Upgrade Your Customer Experience


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Retailers remain laser-focused on improving the customer experience in every part of the store. They are improving the checkout experience, hiring more store associates and empowering managers with mobile tools. The recently released RSR store study confirms this and other trends, such as:

• 52% of retailers see high value in modern POS hardware and software
• 55% see high value in employee selling tools on the sales floor
• 43% see high value in personal scanners and self-service sales

During this webinar, Paula Rosenblum from RSR will share these and other findings from the store study and discuss how retailers can respond in order to achieve better in-store results.

Part two of the presentation will feature a deep dive into how the checkout experience affects overall store performance, honing in on all aspects of checkout, including POS, self-checkout, the queue process, impulse buying, couponing and tendering. Each aspect of the checkout experience contributes to a successful sale. If any part of the checkout experience is negative, 50% or more shoppers may opt to shop online instead.

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Upgrade Your Customer Experience

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  4. 4. 87*+.(H.%26(;*+4GC*23.-(!  Launched in 2007!  Over 20,000 subscribers!  To provide executives with relevant, insightful content across a variety of digital mediumFree subscription to our weekly newsletter:www.retailtouchpoints.com/signup
  5. 5. C%362-.-( SPEAKER SPEAKER Paula Rosenblum Julie Huffman Managing Partner Senior Human Factors Retail Systems Research Engineer NCR Debbie Hauss MODERATOR Editor-in-Chief Retail TouchPoints
  7. 7. Agenda•  Report Overview & Methodology •  Business Challenges •  Opportunities •  Organizational Inhibitors •  Technology Enablers•  BOOTstrap Recommendations•  What it Means for Retailers 7
  8. 8. Report Overview &Methodology 8
  9. 9. First: Who/what is RSR? A group of retail industry veterans providing: Insight into business and technology challenges facing the extended retail industry Thought leadership and advice on navigating these challenges for specific companies and the industry at large Nikki Baird Paula Rosenblum Brian Kilcourse Steve Rowen Our research products include technology adoption benchmark reports, custom research, and comparative personal benchmarks.
  10. 10. Our BOOT Methodology Business Organizational Opportunities Challenges Inhibitors Technology Enablers Retail Winners: Year-over-year comparable store sales outperform inflation. They sell more “stuff” but! they also think and act differently than their competitors. 10
  11. 11. Top Line Findings•  The Store has to evolve – we have no choice•  Customers demand a more relevant / differentiated experience•  What is relevance? •  Don’t try to sell me what you want to sell, offer me what I want to buy, and make it personal•  Retailers, especially Winners understand the importance of a more convenient in-store experience•  What is convenience? •  Educated employees •  Cross-channel consistency •  “Shoppable” layout •  Rapid check-out•  Technology and training to drive productivity all required to facilitate the necessary change 11
  12. 12. Better-Educated Employees a Must The Post- Top Three (3) Uses of In-store Technologies Walmart World 2011 2010 69% Maintain and/or improve the customer experience 67% 51% Make our employees “smarter” and better informed 35% 39% Increase revenue while holding down operational costs 57% 32% Put actionable information into the hands of managers 36% Help the company win new customers and retain current 29% customers 37%Create competitive advantage and new sources of revenue 26% generation 30% 26% React quickly to changes in the business environment 22% Help us keep up with the competition (avoid competitive 20% disadvantage) 11% Source: RSR Research, June 2011 12
  13. 13. A Stabilizing Payroll to Sales Ratio How Have Payroll to Sales Ratios Changed? 2009 2010 2011 51% 40% 38% 36% 33% 30% 25% 24% 25% Increased Remained the same Decreased Source: RSR Research, June 2011 13
