SKU’d Thoughts 25: What can retailers do to improve customer experience?

Last week while at CVS, I witnessed a frustrated customer who wanted to buy deodorant storm out because she couldn’t find a store associate to access the deodorants, which to my surprise sat on a shelf under lock and key. I could see that customer wanting to avoid repeating that experience in the future, which means she might pay a couple more bucks and order it online from a direct-to-consumer deodorant upstart.

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The subpar customer experience at certain retailers has become a plus for DTC brands whose entire focus is delighting the consumer. According to a PWC survey, 73% of consumers said customer experience was a major factor in their purchasing decisions.

Here are just three of many ways retailers can improve customer experience.

  1. Integrate Technology. Retailers can use technology like artificial intelligence to make relevant purchase recommendations by leveraging customer data such as search history and special dates. Going back to the locked deodorant example, retailers could use technology to unlock product cases for customers. I recommend that retailers assign QR codes for customers through their mobile apps. The code would be unique to each customer and they could scan the code in-store to unlock products. This integration ensures that locked products are still accessible and allows retailers to collect valuable data that they can use to market to customers.

  2. Educate Sales Associates. Sales associates are customer-facing and should be well-informed about the products retailers carry. When customers have questions about a product while in-store, they should feel confident in asking a sales associate instead of pulling up Google on their phone. If a sales associate is unhelpful about product inquiries, it will lead to customer frustration and a likelihood of the customer turning to a DTC alternative.

  3. Keep Sales Associates Happy. When sales associates are happy and feel valued, it directly translates to them doing a better job and making customers in turn feel valued. Happiness is also likely to minimize employee churn. The longer sales associates stick around, the more knowledgeable they become about the product offerings and educating customers who may have questions. The PWC survey reveals that 42% of consumers would pay more for a friendly and welcoming experience.

Sometimes going into the store is more convenient than placing an order online but if the experience is lacking, the convenience might not be worth it. Retailers definitely have to improve customer experience or they will continue to drive customers towards DTC brands who make the customer experience and convenience a priority.

Cross posted on Medium