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Three micro-trends of the retail customer experience

There are several ways the retail customer experience is actually becoming smaller, and it seems to be a good thing for sales and customers.

February 3, 2015 by Jeannie Walters — Chief Customer Experience Investigator, 360Connext

There are several ways the retail customer experience is actually becoming smaller, and it seems to be a good thing for sales and customers.

1. Inventories are becoming more location-specific.

Several years ago, Target and Walmart both began experimenting with urban stores with a much smaller footprint than the traditional "big box" stores. City Target stores select items city dwellers may need, but also customize what they offer based on where they're located. Tourist items like coffee mugs and t-shirts are stocked as well as toilet paper and household items.

The trend has continued to include Target Express stores, even smaller stores providing just the basics for those who live in cities. Walmart Express and Tesco Express stores in the UK also offer smaller stores with curated selections.

2. Customers enjoy convenience on their terms.

Beyond the actual physical stores, the experience of shopping has become a quicker, more convenient experience in many cases. In-store pickup, for example, has moved from a back-of-the-store experience to a convenient in-and-out for the customer.

Walmart is testing same day grocery pickup, where the customer can order online or via mobile and drive up a few hours later to groceries. With this service, orders can be scheduled for same day or up to three weeks with no additional charge for the customer.

This experience points to how instead of driving the customer through the store to entice them with additional purchases, the retailers are recognizing how honoring what the customer wants creates more loyalty long-term.

Department stores of the past, the big, sprawling spaces we know, are not appealing to younger shoppers or those who value convenience.

3. Channel-agnostic retailing wins more loyalty.

JCPenney announced closing stores in 2015, as well as Macy's. However, Macy's in particular is investing in omnichannel experience, creating more opportunities for digital ordering and in-store pickup, for example. These small experiences could lead to major loyalty without forcing the customer to shop in the way the retailer wants.

Small is also big in how customers are seeking recommendations and curated, personalized experiences.

Trunk Club, now part of Nordstrom, is a service that delivers selected wardrobe pieces to men once a month to try on and purchase what they like. Many men who avoid the shopping mall prefer this type of service, and have no problem signing up long-term. Each month is a new, smaller, more curated experience for them.

Julep, a makeup seller, also has a monthly club for customers to offer just a few pieces each month delivered to their door. These are very different experiences than the makeup counter or the men's department. The individual sales may be smaller, but the long-term results are better for both retailers and customers alike.

Allowing customers to shop the way they want pays off in big dividends.

It seems more retailers are seeing the benefits of starting small and offering a more customized experienced for their customers.

2015 promises to be a big year for small.

(Trunk Club image by chriscoyie. Walmart image by Phillip Pessar.)

About Jeannie Walters

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