  14. 14. Technology the Key to Education How long has your company been actively involved in adding technology-enabled touch-points for employees in your stores? 2011 2010 70% Longer than 1 year 49% 8% Less than 1 year 18% 3% Budgeted project 8% 14%Project planned, not yet budgeted 8% 5% No plans 11% Source: RSR Research, June 2011 14
  15. 15. Getting the Store Manager Backon the Selling Floor How long have you been actively involved in adding Mobile technology-enabled touchpoints for Store Managers within your store? 2011 2010 2009 25% Longer than 1 year 14% 12% 28% Less than 1 year 23% 22% 3% Budgeted project 9% 7% 22%Project planned, not yet budgeted 14% 15% 22% No plans 32% 36% Source: RSR Research, June 2011 15
  17. 17. Observations•  Improving customer service while holding the line on costs remains a top concern, but has been joined by pressures to improve integration across channels and combatting price transparency•  The uncertain economy remains a persistent challenge – particularly to laggards•  Retail Winners retain the “luxury” of focusing on a better customer experience•  Economy taking a toll on under-performers 17
  18. 18. Price Transparency and Integration 2010 was “the Year of Price Transparency” Top Three (3) Business Challenges Faced in Stores 2011 2010 Need to improve customer service while holding the 43% line on payroll costs 49% Need for more consistent store execution 37% 45% Uncertain economic conditions 37% 37% Consumers know competitor prices for the same 31% products 16% Price is re-emerging as an important customer 26% concern 27%Customer dissatisfaction caused by lack of integration 20% between the store and other selling channels 7% Need to reduce shrink 19% 12% Store managers lack information they need on the 19% selling floor – too much time spent in the back room 22% Source: RSR Research, June 2011 18
  19. 19. As Always, Winners More Focused Business Challenges Vary Significantly by Performance Retail Winners Average Performers Laggards 50%Need to improve customer service while holding the 44% line on payroll costs 25% 27% Uncertain economic conditions 38% Unrelenting 58% pressure Source: RSR Research, June 2011 19
  20. 20. OpportunitiesNO SHORTAGE OF WAYS TO IMPROVE 20
  21. 21. Observations•  Retailers continue to see opportunity in making in-store experience more convenient•  A growing sense that making employees better informed and more productive will help generate sense of convenience, as will reducing out-of-stocks by providing stores with the ability to locate and ship merchandise from other parts of the company•  Retailers’ have got religion around mobile interactions with consumers •  87% of respondents now see value in the smart phone driving traffic TO the store vs. 65% last year •  67% now see value of using the customer’s smart phone WITHIN the store, vs. only 52% last year 21
  22. 22. Productivity and Technology HoldRetailers’ Interest Opportunities with "A lot of Value" in Improving the In-store Experience 2011 2010 Focus on a more convenient customer experience 68% 73% Find ways to make our employees more productive 58% 50% More personalized attention from our employees 57% 58%Educate and empower our in-store employees using 56% technology 49% Provide ability to locate and sell merchandise from 54% anywhere in the company 42%Improve performance reporting to store management 29% 39% Provide more specific/localized direction to store 28% managers 38% Source: RSR Research, June 2011 22
  23. 23. Mobile Engagement: ProfoundUptick Smartphones Value in Driving Traffic TO the Store Lot of Value Some Value No Value2011 31% 56% 13%2010 20% 45% 35% 23 Source: RSR Research, June 2011
  25. 25. Observations•  Persistent economic uncertainty deterring investment •  Overall capital requirements continue to plague retailers •  Trumps ROI as an issue•  Positive sign: Retailers recognize there is no way back to simpler times•  Evidence overwhelming, change must be driven from the top•  Managed services gaining traction as an alternative•  Absence of wireless infrastructure serious impediment to forward progress with a wireless consumer 25
