Tag Archive for: sustainability
We have come to an end. This is the final article in this series and I’ve been struggling to find a fitting finale for it. We have covered topics ranging from customer service, customization, psychology to retail sustainability and global influence. All relevant sides to this major economic engine. I have conducted relevant research and read a lot of expert opinions. I think the only thing left to say is how I picture my future shopping experience.
What makes me so special?
Simply? The future shopper generation is my generation: The Millennials (Synchrony Financial, 2017). These shoppers will be technology-oriented. I am a futurist, hence the title. These shoppers will make purchases mostly online, but they will visit brick-and-stones store to benefit from merged service experiences! I’m partial to bookshop-cafés for example. Further, Millennial shoppers will opt for augmented reality to enhance their experience (ibid); I limit myself to trying out new hairstyles on mobile apps…
What I am trying to say is that I am a tiny drop in a massive storm that is about to come down on the retail industry. Together with my fellow “drops”, I have the power to shape the future and this is how I picture my future shopping experience:
First, I would like to bring to your attention the Law of Technological Adoption. As Taylor Romero said in his TED Talk “Everything invented before you were born: it’s just how it’s always been. Everything invented before you were 30: it’s innovation. Everything invented after you are 30: it’s impossible.” (Taylor Romero, 2016).
Let’s take a product that I like: books. You cannot go wrong with books. Nowadays, books come in many formats; hardcover, softcover, eBooks, audio books. When I was a kid, those formats were more limited. So, softcover and hardcover, it’s just how it’s always been. Ebooks? Innovation. I can take an entire library with me in just one tiny device, everywhere, every day. Currently, I’m still in my ‘innovation’ window of opportunity. What I really want, what I imagine many an avid reader wants, is total immersion in the world of stories.
I would love to walk into a bookshop and be welcomed by the smell of chocolate, hot pastry, and fresh paper. When I walk into a specific section, I want the authors to talk to me, let them be the advertisers.
Imagine a holographic Shakespeare popping up in the Classics section to tell you more about Hamlet, or King Lear, or Romeo and Juliet. This technology is not as science fiction as you might think. With the help of digital holographic projectors and optical screens that reflect the light of projected holographic 3-D images to a target observation area, digital 3-D signage and holographic in-car dashboard display is just around the door (Phys, 2016). Why shouldn’t it be adopted in the retail industry?
How wonderful would it be, if I would walk into the Fantasy aisle and an entire panorama of the Lord of the Rings’ Middle Earth would appear with Aragorn’s holographic self to escort me to the cashier. Talk about personalization!
If I had doubts about my choice of literature and immersion, then the augmented reality technology from my phone would help me understand what each book is about. In any of these situations, I would get my information instantly and accurately, no “buffering” for me, no sir! Because I have no patience. My gratification needs to be instant.
For a long time, I thought that this imagined experience was just wishful thinking, a daydream, but technology has this miraculous quality of transforming the abstract into almost tangible interactions.
Technology is the avatar of what we dream and cannot express.
It makes self-interaction possible without selfishness. The retail industry of the future can help me understand myself better: letting me explore the reasons why I like certain products or services, the reason why I chose them, or why I am not trying out new ones. Most importantly, the accessibility of the retail industry would be so easy; I would not be held back by the inertia of buying simply because it’s comfortable. Everything will be comfortable. What is left to say other than the fact that I am looking forward to the future. And William Shakespeare speaking to me from the aisles. And being guided to a cashier by a favourite character. Thank you for imagining the future with me.
This post is brought to you by one of AQ’s Undergraduates, Laura Susnea. As part of our internship programs, undergraduates and classic interns are encouraged to take part in company culture. Laura’s primary project focusses on training programs and eLearning and how best to adapt this to industries under pressure.
This is the final entry for the Imagining the Future series. The entire collection can be read here.
What is the consumerism?
