Tag Archives: Shopping

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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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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Real people not robots is what consumers want from retailers

Robot Shop

The study found that 81% of UK shoppers claim the personal touch has disappeared from retail customer service in modern Britain, with almost a third (32 percent) 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 percent said they would like to see ‘smart pricing’ initiatives adopted by retailers, where prices change in real time depending on demand, 22 percent smart mirrors that show a 360 view of themselves, 16 percent a virtual reality changing room, 14 percent augmented reality to help visualise products in the home and 9 percent a talking robot assistant.

When it comes to buying online, 43 percent 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 percent of those polled said it was down to having good staff on the shop floor, staff that know the products (49 percent) and staff that go the extra mile (47 percent). Coupled with this, 61 percent of the nation would prefer to deal face to face when complaining, 59 percent when enquiring or trying to find out more about a product and 73 percent 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 percent) 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 percent) 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 – 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 percent of Brits have slammed the phone down during an automated call, as the system didn’t recognise what they were saying.  And 47 percent 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 percent) 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 percent) British shoppers would rather speak to a person than an automated system when making a phone enquiry, with almost a quarter (23 percent) ending up having to complain on social media when their query hasn’t been responded to via the automated service.

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

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Retailers, It’s time to be relevant to consumers

Retailer Blog Photo

What’s happening to the British High Street? It is facing record levels of store closures in the first half of 2018. According to research by PWC, on average, 14 stores a day, 4,400 in the first 6 months, are closing their doors with 85,000 jobs lost in the first 9 months of this year. The industries most affected by the closures are fashion and electrical stores. Not far behind them are pubs and restaurants. There are few brands that haven’t been affected with coffee Shops and ice cream parlours accounting to the small amount of store openings.

As a nation of shoppers, why are we turning our back on the high street?

It is predicated that due to the large amount of choice now in the consumer’s hands the way they shop will change. Online shopping is predicated to account for 25% of non-food sales by 2022 which is a 5% increase on what it is today. The consumer now has the ability to shop across a variety of platforms from the high street, e-commerce, m-commerce and social commerce.

The choice to shop this way will increase through generations that grew up with the internet at their fingertips coming of age, working and having disposable income to spend. The generation that grew up with ordering something in the evening and having it delivered to their door the next day may not see the attraction of the high street. As shops close their closest functioning high street might get further away and less appealing to travel to when after a few clicks their product is brought to their door. The impact of online is a self-fulfilling prophecy and once the heart of a community is gone, it’s very difficult to entice it back as many councils are finding Public Houses, Restaurants are also affected due to digitisation – if you can order Italian food to your door are you going to leave to go to a restaurant? In-Home Leisure – If you have a huge TV/Projector, top of the line speakers, streaming service are you going to pay £30 to go to the cinema? Or go to watch the Football in a pub? Supermarkets interestingly do not seem to be affected at the level, perhaps due to people buying their own food to cook at home in line with changing dietary trends and therefore becoming more conscious of eating out?

The impact of the changes being posed may be too late. So what’s being done?

The introduction of a review for all retailers in England with a rateable value of £51,000 or less, intended to cut their business rates bill by one third is a positive step realising an annual saving of up to £8,000 for up to 90% of all independent shops, pubs, restaurants and cafes.

In some locations this is perhaps too late when you consider the vacant properties on the diminishing high street. The PWC research highlights that London has the highest change between closures and openings with Wales having the lowest. The numbers might be big for London but when you consider the size of some of the high streets in Wales compared to those in London -22 shops could be the closure of a whole High Street.

It also does not help those retailers, multiple or independent, with a larger footprint. For stores which anchor the high street such as Debenhams, HoF, M&S etc. the reduction in business rates for these retailers by local authorities, delivers a longer term tangible wealth to the community.

“This government constantly refers to a ‘dividend’ for all, which is used entirely in the wrong context, as there’s no dividend for communities whose high street have already been decimated and resemble ghost towns.”

What can retailers do for themselves?

The industries that were least affected by the closures such as Ice cream parlours and coffee shops could be down to the public still enjoying the little pleasures in life. It could also be that the brands have realised that consumers are now looking for personalised experiences. Millennials seek out experiences and value experience over material items. Those retailers serving the Instagram generation are offering them locations, products and experiences that are picture worthy and have bragging rights. Acknowledging these trends and the new way people shop are perhaps the key differentiators that have kept them from closure and continue trading successfully.

Although the numbers, for many, paint a negative picture for considered purchases there is still time for them to turn it around. Our research has highlighted that over a third of shoppers still prefer to go to bricks and mortar shops to buy their technology. There are still consumers who want to feel and touch products before purchasing. They are also looking for advice from staff and an immersive experience which some retailers do recognise however sadly many do not and are destined to failure unless they acknowledge and change soon. The investment made in retail by many brands is treatment to this consumer desire.

