Round Two of Reopening - What have we learned?

 
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Temperatures may still be soaring into the 100s, but it’s time to move back indoors--at least for shopping malls, hair salons and many mom and pop retailers. What have we learned and what will be the expectations from consumers as we return to standard retail operating procedures?  Because regional malls will have to operate at 25% capacity for some time, and restaurants may have to serve patrons outdoors well into winter, retailers should recognize that curbside service is here to stay for a very long time-- if not forever.

By the end of April 2020, retail research showed that 82% of US shoppers have used digital payment apps and services.

One thing we know for certain, people will want to feel safe when they shop, and as such, will search out retailers with services like curbside pickup, BOPIS (buy online, pickup in store), and free local delivery. The good news: there are tools that make this easy and retailers are rapidly adopting this technology. By the end of April 2020, retail research showed that 82% of US shoppers have used digital payment apps and services, and 53% say they will actively use them over the next four weeks. Contactless payments allow retailers to continue serving customers while keeping them safe. I cannot believe how many stores will no longer take my cash, but cash comes with risk and should be discouraged in favor of digital transactions. To make this easier, retailers should also consider accepting contactless digital payment methods like Apple Pay, Google Pay, and PayPal to further protect customers and staff. Only 40% of US customers said they feel safe with tap and chip card readers because of the pandemic. Having a clear protocol will help merchants enforce maximum occupancy without alienating customers or frustrating staff.

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It will also be important to help employees feel supported and able to communicate safety policies with shoppers. Aside from distancing policies for shoppers, merchants will need some protocols for staff safety as well. Though I often felt overwhelmed with sanitizer when going from one store to the next, it makes sense for your store to provide plenty of cleaning products and to think about providing an extra layer of protection with plastic barriers to protect both shoppers and staff.

Now is also the ideal time for retailers to go paperless, as this helps minimize contact with customers when they begin shopping in-store again.  Perhaps opt for email receipts in place of paper ones.  As a bonus, gathering customer emails as part of this process is an excellent way to stay in touch with customers. Email is a lifeline right now––it allows retailers to stay connected to shoppers while boosting customer retention, loyalty, and lifetime value.

Over the past several months (or what feels like forever), customer experience conversations have become much less strategic and a lot more uncomfortable. Out of necessity, retailers have been forced to focus on the most immediate operational challenges – shifting regulations, new hours, capacity restrictions, curbside pick-up, masks, social distancing, furloughs, and on and on and on. Toss in the societal growing pains, and it is fair to say that retailers have a lot to wrangle these days. No time for real strategy - just take it day by day and try to survive - literally.

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However, curbside pick-up is one operational strategy that is here to stay.  I have found that I actually enjoy ordering online and picking up my groceries and soft goods in the parking lot. Interest in curbside pickup will continue to grow as shoppers opt for a model that is somewhere between delivery and in-store, referred to by some as the “retail-to-go” model. This model allows customers to place an order online and get same-day pickup at a nearby physical retail store. We are already seeing this model work here in California.  We are going to have to get better with curbside signage and protection from heat, rain, snow, etc. to keep the dollars in our local communities. 

 

Source: Mood Media, ICSC, Retail Dive