  26. 26. Less Budget, but Better Projects Persistent Economic Uncertainty Taking its Toll Top Three (3) Organizational Inhibitors 2011 2010 Overall Capital Requirements – we never even get to 61% the subject of ROI 40% 54% Hard to quantify technology return on investment 66%The existing technology/infrastructure is preventing us 49% from moving forward with new solutions 50%We generally don’t want to be an early adopter of new 39% technologies 43% The TCO of in-store technologies makes it hard to 32% justify many of the newer technologies 28% Management believes stores should be able to just 22% “do what we tell them” 12% We are trying to simplify our in-store technology, not 15% Positive Sign make it more complex 32% Source: RSR Research, June 2011 26
  27. 27. Senior Management Driving Change How important are each of the following to help your company overcome the inhibitors you selected above? Very Important Somewhat Important Not Important Senior management championing the project 70% 30% 0% Pilot programs in specific stores or regions 58% 35% 8% The customer is demanding it – we have no choice 45% 39% 16% Asking vendors to provide success stories and references 34% 39% 26% Merchandising vendor funding for in-store projects 34% 50% 16% Gain sharing programs with vendors 32% 45% 24% Start with smaller projects, buying basic system functions, and 30% 57% 14% Managed services for software 18% 58% 24% Managed services for roll-out and/or maintenance 16% 45% 39% Managed services for home office / store network 16% 43% 41% Managed services for hardware 11% 65% 24% Operating leases 3% 50% 47% Source: RSR Research, June 2011 27
  28. 28. Mobile Opportunities Cannot BeRealized without a MobileInfrastructure Which of the following statements best describes the technology your company uses to support wireless networking in the store? 2011 2010 Wireless available only for receiving and other 30% inventory control related tasks 25% 30% No wireless network available in store 38% Wireless available throughout the store for 27%performance management, POS and product related tasks 30% 12% Wireless available for customers 8% Source: RSR Research, June 2011 28Along with the obvious, this constrains placement of new devices
  30. 30. Observations•  Perceived value of in-store technologies shifts significantly in the past year•  “Bread and butter” applications like modern POS hardware and software, and in-store rewards and coupons important•  New trends have emerged •  Now see a lot of potential value in cross-channel initiatives that support the store, and in delivering information to both company- and customer-owned phones and PDAs •  Retail Winners most apt to embrace value of newer technologies•  RSR troubled by lack of meaningful Key Performance Indicators (KPIs) used to track value received from in-store technology investments. Better metrics needed. 30
  31. 31. Massive Shifts in Perception 2010: The Year of Multi-channel and Mobility Potentially Very Valuable Technologies to Support Opportunities 2011 2010 Cross-channel customer and inventory synchronization 70% through real time updates 50% Deliver information to customer-owned cell phones and 62% PDA’s 30%Deliver information to store-owned cell phones and PDA’s 57% 21% Employee selling tools on the sales floor 55% 43% Modern POS Hardware and Software 52% 52% Personal scanners, self-service scales, product 43%information kiosks, employee product information training 25% In-store rewards and/or coupons 43% 42%Distributed Order Management (buy in one store, fulfill in 43% another) 26% KPI’s and alerts to store managers on mobile devices 38% 25% Source: RSR Research, June 2011 31
  32. 32. Actual Value is ‘Bread and Butter’ Actual Value Achieved from Technologies A lot of Value Somewhat Valuable Little to No Value Modern POS Hardware and Software 30% 48% 22% In-store rewards and/or coupons 28% 48% 25% Cross-channel customer and inventory 32% 40% 28% synchronization through real time updates Employee selling tools on the sales floor 13% 59% 28% Growth in value Distributed Order Management (buy in one store, 35% 30% 35% fulfill in another) Software that schedules the right mix of labor for 22% 38% 40% employeesDeliver information to customer-owned cell phones, 18% 41% 41% tablets and PDA’s Source: RSR Research, June 2011 32
