Let’s face it, customers have done a great job of redesigning the eCommerce industry through excessive demands and high expectations. However, what happens when these demands cut into profit, putting your company at risk? There’s a fine line between loyal and killer customers. In this 3-part series, we reveal the top 3 ways killer customers attack your profit, along with methods you can use to identify and avoid these scenarios.
Whoever said the “customer is always right” certainly never encountered an abusive customer. Killer customers are more than unprofitable customers, they continuously drain money from your organization. Since a great customer experience is high priority, many merchants find it difficult to maintain positive rapport with the bulk of their customers while keeping killer customers at bay.
Return policies are meant to protect a company’s reputation and give them competitive advantages. However, in the hands of killer customers, returns can be the number one profit killer. The average return passes through 7 peoplebefore listed for resale, devaluing the item. After factoring in time and costs of shipping, processing, evaluating, and restocking returned items, only a handful of these items can be resold at full price, and many will be sold at a loss. Over time serial returners cause your bottom line to suffer, but modern merchants have options.
Shoppers often purchase items they intend to use or wear only once before returning. This process is known as wardrobing and is most common with fashion merchandise. Today, wardrobing is a massive problem for retailers and online merchants alike, accounting for over 7.6 billion dollars in losses in 2017.
When implementing a solution, merchants must think of a cost-effective approach that doesn’t negatively impact honest shoppers. Implementing the Shark Tag is popular new approach retailers are taking.The Shark Tagis a one-time at-home removable tag attached to garments. By placing tags in visible areas, the idea of wardrobing becomes less attractive to customers. Once the tag is removed, items become non-returnable and non-refundable.
2. Fitting Rooming
As you know by now, customers expect brick and mortar stores to mirror the same shopping simplicity they experience online. The reverse is apparently also true, with some killer customers bringing the “fitting room” home with them. This process is called “Fitting Rooming” and in these cases, customers order the same item in different sizes and colors to try on at home. Once they are satisfied with their item of choice, all the unwanted items are returned. Online stores that offer free returns are key targets for this kind of abuse.
Solving the issue involves a more creative approach that can increase brand loyalty and invite new customers. Retailers can adopt a “Try before you buy” service to allow customers to test out items they’re interested in before being charged (normally between 7-30 days). Subscription boxes also follow a similar approach, allowing customers to pay monthly to sample specific products before purchasing. These strategies help merchants keep track of specific items they expect to be returned, lowering the costs associated with unpredictable ‘Fitting-Roomers.’
By the end of 2019,A quarter of all retailersare expected to incorporate a “try before you buy service.” This practice allowed companies like Stitch Fix to see a 25% increase in net revenue over a year. Customers are more likely to opt into “pay later” options with confidence, knowing there’s a hassle-free return involved. Best of all, you’ll see an increase in conversion rates.
3. Counterfeit Returning
We recently warned eCommerce companies about cybercriminals getting creative with their hacking tactics. If you gave the article a read, you may not be surprised to learn killer customers are getting just as creative. Thieves a re now using high-quality scanners and printers to make counterfeit receipts and return merchandise they’ve previously stolen from stores. Also, customers are taking extreme measures to use fraudulent credit cards when making online purchases to return items in stores in exchange for money or store credit.
Companies like Nordstrom built brand loyalty based on their legendary “free to return everything”policy. This policy allows customers to return items without a receipt regardless of when (or if) the purchase was made. Abusing this policy can severely damage sales, gross margins, profitability, and most of all, make inventory management a nightmare.
Preventing Counterfeit Returning
To eliminate counterfeit returns, it’s always a good practice to require receipts. Take it a step further to implement a 30-day limitation on returns and/or restrict popular items and high-volume orders from being returned. These minor tweaks will turn away customers who seek to return stolen merchandise and can also keep away Fitting-Roomers. Lastly, utilize an ERP or platform, tracks repetitive returns by requesting proof of identification. This process makes it easy to cross-reference sales and get alerts when a customer excessively returns items. Once you know who your killer customers are, you can ban them (or at least take them off your email lists).
