Sainsbury’s recently announced the launch of its first physical store – based in central London – where shoppers can pay for their groceries with their smartphone, without the need to queue to pay at the checkout. Customers scan groceries with their mobile phone using an app as they go around the shop, before paying at the end with their bank card online. The convenience of walking in and out of a grocery store within minutes promises to make a huge difference for busy Londoners.
While checkout-free supermarkets have the potential to revolutionise the shopping experience, it should not spell the end for human interaction in stores, especially when it comes to making complex buying decisions such as mobile phones or television and broadband packages. In fact, this technology will be most effective when it is used as a means of supporting and boosting the connection between customers and staff. This is something that Sainsbury’s is looking to achieve with its latest initiative, by freeing up checkout staff to spend more time with customers in-store.
Know your market
Research has shown that the older generation often feel intimidated by automated checkouts, meaning that supermarkets could miss out on maximising a lucrative revenue stream by not catering to older demographics. In the rush for a frictionless experience, it is paramount for any retailer to first and foremost be looking to understand its core demographic and recognising that this could contain a large section of customers who value human interaction as an essential component of the buying process.
With this in mind, it is crucial that retailers don’t lose sight of the importance of positive, one-to-one customer service whenever it is required. This is why the advent of new technology in retail should be seen as complementary to customer-staff interaction, rather than a threat. Personalised product recommendations provided in real time, for example, can be used to encourage greater dialogue between customers and sales staff, and having the technology to hand enables staff to deepen the relationships they have with the customers who value human contact the most. This is especially important for complex purchases that need a significant degree of research, as opposed to fast-moving consumer goods like groceries.
The importance of data
It is clear that, in today’s competitive and digitally-focused environment, retailers that remain on the front foot when it comes to technology adoption are usually the ones that stand out from the competition. However, brands should not adopt new technology just for the sake of it. Instead a more intelligent and agile data-driven approach can act as the real differentiator for any retailer wanting to maintain competitive advantage.
The engagement and interaction that can be achieved by using the appropriate technology can provide a reason for customers to visit, buy and repeat visit physical stores. Therefore, the importance of understanding a data-driven approach can be a crucial turning point here, as getting a strong handle on customer behaviour through data will assist retailers in providing a more effective personalised service. This approach can also be one of the key drivers in helping retailers to mitigate against slumps in performance that the sector faces on a regular basis.
Use it right
Consumers today expect their shopping experience to be dynamic, personalised and informative, and to be consistent across a host of channels. Therefore, it is no longer sufficient to simply offer a product, provide some basic information and give a price to a customer. Being able to provide consumers with advice and support throughout their journey – and to give them the option to choose between self-service and interaction with a human member of staff – is essential if a retailer is to make headway in such a fiercely competitive environment.
Technology advancements can help to simplify the complexity of choice in the customer journey. However, instead of a generic approach, it needs to match consumers’ individual needs in order to make personalisation as effective as possible. In a world where speed and responsiveness play a huge role, one of the only things to help retailers stand out is the relationship they have with their customers. Sainsbury’s is aiming to innovate from a customer experience perspective, but is also not losing sight of the need for human interaction. If retailers can strike this balance, they will be in a good position to succeed.
