It’s Time To Reimagine 4 Key Retail CX Trends

Another one bites the dust.

After years of struggles, Bed Bath & Beyond filed for Chapter 11 bankruptcy protection – and initiated store closings. The news spells the imminent end of another iconic institution while spurring another wave of discussion about the future of retail. What can brick-and-mortar stores do to remain relevant, let alone successful, in an era of digital shopping?

Even asking that question, moreover, may spur false confidence about the future of in-person retail. It implies that e-commerce brands need help enhancing their experiences and eliminating the few potential differentiators brick-and-mortar stores still possess. We all know that is not the case; brands like Amazon continue to leverage technology and customer-centric thinking to make the online shopping experience as convenient, engaging, and utterly “complete” as any in-person store visit.

The key, then, is to stop thinking about the retail experience as a battle between in-person and e-commerce. Instead, it is about considering the universal factors that matter most to customers – and delivering those at every phase of the shopping journey.

To assist with this effort, it is time to reimagine four prominent Customer Experience (CX) trends and concepts.

Omnichannel: No One Gets A Free Pass

If a brand is thinking about the retail world as “digital” vs. “in-person,” they are missing the point of omnichannel. Omnichannel is an obligation for all businesses, regardless of the venue where they generate the lion’s share of revenue.

This does not mean e-commerce brands have to open thousands of physical stores. It does not mean brick-and-mortar stores have to translate every aspect of their experience to a mobile app or website. It does, however, mean that all brands must deliver a cohesive customer experience that accounts for all channels.

It is imperative to enable customers to ask pre-purchase questions in one channel, buy the product in another, and receive support somewhere else.

In 2023, even those who love shopping at physical stores are web-savvy. They expect to search real-time inventory, arrange for curbside pickup, argue for a price match, or initiate a return from their mobile device before arriving at the store. If a brand does not offer these capabilities or only does so in a highly fragmented way, it may create a problem that not even a well-lit, aromatic store with amazingly friendly associates can solve.

In 2023, even e-commerce specialists value – and often prefer – phone support. Customer Contact Week Digital, a division of Customer Management Practice, confirms that while 75% of consumers have confidence in getting their problems solved over the phone, only 34% have the same trust in messaging. A mere 15% believe they can solve their problem with a chatbot. If an e-commerce brand does not offer live support (and, ideally, live phone support), it may create a problem that even great prices and fast shipping cannot solve.

Personalization: People Want To Go Where Everybody Knows Their Name … And Their Drink Order

Coupled with a warm smile, the idea of greeting a customer by name – and asking about their day – has historically been a grand gesture. It has been a way to personalize and humanize an experience.

But good luck demonstrating a warm smile through your chatbot or e-commerce website!

Indeed, it takes more than cute, friendly gestures to personalize in today’s increasingly digital world. It takes more than name-drops or small talk to establish humanity. In 2023, retail personalization involves using customer knowledge to anticipate needs and proactively deliver value.

From pre-populating their shopping carts when it’s time for a refill to sending mailings and in-store discounts based on their purchase history, to customizing web storefronts based on their brand and style preferences, to intelligently routing them to the most suitable agent possible, the best personalization is productive. It helps the customer achieve the maximum value with minimal effort.

Only 15% of consumers believe today’s experiences are sufficiently personalized. Deliver on this new definition of personalization – and you instantly differentiate your physical (or virtual) retail business.

Physical Differentiation: Experiences Matter, But Don’t Rely On Sentimentality

There once was a notion that brick-and-mortar stores provided an unattainable level of “instant gratification” unattainable digitally. Instead of waiting weeks for the item to ship, buyers could pick up what they wanted and begin enjoying their new product that very day.

Then e-tailers like Amazon introduced fast shipping, negating that advantage. Suddenly, you could enjoy the benefits of online shopping – convenience, massive selections, competitive pricing, clear product reviews – and receive the product within two days (if not two hours).

In recent years, the contention has been that successful brick-and-mortar stores will differentiate based on “meaningful experiences.” Though this claim has some truth, it is crucial to define what experiences matter.

After all, some of the most notable retail failures – Tower Records, Toys “R” Us, Blockbuster, Bed Bath & Beyond – delivered emotionally resonant experiences. They spoke to experiential rituals – going to preview the hot new album that came out on Tuesday, buying toys for a birthday or Christmas party, renting a movie or video game in anticipation of a Friday night sleepover, purchasing bedding and kitchenware for a freshman dorm or starter home – that had emotional significance to shoppers.

If you’re a Millennial or older, you probably remember hanging out with friends or going on a date at the mall. No one has friendly get-togethers on the Amazon website.

Clearly, more than sentimentality is needed to keep brick-and-mortar businesses around. People will abandon even the most meaningful traditions and forgo even the most palpable emotions if they can derive enough value from the convenience and accessibility of an alternative.

The key is to build experiences that offer measurable and evergreen value: effortless access to new products, tailored support, unique discounts, customized recommendations, and technology-enhanced shopping. Moreover, these experiences are more defensible if a cheaper, more convenient store arrives – or societal behavior changes.

Loyalty: More Than A Card

Loyalty cards and subscriptions have long been a fixture of the retail space. Why not use a card – and the promise of future discounts – to keep customers coming back? Seinfeld perfectly illustrated this very concept: Elaine Benes was willing to endure a 24th bad sandwich from Atomic Subs just to get a free one.

But the best brands know to rely on something other than superficial loyalty. If customers are loyal to the perk rather than the retailer, a competitor can steal their business by offering a better perk earlier in the relationship.

Instead, they win lasting loyalty – the kind that makes customers willing to drive a little farther, spend a little more money or wait a little longer in line – through customer-centric experiences. They do not put up a fuss when a customer tries to initiate a return. They send relevant promotional discounts rather than excessive spam. They answer questions in a manner that is high on courtesy and low on tacky sales pitching.

They may still offer a loyalty program but use the card more robustly. For example, they track habits and preferences instead of tracking a customer’s actions or behaviors. Using this data, they design experiences and offers uniquely relevant to the customer.

Simply put, they use the card as a pathway to a relationship rather than a substitute for one.