4.Customer Service Abuse
Offering lenient return policies,providing 24/7 accessibility, and creating engaging contentreflect excellent customer service, but there’s a limit. These practices subject retailers to vulnerabilities as abusive customers take advantage. Identifying and dealing with these customers becomes difficult and, in some cases, an expensive task to take on. Customer representatives spend hours handling disorderly phone calls and receiving verbal assaults. This manipulative tactic is used to further gain refunds and discounts from merchants.
Beyond assaulting your customer representative, your reputation is next in line. If customers don’t receive the shopping experience they feel they deserve, they will switch to you competitorwhile dragging your reputation through the mud. Social media is easily accessible for killer customers to provide negative feedback about their experiences with your brand, and can spread like wildfire. Upsetting the wrong customer with the right amount of influence can become a PR nightmare. If your brand has a bad reputation,90 % of customers won’t shop with you.
Preventing Customer Service Abuse
After implementing the previously mentioned solutions. Invest in training for your customer representatives. Focus on equipping them with the knowledge to properly manage abusive customers using proper escalation procedures. Lastly, closely monitor all social platforms to stay on top of negative comments, and have policies that clearly outline how and when your reps are allowed to pass on benefits and freebies to customers. You can also use Instagram’s “hide offensive comments”feature to automatically filter out offensive comments and block users on the platform.
Analysts predict that online and offline return fraud will cost companies $550 billion by 2020 and $3.5 billion during the holiday season. While the goal is to satisfy your customer and keep them coming back for more, be sure to protect your business in the process. However, as we pointed out above, serial returners and abusive customers can have a similarly devastating affect on your business. If you don’t have much info on your killer customers, now may be the time to rethink your priorities, especially as the post-holiday returns season looms.
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The 2017 holiday rush was a tipping point for eCommerce optimization. Between mobile sales taking over traditional retail and other trends that took the industry by surprise, the holidays gave retailers myriad reasons to rethink digital strategy. Today, with Black Friday looming only days away, 2018 stands to be another make-or-break point for online sellers who did or didn’t adapt.
Our partners at Shoppimon put together this list of last-minute reminders for retailers prepping for the big week of sales ahead. Dive in to discover the top recommendations for managing traffic, guaranteeing uptime, and perfecting conversion optimization that just might save your store this season.
#1. Test the full sales funnel – from landing page to checkout.
The full sales funnel should be tested and optimized leading up to –and throughout– the holiday season. However, some key points of weakness that lead to significant business downtime are:
1. Search: 0.7% of all issues Shoppimon sees are problems with search. When search isn’t working on a website and shoppers can’t find what they’re looking for, it’s all too easy today to buy elsewhere.
2. Page Errors: Exposed error messages are surprisingly common. In fact, they’re responsible for 0.6% of all issues Shoppimon identifies. These pose a problem for several reasons. The first is that they stop the shopping process dead in its tracks. As a result, they also scare shoppers off. Not only are customer unable to complete a purchase, but after seeing an error message, they may lose all trust in the site going forward. Lastly, depending on the error, exposed messages can pose a serious security risk to a website… Ensuring these types of message don’t happen should be a top priority.
3. Error Message Text:To cover all your bases, make sure the language in your error messages is friendly and less automatic. This will let the customer know you are aware a problem is occurring, and that it may be fixed soon. “Error 506!” sounds a lot worse than “Hey there! We are experiencing a slight issue due to heavy site traffic. Check back in 15 minutes and the problem should be resolved. Happy holidays!”
4. Missing Product Images: If a shopper can’t see a product, they won’t buy it, end of story. Missing product images are surprisingly common. In fact, they make up 2.1% of all issues we spot. Understanding when this happens and fixing it before you lose a sale is a must. Monitoring your site will help keep you aware and in the know about missing product images and info.
