Ian Jindal, editor-in-chief of InternetRetailing and consultant, publisher and advisor in e-commerce and multichannel retail, gave a presentation at Westfield’s breakfast seminar at Skycity Auckland Convention Centre. He commenced by emphasising that retailers operate in an environment where mobile, mobility and 24/7 connection are the order of the day. “Retailers are always connected to the customer, wherever she is,” he said. Jindal pointed to Alex Baldock, CEO of Shop Direct, wh
ich is focusing on its digital platforms following a huge shift in the number of customers browsing and buying items on its websites. Online now accounts for more than 90 per cent of its sales and half of these are conducted on mobile devices, and its website receives over one million visits per day.
This is a big step in Shop Direct’s transformation and, importantly, it is one that has been led by its customers.
“They’ve embraced online at a phenomenal pace – this is where they’re browsing and where they’re buying,” said Baldock.
“We want to spend in areas that really matter to our customers.
“We know they want a slick, easy online experience and they want it tailored for them. We’re going to give them what they want. Now that we’ve fully committed to digital, we’re determined to make ours the best website in the world.”
This includes responsive design to adapt to desktop, tablet and mobile screen sales.
The store is important to its customers though, added Jindal.
Just take UK retailer John Lewis which piloted the unique Cisco StyleMe fashion mirror to help capture more cross-channel shoppers by making the online and instore environment synonymous because it understands that shoppers who buy regularly online and instore consolidate their purchases and spend more.
Cisco IBSG, together with its partners C-instore, Aitech, and The Team, effectively developed the customer experience and prototype for the virtual fashion mirror, which consists of a life-sized mirror that overlays the customer’s image with pictures of clothing selected using a gesture-based interface. It enables shoppers to quickly create outfits by mixing and matching a wide range of garments uploaded into the mirror. The mirror also adds value by providing customers with expert recommendations for garments that complement the ones they have selected, by allowing customers to take pictures of themselves trying on garments virtually, and by creating a list of their selected garments. Their lists and pictures can then be printed, sent to them via email, or shared via social media.
“It is clear how e-commerce has moved from a standalone activity to a broader-based perspective of multichannel retail. The assimilation is not fully complete, but we can see the digital influence at every level of the retail organisation. This is effecting a continuing culture change within retail,” said Jindal.
“But, technology needs maintenance and support staff as it can break.
“What if staff are unable at the point of service to issue credit or see an order in progress? That means that at the point of service there is no service.”
This is of crucial importance as a result of the switch in retail from an operations and process-centred industry to a customer-centred one. Jindal explained that at the end of the last century UK retail, as an example, was highly optimised, with supply chain and operational capabilities that were rightly the envy of the world. However, the growing level of customer insight, customer knowledge and choice has forced it to flex some rigid orthodoxies and unlearn some areas of expertise in order to reassemble new capabilities.
“It’s been a real privilege to see both new businesses race into the market such as Amazon and Asos while other major retailers refoundation their operations while maintaining leadership positions such as M&S, Tesco, and Shop Direct to name but a few,” pointed out Jindal.
“And to ensure a customer-centred operation, it is vital that staff are supported and trained, which is not a trivial undertaking.”
Jindal queried how much time retailers allocate to training staff “so when they are required to be of assistance they don’t look like congenital idiots”.
“What do staff know about their retailer’s advertising campaign, warehouse distribution, and social media etc?” he said.
“Often retailers are paying their staff as little as possible and training them as little as possible. And that is why artisan stores are doing better than the top 500 retailers.”
Anecdotally he described how after the launch of low-calorie food at Marks & Spencer an interested customer asked a shop assistant about this new food only to be told that “the store doesn’t sell that type of thing now”.
This, Jindal said, highlights the necessity of supporting and developing frontline staff since they are the sharp interface between the customer, and “her all-knowing capabilities”, and the complexities of retail businesses. “Frontline staff need to combine order management, stock knowledge, operational capabilities, trends advice, care and ingredients – all within an effortless service wrapper,” he explained.
“Without investment and support our most important assets across the board could underperform or move to our more forward-looking competitors.
“It is critical that retailers support their staff to be as good as they want them to be.
“In retail there is no separation between people, process and technology – it’s all about giving the customer a fantastic experience with no staff member taking on a specialist place or fixed position but being multitalented and on the ready to go where required like football players who know the ball travels faster than man.”
Jindal’s retail clients include Selfridges, House of Fraser, Marks & Spencer, John Lewis, Asda, Couturelab, Waitrose, De Bijenkorf, Kering, and Disney.
Nerine Zoio: nerine@insideretail.co.nz.