Tag Archives: Environment

Brands Should Focus on Delivering a ‘Human’ Experience in the Brave New World

CXM Graphic

The uncertainty surrounding the fallout from lockdown and consumers’ changed behaviour makes the task of forecasting the future a difficult one for brands. While commentators obsess about the performance of channels and the extent to which ecommerce is replacing bricks and mortar, we are in danger of missing the key factor. Namely the customer.

As the global population responds to the coronavirus pandemic, key trends are emerging, reshaping the consumers priorities and spending outlook in the UK. The real dividing line is between those who respond and offer a great customer experience with those who don’t.

A changed context: New patterns of behaviour established

Every aspect of our life has been impacted. This ranges from the focus on the preservation of health & wellbeing to the renewed focus on the connection with family and friends to cope with the impact on personal safety and security.

Meanwhile, new behaviour patterns for work & play have emerged. We are staying at home to reduce travel and human interaction. This is, in turn, is changing spending habits as consumers adapt and fill their time in new ways.

Brands have had to find a new raison d’etre and are discovering new ways to communicate that emphasise empathy for employees and customers as they go into overdrive to overcome the downturn.

eCommerce can’t offer a true brand experience

While we have remained at home ecommerce has thrived and will be of growing importance. However, the evidence shows online sales will not completely replace lost revenue from traditional retail which needs to be examined.

Online retail sales share increased to 30.8 percent in May and June, however it is forecasted to decrease by 9 percent as stores open. The fact remains customer experience in considered purchases remain important as online can’t offer a true brand experience. Customers still long for the human interaction and advice that comes as part of the bricks and mortar shopping experience.

This was born out by a study we carried out last year that indicated 59 percent of people would always rather speak to a person than an automated system to find out more information about a product. Meanwhile, 73 percent preferred dealing with a human when trying to get a refund.

Innovation tackling safety concerns

So what lessons can retailers and brands take? The circle needs to be squared of people wanting an in-store experience when they are less likely to go to a shop. They also need to have their safety concerns considered when they do venture out.

Interactions can be managed and ideally, some element of browsing can already have been delivered.

Bringing the shop floor to the digital realm

For those more nervous about venturing out, innovative technology can deliver the desired customer experience. For example, Ikea has acquired AR startup Geomagical Labs, driving shoppers to purchase more big-ticket items without needing to visit a store. Geomagical Labs’ key product allows users to scan a room using a smartphone, render that into a panoramic 3D picture, remove all the furniture currently in it and then change the layout of items around the room by adding new items to scale.

This type of innovation and AR more generally will create more engaging digital experiences to help customers accurately visualise their home with new furniture. The same could apply to a whole range of product categories. Smart brands and retailers will be able to gain an advantage through differentiation of this kind.

It’s good to talk

While this may replicate the ‘show’ part of the in-store experience, a gap remains for the ‘tell’ part led by an expert. Retailers need to consider new ways of delivering human interaction, often required with higher ticket items. For example, instore advice can be replaced by training staff in call centres which could replicate the expert advisor instore. The human advice so desired by customers can be given but at a safe distance. This could range from product advice to refunds.

The focus should be a seamless experience delivered across all touchpoints, instead of obsessing about the false divide between online and offline. Retailers and brands need to put the customer’s needs front and centre and understand the need for a human touch. This is the best way of preparing for an uncertain future.

To read the full article please visit CXM.

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Five behavioural trends to take note of as the high street re-opens

The Drum Five Behaviour Trends

The latest signs of economic recovery look promising. So promising that Andy Haldane, The Bank of England economist, believes that the UK economy is growing at 1% a week. The V-shaped recession thought to be unlikely just a month ago now seems to be very much on the cards again.

Retail has been a big motor for this mini-recovery. People have been returning to the high street in large numbers with UK retail sales near pre-lockdown levels in June. According to the ONS, the amount of goods sold last month increased by 13.9% in June compared to May. The trend has continued in July as the reopening of shops supports pent-up demand punctuated with the roll out of marketing activity and campaigns to support retail in its reawakening mode.

The worry remains that the recovery may stall due to consumer confidence dipping. Consumers need to also have their safety concerns addressed. A real understanding of new behaviour is critical to maintaining momentum. So what are the key behavioural trends that retailers and brands should take notice of?

Safety is now the top priority

The starting point for bricks and mortar retailing pre-coronavirus may have been expert salespeople, attractive window displays, in-store offers and branding. Today the starting point is safety. Many shoppers still do not want to venture into public spaces without a purpose. In fact more than half of consumers, who would have shopped instore pre-coronavirus, now believe the risk to be high. This poses a serious challenge for many retailers seeking to draw shoppers back to stores. The focus has to be on reassuring these customers and clearly demonstrating your credentials across all your communications touchpoints.

