How to overcome issues in retail businesses which affect Customer Experience (CX)?

Retail landscape has been changing drastically even before the current pandemic hit us. it was mainly on account of fast, constant and radical shift in consumer needs, preferences and behavior. The pandemic accelerated it further and pushed the retailers and brands to do more than what they thought was sufficient. Now as we are on the exit route of the pandemic, one thing which has come out stronger to run a successful retail business and cater to ever changing consumer needs, preferences and behavior, is the need to provide an amazing Customer Experience (CX).

Below I have mentioned a few pressing issues which are affecting the CX and how to overcome the same :

Inventory Shortage and Supply Chain Issues - the pandemic induced supply chain issues have created a shortage of inventories. Customers are looking for convenience and speed therefore if they don't find their desired product in the store shelves or on the online platforms, their entire experience goes for a toss. Thus reinforcing the need for establishing a balance between the cost, speed and distance along with resolving other issues in the 'Manufacturer to Consumer' process. The remedy to overcome this is -

Shift to vendors in those countries where the costs are lower, invest in vendors who are close to your base, and forge deeper strategic partnerships with existing vendors

The 'Great Resignation' and Staff shortages - The attrition and staff shortage was mainly due to the pandemic related health issues on the front end however it affected the CX in a big way as there were less staff to cater to increased number of customers who came out in hoards when the restrictions were eased out. With the rise of digital shopping and social commerce - it's time to

Focus on retaining talent by developing their soft skills viz. marketing, digital literacy, and data analytics. Along with this offer competitive salaries, benefits and a well defined progression

All of this will result in a more motivated staff who is hell-bent on making and providing the best CX.

Rise of digital shopping Retail - Customers have ample ways to shop and are looking for convenience, best experience, lower prices, speed in delivery and ability to interact with a human. Along with this there also is a need for an integrated, seamless experience across different shopping channels. Therefore; retailers must tailor their offerings to play to these factors. If any of it is missing, you are creating recipe for a bad CX.

Delighting customers through frictionless, enjoyable, and easy-to-use modes of engagement is one way of enhancing the CX.

Alternatively use of digital tools such as AR, VR etc. and involving the customers in new product development etc. could work in retailers' favor.

Data, Analytics and Automation - These are the most influential trends but over-reliance on technology means there is less human Touch in interaction with customers which again result in a bad CX. The human touch will remain important in providing a curated, compelling, and relevant shopping experience to customers but how does one do it in today's digital led retail world?

Use technology to:

a) Speed up and improve the quality of decision making and to boost profitability

b) Better understanding of the products desired by the customers

c) Make markdown decisions, pricing and promotions

d) Influence product development and to rapidly test concepts before they go to market

It's time when the retailers and brand do much more than they think they are doing. The technology can be used not only to provide more shopping options to the customers but also to enhance their experience across channels. One thing which is sure irrespective of which era we live in, providing a great CX is the sure shot recipe for a successful and sustainable retail business.

What say? Please feel free to leave with your comment below.

See you next week. Keep reading and stay safe.

(UMESH AGARWAL)