5. Add to Cart & Checkout Errors: You are likely losing 4% or more of your total sales to issues occurring in these two key shopping stages. Issues here range from missing add to cart buttons to problems with payment providers. The average retailer will lose approximately 13% of sales to functional and performance-related website issues during the holidays. To avoid this, thoroughly test your conversion funnel and upgrade your website in advance of the seasonal surge. It can make a significant difference to your bottom line. If you’re out of time for a significant upgrade, monitoring your site closely and proactively address issues as they occur. It will have a dramatic and positive impact on your bottom line.
#2. Stress-test your site’s ability to handle increased traffic.
Under enough stress, every system will fail. Stress-testing your website before the holidays is a great way to find out if additional traffic could be your downfall. Leading up to Black Friday, we recommend you do both of the following:
1. Load Testing: making sure that your site can handle a given number of users/requests consecutively and concurrently.
2. Completing A True Stress Test: load the site to the point that it crashes to see how that crash is handled by your software (and potentially, your team).
When a site is overloaded, if a server is properly configured, it should be able to handle the benchmarked number of consecutive or concurrent requests, after which requests will be queued. If you then pass the benchmark for you queuing, requests should time out, rather than the site itself going down completely.
If your server does crash, splitting the load across other third party solutions like CDNs will help in the long run, so the servers don’t need to handle each and every request. However, if you need a last minute fix you can quickly tune the configuration of your servers to change the amount of memory they use. You may also be able to manage the number of requests they handle (assuming your code has been built to allows this).
#3. Be prepared to scale-up on the fly (and know how to).
The first thing an eCommerce manager should do is simply talk to their team. Understand what is already in place and what it would take to scale-up their web and database servers if needed. In an ideal situation, when a website is on a cloud platform, you should have deployment automation that allows you to quickly spawn more servers (which should only take a couple of minutes to complete). This does however require that automation is already in place to allow you to do this, and that the code was written in a way to support the expansion to additional hardware. And this is true not only of web servers, but database servers as well.
In a typical eCommerce setup, the biggest bottleneck is the database, which also tends to be the hardest to scale in an emergency situation. With limited time to prepare before Black Friday and Cybyer Monday, your top priority should be to check if your database hardware can scale if necessary. This is critical. If the situation arises where the database needs to be scaled and it wasn’t prepped in advance, it will usually result in significant downtime for the full site.
Going deeper into the issue, Redstage CEO Adam Morris states, “…when downtime occurs, or things do go wrong during the holidays, the effect of those issues is compounded because you’ve probably expanded your customer service team to make up for higher demand, as well as increased marketing budgets to attract more holiday spending. So when things go wrong, those marketing dollars are lost, and [customer] support may suddenly be relegated to a more junior team with less experience and a lower quality of service.” (Check out more insights on holiday emergency management from Adam Morris here on Shoppimon’s blog).
#4. Find problems before your customers do.
At Shoppimon, we see retailers monitoring their websites in a multitude of different ways; From manual checks conducted by different team members, to using completely automated systems like Shoppimon, and everything in between. Unfortunately, many of the systems require resource-heavy investments, not just for setup, but also to understand them and react to the data they generate.
While we know that monitoring automation is key for any business at scale, it’s important that a team’s resources spend as little time as possible on the monitoring itself. Instead, team members should be free to spend their time making a website or application better, fixing bugs, and creating a great customer experience.
Luckily, Shoppimon supports script-free and integration-free automated setup, which takes minutes. The solution also automates issue prioritization and notification, so users get critical information when it’s most needed, but never bothers them when it’s not.
These benefits have made a huge difference for our customers leading up to the holiday season. We’ve seen brands successfully roll out new updates and upgrades just before the sales surge, and also helped them identify better ways to plan for next year.
