Delivering Personalized, Efficient Customer Experiences With Retail Technology

Delivering Personalized,
Efficient Customer
Experiences With Retail
Technology

Technology shouldn’t be the focus of your business
strategy. Increasing consumer engagement, creating
personalized experiences and optimizing operations
with inventory management should be your end goals.
Technology just happens to be the tool that helps
you get there.
When tracking consumer trends to see how your business
can improve, here are some key statistics to keep in mind,
according to PWC:1
Overall experience is heavily weighted: 43% of buyers are
willing to pay more for a great customer experience.
The margin for error is small: One in three consumers
(32%) will walk away from a brand they love after just one
bad experience.
Buyers are observant: Speed, convenience, helpful
employees and friendly service matter most, hitting over
70% in importance to consumers.
Having a human touch still matters: 82% of buyers from
the United States would like to experience more seamless
human interactions in the future.
IT can be a differentiator: Three out of five consumers
feel retail technology has already improved their
shopping experience.
While these numbers may fluctuate depending on your
industry and consumer base, the bottom line remains the
same: It’s important to know what really matters to your
consumers and then leverage your resources to help meet
those needs.

Creating successful, positive experiences
The modern shopping experience is dynamic and multifaceted. Consumer
expectations are evolving, blurring the line between brick-and-mortar stores and
online and mobile shopping. Let’s examine a few common scenarios and the value
of technology in each.
In person and in a hurry
Imagine you have one shopper that comes rushing into the store. She’s going to
board a plane that afternoon and is desperately searching for a specific pair of
headphones. She runs to the computer accessories aisle — no luck. But one of your
employees is able to pull up a list of your inventory on their tablet and find that
the product she’s looking for is in the back room. She thanks them and takes her
product to checkout where the process is expedited through Point-of-Sale (POS)
systems, making the total time in store less than 15 minutes.
In this example, your business effectively used Radio Frequency Identification
(RFID) scanners and barcode technology to enter products into its system. The POS
system and software also ensured speedy checkout: maintaining inventory data,
quickly calculating payments and creating reports for the business.
Coupon cutter
It may seem like email and social media are oversaturated with advertisements,
but discounts and coupons are still top-ranking tactics for driving loyalty — and
61% of consumers say they use them.2
Suppose there’s a consumer who is loyal to your brand and business. How do you
keep him/her engaged? Investing in a mobile app that leverages rich data analytics
coupled with the Internet of Things (IoT) can help you create more personalized
experiences. Consider the value of being able to send personalized promotions

based on shopping behavior; catering your offerings based on size, gender, age or
any other demographic ensures that every customer touchpoint is relevant and
therefore more likely to convert.
Restaurant diner
The idea of having rows of self-service checkout counters may seem unnecessary
and expensive for a midmarket business, but what about small tabletop checkout
systems based off of tablets? According to the U.S.-based National Restaurant
Association, more than two-thirds of American consumers between 18 and 34
prefer to use self-service at quick-serve restaurants.3
Leveraging this type of technology empowers consumers to order, request
assistance, pay and leave on their own terms. This frees your staff to then have
more time to welcome in new guests, clean, prep and serve.
Online browser
It’s no secret that having a positive customer support system can help create
lasting relationships between brands and their buyers. But sometimes, traditional
service representatives can be inconsistent and costly. Chatbots and virtual

assistants powered by artificial intelligence can help. In fact, 53% of service
organizations expect to implement chatbots for customer support services.4
Envision a consumer on your website. They’re on a two-part mission: Return their
current pair of pants because the sizing is all wrong and purchase a new pair.
They accidentally ripped off the tag while trying the pants on and aren’t sure if
your business will offer store credit. It’s an odd hour of the night and there are no
available reps. Luckily, you have a chatbot.
The consumer receives an instant, automatic response detailing your company’s
return policy. Since the consumer already has the chat open, they go ahead and
ask if your store carries the size they’re looking for. Your chatbot is able to gather
the buyer’s information, comprehend the request, scan your inventory data and
respond in a timely manner.
In this situation, your business is covered 24/7/365. A real employee can also
follow-up the next morning to provide that refreshing human touch — just
enhanced with the help of IT.

Delivering Personalized, Efficient Customer Experiences With Retail Technology

Using IT to help employees
Yes, the customer will always be important, but your employees also play a
critical role in the success of your business. While the average turnover rate across
different industries is about 19% in the U.S., the average turnover rate for the
retail industry specifically is more than 60%.5
Overworked and stressed employees won’t be able to deliver the positive
experiences your consumers expect — impacting both your reputation and
profitability. Plus, in addition to feeling unproductive and unsupported, employees
who work with outdated technology are 750% more likely to be frustrated and
450% more likely to quit.6
Retraining new staff will cost time and money. New hires can cost a company
anywhere between 1% and 2.5% of its total revenue.7
So what can retailers do to
offset these losses?
Improve productivity.
A study by BRP found that 84% of retailers will be using mobile POS systems by
2020, and 89% will offer mobile solutions to their sales associates within the next
few years.7
Being able to capture consumer data and details on the spot via a
mobile, connected device can lead to faster checkout, convenient tracking and less
waste (no more paper receipts).
But positive outcomes are tied to newer technologies. If employees have to use
outdated apps or IT, they may feel frustrated in their inability to perform their
daily tasks. Slower response times lead to lower consumer satisfaction ratings.
Existing employees may also be less likely to recommend your business as a
desirable workplace, limiting your application pool and ability to recruit new,
quality talent.

