High street stores must improve shopper experience to buck the trend of outlets failing. That’s the warning from Tensator, a global leader in queue management technology to enhance the customer journey.
With uncertainty looming large in the retail market, and following the news more retail outlets closed in 2011 than were opened (LDC), there has never been a more important time for offline retailers to increase their bottom-line profits.
Tensator’s advice comes on the back of data from the Office for National Statistics that shows a continuing increase in online versus offline retail sales. In January 2012 approximately 11.9% of all retail sales occurred online, compared to approximately 8.9% the previous January.
This 3% rise – reflecting an increase in spend of around £178.3m – proves high street branches need to do more if they want to slow down the number of outlets closing and combat the shift to online shopping. Tensator is urging retailers to improve the in-store experience offered to shoppers to drive consumers back onto the high street.
As a result of the increased awareness shown among retailers the customer journey is crucial to driving sales, Tensator is partnering with international retail brands – such as New Look, Topshop, H&M, Carrefour, Duane Reade, BP, Tesco and Asda Wal-mart – to provide innovative solutions to improve every customer’s shopping experience, minimise queuing times and maximise sales.
A recent survey by YouGov that found 59% of people would not purchase anything if the queue was too long – meaning effective queue management is essential for busy retailers. Tensator has worked with high street brands to install effective in-queue merchandising (IQM) solutions from impulse boxes through to post top signage, and Electronic Call Forwarding (ECF) systems, ideal for use in busy outlets to improve both customer engagement and queue flow.
“Innovation in terms of improving the customer experience will be the key as retailers, particularly on the high street, try and maximise their underlying profits to fight off online competition”, said Alan McPherson, CEO of Tensator.
Such innovations include Tensator’s most recent product development, the Tensator Virtual Assistant. The Tensator Virtual Assistant is said to represent the next-generation in digital signage and uses the latest in audio-visual technology to create the illusion of a real person. Launched in 2011, it has been used in flagship stores in the UK and the US and is becoming an ideal solution for retailers as a method of conveying information, brand or promotional messaging in any language, and represents an appealing tool for the customer, claims the company.
“The impact of the recession is still ongoing, with certain areas of retail, like impulse purchases, being hit hard. All potential obstacles have to be removed to encourage the consumer to spend, which is an area that Tensator specialises in. The retail side of our business is growing as retailers are looking for innovative solutions to drive spending by providing a better experience for their customers,” said McPherson.
“Moving forward, it’s vital offline retailers look closely at their customers and really understand what they now expect from a shopping experience, because this will impact positively on business profits.”