THOUGHT LEADERSHIP
How more transparent, integrated shopping experiences can deliver results in difficult times
Retail is heading into a new era according to Stefan Spendrup, VP, Northern and Western Europe at SOTI.
The shopping experience is changing. With the threat of recession, global cost of living crisis and inflation near a 40-year high, customer attitudes are changing. According to the Office for National Statistics, in January this year, food inflation alone hit 16.7%. As a result, businesses and suppliers are facing more scrutiny than ever, battling an environment of constant change and adaptation. However, it is no longer simply about keeping up with customer expectations but battling to stay ahead of the competition in a period of significant turbulence for the industry. And in this arena, deliveries could be the key to success. New era, new issues There are two fundamental parts to the online shopping experience: deliveries and returns. Data from our recent retail report suggests that it is these two areas which are undergoing the most change. Firstly, supply chains are struggling and the knock-on effects of this have been felt across the board. According to the report, 58% of consumers globally reported that items are now more expensive, with 34% saying there has been an increase in wanted items not being available. As a result, customers are having to look elsewhere, meaning the competition for businesses to solve these issues is becoming a growing concern. Furthermore, the report shows that 31% of consumers reported delivery times being slower than usual, with 28% saying delivery charges are more expensive. Whereas big retailers such as Amazon seem to be fighting their way through increasing delivery times by now offering specific ‘before 1pm’ delivery slots, this is not something that can be implemented for all.
Increasing delivery times means there has been an increase of shoppers choosing to order online and pick in in-store. Statistics from the report published in 2022 showed that 27% of customers would choose this option. Now, in 2023, this figure lies at 34%. In-store or online? There has also been a significant increase in the number of shoppers who are choosing to shop in-store rather than online. In 2022, 38% of shoppers said they will continue to shop in-store. In 2023, this has nearly risen to half, with 48% of shoppers now stating this. Such figures show that whilst it is still important for retailers to provide a seamless online shopping experience, in-store shopping must not be put on the back burner. There is clearly a growing preference for shoppers to visit stores in person, and this is an alternative that must be catered for by businesses. Both options must be efficient, effective and give shoppers more control over their experiences. Only by doing this will companies remain ahead and stay the top choice of their customers.
Stefan Spendrup, VP, Northern and Western Europe
soti.net
Improving true omnichannel integration
Capitalising on the opportunities presented by more customers returning to shops relies on investment into store and distribution centre hardware. With retail workforces more widely dispersed than ever before, ensuring that tech infrastructure and company devices are geared up to deliver seamless customer experiences is vital. For instance, in this omnichannel environment, ensuring that customers can make in-store returns of products ordered online, or that loyalty rewards can be redeemed both online and in-store, is crucial.
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