Late adopters have finally embraced ecommerce

With new fears for safety, evidence shows some consumers intend to permanently change their shopping behaviour. This includes purchasing more online due to the continuing risks of infection. Many late adopters are the new converts to online. They have been slow to adopt online banking and shopping but they have done it now. This has not been driven by choice but due to fear about offline shopping. In fact, shoppers are now four times more likely to shift to online in the long term, particularly if they have health concerns. Local lockdowns like that in Leicester will only serve to reinforce the wariness.

In-store consumers are more likely to convert

The good news is that those who like to shop in person will continue to do so to have a decent customer experience. While online retail sales increased to 30.8% in May they are forecast to have decreased by 9% as stores open. In other words, while online is growing it still can’t fully replace the bricks and mortar experience. In response many brands and retailers have adopted an omnichannel proposition, rather than choosing one over the other. The resilience of instore is more evident in considered purchases and in the CE category where we are seeing consumers shopping with purpose. They are travelling and entering retail with a clear determination to purchase. As a result we are seeing a conversion rates of over 40% of product demonstrations leading to a sale. Naturally, this is determined by the experience and engagement they receive in-store. Therefore, a bad retail environment or salesperson pre lockdown isn’t going to change that post lockdown.

The home will remain our new centre of existence

In response to the lockdown, the reality of working from home has meant a likely shift in the workplace dynamic for many on temporary or permanent basis. Therefore, many technology brands in the market have shifted focus to home productivity and accessories. Retail must take learnings from this to support the initiatives and messaging put out by brands. This will ensure they are able to engage consumers looking for technology to support their change in working habits and in turn grow with the trend. As we spend more time also that clear winners throughout and ongoing are food retailers and also home stores with many opting to tackle home improvement projects whilst in lockdown and on furlough.

The rise in demand for appointments

As we are moving from a browsing culture to a purpose driven one, we are going to see the rise of the appointment booking. This will certainly be the case in the considered purchase space. It seems those who commit to the appointment do so with a clear intention to purchase within the set appointment duration. This trend seems to be speeding up the customer journey and increasing much needed sales.

To succeed in this new environment retailers need to be creative, follow the trends and create a customer experience worthy of a sale.

To read the full article please visit The Drum.

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Covid-19 is temporary, but attention to the environment must be permanent

The Drum Covoid is Temporary

We’re living in a society where we’re constantly encouraged to do ‘better for the planet’. And I don’t disagree. But we’re at a point of inflection when a lot of people don’t know what’s best for the planet. From fake news to real news – it’s information overload everywhere you turn.

Recycling your plastic should be simple, but that’s another article depending on where you live and which type of plastic it is. Buy more sustainable products. Shampoo in a block is great if you have the money to buy more expensive products.

And there’s the biggest conundrum for most people when we’re thinking about the environment and greenhouse gas emissions. If I order online for delivery am I burning more carbon than necessary? Or is it more environmentally friendly to go to the shops, buy a less environmentally friendly product but save the delivery van a journey? How we expect people to know the answer, when many of us in retail don’t know it, is beyond me! It’s all rather complicated.

The impact of FMCG

I read an interesting study from the American Chemical Society that looked into the estimated emissions created by UK sales of FMCG goods, typically low-priced toiletries, packaged foods and cleaning supplies. Although shoppers have traditionally bought these items at brick and mortar shops, online sales are increasing.

The study compared the carbon footprints of three different shopping practices: old fashioned ‘bricks and mortar’ shopping and the two main forms of e-commerce, bricks and clicks and pure play (which both have different supply chain configurations). Included in the three models were emissions from transport, warehouse storage, delivery and packaging.

The results showed that the total emmissions per item purchased from bricks and mortar retailers were higher than bricks and clicks vendors in 63% of cases, but lower than pure play in 81% of cases. It appears that more items are usually purchased from bricks and clicks retailers is used and this leads to a smaller carbon footprint per item than for the same shopping trip via a brick and mortar retailer. Another factor is, of course, that one van driver bringing multiple deliveries into one area will create fewer emissions than all those people driving to the shops.

The study made some clear but obvious recommendations for consumers for cutting emissions across all three shopping categories: walking, cycling and trip chaining for brick and mortar; and purchasing from a single retailer and bundling for bricks and clicks and for pure play online retailers. Importantly for pure play businesses – whose share of the FMCG category is on the increase – switching to electric cargo bikes could cut emissions by 26%.

I’ve tried to simplify what is actually a complex study, but it does highlight the dilemma and responsibility we have as consumers and retailers to the planet. In a recent online shopping survey we conducted among 2,000 consumers, 73% said they were concerned about the environmental impact of excessive packaging, 75% single use plastics and 42% multiple deliveries to one address. There is a clear will from consumers to want to do better for the planet but it’s far too complex for them to work out how. So, retailers, trade bodies and governments need to do more to educate consumers so they can make the right choices not just any choice.

Our current Covid-19 situation is only temporary, so my mantra as we come out of the other side of it is just to take a little more time to think before you shop.

To read the full article please visit The Drum.

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