Better understanding changes in commerce
Traditional stores are not doomed in the face of e-commerce. To continue attracting customers, they need to better address consumer irritants. Digital tools and services can help them do this.
Béatrice Siadou-Martin, University of Montpellier; Mbaye Fall DIALLO, University of Lille; Sandrine Heitz-Spahn, IAE Metz School of Management – University of Lorraine and Souad Djelassi, University of Lille
Given the difficulties faced by BHV and the recent collapse of ready-to-wear brands, everyone has the right to wonder about the future of department stores and, more broadly, brick-and-mortar stores, especially as e-commerce continues to grow.
The Federation of E-commerce and Distance Selling (Fevad) estimates that e-commerce sales will reach €150 billion in 2023. This represents a 10% increase in one year. Another figure highlights the widespread use of the Internet: 70.1% of French people aged 15 and over have made an online purchase in the last 12 months.
And yet, despite these indicators, which could appear worrying for physical formats, there are ways for retailers and brands to remain resilient, as shown by the study conducted jointly by Procos and the Thil Association on a sample of 529 respondents (including 210 young people under the age of 25 and 319 people over the age of 25, representative of the French population).
Limit irritants
Even though most purchasing journeys begin with an Internet search for non-food items, smartphones are not the be-all and end-all of commercial relationships. Overall, people feel that they are wasting time when they use social media (rating of 4.58 out of 7). Furthermore, they feel that the ads they receive on their mobile phones waste their time (score of 5.46 out of 7).
Shopping is perceived more as a pleasure (3.19 out of 5) than as a waste of time (2.73 out of 5), which is encouraging news for retailers. It is therefore necessary for brands and retailers to better understand the "shopping" experience. According to the same survey, the three main reasons for wasting time in stores are: paying at the checkout (3.62/5), searching for products in the store (3.48/5), and finding sales staff or information (3.30/5).
Consumers no longer want to waste time
This perception varies depending on the age of respondents: those under 25 are more sensitive to travel time between home and the store and the time needed to find a parking space or make a purchase in the store. Conversely, those over 25 feel that they waste more time finding a salesperson to advise them. https://www.youtube.com/embed/kcXaF4DAms4?wmode=transparent&start=0, La Provence.
It should be noted that wasted time has negative consequences on the commercial relationship: abandonment of purchases (3.68/5), change of store or merchant site (3.37/5). It also generates negative feelings such as anger (3.64/5) or bad mood (4.15/5). These negative feelings are significantly more pronounced among those under 25.
Digital technology: necessary but insufficient
While an exclusively digital scenario does not meet consumer expectations, digital devices should not be ruled out. They help reduce irritants in the customer experience. For example, self-checkouts are considered an effective solution for saving time. Consumers report frequent use of self-checkouts: 52.2% say they use them often or all the time for grocery shopping, and 50.7% for non-grocery shopping. In the same vein, drive-through shopping is becoming more common. 30.6% of respondents use it at least once a month for groceries, compared to only 17% for non-food items.
Nevertheless, make no mistake... Without explanation or support and without real added value for the consumer, these new technologies available at the point of sale "make people waste too much time" (3.80 out of 7 for the sample and a significant difference according to age: 3.91 for those over 25). Retailers and brands must find a balance between places to spend time and this perception of accelerated time that is specific to our society. Overall, people feel that they lack time and are in a hurry (3.19 out of 5 for the sample, with a significant difference according to age: 3.39 for those under 25).
The irreplaceable role of humans
It's about putting people back at the heart of commercial interaction. Salespeople and advisors are and will always be facilitators of commercial exchanges: they explore and understand consumer needs, know their product range, and know how to adapt...
This profession, despite enjoying a favorable reputation, faces numerous challenges in attracting, recruiting, and retaining talent. In this era of remote working and four-day weeks, what are we to think of working conditions that include shift work and weekend work? This sector undoubtedly needs to communicate the positive aspects and successes of this profession and highlight the potential for social advancement within these jobs.
Emmanuel Le Roch, General Delegate of Procos, contributed to the writing of this article.
Béatrice Siadou-Martin, Professor of Management Sciences, University of Montpellier; Mbaye Fall DIALLO, University Professor, Management (brand management, innovation, digitalization), University of Lille; Sandrine Heitz-Spahn, Senior Lecturer in Management Sciences, IAE Metz School of Management – University of Lorraine and Souad Djelassi, Senior Lecturer (Management Sciences-Marketing), University of Lille
This article is republished from The Conversation under a Creative Commons license. Readthe original article.