Connected Customers Are Changing The Buying Experience
By Ed Kowalski, Sutherland
Every retailer knows customer experience is paramount in today’s competitive landscape. As brands vie for our business, today’s customer is increasingly informed and demanding. These connected customers, with unfiltered, always-on access to the Internet in the palm of their hands, add in another layer of complexity to the buying journey as brands struggle to keep up with their ever-changing expectations and find more effective ways to communicate with them.
According to Forrester, we are five years into the “Age of the Customer,” which requires brands to completely overhaul the way they are conducting business. In this new frontier, it’s imperative for retailers to continuously identify the right methods of communication to connect with existing customers and engage with prospects to drive meaningful interactions and foster customer loyalty. By leveraging these critical factors at play in the disruption of the traditional buyer’s experience, brands are better equipped to operate proactively in an increasingly competitive, customer-centric retail atmosphere.
Shopping Behavior Is Evolving
Despite any hype you may
hear about the “death of brick-and-mortar” or declining retail sales, the
retail outlook remains incredibly bright when viewed through the lens of how
consumer behavior is changing. Recent research
by PwC found that consumers
are highly optimistic about their local economies, with over 25% spending more
on products and services this year — mostly in stores or on mobile.
Consumers’ shopping
habits are clearly not waning; they’re simply evolving. Today’s shoppers not
only expect but demand a well-curated, highly customized shopping experience. The same PwC survey,
for instance, showed consumers are willing to pay extra for personalized
services. From automated checkouts, to
hyper-personalization, to the rise of conversational commerce with the
introduction of messaging apps, customers are disrupting the way store
associates and brands interact with them — with hopes that the process will
become much more effortless.
What’s a brand to do in the face of this new landscape? Listen — after all, the customer is always right. To adapt, retailers must lean into the innovation playing out in today’s shopping experience. But at the same time, it’s not just about technology. What customers want is not just the latest shiny tools, but rather a seamless, convenient shopping experience catered to their needs. Technology certainly plays a critical role, but the focus should be on designing an experience that blends the benefits of technology with the empathy and authenticity of human interaction.
The Connected Customer Is King
This balance is perhaps best exemplified when it comes to meeting the needs of Gen Z. A study by CrowdTwist found that 57% of Gen Z prefers shopping in-store rather than online, despite being digital natives. Born with a smartphone in their hand, the digital experience is innate to Gen Z, but they also crave the unique experience and engagement that a physical store can provide. Gen Z shoppers rely on smart devices, mobile apps and other technologies to drive their in-store shopping experiences and leverage the best of both worlds.
Many brands are similarly looking to create engaging, interactive experiences in stores, online and across social channels to capture younger generations. For example, one new way Gen Z’ers and Millennials are getting their direct fashion fix is through LIKEtoKNOW.it, a social-based shopping service. The LIKEtoKNOW.it app allows Instagram users to instantly access and purchase an item their favorite influencer is wearing in a photo, providing an entirely new way to shop for customers who desire both convenience and a brand — or in this case, a makeshift brand ambassador — they trust.
Storefronts are likewise looking to new visual, interactive approaches to cater to the needs and desires of today’s connected customers. For instance, trendy retailer Reformation is bringing the “Clueless” closet to life. With only one of each item hanging on the store floor, shoppers add an item to their fitting room by browsing on a touchscreen monitor or asking a store associate to scan the barcode. The customer then waits as their fitting room is prepared, where the clothes magically appear in a wardrobe. Last year, Nordstrom also launched Nordstrom Local, a crop of inventory-free “neighborhood hubs” where shoppers can enjoy everything from personal stylists to alterations, online and mobile curbside pickup, Trunk Club services and even manicure appointments.
Virtual and augmented reality (VR and AR) also are making their mark in today’s experience-driven environment, letting shoppers visualize items they’re looking to purchase without ever visiting a showroom or dressing room. In fact, 10% of customers have used an AR application to try on clothing or see how a piece of furniture would fit in their home. As for shoppers who prefer to visit a storefront, companies like Memomi, a smart mirror enterprise, are letting customers virtually try on everything from an array of eye shadow and blush colors to clothing outside of their normal style, completely revolutionizing how shoppers interact with products.
The Bottom Line For Retailers
While all of these changes are creating exciting new experiences for shoppers, retailers stand to gain immeasurably in this new climate as well. Interactive new approaches are bringing shoppers and products closer together, facilitating relationships and creating greater trust and brand loyalty that many retailers have historically struggled to maintain. With a more complete view of shoppers’ preferences and habits — down to every Instagram like and dislike — retailers can better curate the customer experience to help them along in the buying journey.
Technology changing both sides of the shopping spectrum is a given at this point, but never before have shoppers’ preferences been evolving so rapidly in tandem. The advent of the connected customer is forcing brands to adapt to the increasing types of shoppers and their ever-changing behaviors. Ultimately, retailers that strike the right balance between man and machine and find new, customized ways to interact with shoppers will gain a competitive edge — and those that don’t will see their customers’ loyalty shift elsewhere.
Ed Kowalski is Assistant VP for Retail Marketing at Sutherland. He brings over 20 years of experience in leading global strategy, brand and product marketing for the Retail business vertical at Sutherland. Kowalski also leads new business process solutions integrating data, analytics and technology to drive better outcomes for retailers and their customers. Prior to joining Sutherland, Kowalski served as the Marketing Consulting practice lead at Experian where he helped retailers and hospitality businesses map out integrated omnichannel customer experience journeys. Over his career, he has worked closely with clients such as L Brands, Neiman Marcus, Sears, Dick’s Sporting Goods, Coca-Cola, CVS Caremark, Samsung, BRP, ConAgra Foods, and Orbitz.