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Focus on Streamlining the In-Store Experience for Customers to Return

clothing-banner

Marks & Spencer (M&S) once again is in the news and is poised to close 60 poor-performing stores and increase its food presence due to falling fashion revenues and profit. Let’s not forget, this retailer has never placed itself as a high-fashion retailer, but one with a broad appeal for which it must cater. David Gandy, Rosie Huntington-Whitely, and the latest conscript Alexa Chung, who is yet to be measured for success, are fine brand ambassadors which have attracted new customers to the store — at least once. Therein lies the issue: let’s be honest here, ambassadors are not the problem and in most cases, depending on your taste, the fashion isn’t that bad or of poor quality either — it’s the experience.

Walk into an M&S and you’re greeted with a confused retail environment akin to a Poundland. There is harsh, bright lighting that bounces off the laminate flooring and awful graphics are festooned across the store. Images of middle-aged men in casual slacks will not make me go deeper into the M&S environment if that’s what I’m greeted with immediately on entry.

The fashion is laid out in a manner that speaks to no one in particular, big and small sizes, man-made and natural fibres, knits, pleats, and high neck lines share rails with garments for a totally different and diverse customer. There is no differentiation between ages and sizing in its merchandising, making it harder for shoppers to buy on impulse and instead expecting you to ‘browse’.

As a nation of shoppers we like to browse, but only for certain items. Or on the rare occasion, we see an item in the window and nip it to buy it there and then. At this point we may be enticed by the environment to stay a bit longer, browse, and become a true customer encouraged to visit again. Unfortunately, M&S has little linger appeal due to its stark and clumsy environment and merchandising, which doesn’t even reflect the 2016 Christmas campaign with Mrs. Clause. The message of a Christmas filled with love is immediately diminished on entering into store.

The solution? Bring them in with great food and great ambassadors to entice them deeper into a store with defined zones and a warmer, friendlier environment that makes customers feel comfortable rather than awkward. Differentiate soft mixed with hard zones, and group fashion by age, audience, and size so you know where you are in the store. Stop arranging shoes on shelves like tins of baked beans, and merchandising must-have fashion items next to shortbread and lavender draw liners.

The traditional M&S shopper has changed, while the new shoppers M&S attract through endorsement and ATL are put off by the environment. It’s imperative that every retailer makes their customer experience appealing, clearly defining where in the store they should be, and not approaching fashion retail as a one-size-fits-all.

Shoppers are intelligent and if you want customers to part with their hard-earned cash, you need to make it appealing, appropriate, and rewarding to your audience. Does anyone you know brag about the ‘joy’ of shopping in M&S due to its in-store experience or similarly about the items they bought? I suspect very few do, therefore by changing perceptions and carrying your ATL message TTL via social and the retail space may facilitate the love M&S desires as a fashion retailer.

 

Read more at: http://www.brandingmagazine.com/2016/12/05/focus-on-streamlining-the-in-store-experience-for-customers-to-return/

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With 23 days to go until the EU Referendum, Gekko research has identified that a possible Brexit vote is not hindering shopper confidence

shopping centre banner

A new survey from Field Marketing agency Gekko has revealed that consumer confidence is stable in the face of stark warnings from both sides of the EU debate. Asking 2,000 UK shoppers whether they were worried about the threat of Brexit when making a purchase decision, the survey found that over half (51%) of consumers do not feel the need to put off making an important purchase until after the referendum result. This is especially relevant for older generations, with the survey finding that 60% of those 55 and over are confident in the state of the economy leading up to June 23rd. Thinking about the results of the referendum, a significant 73.5% of UK consumers stated that their decision to make an important purchase would not be affected by the result. In fact, only 6.4% of consumers felt a vote to leave would dissuade them from making a considered purchase such as a consumer electronics or domestic appliance product, which are rarely purchased on impulse.

The survey also found that, despite many brands coming out in favour of either side of the referendum, a high proportion (61.3%) of UK consumers feel that brands should stay out of politics all together, instead leaving the argument to the politicians. This is strong message for many big brands which have come out in favour of either side of the referendum, including Unilever, Ryan Air, EasyJet, HSBC and Marks & Spencer. However, these brands shouldn’t fear any consumer backlash from their stance – whilst the majority feel they shouldn’t get involved in politics, 49% don’t change their opinion of a brand depending on their stance, and only 21% have indicated that they have a negative opinion of brands that do not share their view. Most consumers will still buy a brand regardless of their political leanings.

Daniel Todaro, Managing Director Gekko Group, said: “what’s clear for brands is that consumers are currently very apathetic towards the possible economic impact of Brexit. Brands warning people against leaving the EU are failing to get the economic message across as 32% of consumers polled remain unsure or unaware of the impact of import tariffs being imposed post Brexit.”

“Looking at the high street, brands and retailers should not be putting off any product launches or promotions, as consumer confidence looks to remain high. However brands should avoid entering into political debate where they can. These results are good news for retailers who might have otherwise expected a dip in sales depending on the result.”

Read more at: http://fieldmarketing.com/news/gekkos-2000-shopper-survey-finds-brexit-vote-isnt-hindering-shopper-confidence/

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