Morrisons invests in its staff – but in the right way?

Savvy retailers will already know just how important its staff are to their success. As the faces to their name, it’s essential that the happiness of the workforce is prioritised.

Morrisons is certainly attempting to do this with its latest move, which will see the supermarket chain invest a huge £30 million into facilities for its staff. Not only will this include a décor revamp, but employees will be treated to perks like subsidised coffee.

However, the change that is likely to result in the most enthusiasm from its workers is to wages. Employee benefits and pay is a hot topic right now, as retailers prepare the implement the new National Living Wage in April. And Morrisons is staying ahead of the curve on this one, promising its 90,000 staff a 20% pay rise to £8.20 an hour, more than the expected £7.20.

This is sure to boost staff morale– much needed considering Morrisons has been suffering falling sales for quite some time now. But are the changes actually going to help staff do their jobs any better?

Being the ones who work in the stores every day, store associates are the only ones who can really know what needs improving. Yet, they’re often the ones who retailers listen to the least. For example, new research from Miura Systems claims that UK retail businesses are losing millions of pounds in sales by not listening to staff who’ve spotted a vital need to improve store technology.

Today’s shopper is tech-reliant, so it’s no surprise that this is a major factor in how they rate a store experience. Whether it be a speedy checkout service, or the ability to browse the web as they navigate the shop, consumers expect technology to run seamlessly – and it’s often the staff they’ll blame if it doesn’t.

So, even with a free cup of coffee in hand, it’s unlikely that Morrisons staff will feel very motivated if shop floor processes aren’t optimised.

Miura also revealed that 72% of retail employees think customers are more demanding than ever before, even asking them questions when they’re serving others. With this mind, retailers should be doing all they can to help employees in high-pressure situations. Arming them with tablets so they can check product information and stock availability quickly, perhaps, or placing interactive kiosks in-store to allow shoppers to serve themselves easily when a staff member is unavailable.

A further 80% of retail staff said shoppers put pressure on them to hurry when there is a queue. In busy trading periods this can’t always be avoided, but it can certainly be improved. A speedy payment process is absolutely essential here; as the final stage in their journey, this is the memory most shoppers will take away when they leave. Therefore, retailers must in the most cutting-edge payments technology to keep queues flowing – such as contactless and mobile.

Of course, this is no discredit to what businesses like Morrisons are doing. Rewarding staff with treats is a great way to show appreciation for all their hard work, and happy store associates tend to be more productive. However, this work will do little good to the performance of their business if they’re not armed with the right tools to keep customers happy too.

Inside the mind of the modern consumer

Understanding customers is no easy job for retailers today. What consumers want is changing all the time, as is the technology that they rely on as part of their shopping trip. It’s no wonder that many businesses are struggling to keep up!

It doesn’t help that retailers are inundated with headlines that profess the latest insights into consumer habits; which ones can they actually trust? Here, we’ve detailed the most recent retail research that retailers – online and off – should factor into their customer experience strategy.

“They are impatient” – Vodat International

5 minutes; that’s how long a customer will wait for their query to be answered in-store. That doesn’t leave much time for a staff member to gather the information they’re unsure of, before that shopper abandons their journey completely.

How to respond

Ensure that your workforce receives regular training regarding your product offering – especially if new items are added. For an extra helping hand, why not implement tablets in stores so that answers are always at staff’s fingertips?

“They expect personalisation” – iVend Retail

A third of shoppers think they get personalised offers online, but not in-store. Perhaps this is one of the key reasons why ecommerce seems to gaining its sales share of channel.

How to respond

Yes, online has automated capabilities that allow loyal customers to receive information that is specific to them – but there is something the store can do better.  The ability to see, touch and try products cannot be replicated online, and even better, the presence of staff means that shoppers can get even more insight into the products they’re interested in. There’s nothing more personable than face-to-face interaction, so encourage conversation to give staff the opportunity to upsell products that might compliment a customer’s purchase.

“They tap-to-pay” – Visa

The number of contactless transactions made in the UK last year increased by 250%, according to the payments specialist. It’s suggested that this is largely due to the spending limit rise in September, which saw consumers able to pay for goods of up to £30, as opposed to just £20.

How to respond

The speed of the payment method fits the profile of today’s busy, impatient shopper. Therefore, now is definitely the time to ensure that your store not only accepts contactless, but encourages its usage.