  33. 33. Modern POS the Linchpin Status of In-store Technologies and Future Plans Installed Budgeted/Planned No Plans Modern POS Hardware and Software 60% 31% 9% Software that schedules the right mix of labor to complete all 53% 33% 15% activities and tasks Employee selling tools on the sales floor 50% 36% 15% In-store rewards and/or coupons 54% 28% 17% Customer facing self-service touch points in the store 52% 30% 18% Deliver information to customer-owned cell phones and PDA’s 34% 45% 20%Distributed Order Management (buy in one store, fulfill in another) 44% 32% 24% Cross-channel customer and inventory synchronization through 41% 36% 24% real time updatesPersonal scanners, self-service scales, product information kiosks, 38% 39% 24% etc. Software to assign actions in response to underperforming KPIs 33% 36% 30% Deliver information to store-owned cell phones and PDA’s 38% 29% 32% KPI’s and alerts to store managers on mobile devices 27% 36% 36% Dual displays at POS 39% 21% 41% Self-check-out 30% 18% 52% Source: RSR Research, June 2011 33
  34. 34. BOOTstrapRecommendationsFUNDAMENTALS REDEFINED 34
  35. 35. What Does it Mean for Retailers?•  Redefine / differentiate the In-Store experience•  Use Location-based social network promotions to drive differentiation•  Look at physical design of check-out area to maximize value of modern POS•  Make a wireless decision now•  Don’t make promises your Employees can’t keep•  Ensure store blends with other channels 35
  36. 36. Thank You! Paula Rosenblum prosenblum@rsrresearch.com 305-757-1357 www.rsrresearch.com to download this and other reports 36
  37. 37. Julie Huffman Senior Human Factors Engineer NCR Customer Experience ConsultingUpgrade Your Customer Experience by Fine Tuning Your Checkout
  38. 38. NCR Global Customer Experience Consulting Usability and Baseline Transaction Design OperationsIntegrating People,Process andTechnologyTo ImprovePerformanceand Service Enhancing Consumer Self-Service Experience Capacity Optimization and Analysis Blueprint Technology Optimization NCR Confidential 38
  39. 39. Agenda  Leverage Time in Queue  Coupons / Promotions  Tender Processes NCR Confidential 39
  40. 40. Leverage Time in Queue  Benefits •  Increased basket size / revenue •  Improve product awareness •  Educate and engage your customer   Requirements for success •  Proper design/integration of checkstand & surround •  Optimal mix and placement of impulse merchandise NCR Confidential 40
  41. 41. Time in Queue Case Study Customer Behavior Did Not Touch/ Touch/ Look While in Queue: Notice Replace PurchaseLegacy Checkstand Design Store A 89.0% 6.0% 4.0% 1.0% Store B 83.0% 12.0% 2.0% 3.0%New Checkstand Design and Impulse Layout Store A 47.7% 29.8% 14.4% 8.0% Store B 60.1% 17.5% 13.9% 8.5% Store C 55.8% 28.0% 7.0% 9.2%Newest Checkstand Design and Impulse Layout Store A 47.3% 25.2% 13.0% 14.5% NCR Confidential 41
  42. 42. Time in Queue Lessons Learned Integrated impulse merchandise racks •  10–15% customers make an unplanned purchase Customer behavior •  Go directly to point of sale •  Look at one impulse display •  Scan the middle to upper shelving Customer interaction •  Impulse display parallel to queue •  Cooler integrated with impulse display and queue •  End-cap impulse display NCR Confidential 42
  43. 43. Merchandising Display Lessons Learned Within the front end/queue •  Be consistent across lanes •  Select items based on sales and margin •  Strategic items in the mid to upper shelves  End cap •  Vary item selection to display greater variety •  Offer small, low cost general merchandise •  Gift cards  Counter •  Avoid excessive clutter •  Designate an impulse display area •  Differentiate the color of the counter •  Utilize a tiered display NCR Confidential 43
  44. 44. Time in Queue Digital Signage Goal is to engage customer in store •  At point of transit •  At point of wait •  At point of sale  Considerations •  Right message at right time •  Dwell time •  Placement NCR Confidential 44
  45. 45. Coupons and Promotions Benefits of effective coupon and promotion processing •  Enhance customer service and satisfaction •  Improve associate productivity •  Reduce shrink Requirements for success •  Application and process design •  Associate training NCR Confidential 45