Consumerism in one of its interpretations is a doctrine which states that the increasing consumption of goods and services is the basis for a healthy economy (Business Dictionary, 2017). In other words, for a society to function properly, it must produce and sell goods and services (Shah, 2005). Capitalism 101. The more that is produced, purchased, and consumed, the more successful and prosperous the economy becomes. This culminates in the yearly gross national product (GNP), the measure of success every nation uses to rank its economic power (ibid).
What does that have to do with the Retail Industry?
Retailers are defined as the final link between manufacturers and consumers. Basically retailers are where demand and supply meet (The Balance, 2017). Philosophically, we could say that the retail industry is the wheel that turns the global economy. Round and round it goes. Yet, when mentioning consumerism, we often get a very negative impression. As if the world has gone bad. How can the world go bad, when the economy goes well? Does the wheel spin both ways?
I have touched on this subject on my previous entries. The moment when we, as consumers, ask for more goods, more performant, better quality, state-of the-art versions, we really confuse that poor wheel. Why? Even though we drive the economic forces that may result in a better purchasing power and life quality for us, we run the risk of stealing the same benefits from other people in other parts of the world. Or worse, we may be robbing future generations.
I am talking about the gap between the amount of resources we have and the speed through which we are using and misusing them.
Let’s take a classic example. Fast food restaurants such as KFC and Pizza Hut are designed to cater to the masses by providing food at a lower price (Global Issues, 2016). This way they are taking advantage of the economy of scale, having more beneficial prices from suppliers because of the sheer quantity that they demand.
At the same time, they create a competitive landscape putting in motion economic forces, such as the purchasing decision. Everybody’s got to eat. But what happens on the other side? Intensive breeding of livestock and poultry meant just for these restaurants. More animals means more space to house them, things to feed them, all of which can lead to deforestation, land degradation, contamination of water resources, etc.
If we were to transform this into an equation, it would look something like this:
…for every pound of red meat or poultry or egg or milk produced equals the loss of five pounds of irreplaceable top soil from farm fields.
Another equation:
…for meat breeding one animal per day requires 190 gallons of water which equals ten times the amount of water that a normal Indian family requires per day. The sad truth is that animal farms use nearly 40 percent of the world’s total grain production (ibid.).
But this is food you might say!
We buy food, folks! It’s still on the retail side!
What does that have to do with the Future?
If we imagine the future we tend to always have these shiny, sleek qualities in mind. Everything is high-tech and functional and ordered and efficient. But this future will happen only for some people. For others, it will be messy, with masses of lands sliding away due to deforestation, limited resources of water, leading to relocation, poverty and famine. And suddenly you find yourself in Elysium with Matt Damon fighting societal inequality.
In an ideal future, all people would have access to the same resources, have the same possibilities, the same potential. Now we are digging at the roots of Marxist communism. Every way we turn a turn the wheel there seems to be a danger waiting for us.
Let’s stop the wheel. Let’s think about what we are doing and most importantly WHY we are doing! The retail industry is a powerhouse. Let it be a force for good.
If retails would think WHY they are supplying or enticing demand when it would not be necessary, their answers would be connected to the financial aspect. But future retailers…what would they say? Would they even exist? There is a precarious balance between the economical rise and downfall, sustainable development and environmental collapse. They’re all specks on a wheel and they’re turning our world.
Consumerism pushes this wheel but it can also break it. Would it be difficult to temper our needs and wants? We want so much more than any human wanted in the history of this planet and we are surpassing nature’s rhythms to supply us. What happens when demand exceeds supply? Scarcity. Economy 101. Unfortunately, this scarcity involves our home at a planetary level. And for now, it’s our only possible home.
What happens when the curtain falls?
Nobody knows what will happen, but we know for sure that the curtain must not fall. The rising awareness of consumer’s action over the environment shapes the new economic dynamics. Personally, I will pay attention to what I am buying and why. If I do need it or if 50% of the time I am just indulging myself. Because if it is the latter than I must change. Mother nature deserves more consideration. And if I can change just one person’s mind about it and that individual would change another person’s mind…well…with the risk of sounding cliché…we would change the world. So, let’s spin the wheel of fate!
