An experienced customer is a demanding customer

Many people don’t stick to one store, so they have a point of comparison. Ever-changing technologies are driving new customer behaviors and experiences, and in turn, expectations.

Innovation raises customer expectations
Innovations from the printing press and the internal combustion engine to computers and the wireless Internet have always been drivers of demand, opening up new possibilities and raising expectations. Today, we find ourselves at the crossroads of rapid innovation and a new generation of consumers who have grown up with technology.

Personalization
From e-commerce to checkout, technology is changing the retail experience. Increased connectivity to devices has created better-informed consumers who can not only research and shop online, but also compare prices and availability of competitors’ products in-store. This type of personalization involves using available technology to understand customer preferences, giving them exactly what they want, when they want it, in the way they want it. By leveraging new technologies—such as AI and machine learning-based recommendation engines—retailers can make more personalized product suggestions that ultimately translate into sales.

Retail is becoming a service
Practices like “showrooming” and its inverse, “webrooming,” are changing how customers make purchasing decisions. Fully engaged customers—those who are emotionally invested in and loyal to a brand—visit retailers more often and spend more money per visit. According to CEI Research, 86% of customers will pay more for better customer service, and customers who are engaged in such an experience are less likely to think about the cost of a product. Companies are competing to offer additional services to boost sales. Sportswear retailers Nike, Brooks, and Oiselle are offering store-sponsored training sessions and runs to build community and drive traffic to the store. In addition to providing services, some retailers, such as Urban Outfitters, are offering in-store bars and restaurants, encouraging customers to eat and drink while browsing online.