  46. 46. Why are Coupons and Promotions important?   In a recent survey, participants were asked how likely they would be to use coupons during a recession. The following responded as much more likely or somewhat more likely. •  Age: •  71% ages 18-34 •  68% ages 35-54 •  63% among those 55 years and above •  Geographic Location: •  70% of Midwesterners •  69% of Westerners •  64% of Northeasterners •  62% of Southerners •  Income: •  68% of those earning less than $50,000 a year •  67% for those earning more than $50,000 Information and Communication (ICOM) Survey of 1,529 US consumers NCR Confidential 46
  47. 47. Coupons Case Studies Specialty Specialty Specialty MassRetail Segment: Grocery store #1 store #2 store #3 Merchandiser *Scanning coupon 1.9 - 2.2 2.7 N/A 3.0 4.5 (in seconds)Keying in coupon 6.2 - 7.4 17.3 11.6 12.9 16.1 - 26.3 (in seconds)Manual override 4% 1.30% N/A 6.50% 24%* Self Serv Check Out; all others were assisted checkout NCR Confidential 47
  48. 48. Coupons Lessons Learned Avoid coupon key entries Avoid search for item price Establish guidelines and empower associates NCR Confidential 48
  49. 49. Promotions Case Study – Specialty Store Database issue •  Manual price override •  2.1% of transactions, averaging 7.3 seconds Application and data base issue •  Manual price override and authorization code •  1.3% of transactions, averaging 10.1 seconds The key is that these issues: …add time to the transaction …require associate training and intervention …jeopardize customer service NCR Confidential 49
  50. 50. Promotions Lessons Learned Ensure that database is up to date Ensure all items that are part of a promotion, sale or clearance… • Are processed correctly via the point-of-sale terminal Ensure all discounts are automatically calculated NCR Confidential 50
  51. 51. Tender Processes  Benefits of effective tender processing •  Enhance customer service and satisfaction •  Reduce overall transaction time •  Reduce paper waste  Requirements for success •  Integrated application and process design •  Associate training NCR Confidential 51
  52. 52. Tender Case Studies and Lessons Learned  Cash Tender •  Dynamic Tendering •  CaseStudy: application and process enhancement, 0.5-2.5 seconds savings  Credit Tender •  Eliminate signature for transaction amount less than $25.00 •  CaseStudy: application & process enhancement, 8-10 seconds savings •  Customer activity: Eliminate need to verify amount •  CaseStudy: application and process enhancement, 2 seconds savings NCR Confidential 52
  53. 53. Tender Case Studies and Lessons Learned  Credit and Debit Tender •  Utilize signature capture & pin pad for customer to process tender •  Swipe card & respond to prompts (i.e. enter pin number or sign for credit) •  Case Study: technology & app. enhancement; 13- 20 seconds savings •  Enable swipe card during item entry and pre authorization •  Case study: application enhancement, 2 second savings •  Default the type of card & amount once customer swipes their card •  Case study: application enhancement, 1.5-2.1 second savings •  Ensure time to authorize is less than 5 seconds  Debit Tender •  Enable consumer to enter amount of cash back and verify total •  Case study: application enhancement, 3-4 seconds improvement NCR Confidential 53
  54. 54. Tender New Customer Service Enhancement  Two sided thermal printing •  Less roll changes during peak periods •  Green initiative - use up to 45% less receipt paper •  Print custom color messages, promotions and/or coupons  Email receipt option •  Leverage loyalty program to enable customers to establish preference for paper or electronic receipt •  Leverage electronic payment to link/ store email address with customer account NCR Confidential 54
  55. 55. Thank you Transforming your customer interactions into amazing experiences NCR Global Consulting Services Engage DelightCome partner with us For more information please contact: Greg Smith, 678 808-6881 Julie Huffman, 770 623-7396 NCR Confidential 55
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  57. 57. IJ8( FEATURED SPEAKER SPEAKER Paula Rosenblum Julie Huffman Managing Partner Senior Human Factors Retail Systems Research Engineer NCR K772(L%+--( MODERATOR !"#$%&#()*#+,- H.%26(;*+4GC*23.-(
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