Tag Archives: lifestyle

Customers want service not sci-fi from high street retailers

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We all know the 2019 outlook for brick and mortar retail looks troubled and indeed it’s barely a month into the year and we’ve already seen Patisserie Valerie collapse into administration. Are we surprised? You only need to look at the makeup of the high street to see the extraordinary amount of competition facing a business like this coupled with the fact that the business hadn’t changed much since its launch. It needed to adapt and if brick and mortar retailers focus on aligning their strategies to current market conditions and take on board what customers say, a one size fits all decline isn’t inevitable.

We recently conducted a survey ‘Service, not Sci-Fi’ that looked at the reasons people were turning away from retailers but also how they might turn back. While cost cutting and staff consolidation might be the first response to disappointing figures, our survey showed this could have an immediate detrimental impact on sales. Our study found that 81% of UK shoppers felt that personal touch had disappeared from retail customer service in modern Britain. Almost a third (32%) blamed an over-reliance on technology for this decline. And half of those polled thought that companies in the UK use technology to save money, rather than improve customer experience.

Despite living in a world driven by technology, most people don’t want technology to sacrifice human opinion 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% would like to see smart mirrors that show a 360 view of themselves, 16% desire a VR changing room, while 14% want AR for visualise products at home and 9% seek a talking robotic assistant.

When asked what makes a great brick and mortar shopping experience, half 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%). Coupled with this, 61% of the nation would prefer to deal with someone face-to-face when complaining, while 59% liked a human interaction when enquiring or trying to find out more about a product and 73% wanted to see someone when being issued with a refund.

And back to the impact on the bottom line – a third of Brits say that the personal touch is more likely to encourage them 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 local retailers, with a quarter of Brits saying they miss shopping somewhere where people recognise them and 16% confessing to preferring talking through a purchase with someone in-store, while a quarter reveal that online shopping is less fun than buying something in a real shop. The convenience of a store’s location is also important according to 43% of respondents which means that retailers should consolidate their estates. Many will notice immediate effects. This only emphasises the need to carefully consider the experience provided in-store and whether their staff can deliver the expected experience.

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 their customer experience strategies to keep people coming back for more.

To read the article please visit The Drum.

To read more about our Service not Sci-fi research please visit the Gekko website.

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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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Brits want ‘service over sci-fi’ from retailers

The Drum Blog

A study published today 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.

To read the full article visit The Drum.

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

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First steps for Mothercare: will it save the troubled brand?

Mothercare blog

A couple of weeks ago British retailer Mothercare released its first significant ad campaign in a decade entitled ‘First Steps’ intended to capture those first moments parents experience. This campaign comes following the news that the retailer will close 50 of its 139 stores by June 2019 with 900 potential job losses. This decision is driven by the fact that the longstanding brand experienced pre-tax loss of almost £73 million for the financial year to March 2018 and it’s just announced blooming half-year losses. So will the First Steps campaign assist to turn the retailers’ fortunes round?

The campaign must be applauded for being very ‘real’ -using images and models which resonate perfectly in the ‘real’ world. Avoiding the Instagram perfection and clichés many may be led to believe are indicative of motherhood and parenting, it has a comforting reality of life across any demographic and nationality. However, for me, it doesn’t speak to a wider audience and as a ‘turnaround’ campaign, the message needs to be broader to attract all pockets to come and spend in-store.

The ads are articulated beautifully, drawing on the raw emotion of being a parent and it will resonate with parents or those expecting, no doubt drawing them into or back to the brand. However, the ad seems to have forgotten people who aren’t in the same position, perhaps an aunt, uncle, godparent or friend who has not yet or has no desire to experience parenting, whom therefore may not share the same emotional connection.

They are also potential shoppers, some may argue with more disposable income, who also need to be attracted to the brand to spend. The wider the appeal of the ad, the more it increases the odds to attract shoppers of any kind. Surely, this should be the objective of this desperately needed turnaround campaign which is all about increasing sales.

In the UK the average annual birth rate is 670,000 births (Office of National Statistics) and the market value for this sector is £7.3bn and estimated to grow by 2021 +2.3% in clothing and 4.4% in Footwear (Euromonitor) and research from 2017 indicates that 64% of shoppers prefer to touch and feel products in this category, 48% prefer to research products in-store resulting in 58% of sales created in physical retail (Pragmarket). The opportunity for growth is therefore evident for any retailer in this sector, especially an established brand like Mothercare, as while it’s unlikely that the nation will stop giving birth, people can be influenced where we shop.

The customer experience must reflect the emotional journey the brand takes its audience through in these ads and translate it onto the shop floor. The creative and sentiment that’s applied to the ad, the real and caring traits it communicates must be applied to staff, the store layout, its ranging, staff training and the advice they give to a new and likely tired parent or complete novice when shopping for infants.

A clear message which translates from ATL to the in-store experience is crucial to ensure a clear measurement of ATL and to convert awareness to revenue. A successful ATL may well bring customers back but a poor customer experience may make that crucial first hello, the last.

