How retailers can embrace increased customer touchpoints
In such a fast-changing competitive landscape, it has never been harder for brick and mortar retailers to compete. Competition has never been fiercer and customers have never had so much choice, or information at their disposal. With poor in-store experiences costing retailers £168 billion a year, brick and mortar store owners need to rethink their business models and identify ways to turn their stores into experiential hubs by identifying recurring pain points which negatively impact revenue such as walkouts, waiting times, poorly organised queues and look to rectify them using best in class in-store technology which aligns with the retail business model.
The ease and comfort of shopping online, as well as the low prices this can offer, means customers are more demanding and more willing to walk away to a competitor than before.
When customers come into your stores, they’re looking for great service and fantastic experiences. Recent studies show when customers have a bad in-store experience, such as a lengthy wait time in a poorly organised queue, 26 per cent will abandon their purchase and leave the store; and the damage continues after they leave the store.
Brick and mortar retailers need to unlock the potential of their biggest assets – beautiful stores, engaging in-store experiences, and enthusiastic staff who have the expertise to make each and every customer feel important.
One of the biggest challenges retailers face is that customers are now more than ever, more demanding and impatient. With more options now available to the modern consumer, they are more likely to walk out the door if they have an unsatisfactory experience. Wait times present an insurmountable challenge to retailers looking to convert customers in their stores. Poor wait times can have a detrimental impact to the bottom line of the traditional bricks and mortar retailer.
This impacts retail revenue-generating potential in four critical ways:
Walkouts – customers will walk out with or without service
Our research shows that poor in-store experience and long wait times lead to 10% of UK customers walking out of stores. That means the average store loses £52,000 every year directly from walkouts and poor in-store experience, with the total cost of walkouts to UK retailers at £15 billion a year and hitting the entire economy hard. 26% of customers who walk out of a store will discontinue their purchase completely, costing the UK economy £3.4 billion a year.
Lost loyalty – they often won’t return
After walking out on a retailer, most customers won’t return – 55% of customers have switched to another company after a poor experience. This has impacted retailers to their financial detriment with lost sales accounting to £8.1 billion of sales that just one more visit would have brought in.
Word of mouth – most will tell their friends
According to Zendesk, 54% of customers share bad experiences with more than five people. Using a hypothesis, if 60% of those who listen to them visited the retailer in question one more time, this would amount to another £4.7 billion of revenue.
Social Media – many will share their experience on social media
With 217 million active users on Twitter and £1.86 billion monthly active users on Facebook, social media can compound the issue of poor customer experience, with a significant impact on revenue, reputation and more.
Invest in your stores and enhance the customer experience
Poor in-store experiences can have a negative impact on customers retention and can lead to negative social media reviews, customer walkouts and propensity to purchase products from competitor stores. To negate this, retailers need to invest in their stores and look at enhancing the customer journey.
To find out how you can rethink your in-store customer experience and transform your customer, download our latest whitepaper.