MARKET WATCH
by: DARRELL WISBEY
www.darrellwisbey-retailadviser.com
Darrel Wisbey is a chief mentor and retail
adviser who has 30 years of retail experience
and has built a reputation for being a leader
who interprets the market accurately, define
strategic direction and deliver success by
motivating, developing and inspiring teams to
achieve continual improvement
The drive in retail self-service – who wins:
the Customer or the Retailer?
Spending the majority of the past year back
in Australia I was surprised by the degree
to which “face-to-face” customer service
“brick and mortar” retail is disappearing.
More and more the trend is t owards “serve
yourself“ and whilst this has been true for
some time
in product
selection
I was not
prepared for
the latest
move which
is 100%
self-service
payment at
the POS.
The growth in and use of technology in retail
produced the entirely new retail format of “pick
& click” allowing customers to purchase products
on the internet through Apps on hand held
devices. This style of retail format eliminated
the “face-to-face” relationship with customers.
Deemed as convenient and cost-saving, this
move hits home to two of the most important
elements in our lives: time and money.
This drive to more and more self-service is
definitely being headed by the major retail players
in supermarkets, mass merchants and now
appearing in convenience stores. Some of the
numerous self-serve experiences include:
Banking – upon entering my
bank I was confronted with a
row of ATMs where almost every
transaction previously managed
across the service counter are
now possible thru an ATM. In my
bank where I was accustomed to
being met by many smiling faces
of those behind the counter have
now only two—yes—two human
service tellers. Almost all transactions were being
managed through the row of ATMs.
Airline – whilst already accustomed to making
my flight bookings and checking-in on-line, I
then discovered that I now have to complete
the baggage check-in as a “self-service” activity
thru and ATM. I enter my booking reference
into the machine and then proceed to respond
to a number of screen prompts and upon the
completion the luggage labels, (and a print of the
boarding pass if required), are delivered out of
the ATM. I attach the luggage labels to my bag
and then take my bag to the luggage loading belt
where my bag disappears along the conveyor belt
as the baggage receipt is issued from the ATM.
Supermarket – the visit to
the supermarket now allows
for the customer to enter
“do-it-yourself” POS registers
to scan and bag their goods
and complete the financial
transaction. From observation,
it appears the number of full
service POS registers are
decreasing as the number of
“DIY” registers are increasing. The only human in
sight is the uniformed assistant nearby to show
new customers how to serve themselves and/
or to resolve any problems experienced. This I
presume is a human interface that will inevitably
disappear as full DIY transaction becomes the
everyday way of life.
Mass Merchant Department Stores (example:
Target, Big W and K-Mart) – Just as with the
supermarkets, now operate with clusters of DIY
POS registers. The customer scans, bags and
completes payment directly on the POS. A nearby
staff demonstrates how to use the POS and
takes care of any problems experienced.
Restaurants (fast food) – upon entering
McDonald’s, customers are
confronted with interactive
screens where they can browse
the menu, enter their meal
choices and pay for order. When
done, the customer will receive
a receipt with a pick up number
which will be called when their
order is ready. This self-serve
facility sits comfortably with the
aim to process orders rapidly, but
of course if the customer is processing their own
orders it’s difficult for that customer to complain
about the service speed.
waitress/waiter there is no opportunity to
ask on the specialty of the house or to seek
recommendations prior to placing the order. High
quality iPads with high quality software are seen
as the application of technology to enhance the
dining experience.
The “real” driver of the move
to customer “self-serve”.
In Australia, labour is a significant
contributor to the operational
cost of retailers, so it is hard to
avoid the obvious conclusion that
this is all about finding another
avenue to reduce costs. However,
lowest shelf prices must still deliver maximum
profit and reducing operational costs definitely
contributes to protecting profits.
So back to the opening question: who wins: the
Customer or the Retailer?
1. The customers win if they believe the
self-serve drive contributes to getting
the lowest price
2. The Retailers win if the lowest prices
increase customer satisfaction and
market share
If the retailer manages the potential downside
issues of customers feeling they are depriving
others of a job or that in serving themselves the
prices should be advantageous given they are
now performing some of the tasks previously
covered by the retail staff, then it is possible in
this world of increasing pressure on our time and
money the outcome can be a “win – win” result.
What is next?
I can only presume that retailers in their quest
for the most competitive shelf prices are already
searching for the next initiative to reduce costs.
Whilst what will that be is the BIG question.
Restaurant (sit down dining) - a mall
restaurant presented as an upper level dining
experience is using iPads at the table for diners
to browse the menu and place their order. Once
the diner is satisfied with the menu selection,
he presses send button to transmit the order
to the kitchen. Without interaction with the
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