Post the pandemic crisis; consumers will only come back to physical stores only if they are entertaining and fun.
M MUNEER
DEC 2, 2020
Disruption and change are everywhere. Even before this year of pandemic. Technological disruption is changing business models and even industries. India is in the cusp of this change given the huge young population and the high tech adaption. Look at the proliferation of smart phones, apps and e-commerce here. Rural areas are also becoming tech-savvy. More orders for e-tailers are happening from tier 2 and 3 towns than from the metros. Smaller businesses should not be left behind on this.
Take consumer business as an example. Consumers are embracing self-service facilities more now than in the past, as they have less time and the special offers from the e-tailers don't hurt either. My clients n the brick and mortar side of retailing are paranoid about the massive discounts offered by e-tailers. Just as it is in the West, sales from e-commerce will soon outgrow brick and mortar sales, at least for till 2022. In fact many people `who ha1ve used web for their purchases feel that it offers a much superior shopping experience. You do not have to waste time driving down to a mall in congested roads, hunt for parking space, pay for it, and then walk around aisles searching for products and stand in a long queue for payments.
When technology has disrupted the traditional shopping habits, why is it that marketers and retailers don't look at web- and mobile-based technologies to improve customer experience?
Internet-based commerce delivers better information on products and services, and enables comparison of the same based on consumer-set criteria. In the normal shopping world this is impossible till now. When you are in a retail outlet, the comparison is only as good as the knowledge or motivation of the sales person there. Sales person could be motivated by incentives from a specific brand or overall store push. A web or mobile-based technology can offer consumers better comparison of products and even video to give a 360-degree view. The comparison can be extended to price and features too. This will help consumers identify the best solution for their needs. With technology, you could link YouTube videos of actual users who belong to a particular segment. Then there are always the regular features like chats with an expert to toll free numbers for 24X7 interaction. Can real stores innovate here?
Research shows that third party reference is a crucial element in the final purchase decision. Internet and mobile technology can actually drive real-time peer reviews of products and services. Businesses could do much more than what a mouthshut.com might do. Companies can also use mouthshut.com comments to convert customers who were deeply dissatisfied. I have yet to see a company doing that even today!
For marketers and retailers Internet is very useful, as they need not stock physically all items in every store. ERP systems can help manage warehouse stock and distribution more efficiently. Consumers too will see more in-stock items than they would in a physical store for the same reason. Whether the store would be able to ship out as promised is a big question as a recent experience with FlipKart indicates. They promised shipping in 4 days but kept on apologising for a delay till it became 30 days!
A few years ago who would have thought majority of travellers would purchase air tickets online? For long, banks and airlines have been trying to reduce costs and wishing more and more customers to avoid human touch and try more self service. ATMs and Internet banking took off because of increasing appetite for self-service by consumers. Perhaps this is because of the disappointments and inconsistent services they suffered at the hands of humankind. One of the things hotels in India can try out is self-checkout and touch-less check-in and entry to rooms.
Why are not physical stores providing Internet access to consumers when they are shopping? This would help a consumer decide on purchasing an item quicker than normally. Retailers could even provide interactive kiosks with web access to help consumers do what they would do at a web store. One of the most important advantages marketers will have in web-based stores is the amount of quality data, which will improve the management of the stores. From entry to search to selection and final purchase, they can track everything a consumer will do online at their store. In a real store, the footfall to conversion is not precisely measurable. Although to some extent real stores can customise offering for a broad set of customers, precise tailored offerings are impossible unlike in a web-store.
Big retailers are waking up to the changes consumers are wishing for. For instance, Wal-Mart has started reconfiguring its mega stores to suit these changing needs – Like replacing existing sales floor with a smaller showroom, and expanding the store backroom into a warehouse. Many stores abroad have also installed several self-service kiosks to enable customers to browse, order, and pay for items using mobile apps. Another thing possible is a drive-through pick up for consumers who orders online – Without even having to get out of the cars. They are all trying to improve the customer experience almost as good as what they can get online.
Post the pandemic crisis; consumers will only come back to physical stores only if they are entertaining and fun. Marketers could design digital media into the store floors to improve the entertainment value. They could also put touch screen displays providing product and service information and comparison, and for in-store promotions. There are opportunities for small businesses everywhere if only they see it differently.
Happy Investing
Source: Moneycontrol.com
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