Enhance collaboration.
Instant communication is a must in modern retail. The ability to quickly get in
touch with teammates working in the backroom, walking the floor or manning
the register can help streamline processes. Think about a time where you went
to the store, stopped an employee for assistance and got what you needed faster
because they were able to “phone a friend” who specialized in that department.
Fewer trips to the backroom means more face-to-face time with
the customer.
What about a situation where the checkout lines are long and there’s only one
cashier available? Being able to call for backup can relieve the stress of the
existing worker and get customers out the door faster.
Optimize scheduling.
With the right software in place, companies can also provide an intuitive platform
for scheduling and shift changes. Collaborative scheduling solutions:
• Help mitigate scheduling conflicts and minimize errors with time-off requests.
• Improve employee satisfaction by empowering them to choose their own hours.
• Provide automatic alerts for uncovered shifts ahead of time.
• Forecast times where more or less coverage is needed based on historic data.
Scheduling assistance can be especially helpful if your business is impacted by
seasonal trends, or if your business operates during hours outside of the normal
8–5 time range.

Maintain order and safety.
When working in retail, there are always some risks associated with theft. Retail
outlets are the most liable targets for shoplifting, costing the retail industry
upwards of $30 billion every year.8
For a small to midmarket business, the loss of
potential revenue from a stolen good can be devastating.
Businesses may consider using RFID tags to sound the alarm when an asset
crosses a trigger point. Investing in a security stack, including video surveillance
and a security management/inventory system may be worthwhile as well.
While these tactics may not fully prevent crime, they can deter it.

Prepping your business for the future
We’ve talked about consumers and employees, addressing the different ways
technology can be used to enhance both the buying and serving experience. But
what about the business aspect of it all? How can your company continue to
support these initiatives, manage day-to-day operations and pursue new
revenue streams?
Making more informed decisions
Foot traffic can be very unpredictable. Using automated traffic counters can help
enhance visibility into your business’s average visitor count, which in turn can help
you improve your advertising strategy and overall sales conversion ratios. You can
begin to link trends to current promotions, time of day, time of year and more.
This data will help you make more informed decisions about hiring trends and
marketing.
Protecting your data
“Technology has allowed individual entrepreneurs to start their own business more
quickly and to grow at hyper-speed, but we’ve eventually realized that the potential
tradeoff is managing the risk of using a lot of technology,” says Jack Bienko, director
for entrepreneurship education at the Small Business Administration.9

One study found that 53% of midmarket companies in 26 countries experienced
a breach in 2018.11
Targeted phishing attacks, ransomware and viruses are all top
concerns. And the price tag tied to a cyberattack is quite large. In fact, the same study
revealed that 54% of these breaches cause financial damages exceeding $500,000.10
Steps your business can take to become more security conscious include:
• Regularly conducting security audits to locate vulnerabilities across your network
and connected devices
• Investing in a reliable backup system linked to the cloud to protect customer and
employee data
• Training employees on best practices for passwords, internet use, logging in and
out of systems, etc.
• Encrypting checkout systems both for in-store shoppers and on your website
Investing in software
First is payroll software: While there’s nothing wrong with personally handing
checks to your employees on payday, most businesses now take advantage of payroll
software to automatically factor in taxes and bonuses, and deposit payments to
employees on their behalf.
Second is operational software: These are the applications your employees will use
each day to complete transactions. These apps are critical for daily functionality and
are tied closely to type of experience your workers and customers will have.
Next is e-procurement: Having a single vendor that understands your business goals
can help you procure, deploy and manage the tools and devices you need, within
budget. Additional benefits include the ability to create customized accounts and
catalogs, visibility and standardization into device choices, tools to easily navigate
purchases and approvals, and streamlined checkout.

Reducing waste
In addition to using IoT-enabled sensors for inventory tracking and theft prevention,
smart sensors can also be used for sustainability practices. When your devices and
systems are all connected, it becomes easier to manage them according to actual,
not predictive, needs. You can use sensors to:
• Turn on, off or dim lights according to either the work schedule or sunlight already
provided.
• Remotely adjust either the room or fridge temperatures, eliminating the need for a
manual check in.
• Predict maintenance requirements for your devices to offset unexpected downtime.
• Track vehicle speed and location if your business is delivering products door-to-door
to prevent detours that may use extra mileage.

1.800.INSIGHT | insight.com
Insight Enterprises Inc. empowers organizations of all sizes with Insight Intelligent
Technology Solutions™ and services to maximize the business value of IT. As a
Fortune 500-ranked global provider of Digital Innovation, Cloud + Data Center
Transformation, Connected Workforce, and Supply Chain Optimization solutions
and services, we help clients successfully manage their IT today while transforming
for tomorrow.
About Insight
1
PWC. (2018). Experience Is Everything: Here’s How to Get It Right.
2
Global News Wire. (2018, April 9). Driving Loyalty Through Customer Experience Is the Future for Travel, Says Research Survey by Expedia Affiliate
Network and Points.
3
Greene, M. (2018, Nov. 8). Self-Checkouts: Who Really Benefits From the Technology? CBC.
4
Sweezey, M. (2019, Aug. 4). Key Chatbot Statistics to Know in 2019. Salesforce.
5
Society for Human Resource Management. (2017). Human Capital Benchmarking Report.
6
PR News Wire. (2018, June 26). The New Digital Workplace Divide: U.S. Workers Whose Employer Provide Outdated Technology Feel Less Productive.
7
Nicasio, F. (2019, May 20). Why You Should Train Your Retail Employees on Technology – and How to Do It Right.
8
Anderson, C. (2019, May 21). Adopting Cutting-Edge Security Technologies to Combat Theft.
9
The Atlantic. (n.d.). Cybersecurity: A Problem Too Big for Small Business to Ignore.
10
Cisco. (2018). SMB Cybersecurity Report.

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