How Technology Has Changed the Customer Experience
Once upon a time, women managed the family finances, making decisions about home purchases, clothing, food and other necessary items. If a storeowner provided poor service, there wasn’t much the customer could do. She might gossip with the neighbors about it, or perhaps discuss it over a cup of coffee. But ultimately, there was little competition for the storeowner’s goods and the complaints of one person had little impact. Life – and profits - for the storeowner went on as usual.
Fast forward to 2007. Technology has changed the face of consumerism, empowering shoppers to be smarter, more demanding and more resourceful. With literally hundreds of retailers providing the same products at similar pricing, today’s consumers have endless options and can tailor purchases based not just on price or product availability, but on other variables like return policies, ease of online purchasing and payment options.
Anger a customer today, and chances are the news will spread like wildfire through YouTube, MySpace, Yelp, Angieslist and Amazon, as consumers ‘take to the airwaves’ to let other unsuspecting shoppers know of their experience. According to iProspect and Jupiter Research, 25 % of the U.S. population visits sites like these at least once each month, sharing complaints and compliments about retailers with other shoppers. In an online retail world where products can’t be touched and the storeowner has been replaced with a web page and Shopping Cart, people have come to rely on the recommendations of other customers. Like the shot heard ‘round the world, consumer complaints can and do make a difference.
In just the past ten years, technology has turned most of us into savvy Internet shoppers and driven prices downward, as consumers are able to purchase 24/7 and have their purchases delivered immediately. While this ability does not negate the need for the human touch, many experts believe today’s technology is just the tip of the iceberg.
Al Myers, senior vice president of TNS Retail Forward Inc., believes that “for those consumers and companies who can handle it, technology will continue to improve the whole proposition. It has to, because the industry can’t find enough people, train enough people and the customer isn’t willing to pay for better service when a competitor has it for a lower price. We’re not saying the trusted salesperson will be replaced at Saks, Neiman’s or Nordstrom’s, but in most of retail, providing service with people is going to make it harder for them to compete.” Myers concluded, “It won’t be long before we are scanning entire grocery carts and paying for its contents with a thumbprint. Mirrors will send images to friends from dressing rooms, replacing the salesperson with the vested interest in telling you it looks good.”
As retailers move from bricks and mortar locations to Internet-driven environments, the balance between operational needs and profits and customer demand for low prices and excellent service will continue to be a difficult one. But will the customer experience improve for those retailers who struggled with it to begin with?
As Myers noted, “The same companies that provide bad customer service will provide bad technology and vice versa.”
Tags: Customer Experience, iProspect, Jupiter Research, TNS Retail Forward