Each year we see the biggest challenges and successes of major brands in the eCommerce Industry. Last year, in our Online Store Health & Usability Index (OSHU Index), we saw brands like Birchbox, Dollar Shave Club and Saatva excel during the holiday season, with consistently faster load times and fewer issues both leading up to and during the holidays. However, we saw other retailers, like One King’s Lane, that experienced significant downtime during Cyber Monday, really struggle. The difference relies on your ability to react.
Monitoring your online store for bugs and the ability to react quickly will determine the winners and losers for 2018. Testing is paramount (especially if you had issues last year), which means diving into your funnels, your site, and being prepared to tackle anything that needs fixing, fast. However, without a monitoring solution in place, you might not notice significant issues on your site causing lost revenue every minute. Do your due diligence and walk through each stage of the customer journey to make sure your holiday haul will be a happy one. Let us know what you think of these tips in the comments below, and enjoy the holidays!
Sellers wait anxiously as distant bells chime through the chilly air. Less than a week remains until Black Friday, and projections are looking good. Despite the ghost of retail’s past taking down giants this year, U.S. retailers are positioned for a “Trillion Dollar Christmas” in 2018 (eMarketer).
In line with holiday tradition, Redstage and our partners have an early gift for online merchants. Together, we’re launching this last-minute holiday prep series to ease your seasonal anxieties. The geniuses at Brightpearl combined this year’s top trends and strategies to create the ultimate holiday guide for omnichannel and back office prep.
Use this post as your last-chance optimization guide so you can sleep soundly and avoid the dread of feeling there’s one last thing you forgot. Here’s 8 critical areas you need to master to survive this year’s holiday rush:
#1 Understand your omnichannel buyer journeys
To truly tackle omnichannel retail this holiday season, there are a few steps you need to take. The first is to understand your omnichannel customer and the path they take to get to your ecommerce website or brick and mortar store, so that you can ensure you’re on the channels they use the most.
Nicole from Retail Minded has identified the following omnichannel buyer journeys. Which do you focus on?
1. The Omnichannel Savvy Customer:
○ The journey: Visits store > Connects on Facebook > Buys online via mobile
○○ This customer typically spends 10% more when shopping online
2. The Last-Minute Buyer
○ The journey: Searches online via mobile > Buys online via tablet or desktop.
○○ 75% of last-minute buyers rate shipping costs as the most important buying factor.
3. The Researcher
○ The journey: Searches online > Visits multiple stores > Continues researching online > Buys from one of the original stores
○○ It’s said that over 92% of online consumers don’t intend to buy during their first visit.
4. The Impulse Shopper
○ The journey: Visits store > Buys in store almost immediately.
○○ 5 in 6 Americans admit to impulse buying.
5. The Feel-Good Buyer
○ The journey: Scrolls through social media > Buys online or in store.
○○ 45% of digital buyers worldwide say reading reviews, comments and feedback on social media influence their shopping behavior.
#2: Gain a strong presence on your customers’ most used channels
Today’s digital age means connecting with customers has never been easier. As the above buyer journeys show, the majority of shoppers experience multiple touchpoints before buying. It’s important to show your presence across a number of channels and offer a consistent customer journey throughout (based on what you know about your own customers).
The following channels are a guide to show you what you need to consider adopting within your business:
Brick and mortar
Location based marketing
Text message marketing & live chat
“Know which popular channels your customers are most frequently fulfilling their orders, so that you know where to concentrate your marketing and inventory planning.” – Anthony Payne, VP of Global Marketing, Brightpearl
#3: Use omnichannel fulfillment as a differentiator
Getting omnichannel fulfillment right can have a huge payoff but it can be one of the most difficult areas to implement without the right technology. This is because it requires inventory to be tracked across all physical locations and sales channels.
Some key examples of how omnichannel fulfillment can be used as a differentiator this holiday season are listed below. Which are you taking advantage of this season?
