www.pipelinepub.com Volume 9, Issue 7 Transforming the Retail Experience By Scott St. John Over the years we’ve spent a lot of time talking about the back office: what’s in the network, how it works, connecting points, and delivering service between them. Even more recently, we’ve heard a lot of buzz about customer experience management, or CEM, for those in the know. But what we haven’t heard much about is the storefront, the place where your customers go to buy your products — where the rubber meets the road. It’s the physical manifestation of the And they want simplicity, particularly when buying customer experience. complicated and sometimes intimidating products. Many companies, from Dell to Starbucks, have It’s also probably worth mentioning what retail attempted to enhance the customer experience with customers don’t want. They don’t want to feel a unique retail and product experience. But today confused. They don’t want to be intimidated by the one of the most notable champions of the New Retail staff, product, technology, or experience. They want Experience is to feel at ease. Apple. It opened They want to feel its first Apple like a VIP. They Store in an want to feel like the upscale Virginia experience is worth mall in 2001 all the Benjamins amid A-list names they’re about to fork like Armani, out. They want to Bloomingdale’s, feel good about it. Brooks Brothers, The New Retail Nordstrom, and Experience: Taking Macy’s. Hundreds a bite out of Apple of people waited in line in It didn’t take long anticipation of the for others to pick up on the power of this New Retail spring opening, and it was reported that some drove Experience. We all watch in wonder as the Apple in from out of state just to take part in the event, for addicts continue to line up in the predawn hours for which Apple only featured four product lines. Even so, the “new” iPhone that’s just a slightly different size the success was remarkable. In the next year alone than the last iPhone, or for the “new” iPad Mini, which Apple opened more than 20 stores, and it continues to is, well, just a slightly different version of the last iPad. pioneer the retail experience to this day by combining And certainly you have to chalk some of this up to its brand, culture and products in a way that keeps brand and lifestyle marketing. But, as with all good customers longing for more. things, companies with big brands began to invest (heavily) in lifestyle and retail marketing in an attempt Some might say this success is due to the marriage to replicate prior success. of innovation, design and vision brought about by the Not for distribution or reproduction. or distribution for Not brain trust of Steve Jobs (Apple), Ron Johnson (Target) Today, being greeted by a geek-chic expert-with-a- and Mickey Drexler (The Gap). But as illuminating tablet can be experienced anywhere from your local as they are, I think they embraced a common truth: AT&T store to one of the more than 60 Microsoft People want a pleasant experience that makes them retail stores across Canada, the US, and Puerto Rico. feel good about the products they’re buying. They Why, you ask? Four words: “vigorous loyalty” and want to feel empowered. They want to feel in control. “unwavering trust.” When customers feel like they © 2012, All information contained herein is the sole property of Pipeline Publishing, LLC. Pipeline Publishing LLC reserves all rights and privileges regarding the use of this information. Any unauthorized use, such as distributing, copying, modifying, or reprinting, is not permitted. This document is not intended for reproduction or distribution outside of www.pipelinepub.com. To obtain permission to reproduce or distribute this document contact [email protected] for information about Reprint Services. can trust a retailer, they’re willing to try new things. And to service providers, new things equate to higher revenues and reduced churn. But loyalty, while related, Hank wouldn’t approve. is a bird of a slightly different feather. Vigorous loyalty means your customers will go above and beyond on Be like Hank. your behalf. They will scoff at your competitors and buy whatever you are selling on mere principle. Don’t believe me? Try telling, or better yet, demonstrating alike feel the best interaction is one with the service why your Samsung Galaxy III Android is better than the provider somewhat absent. But that’s not to say iPhone to your closest friend or Apple aficionado. (I that these service providers aren’t involved: they’ve have. I don’t recommend it. It ended badly.) invested millions in automation and self-service solutions to empower their customers and enhance Be like Hank their experience. Take the case of Hank. He’s an old-timey butcher in a These service providers seem to recognize that the small, rural butcher shop. Customers love Hank. They storefront takes many forms, from their call centers to love him as much as the product he sells. And they retail centers and websites, and that each interaction love the experience — from the ring of the bell when point can have, to quote the Eagles, “a peaceful, easy they open the door to the rustle of wax paper as he feeling.” One such service provider is BSkyB (Sky). meticulously folds it around his best cuts of meat. They love that he knows their name and their order “Telcos are now starting to think like retailers,” the minute they walk in. They love the feel of the cold, says Ernest Margitta of Tribold. “In the past, firm package as he hands it to them, and they rush communications service providers saw themselves home in eager anticipation of showing off their latest as network operators, but the current market leaders prize. Hank’s customers don’t even know if he owns have transformed into media and entertainment the butcher shop or not — but they feel like he does. companies and now realize that they need to transform their retail experience to compete on that The fact is Hank’s customers like and trust him. They stage.” refuse to buy their meat elsewhere, and come up with catchy phrases like “If it’s not cut by Hank, it’s just Tribold would know, as it is one of the companies meat.” Hank’s customers are willing to try new things helping service providers like CenturyLink, Orange and just because he recommends them. And they think of Sky transform their retail and product experience. At him first when their friends ask where they “got those Sky, Tribold is powering its build-your-own-bundle web ribs” or when special occasions arise. portal, which enables customers to drag-and-drop services together to create custom service packages Unfortunately, Hank’s a dying breed, as is the old- that meet their specific needs and budget. The portal timey butcher shop. But service providers should is simple, cool, a little fun to use, and simplifies want to be like Hank. Service providers’ customers the often too complex process of understanding should love their experience as much as, if not more whether or not a bundle actually includes the specific than, Hank’s customers. They should like and trust products the customer wants at the price he or she the people they are dealing with and try new things wants them. It empowers the customer and enables just because those people recommend them. They him to personalize his product experience — which, should rush home in eager anticipation of showing for service providers like Sky, is at the heart of the off their latest prize. Unfortunately, many service customer experience. The portal also eliminates a providers are missing the opportunity. In fact, some of potentially negative touchpoint and ensures that what their customers’ experiences are quite the contrary: a customer gets meets their expectations. Similarly, customers will come in just to show them how they got Orange is using Tribold’s award-winning technology it better, cheaper, faster somewhere else. to drive touch-screen kiosks at retail centers so that customers can assemble mobile service packages Not for distribution or reproduction. or distribution for Not Hank wouldn’t approve. Be like Hank. themselves. But it’s not just for retail consumers: enterprise service providers like CenturyLink are Turning touchpoints into touch screens seeing the value in empowering the customer Every customer touchpoint is an opportunity to experience too. improve the customer experience, but runs the risk of “The common element is that personalization is at tarnishing it. Many customers and service providers the heart of both consumer and enterprise offerings,” © 2012, All information contained herein is the sole property of Pipeline Publishing, LLC. Pipeline Publishing LLC reserves all rights and privileges regarding the use of this information. Any unauthorized use, such as distributing, copying, modifying, or reprinting, is not permitted. This document is not intended for reproduction or distribution outside of www.pipelinepub.com. To obtain permission to reproduce or distribute this document contact [email protected] for information about Reprint Services. says Margitta. “Consumers are seeking simple, clear product choices that meet their exact needs, while enterprise demands complex network and IT solutions specific to [its] own operating demands. Both of these The game is changing, but the drivers are leading to a change in the way CSPs heart of it remains the same: engage with their customers around products.” personalized services and It takes a village unique customer experience.