And here’s the real dichotomy for Mothercare, do they invest more money in the remaining estate to make the shops a truly engaging experience and destination for people or leave them wondering what their role is in the ‘real world’ – I know which strategy my money is on!

For the full article visit The Drum

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New survey by Gekko reveals retail staff are more influential than celebrities and vloggers

Gekko - Google Retail blog image

The results from a recent survey published today by field marketing agency Gekko entitled ‘Shopper Influencers’ reveals that the bricks and mortar retail environment continues to play a significant role in influencing shoppers purchasing decisions across both general and high value goods. The survey by OnePoll was conducted among 2000 UK consumers between 18 and 55+.

Even among today’s tech savvy 18 to 24 years old’s more than 40% prefer to head in-store to see, touch and experience a product before buying, rising to 58% for the over 55’s. Most surprising is that 38% of 18 to 24 year old’s want a personal service and recommendation from in-store staff, the highest among all of the age categories. Only a small proportion of 18 to 24 year old shoppers are swayed by celebrity endorsement (18%) or the opinion of vlogger’s and bloggers (28%).

The influence of friends (70%) and online reviews (71%) among this age group is significantly higher in making product purchase decisions and this is consistent across all age groups. And when it comes to high value items such as TV’s, home appliances and luxury items, the trend continues with online reviews, personal recommendation and the in-store experience rating as the most important influences across all age categories.

When it comes to looking at the key influencers across product sectors there are some notable trends: 

  • Within the tech sector, online reviews from other people are still heavily relied upon (38%) among 18 to 24 year olds but interestingly this is also the case for all age groups with (35%) for over 55’s.
  • Similar to tech, for home appliances, user reviews rate highly across all groups (32%) 18 to 24 year olds, rising up to (46%) among 45 to 54s.
  • For beauty and fashion, reviews from other people score highly across all age groups but in this sector, unlike the others, the influence of bloggers and vloggers is much more highly rated, although only among the younger 18-24 generation (32%) for beauty and (23%) for fashion.

When asked what advertising has influenced a considered purchase none of the mainstream advertising channels were cited as influential: just 7.5% for TV, 8.7% for website, 4.6% for social media, 3% for billboard and 2% for newspaper and print. Advertising in-situ within the retail environment however was rated the key influencing factor at 19%.

Daniel Todaro, Managing Director of Gekko, said: “According to the ONS, while online sales continue to rise, e-commerce as a percentage of total retail sales July to August 2017 was still only 16.4%.  The findings of this study show that the shop floor is clearly still winning in considered purchases, therefore marketers need to invest in making the experience as good as it can be. When a shopper is ready to make a purchase they will look for advice and guidance from people who have experience of using the product be that friends, family, other users or experts in-store. Consumers today are much more savvy and recognise that celebrities and vloggers have been paid for their endorsement, while time and money spent working with staff on the shop floor will in fact pay for itself through category development and increased sales at a higher average sales price, making your marketing work harder.”

Read the article here

Source: Gekko

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Sunday Trading – The 7 Day Shopper

sunday trading banner

The rise and fall of the UK high street is well-documented and never far from the news agenda. With retailers scrutinising sales figures and competition being fierce, extending opening hours across Sunday could be a vital first step to rejuvenating the high street and beyond this, the UK economy.

Unlike any nation in Western Europe, the UK is unique in that we like to shop, whilst other nations shop out of necessity, we in the UK like to make our retail therapy more of a sociable brand experience. For a long time now people in the UK have used Sundays as they do Saturdays – to carry out one of their favourite hobbies and pastimes, shopping.

George Osbourne’s recent announcement to shake up Sunday trading laws comes as no surprise. In our current consumer climate, purchases are firmly becoming ‘any place, any time’ and Sunday is no longer an exception to this. Combining the rise of consumer appetite with the reality that people lead extremely busy lifestyles means people want to have the choice to shop for more than six hours.

We are witnessing a shift in the way consumers are buying their goods. There is a lot to be said about people moving online, however a recent article from Forbes reported a 95 per cent of retail purchases worldwide are still being made in-store. This alone should be enough to make the retail industry step up and cater to shopper demand.

As well as ensuring they are adapting to customers developing shopping habits, for retailers, the change in Sunday trading laws is an open door of opportunity. Although we should consider those individuals who want to keep Sunday as a sacred day, looking at this from a commercial point of view – this is all about maintaining a strong, healthy economy in our 24/7 lifestyle, the balance is for retailers to make it work respectfully for everyone’s benefit and lifestyle choices.

Currently in some communities or high streets, stores choose not to open due to the high cost of staffing and overheads costing retailers money instead of making a profit. The laws give retailers the ability to create thousands of jobs through the same trading hours offered the rest of the week, having the option to bring staff in and pay them for longer than 6 hours of work and generate millions of pounds in extra income.

Not only will the changes mean more money in people’s pockets, they will help to boost the UK economy and in a sense help reinvigorate communities and the high street.

The shake up of trading laws is not surprising as sticking to traditional, some say outdated laws, links back to a consumer world that ultimately no longer is reflective of the UK’s lifestyle and desire to shop whenever and wherever they like.

 

Read more at: http://bit.ly/1IGTLVD

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