You’ll also find that the same NFC technology in contactless terminals works with some mobile payments services, e.g. Apple Pay. As availability widens, consumers will come to expect all retailers to offer the method to them in-store. Those that don’t are likely to be viewed as outdated pretty soon, while those that do will see queue times accelerate and customer satisfaction soar.

Of course, if you’re planning on implementing such technology, you’ll want to make sure that your card payment network security is up-to-scratch. You can find out how to ensure this here.

“They go mobile” – Episerver

Mobile shopping is already playing a huge part in how people are shopping this year; 59% of Brits used their device to purchase items in the January sales.

How to respond

Shopping on a mobile device is meant to provide the ultimate convenience for consumers, allowing them to browse retailers wherever they go. With this in mind, it’s essential that you make your own mobile experience easy – ensure that you’re website is properly optimised, and that the payment process is neither lengthy nor fiddly.

“They click-and-collect” – Atomik

Shoppers might love mobile, but not quite as much as click-and-collect. A recent survey saw it beat mobile as the method that impacted their 2015 shopping experience the most.

How to respond

The role of the store has evolved from being just a sales channel, it now has to deal with a constant flow of click-and-collect orders. As most retailers now offer the service, they need to make sure that it’s the best it can be to stand out from so many others that offer the same. Training staff, implementing dedicated click-and-collect personnel, or adding an interactive kiosk are all ways to better optimise the store for click-and-collect. Of course, with all this extra technology, retailers must invest in a network that’s robust enough to support it.

Have you seen any recent retail statistics that you think offer real value to retailers? Then share them with us on Twitter via @Vodat_Int.

 

Are fashion e-tailer’s attempts to venture offline Missguided?

It’s a great time for online retail. Hailed as the most convenient means of shopping, ecommerce is in the midst of one of its most successful seasons yet – December alone saw a sales increase by 15.1% compared to the previous year.

However, it seems that this level of success isn’t quite enough for some retailers; in a bid to grow even further, they’re looking offline too. Fashion e-tailer Missguided recently announced plans to open its first store in the UK, and it’s not the only one – the likes of Boohoo and Fabletics have also taken their first steps into bricks-and-mortar.

And who can blame them? News headlines about the death of the high street are fast becoming replaced with success stories. Services such as click-and-collect are providing stores with a new lease of life, with John Lewis being the latest retailer to praise the shopping method’s contribution to its strong festive trading figures. Meanwhile, some are even calling out for store opening hours to be extended, with 64% of retail workers in London supporting longer trading on Sundays.

So yes, heading to the High Street offers great potential for an online retailer. But there some things to factor in if they wish to replicate the great customer experience they create on the web.

Unlike ecommerce, the store has a helping hand in converting sales: staff. Personal service is something that gives bricks-and-mortar an edge over online shopping, so it’s essential that retailers make the most of this opportunity.

Offering great bricks-and-mortar customer service relies on the retailer’s ability to give consumers the same informative experience as their digital platforms provide. Yet, we recently found that 43% of shoppers voiced frustrations with inconsistent answers from staff. In order to address these communication challenges in-store, some leading retailers are equipping staff with tablets. This way they’ll have access to product information and stock availability at the swipe of a finger, making it far more likely that they can address customer queries.

This is especially important at a time when most shoppers enter the store with some level of product knowledge. Recent research from omnichannel retail specialist iVend Retail revealed that 68% of European consumers will research online before visiting a store – and clued up customers expect far more from retailers. These shoppers have already done their research, and just want to touch or try the item before committing to a purchase. In this case, staff members are far more likely to be faced with technical queries regarding the item, rather than general product information. In this case, a tablet device will prove even more valuable to your staff – they can’t be expected to understand the ins and outs of every store product on their own after all.

And not all shoppers restrict their online research to the comfort of their own homes. Instead, many are relying on their mobile devices to have a quick browse in-store, either for more product knowledge or to compare it with those available from other retailers. During the festive period alone, 41% of shoppers ‘showroomed’ when buying gifts in-store.

This shopper desire to use mobile in-store, combined with staff usage of tablets, means more devices devices than ever are connecting to store networks. Retailers that have not invested well enough in their network may be faced with a whole host of issues; slow running technology, intermittent connections and, in the worst case, complete connectivity blackouts. Not only will this be extremely frustrating to those working at the business, but most importantly, customers will be left disappointed too. Then, all the good work that retailers have done to blend their store and online experiences will be completely undone.

The battle for consistency between online and bricks-and-mortar shopping has been raging for years, and retailers like Missguided must tread carefully to ensure their in-person experience lives up to the digital hype. Much attention will have been paid to the marketing, store layout and such like, but it’s the network underpinning their store that will define their ability to deliver what customers want.