Click and collect: The option for a customer to purchase online and pick up in store. By offering this service, you can expect an immediate uplift in revenue based on impulse purchases made in store when picking up items.
Ship from store/endless aisle: The ability to offer products not available at the location the customer originally visited. This helps avoid losing a customer if a product is out of stock at a particular location.
Online store inventory availability: The ability to lookup inventory at a given store online. This is important as it’s said that 33% of millennials (today’s most influential spenders) won’t visit a store if online inventory availability isn’t published.
#4: Clean up your inventory data
No one likes the idea of disappointing a customer due to inaccurate inventory availability, and especially not when that item was intended as a gift for someone else. Therefore, ahead of the holiday season, you should always endeavor to do a complete inventory count in your warehouse, ensuring inventory is correct across your back office and sales channels.
Furthermore, it’s also important that you know (and have recorded) your true landed costs as well. The holiday season is driven by discounts, promotions, and flash sale days like Black Friday and Cyber Monday, so getting a clear gauge on your true landed cost of products (e.g. the associated freight, duty, tax, and storage expenses) ahead of time is essential for making business decisions on pricing and for final supplier selections.
#5: Analyze your sales and inventory data
From knowing what items your customers love the most to knowing where you should be stocking your products, last year’s data is this year’s sales gold mine. At the very least, you should use your back office data and reports to analyze the following (and act on your findings) ahead of the holiday season rush. Check the box if you’re using your data for the following:
Best selling products: Stock them again if possible or look for similar alternatives
Top performing channels, stores and locations: Ensure you’re fully stocked up on your best channels
Most loyal customers (MVPs): Send offers and discounts to lure them back to your website or store
Stock-outs: Consider ordering more inventory or implement a process that ensures reorders are fast
Returned inventory reports: Ensure you know why inventory is being returned; you may need to add more detailed product descriptions, change suppliers or improve packaging
Time to ship: Consider the use of automation bots to speed up your time to ship and avoid unnecessary fulfillment delays
Warehousing inefficiencies: Implement barcode scanning in the warehouse to power up your staff and reduce cases of human error
Checking for business-wide integration
It’s not too late to ensure your different departments are all talking to each other where relevant. We suggest you focus on the following as a priority. What tech are you using to keep teams informed, in the loop, and up to speed?
CRM + Marketing: Ensures order confirmation emails, discounts, offers and other marketing messages can all be personalized, which increases their ability to convert.
Ecommerce + Shipping: Customers want to be able to track their orders all the way to their door, which means shipment notifications must contain tracking references. This is where easy to use back office shipping integrations like ShipStation or Shiptheory become your new best friends.
Inventory + Ecommerce: Avoid stock-outs and disappointing customers by ensuring your inventory levels can be automatically updated across all your sales channels whenever an item is brought into stock, shipped or returned.
Inventory + Accounting: With holiday season discounts and sales taking place, knowing your true margins is essential. With each inventory update, you should ensure your accounting is updated automatically… after all, who wants to be updating their accounts manually during the holiday season rush?
#6: Automate your workflows
If you already have a back office system that allows for automated workflows, then you should definitely make use of it as best you can. When setting up automation bots, it’s recommended that you map out your current workflows first in a tool like Lucidchart. This allows you to identify where bottlenecks can be removed by automation software.
“Make sure your operating systems don’t need any final touches and any special workflows are all set up before the holiday season because as you get closer and closer to the big day, your order volume and site traffic will just continue to increase. Fast and Frictionless experience is key for all your busy customers. Both before and after the holidays.” – Justin Press, VP of Global Customer Success, Brightpearl
#7: Make sure you’re ready for the inevitable holiday season returns
It’s estimated that 28% of holiday gifts bought last year were returned at a value of $90 billion. We all know that returns are inevitable after the drama of the holiday season, but you should be putting in steps now to ensure you’re able to ride the returns tsunami like a surfing pro.
