One of my first jobs was at Target when I was 15 years old. From toys and sporting goods, to hardware and even the garden centre, I worked in almost every department you could imagine. By no means was I an expert – especially at the age of 15 years – but I learnt very quickly the importance of providing every customer with the best experience. While I was trained in managing stock and shelves on the shop floor – reflecting Target’s self-service proposition – the job required me to constantly interact with our customers. As soon as they saw the badge, they knew I was someone who they could ask for service. It could be a question as simple as, “can you help me find…?” or “how does this work?”, and as puzzling as, “what’s the hottest toy to buy my niece for her birthday party that’s in an hour?” Every shift was all about looking after the needs of our customers. I loved this part of the job and quickly made it my mission to find the answer to every question. It was all about the service. Fast forward a few (undisclosed) years, and the lessons learnt from these early days still ring true for me in our industry.
Plenty is being written about retail performance, and online spend is increasing as expected with the festive season right around the corner. But we can’t dismiss the truth that retail is still very much a people business. According to business consultancy Retail Doctor Group, Australia’s in-store retail market channel is expected to comprise nearly 80 per cent of total retail sales by 2030 ($434bn), while the other 20 per cent will be e-commerce sales ($111bn). This forecast is supported by Creative Activation’s latest ShopperPANEL study – an in-depth analysis of shopper behaviours and predictive insights into their future needs and wants. Our research found that while more Australians are searching online to find deals and discounts, the physical retail experience will continue to play a big part in how we engage with brands. The challenge for these brands, of course, is turning browsers into customers once in-store. Sales and promotions are always a natural drawcard, but what else do we value in 2024 when we walk through the doors of our favourite store? It may surprise some, but staff on the floor remain critical to the in-store experience.
Our research found that customers rely upon staff on the floor to help find them the best value, the best solution, and provide information they can’t find online – more so than being product experts. Unfortunately, many brands are falling short with their people. We found that one in three Australians believed their experiences with retail staff over the past six months fell below their expectations. Staff are key to any great customer experience, so why are some brands failing on the shop floor? Are these brands prioritising investment in their online channels over their in-store presence?
Despite the rise of online, physical stores remain integral – and those retailers prioritising both their staff and omnichannel strategies to enhance the customer experience are the ones leading the way. Take Nespresso, for example. Its boutique store layout and design allow shoppers to explore new machines and new products, or they can walk straight to a checkout to buy their favourite coffee. Their staff are equally passionate as they are knowledgeable, and are consistent in their presentation and approach. One moment they’re a “coffee connoisseur”, and the next moment they’re helping a customer find what they want quickly. Nespresso’s boutique stores create the perfect blend (pun intended) of an immersive customer experience. It’s one of the key reasons why they remain the market leader in Australia.
So, as we again enter the busiest retail period of the year, let’s remember the importance of retail staff in influencing customer experience, brand loyalty and, ultimately, the success of your brand. And if you’re stuck for a gift idea this festive season, it may be that the best tips aren’t always online. Sometimes, they’re standing right in front of you.
Gerard Feehan is the executive chair of Creative Activation, a Clemenger Group company.