Keep retail Simple

“In this omnichannel shopping era, it is more important than ever to deliver a simplified shopping experience. Retail brands that can deliver the most streamlined experience will drive the highest levels of long-term customer loyalty.”

That was the message in branding firm Siegel and Gale’s sixth annual Global Brand Simplicity Index, based on responses from 12,000 + adults across eight countries. The survey asked consum­ers to rank leading retail brands based on how simple they are, why disrupters are gaining ground, and the benefits of simplifying customer experiences. “Brands delivering value through stream­lined customer experiences are learning that simplicity pays off,” says Brian Rafferty, global director of insights at Siegel and Gale.

This could be a turning point for companies that have his­torically struggled with how to connect with the omnichannel shopper. By definition, the omnichannel retailing model enables shoppers to seamlessly hop across a brand’s physical and digi­tal touchpoints and procure merchandise just as easily. It has also conditioned shoppers to expect to shop across a “brand,” rather than individual “channels.” Retailers must adopt and inte­grate multiple customer touchpoints—whether via Web-based kiosks, smartphones, tablets, or mobile apps—to ensure real­time engagement with customers during their path to purchase.

Merchants must ensure that ordered merchandise can be shipped to shoppers’ homes or their desired store for pick­up. This calls for new fulfillment options designed to make it simple to receive orders. “The pace of technology is changing in terms of customer expectations, but retailers must keep up and seamlessly coordinate channels and operations,” Rafferty says. “Retailers need to personalize shopping experiences, and give shoppers exactly what they want, when they want it. This experience needs to be invisible to the customer. They are not interested in processes—they just want a top-notch experience.”

Only a handful of retailers are making strides in customers’ eyes— especially in the United States. Grocery chain Publix is one of them: Jumping 20 spots in one year and landing third on the U.S. simplicity list, Publix touts an “easily navigated layout and pays close attention to the customer experience,” the study reported.

Publix aside, unconventional sources are outpacing cus­tomary ones in this area. Shoppers ranked Google as the top U.S. retailer choice due to its providing instant information when making purchase decisions. Netflix was second, and Amazon.com and Zappos.com were fourth and sixth, based on free shipping.

For firms on the fence about the power of the simplified, informational shopping experience, consider this: 63 percent of people are willing to pay more for simpler experiences, and 69 percent are more apt to recommend a brand because it provides simpler experiences and communications, according to the report.

Already inundated with information from conventional sources such as point-of-sale stations, the omnichannel busi­ness model is producing unprecedented levels of unstructured data from Web sites, social media, and electronic customer touchpoints, including kiosks and mobile devices. That “big data” contain intricate nuggets like customer preferences and merchandise consumption patterns.

There is no better place for retail brands to find customer- specific information than in their own loyalty program data­bases. Understanding what Dunkin’ Donuts shoppers want makes it easier for the marketing team to “focus on fewer bigger things,” John Costello, CMO of Dunkin’ Brands, says. “We get people to focus on the three to five things in their area that make a difference,” he said. “Find out what makes a difference, and eliminate the little things that create clutter.” Keeping a keen eye on these ever-changing factors has helped Dunkin’ Donuts claim the seventh spot in the U.S. Simplicity Index.

Source: Barry Berman, Joel R Evans, Patrali Chatterjee (2017), Retail Management: A Strategic Approach, Pearson; 13th edition.