Here are a few actionable steps for you to take as a starting point:
Assess your current ability to handle holiday season returns
We’ve recently created a self-assessment that enables you to assess your current returns processes. You’ll also gain actionable advice along the way for what needs to be improved. Check it out here.
Understand your return rates and reasons for return
Analyze your returned inventory reports from last year to identify common themes for why items were returned. Do you need to source a new supplier to improve quality? Should you stop stocking a certain item altogether? Does your packaging need to be improved? Try to isolate the problem and prevent it from happening again this year.
Give customers what they want
Everything that happens in exceptional events (such as when items need to be returned) is where your customers will measure the service they receive from you and whether they want to shop with you again, so it’s important to understand what your customers want (and expect) from your returns process. A survey sponsored by shipping technology leader Endicia revealed these insights about American shoppers:
51% want free return shipping
36% want an easy and convenient shipping process
12% want a swift refund or credit
89% say they’ll shop again at an online store after a positive returns process
62% want a returns label in the package
61% want an easy to print returns label
#8: Identify your “serial returners”
Recent data suggests there is a rise in “serial returners.” These customers are identified as those who purposefully buy more items with the intention of returning some. By flagging this type of customer within your CRM software, you can ensure they don’t receive certain marketing promotions or discounts as they are already likely to inflate your return rates. Check out Brightpearl’s Returns Readiness Guide to assess whether or not you’re ready to face the returns tsunami this season.
Author Bio:Justine Cross is the Content Marketing Executive at Brightpearl – a cloud-based back office solution for retailers and wholesalers. Brightpearl allows you to provide a truly omnichannel experience for your customers, whilst unifying all of your sales channels, inventory, accounting, CRM, suppliers, fulfillment, warehouse management, reporting and POS in one single automated system.
eCommerce baked-in customer service as a standard. Perhaps early innovators recognized its importance as a differentiator from in-store retail, or maybe it came naturally. Regardless, many traditional retail giants chose to ignore it altogether. In the stories that follow, we’ll explore vast disparities in customer service driving traditional retailers toward bankruptcy while simultaneously skyrocketing eCommerce sales.
Good CX Demands Good Customer Service
Major retailers now seemingly compete with airlines, telecoms and power companies for the worst customer service. The key difference, however, is the range of alternatives. Most regions of the U.S. don’t get to pick between more than two horribly aggravating cable providers, while anyone in the world can choose Amazon over local retailer. As a result, the need for retailers to optimize their customer experiences through customer service is paramount. However, those who only recently realized this may be too late.
Jura Live! A Customer Story:
“Jura LIVE! allows customers shopping online to make live video appointments at their convenience, from the comfort of their own home. Customers can see the products in action in real time and leverage the knowledge of a sales rep. to help them make a purchasing decision. For a luxury product such as a super automatic coffee & espresso machine, this adds a significant amount of convenience to the customer’s experience while also dazzling them with high-end technology. These types of high-touch online experiences help the sites that have them dominate those without. Unfortunately, most brick & mortar stores don’t offer these experiences because they refuse to adapt.”
-Dave Gardner, Sr. Account Executive & Team Lead at Redstage
How Retail Heros Became CX Villains
Sears, JC Penney, and Toys “R” Us are known for major missteps that downgraded their in-store experiences and alienated customers. Sears simply stopped investing in its stores. Years ago, company leadership decided to introduce a poorly-managed customer loyalty program that caused much more harm than good. The “Shop Your Way” program caused extended checkout times; both for customers waiting in line behind someone signing up for rewards AND for loyalty members who facing constant discrepancies in “deal” prices at the checkout.
The Fall From Grace
When sales declined, products began to downgrade, the stores themselves fell to disarray, and customers naturally opted for other retailers like Macy’s and Home Depot. As a poorly planned remedy to decreasing sales, Sears chose to cut in-store staff in half across their locations, propelling worsening structural conditions that led to closures all over the U.S. To this day, the company continues to pump products into stores that no one will buy, without the necessary human capital to even unpack them.
