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.
 

  
All systems go for Arciris
Viewpoint – back to basics
Comments, suggestions, ideas? Let us know what you think about Retail Update
more
Would you like to see your
story in the next issue?
more
If you would prefer to receive Update in printed format, simply complete this form with your details and we will add you to the mailing list
Know someone who would find our stories interesting? Register them to receive Update here