the need to carefully consider the experience being provided in-store and the staff needed to deliver the experience.

According to the research we waste almost an hour and a half a month interacting with automated technology, only for a human to have to step in and help. In addition, 47 per cent of shoppers have experienced self-service checkout failure that’s had to be rectified by a shop assistant.

In fact, more than three quarters (77 per cent) of UK shoppers admit they’d much rather use a checkout with a person on it, rather than taking the self-service option.

Daniel Todaro, MD of Gekko, said: “Everyone is talking about technology and innovation within retail, but our research clearly shows that what consumers really want is the human touch. With traditional retail under more pressure than ever and an astonishing 81 per cent of people feeling that the personal touch has disappeared from shopping, businesses need to focus on the customer experience in these tough trading times to help keep the high street alive.”

To read the full article visit ERTonline.

To find out more about our ‘Service not Sci-fi’ research please visit our Research page.

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Brits want ‘service over sci-fi’ from retailers: Gekko study

A study published by marketing agency Gekko – ‘Service not Sci-fi’ – reveals that UK shoppers would rather deal with real people over robots or artificial intelligence when it comes to shopping.

The study finds that 81% of UK shoppers claim the personal touch has disappeared from retail customer service in modern Britain, with almost a third (32%) blaming an over reliance on technology for this decline. Half of those polled believe that companies in the UK are using technology to save money, rather than improve customer experience.

Only 30% said they would like to see ‘smart pricing’ initiatives adopted by retailers, where prices change in real time depending on demand, 22% smart mirrors that show a 360 view of themselves, 16% a virtual reality changing room, 14% augmented reality to help visualise products in the home and only 9% in favour of a talking robot assistant.

When it comes to buying online, 43% of UK shoppers have had their screen freeze while trying to make a purchase. When asked what makes a great bricks-and-mortar shopping experience, 49% of those polled said it was down to having good staff on the shop floor, staff that know the products and staff that go the extra mile (47%). Coupled with this, 61% of the nation would prefer to deal face-to-face when complaining, 59% when enquiring or trying to find out more about a product and 73% when getting a refund.

A third of Brits say that the personal touch is more likely to make a repeat purchase, and more than a fifth (22%) claim they always spend more money in a shop if they are served by a good assistant, incrementally adding to sales. Over a third (34%) of shoppers stated that a poor experience has driven them to buy from another retailer.

The research also highlights the impact of the decline of the local shop, with a quarter of Brits saying they miss shopping somewhere where people recognise them, 16% confessing they preferred the days when they could talk through a purchase with a someone in-store, and a quarter saying online shopping is less fun than buying something in a real shop. The convenience of a store’s location is also stated as important by 43% of respondents which means that as retailers consolidate their estates, many will notice the effects, further emphasising the need to carefully consider the experience being provided in-store and the staff needed to deliver the experience.

According to the research we waste almost an hour and a half a month – which is 17 hours a year, the equivalent of more than two days at work – interacting with automated technology, only for a human to have to step in and help. Bug bears include getting someone to rectify a problem with the self-service checkout, and ringing customer services and dealing with a recorded voice, only to repeat the details to the person you end up talking to.

Little wonder, then, that 51% of Brits have slammed the phone down during an automated call, as the system didn’t recognise what they were saying. And 47% of shoppers have experienced self-service checkout failure that’s had to be rectified by a shop assistant.

In fact, more than three quarters (77%) of UK shoppers admit they’d much rather use a checkout with a person on it, rather than taking the self-service option. More than 4 in ten (43%) British shoppers would rather speak to a person than an automated system when making a phone enquiry, with almost a quarter (23%) ending up having to complain on social media when their query hasn’t been responded to via the automated service.

Daniel Todaro, managing director of Gekko said: “Everyone is talking about technology and innovation within retail, but our research clearly shows that what consumers really want is the human touch. With traditional retail under more pressure than ever and an astonishing 81% of people feeling that the personal touch has disappeared from shopping, businesses need to focus on the customer experience in these tough trading times to help keep the high street alive.”

The survey was conducted by Ginger Comms in December 2018, speaking to a sample of 1,500 shoppers aged 18+ and representative of the UK population.

Article published on Marketing Industry News

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