| by Penelope
Ody
Top of many retailers priority lists along with improving
on-shelf availability is enhancing customer service.
It is the oft quoted reason for introducing loyalty kiosks,
queue-busting systems, and even in-store TV. Yet are these
exciting gizmos the solution?
We live, as we are constantly reminded, in a technological
age: customers have PCs, PDAs and of course mobile
phones. In the UK they send 59 million text messages daily;
spend around £1billion a year on online groceries; and
contribute to Europe's impressive tally of £1billion
a year on buying mobile ringtones.
These techno-savvy shoppers as we are also constantly
reminded by assorted IT vendors and media pundits expect
the same sort of slick graphics and presentations on in-store
multimedia kiosks and plasma screens as they see on the web,
TV or video. They expect the same sort of product information
in-store as from websites, not to mention staff able to provide
instant answers on stock availability from multi-functional
PDAs or a web-enabled checkout. Well, that's what the 'experts'
say anyway.
Reality is often rather different. A series of consumer focus
groups, held by analyst group, Garter G2, last year, found
that only 28% of shoppers care about loyalty schemes. Meanwhile,
'kiosk access to the internet' and 'SMS special offer alerts',
were at the very bottom of the scale, producing a seriously
negative reaction when customers were asked how they regarded
store technology. The focus groups showed a distinct lack
of enthusiasm for plasma screens and in-store TV and gave
complex kiosks spewing out recipes and wine suggestions a
clear thumbs down. Many in Gartner's focus groups also thought
that such expensive in-store technology must eventually mean
higher prices.
Interestingly, the groups did confirm what many retailers
are already
discovering: shoppers like self-scanning: they find kiosks
for price checking helpful; they even like the idea of trolley
mounted personal shopping assistants "It would
certainly keep the kids amused," said one panel member.
What these customers really wanted, however, were fast checkouts,
easy-to-find products and better stock availability. By fast
checkout, they certainly did not mean high-speed checkout
staff that was a key reason why many older customers
preferred self-checkouts, where they could scan and pack at
their own pace without being hassled. They didn't mean queue-busting
either that tends to get a frequent customer thumbs
down as they object to shoppers being pulled from lines and
(apparently) given special treatment to check out ahead of
those in front.
Achieving fast checkout really means having the right number
of lanes open to match customer demand; having robust technology
to avoid unwanted lane closures; choosing touchscreen if appropriate;
and selecting high-speed printers to complete transactions
quickly.
The ultimate fast checkout will probably be when we can simply
push trolleys full of RF-ID-tagged items straight out of the
store and 69 % of respondents in another Gartner survey
were willing to accept RF-ID tagging if it enabled this sort
of activity.
Faster checkout can also be helped by mobile PoS systems.
This is not queue-busting per se, but additional checkout
desks which can be wheeled into action at peak times. These
in turn, can require wireless technology, an increasingly
essential component of the in-store tool kit.
As retailers such as B&Q and Tesco are discovering, a
wireless network can enable a raft of additional activities
that would be impossible to cost-justify if the expense of
the infrastructure had to be added into the equation. For
example, Tesco's 'mobile shelf-edge' multi-functional hand-held
system, which is used for a range of staff operations would
have been a non-starter without the wireless network; as would
B&Q's current implementation, using PDAs for markdown
label production with centralised monitoring and control.
Once in place, the wireless network can also enable some of
today's clever applications that customers really do value
mini-kiosks for price checking; trolley-mounted shopping
assistants to provide shopping lists or product information
(and to keep the kids amused); or self-scanning systems that
allow them to add up their shopping bill as they go. We may
live in a technological age, but when it comes to customer
service keep it simple is still the central message.
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