Gaining a Better Understanding of Changes in Commerce
Traditional stores are not doomed in the face of e-commerce. To continue attracting customers, they need to better address consumer pain points. Digital tools and services can help them do so.
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 wave of closures among ready-to-wear retailers, it’s only natural for people to wonder about the future of department stores—and, more broadly, of brick-and-mortar stores—especially as e-commerce continues to grow.
The Federation of E-commerce and Distance Selling (Fevad) estimates that e-commerce revenue will reach 150 billion euros in 2023. This represents a 10% increase over the course of a year. Another figure highlights the widespread use of the Internet: 70.1% of French people aged 15 and older have made an online purchase in the past 12 months.
And yet, despite these indicators—which might seem concerning for brick-and-mortar stores—there are avenues for resilience for retailers and brands, as revealed by a study conducted jointly by Procos and the Thil Association among 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).
Minimize irritants
Although most purchasing journeys begin with an online search for non-food items, the smartphone is not the be-all and end-all of the customer relationship. Overall, people feel they are wasting time when using social media (a score of 4.58 out of 7). Furthermore, ads received on their mobile devices seem to 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)—an encouraging finding for retailers. It is therefore essential for brands and retailers to better understand the “shopping” experience. According to the same survey, the three main reasons for wasting time in-store are: paying at the register (3.62 out of 5), searching for products in-store (3.48 out of 5), and finding a sales associate or information (3.30 out of 5).
Consumers no longer want to waste time
This perception varies depending on the respondents’ age: those under 25 are more concerned about the time it takes to travel from home to the store and the time needed to find a parking spot or complete their purchase in-store. In contrast, those over 25 feel they spend more time trying to find a sales associate for assistance. https://www.youtube.com/embed/kcXaF4DAms4?wmode=transparent&start=0, La Provence.
It should be noted that wasted time has negative consequences for the customer relationship: abandoned purchases (3.68/5) and switching to a different store or e-commerce site (3.37/5). It also leads to negative feelings such as anger (3.64/5) or irritability (4.15/5). These negative feelings are significantly more pronounced among those under 25.
Digital technology: necessary but not enough
While an exclusively digital scenario may not meet consumer expectations, digital solutions should not be ruled out. They help reduce friction in the shopping experience. For example, self-checkout is considered an effective solution for saving time. Consumers report using self-checkout counters frequently: 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, curbside pickup is gaining traction. Thus, 30.6% of respondents use it at least once a month for groceries, while only 17% do so for non-grocery items.
Nevertheless, make no mistake… Without explanation or guidance, 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, with a significant variation by age: 3.91 for those over 25). Retailers and brands must strike a balance between spaces designed for spending time and this perception of time accelerating, which is characteristic of our society. Overall, people feel they lack time and are in a hurry (3.19 out of 5 for the sample, with a significant difference by age; 3.39 for those under 25).
The irreplaceable role of humans
The goal is to put people back at the heart of commercial interactions. The salesperson or advisor is—and always will be—the facilitator of these interactions: they identify and understand the customer’s needs, are familiar with the product lineup, and know how to adapt…
Although this profession is viewed favorably, it faces numerous challenges in attracting, recruiting, and retaining talent. In an era of remote work and the four-day workweek, what should we make of working conditions that include irregular hours and weekend work? This sector undoubtedly needs to communicate the positive aspects and successes of these professions and highlight the potential for career advancement within them.
Emmanuel Le Roch, Executive Director of Procos, contributed to 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, Associate Professor of Management Sciences, IAE Metz School of Management – University of Lorraine and Souad Djelassi, Associate Professor (HDR) (Management Sciences-Marketing), University of Lille
This article is republished from The Conversation under a Creative Commons license. Readthe original article.