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Are retailers under-valuing the importance of fitting rooms?

The most important conversion area — and at the same time the least serviced area — in apparel retail is the fitting room.

October 28, 2009

What follows is an excerpt from one of RetailWire'srecent online discussionsfeaturing commentary from its "BrainTrust" panel of retail industry experts.

The most important conversion area and at the same time the least serviced area in apparel retail is the fitting room. Customers who use a fitting room are 71 percent more likely to buy than those simply browsing the sales floor. Add to that the fact that the customer who uses the fitting room will buy about twice what the browser buys, according to a study from London consultancy Envision Retail. And, if they are provided with service while in the fitting room they will buy almost three times what the browser buys. And we're not going to even talk about what browsers buy and then return because of fit issues.

Many retailers believe they are servicing their fitting rooms properly. They've created elaborate fitting room service strategies aimed at all the right targets: improved customer experience, increased conversion, increased ADS (average dollar sale) and UPTs (units per transaction). However, other retailers seem to be oblivious to the importance of the fitting room and view it instead as a necessary evil and a loss prevention nightmare.

From the customer's perspective, the fitting room experience can run the gamut from a luxurious and pampered experience to one that is downright filthy and demeaning. But, no matter where the retailer falls on the continuum, one thing is true in most fitting rooms: the customer has no easy and hassle-free way to contact a sales associate once they are inside.

The retailer that has a great fitting room service strategy has trained their associates to drive traffic to the fitting room, they conduct wardrobing classes to train associates to help the customer find the right outfit for any occasion, and they have created talking points to help associates establish a connection with the shopper to understand their shopping needs and desires. But, once inside the fitting room, that connection is lost. To connect again requires the associate to knock on the door at the moment the customer is in need of service.

Time for full disclosure: Alert Technologies develops custom systems for stores that provide push-button notification from inside fitting rooms. The technology also monitors activity to provide the operator with data: the number of fitting room visits, the duration of each visit, total fitting room load, etc. Retailers are able to use this information to set load standards, and monitor and score each store accordingly, for example.

We've had years of success with these services, and yet I often hear from retailers that view access technology as a barrier to personalized service. It seems that some aspirational chain retailers want that proprietor feel that small shops and very high-end retailers can achieve. Sole proprietors and high-end retailers are emotionally and economically vested in each of their customers. It's a great thing to aspire to, but with high turnover, little incentive, etc., are chains fighting an uphill battle?

Discussion Questions: Why do you think some retailers view access technology as a barrier rather than an enabler of personalized fitting room service? What advantages and disadvantages do you see to fitting room access and monitoring technology?

RetailWire BrainTrust comments:

After working for a couple of women's apparel retailers I can confidently say that service in the fitting rooms--and simply having enough fitting rooms--will drive in-store conversion and an increase in the average dollar sale. There's a commitment that is made by the client when they actually put merchandise on. Not only does it drive positive initial results, but a good fitting room program will also decrease the number of returns a retailer sees. -Scott Knaul, Director, Retail Strategic Services, Workforce Insight

In the current battle for market share, anything that enhances the overall shopping experience for the customer is bound to be a plus to sales. Having attentive and well-trained service at the push of a button is obviously an experience-enhancer.

However, this needs to be put in the context of the current service levels on the sales floor. With most retailers struggling to balance service levels with selling expense, most customers are grateful to be able to find an associate to ring them out, much less one to work with them end-to-end. Moreover, the only thing worse than not having a call button in the dressing room is having one that brings no response.

Before a retailer considers this option, they should first consider the physical environment of their existing dressing rooms. In too many cases, they have the warmth and charm of the loading dock. Look at the lighting (is it warm and flattering?), look at the mirrors (are they plentiful and do they reflect accurately?), look at the walls (are they painted/papered in warm colors?), look at the cleanliness (is there an effective process in place to keep them clean?).

If the answer to all these questions is yes and there is sufficient staffing then by all means, retailers should think seriously about this option. -Bill Emerson, President, Emerson Advisors

I think the issue is more structural than that. Fitting rooms--as a percent of floor space--were mostly designed and placed in stores before retail really realized how important the fitting room is. At least, that's the only reason I can think of as to why they are tucked into corners, sometimes excruciatingly small, and often hard to find. If they were truly appreciated as the conversion magic they can be, wouldn't they be featured more prominently? I'm thinking mostly of department stores here but even at places like Forever 21 stores, which have grand entrances to fitting rooms that you can't miss, the line is always horribly long. Fitting room capacity is too low for the role that the fitting room needs to play in the shopping process today. If customers truly took up residence and had the full shopping experience in a fitting room that they "long to experience," how many other customers would be waiting, growing increasingly frustrated while some other shopper gets the royal treatment?

I'm not saying no one wants that treatment, but in order to prevent massive "cart abandonment" in the store due to long lines at the fitting rooms, everyone from department stores to specialty shops would have to massively rethink the number of fitting rooms they provide, vs. how long the average customer is going to spend in there, how many customers are going to want a fitting room at any given time, and how the length of time in the fitting room (and the service they receive while there) correlates to increased sales. At some point, the length of stay is going to yield diminishing returns, and 3x basket sizes or not, it's going to be worth it to move the shopper along so that someone else gets a crack at that fitting room.

When you start talking about things that involve architects and drywallers, rather than "simply" tech implementations, the barriers and objections are going to come up pretty quickly. -Nikki Baird, Managing Partner, Retail Systems Research

This sounds like another example of retailers overestimating their customer service prowess. When retailers' perceptions of their expertise clash with reality, solutions can get vetoed out of defense.

When I'm in a fitting room, I'm in a hopeful, upbeat mood. I WANT to love the fit of those pants, for the blouse to work perfectly with the skirt . . . I'm excited about the possibilities or I would be in there taking off and putting on. That means that, if everything goes smoothly and my hopes are validated, I'm probably going to buy. I'm literally a hopeful, well-wishing captive audience! What more could you ask for?

I totally agree that retailers forfeit this incredible fitting room opportunity in many ways:

1. Not being available - I need a different size but will have to put right-fitting outfit back on (the clothes I walked in wearing) to go get it. Hmmm, what I'm wearing fits better . . . Do I REALLY need something else? I have lots of stuff that fits this well and what a waste of time if the new size doesn't fit either. What was I thinking? See ya!

2. Dirty fitting rooms - Wow, I thought these clothes were cute and well-made but now they look kind of skanky and cheap.

3. Horrible, unflattering lighting and fun-house mirrors - Yikes, I should spend this money on a facial or a gym membership instead!

4. Long lines - Yep, this is the place to go! But I'll let those other five gals have all the fun. I'm hungry.

5. Velvet ropes - I found ten things that I liked. Woo hoo! Oh . . . can only try on three at a time. Wow, I was really over-doing it. Which three did I really like? Never mind. -Carol Spieckerman, President, newmarketbuilders