This post is brought to you by one of AQ’s Undergraduates, Laura Susnea. As part of our internship programs, undergraduates and classic interns are encouraged to take part in company culture. Laura’s primary project focusses on training programs and eLearning and how best to adapt this to industries under pressure.
Having established that a “Regular Customer” is a business’ bread and butter – a reliable source of income – the question becomes: how does a business create a regular customer? Why does the regular customer keep coming back? What makes them The Regular?
In previous articles, we’ve brushed on many reasons why customers return to stores. Essentially, those articles have been the prelude to answering the question: how do stores generate loyal customers? I’m not talking about customers who visit on occasion; this is about the Regular Customer. A ‘regular customer’ is a person who habitually returns to a store over a prolonged period of time.
What is a ‘regular customer’?
It is easier to spot a regular customer in a hospitality situation than in a retail store. Food and drinks are something that are more readily consumed than clothes, shoes, or makeup: a regular customer may come back every Wednesday, for example, purely based on the fact that that’s the day they have to wait for their daughter to finish ballet practice. A regular customer may swing by every morning on their way to work to pick up a standing order – large latte with two sugars and a cinnamon scroll. A regular customer is the sort of customer you can rely on to be in your store on a regular basis, almost like clockwork.
That is not to say that regular customers show up only at ‘scheduled’ times. Regular customers have built your business into their lives; it’s a habit for them to visit your shop. However, they may also show up unexpectedly, out of cycle, so to speak. Why? Because your shop is the first one that comes to mind when they require your type of products or services: if you’ve gone to the same hair salon for a year on a regular basis and you suddenly need a quick style for a special event, it’s unlikely that you’ll go to a different hair salon.
What it comes down to is that humans are creatures of habit. They rarely stray out of their routines or zones of comfort, and that is something businesses can build on to create regular customers.
How do I create regular customers?
As always, the first step to creating any type of customer loyalty is to understand them. Every business deals with differing demographics. It’s important to ask yourself the correct questions so you can empathize appropriately with your customer-base:
What do my customers want when they come into my store?
Are my customers young/old/middle-aged? How should this affect my service style and/or decor?
Am I stocking the products that the demographic is after?
These are some of the things businesses should be asking to come to know who their customers are.
Once a firm grasp on the demographic, its desires, and its needs has been established you can start to zone in on what it is that your regular customer might want. It’s often easier to look at your regulars – every business has at least one – and see why it is that they keep coming back. Is it the convenient location of your storefront? Or do they like the music you play? The friendly service?
Not all regular customers will have the same reasons, and you might find that they don’t even know themselves why they keep coming back. Most people can be considered ‘part of the herd’, meaning they’ll follow the crowd. If friends, coworkers, or acquaintances have recommended your business, that might be enough of a reason for them to keep coming back – even if their experiences haven’t always been 100% positive.
For example, there used to be a bakery near where I lived in Melbourne, several years ago. It was always packed to the rafters with families, individuals, all manner of people of all walks of life – the consensus was that the coffee was terrible and the pastry was passable, and yet it was always full. Why? It had a convenient location, right on the main street; more importantly than that, however, was its history: it had been the only bakery in miles for decades, and as a result, people had simply grown accustomed to coming there, regardless of the quality of the food.
Eventually, the bakery went broke when a new bakery moved in across the street – the quality was great, the service was even better. It took a little more than a year, and the new place struggled, but eventually, through word of mouth and some great marketing the new place stole the majority of the regular customers away from the old bakery – primarily the younger demographic which hadn’t grown up with the old bakery and weren’t as attached to it.
Winning Them Over
In other words, it’s not always easy to nail down what it is that brings a regular customer back. It could just be a historical habit, built on generations of going to the same place; or it could be location and convenience, you could just sell the best product in the street, or you offer the best customer service in the area.
This last element, providing the customer service experience that people want, is by far the best way to generate customer loyalty, advocacy, and beat your competition. Anyone can sell what you’re selling, no matter how unique you think your product is, but no one can copy your customer service experience.