 

 

 

Make better communication your store’s New Year’s resolution

There’s no doubt that online retail has had its fair share of flattering headlines this year. Hailed as the speediest, most convenient way to shop, it’s getting harder for bricks-and-mortar to compete.

However, there is something that the store can triumph in – and that’s personal service. While it may be easy to drop a few products into an online basket, the advice and expertise of knowledgeable in-store staff is something that can’t be matched.

Yet, it seems that 2015 may not have been the store’s finest hour. Our own research showed that there’s still much work to do to perfect the in-store experience:

  • 37% of shoppers hate receiving inconsistent answers from staff
  • 30% of consumers have abandoned a purchase because staff couldn’t answer their question
  • 5 minutes is the maximum time customers will wait for a query to be answered before leaving the store

That leaves retailers with a very short window of time to wow the shopper. If they don’t do just that, they risk losing a once loyal customer – one who will no doubt share their negative experience with family and friends.

However, with a New Year comes a new chance to change bad habits. So why not make 2016 the year to perfect your in-store service? It all starts with giving your staff the tools to succeed:

Invest in training

60% of customers believe knowledgeable staff deliver better customer service. Yet, with changing layouts, new products and time-sensitive offers to contend with, it’s no wonder that your workforce may be left confused. Communication is key here; ensure each member of staff is briefed at the start of their shift, alerting them to anything that may have changed since they were last there.

Implement tablets

21% of shoppers want sales associates to be given point of sale technology. And, it’s a request that will make life a lot easier for your staff. Allowing them to walk the floor with a tablet in hand, ensures they will always be ready for that tricky customer question. They’ll be able to check things such as product information and stock availability at the touch of a button, before finalising the purchase with a speedy payment.

Empower customers

22% of consumers would like to see more digital information points in store. There are a number of reasons why your staff might be unavailable for customer queries – whether the queue is too long or they’re locating an order, for example. The point is, sometimes a shortage of sales associates to give a helping hand is out of your control. Therefore, it’s important to ensure that shoppers can help themselves if need be. In-store kiosks are idea, as it presents shoppers with an alternative information source when a staff member isn’t free.

Competing with the fast-growing world of ecommerce is no easy job for stores, certainly if they don’t have the right toolkit to support them. And, of course, implementing the above suggestions will help get 2016 off to a promising start – but without a reliable WiFi connection, your New Year’s resolution for a better store experience will soon be broken.

For more information about successful in-store communication, read our report – ‘Why retailers and customers are becoming disconnected by the store network.’

The store isn’t just a shop anymore – it’s a theatre of dreams

From digital advertising screens to fitting rooms that superimpose outfits onto your silhouette, the modern retail store is moving further away from its traditional format. Progressive brands including Burberry, Lacoste, Topshop, Ikea and Argos are among those already using technology to reimagine the shop floor, turning local High Street outlets into interactive theatres of dreams.

But where should retailers yet to embrace the digital revolution, begin transforming their store? A recent Retail Technology article pointed out that shoppers are no longer ‘wowed’ by tablets – they expect stores to take payments, check stock availability and carry out other helpful tasks in a flexible manner. Therefore businesses should look to their advertising strategy to engage store visitors in new ways.

For example, rather than putting posters up, many retailers are now opting for digital screens that rotate key campaign messages. The real-time capacities of this channel also enables them to react to industry events and update promotions in line with online activities.

While this is a sensible starting point, some of the larger retail brands feel display technology alone isn’t enough; customers need to be drawn into a digital conversation. For this, a new level of investment is needed.

One example is Superdrug, which has drawn inspiration from the popularity of the ‘selfie’, giving customers the opportunity to take and share photos of themselves wearing the latest available makeup ranges. Alternatively, both Converse and Lacoste have taken interaction even further, devising an app that superimposes their footwear onto customers’ feet so that they can try out a product without even having to remove their own shoes.

Although uniting digital and physical in-store is a powerful way to revolutionise the act of shopping, it’s important that retailers only view cutting-edge technology as the icing on the cake. With so many possibilities available, it’s easy to get lost in the vision of being different and miss the point of reinventing the store: to improve the customer’s purchasing experience.

After all, retailers can have the most alluring digital set-up on the High Street, but excitement alone won’t convert browsers into buyers. Every retail theatre must perform to rigorous consumer standards – and that means having the right items in stock, offering helpful customer service and providing an efficient payments process.