Samuel Mueller, CEO and co-founder of Scandit, shares strategies on how retailers can re-build consumer confidence to return to stores again in the post-pandemic world of retail.
May 11, 2021 by Samuel Mueller — CEO, Scandit
As COVID restrictions ease and vaccination efforts ramp up, the retail sector is faced with re-imagining customer experiences in a post-COVID world.
While many retail businesses have made a Herculean effort to innovate and adapt in the past 12 months, store closures and job losses continued to be widespread, and once familiar names in shopping malls have all but disappeared.
But as we emerge from this crisis, not everything is gloomy. According to recent research, consumer spending and out-of-home activity is expected to increase on the heels of economic optimism. The Wall Street Journal reported foot traffic in a representative sample of 52 malls has already gone up 86% in March over last year. Buoyed by hopeful consumer sentiment, retailers must continue innovating, especially in the realm of mobile and contactless technologies that have caught on during the pandemic.
As we move forward this year, we're going to see consumers having higher expectations than before, as they continue to prioritize health and safety, and opt for more options and richer in-store shopping experiences. Here are some ways retailers can re-build consumer confidence to return to stores again.
If retailers are to successfully leverage the increased footfall we're seeing, the focus must be on two things: maintaining consumer confidence and a high-quality customer experience to make it worth going back.
Confidence is everything. During the height of the pandemic, research group IPSOS found "Customers and brands alike want to trust that in-store employees are following safety guidelines. They also want to trust that staff are enforcing the guidelines for other customers who might not be adhering to new social distancing norms." For many, this desire for a clean and contactless experience will remain, with the pandemic potentially changing the way we shop forever.
Moreover, the pandemic may have 'retrained' consumers to shop for necessities from home, but many are keen to have the pleasure of browsing in local retail stores again. Shoppers have always had a strong dislike for standing in checkout lines. Given a choice, most consumers would rather enjoy spending time shopping recreationally, or just to be able to quickly grab what they need and get on with their day.
2020 was the year of digital transformation in retail, as consumers embraced technology that facilitated safety, speed and convenience. Retailers had to meet changing these consumer demands, offering new services such as home food delivery services, click and collect and 'scan and go.'
Moving forward, innovation will again be needed to re-imagine the digital in-store experience that consumers want. We are seeing that smartphone technology will be an integral factor in giving consumers the confidence to return to stores, with the added benefit of maintaining social distance from others and providing greater confidence when shopping.
Digital tools such could be used in a variety of ways to create a more end-to-end customer journey, such as building digital shopping lists at home that allow consumers to quickly find and purchase the products they need when they reach the store, augmented reality overlays that can display product information without customers having to look it up on their smartphone web browser, to seamlessly making payment on their mobile devices.
With almost half (45.4%) of self-scanning retailers already offering downloadable shopping apps to customers, self-scanning was — and still is — a powerful way to increase customer engagement in-stores. An effective and efficient scanning experience can help save time and make any interaction as frictionless as possible. It will also optimize the customer experience and enhance confidence and loyalty.
The experience of the past year has accelerated the adoption of technologies that offer enhanced experiences and processes. Retailers need to continue providing that seamless ease for staff and shoppers with mobile scanning, Scan and Go, click and collect, inventory and shelf management, order fulfilment, and proof of delivery — all with the convenience of smartphones in the pocket of every customer and familiar with employees.
As we move into this brave new post-pandemic world of retail, these innovations are not only here to stay but are increasingly an expected feature of a consumer's overall retail experience.
Samuel Mueller is the CEO and co-founder of Scandit