A Sears Auto Story
Recenty, Redstage’s CEO Adam Morris had his own customer service blunder at Sears. He entered Sears Auto looking for a particular item, couldn’t find what he wanted, and exited the store only to discover his car had been towed. According to Morris, the towing company contracted by Sears was watching the security cameras while he was inside. Because he parked in a space for “Sears Auto Customers Only,” and hadn’t made a purchase, he wasn’t considered a customer, which allegedly gave the towing company license to tow his car.
In an attempt to get assistance from Sears, Morris spent hours on the phone with a “rude or unhelpful” customer service representatives. At the end of the ordeal, one rep told Morris to file a police report if he felt he was wronged. He had to pay to get his car back — more than the cost of the item he initially intended to buy.
Think he’ll be heading back to Sears anytime soon?
Alienating Your Audience
JC Penney’s downfall came when it decided to switch to “low everyday prices” rather than focusing on their weekly coupon deals — something that created buzz from local customers and drove them to stores. At the same time, JC Penney switched focus from inexpensive products to more upscale merchandise, further alienating their customer base. As a result, shoppers decided to shop elsewhere. For a company founded on a middle class audience and low prices, this change was a signal for lifetime shoppers to exit, with seemingly no plan in place for attracting a higher-paying target audience.
Toys “R” Us CEO David Brandon mentioned in a recent SEC filing that the toy giant’s inability to invest in customer experiences in-store accelerated the death of the company. Last fall Brandon said the company’s mounting debt caused them to lose their competitive edge “on various fronts, including with regard to general upkeep and the condition of our stores.” In addition to the “general upkeep” Brandon mentions, if you’ve walked into a Toys “R” Us outside of the holidays, you’d understand. The massive store would appear as a moonscape, cold and nearly lifeless, save one or two employees and some barely audible music. Is that the environment that makes kids and parents think of fun?
This blog post does an excellent job of describing how Toys “R” Us could have boosted their customer experience through the roof, and honestly, it was probably within reach. “Special store events could include Nerf gun battles and dress up contests. Store representatives could excel at providing toy recommendations for particular age groups and interests (ever wondered, “What the heck do a get for my 8-year-old niece for Christmas?”).” These are the customer service based experiences consumers expect in our high-touch world. With eCommerce personalizing every customer interaction, it’s no wonder retail’s value continues to diminish.
Here’s Why Retail Will Die
As we can interpret from the examples above, traditional retail’s refusal to adapt (or perhaps retail’s lack of understanding about eCommerce) will be the industry’s ultimate downfall. One-time giants like Sears are ignoring systemic issues that directly impact in-store and over-the-phone customer experiences. Customer-minded marketing, store upkeep, and customer service — once staples of the retail experience — are being outsourced, downgraded or eliminated.
How To Bring The Magic Back
In a last-ditch effort to get customer engagement, Toys “R” Us launched an AR app called “PlayChaser” to create gamified in-store experiences. There were a few issues with this, like parents who didn’t want their kids running around a massive store with their tablet — and also the fact that the company had already declared bankruptcy — but the intent was there. Toys “R” Us was ready to repent for decades of customer boredom, but it was too-little-too-late.
Retailers seeking a strong, successful revival need three things:
A unified strategy that blends digital and physical experiences while thinking realistically about in-store capabilities (like employees, upkeep, and tech).
A highly-tailored online experience that combines hardcore marketing tactics with artificial intelligence to boost customer retention & sales (watch video).
Unrelenting customer service that makes everything easier for the customer (yes, we mean everything). Understand your customers and meet their demands.
Circuit City recently announced an ambitious plan to resurrect the company with an eCommerce focus and an impressively cool omnichannel strategy. The digital retailer relaunched February 15th and is moving forward rapidly. If Circuit City can make a comeback, maybe it’s time for other retailers to get with the program.