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Home » Blogs » Think Tank » The New Kings of Retail Are Focused on Customer Service

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The New Kings of Retail Are Focused on Customer Service

Target shopping bags
A shopper carries Target Corp. shopping bags. Photo: Bloomberg.
March 16, 2022
Melissa Minkow, SCB Contributor

The last two years presented a whirlwind of new challenges for retail, requiring businesses to explore sometimes experimental ways to cope with rapid change. It was also the period during which omnichannel took off, becoming a dire necessity.

For the past two years, CI&T has released a report on the top 10 retailers providing the best omnichannel experiences. We evaluate retailers extensively across the relationship-building, search, shop, cart, buy, fulfillment and returns categories.

This year’s top 10 retailers were, in order: Target, Apple Store, Sephora, Home Depot, DSW, Levi Strauss, Nike, Walmart, American Eagle and Ulta.

The dramatic difference between the top 10 in our Connected Retail Report for 2022 versus 2021 speaks to a shift from good to outstanding. We saw the average score among our top 10 retailers increase by 5% this year compared with last year (we had to use a 95% rating cutoff threshold for the latest report, in order to sufficiently narrow the field).

Also notable was the fact that many of the retailers in 2022’s top 10 were nowhere near those included in the list in 2021. It has caused a spotlight to be thrown on the question: In a world where being competent is a table-stakes requirement, what does it take to be outstanding? In retail, the answer is that it’s the seemingly small details that make for the biggest, most impactful consumer impressions. Where retailers gained ground from 2021 was in what could appear to be small touches.

For example, in the case of Target, which ranked first in our report, the retailer’s app allows shoppers to pivot from buy-online-pickup-in-store (BOPIS) to the option of a free “drive up” pickup when the items are ready. There’s the common yet often overlooked scenario whereby a consumer places an order with the intention of picking it up in store, but runs out of time to do so. Being able to switch in real time is a feature few retailers offer. Another example is Home Depot’s (ranked fourth) ongoing storage of shoppers’ e-mail addresses with their credit card information, so when they swipe to pay and select a digital copy of the receipt, there’s no need to re-enter that tedious e-mail address.

These tiny touches address key consumer behaviors that can create shopping bottlenecks if retailers fail to address them. Other magical features include intuitive merchandising along with conventional methods so that every possible approach is accommodated, as with DSW and Walmart (fifth and eighth respectively), who ensure that items visually adjust when colors are changed for optimized decision-making. These retailers also went the extra mile in providing customer service in all forms: FAQ pages, chat, text, phone number, or e-mail. No two shoppers face the same shopping circumstances, whether compared to each other or themselves when repeating purchases. Brands that cater to all needs win.

Moving toward the end of the purchase funnel, on the fulfillment and delivery side, the winning approach was still in the customer experience and design details. Behind the scenes, we know our top retailers are doing things like chartering cargo ships, drop shipping, launching marketplace platforms, buying up small delivery companies and investing in self-driving cars. In the eyes of the consumer, though, major points were earned by showing a side-by-side comparison to the shopper of how long an item would actually get into their hands, depending on their choices. The ability to share extremely accurate times for pickup or home delivery tended to set our top 10 retailers apart from the rest. In today’s world of uncertainty, consumers want to feel as in control as possible during the last part of the purchase path. This means receiving warning of delays proactively, not reactively. And now that so many large retailers are turning their e-commerce sites into marketplaces, it’s becoming critical to establish consistent communication and expectations between owned brands and those of others. 

A necessary ingredient that has yet to become the norm — though eventually will be – is providing extra store hours exclusively for curbside pickup. The whole point of curbside pickup is convenience, and many can’t get to a store during the day. 

Another attractive feature is trackable delivery information owned by the retailer versus the shipping service. This should become industry standard. Currently, too many passwords and tracking numbers are required for shoppers to trace their items. Lastly, package design should be a part of the returns strategy as much as it is a part of the delivery strategy. Retailers lose points with consumers when they complicate the already complex returns process by delivering in packaging that can’t be reused for returns.

Change will remain a constant. Prior to the pandemic, the power struggle between brands and consumers was more or less controlled by the pace at which retailers decided to innovate. Suddenly, they could no longer control the shopping narrative. Consumers had needs they couldn’t compromise on, such as urgency of getting personal protective gear, and not being able to go into physical stores for retrieval, browsing or research. Brands were forced to put into action every omnichannel initiative they’d ever even thought about. 

The Connected Retail top 10 from this past year had so many new, strong contenders because those particular retailers were able to learn from their predecessors and out-innovate them a year later. There’s certainly something to be said for being a first mover, but apparently there’s even more to be said for calculated learners who can pick up speed.

Melissa Minkow is director of retail strategy with CI&T.

General SCM Industries Logistics Last Mile Delivery Logistics E-Commerce/Omni-Channel Retail

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