What To Do When Retailer Innovation is Destroying the Customer Experience
In today’s fast-paced retail landscape, technology is often hailed as the knight in shining armour, ready to save the day and enhance the customer experience. However, when retailer innovation starts to sabotage the very experience, it aims to enrich, we have a problem—and it’s a big one. Ask any mid-market CPG brand fighting for customer loyalty amidst technological missteps at the retail level.
Take checkouts, for instance. While self-checkout kiosks were introduced to speed up the shopping process, many customers have been left scratching their heads in frustration. A study by the National Retail Federation found that 71% of shoppers reported frustrations with technology at the checkout, particularly issues related to scanning errors and payment processing glitches. The irony? Meanwhile, brands are trying to create seamless, supportive experiences for shoppers.
But it’s not just the checkouts. Loss prevention systems designed to reduce theft can inadvertently create a fortress-like atmosphere that makes honest customers feel like potential criminals. Shoppers eyeballing that new organic snack essential must navigate a claustrophobic layout where every move is watched. When a store resembles a high-security prison, consumers start to feel more like prisoners than patrons.
For mid-market brands operating in Canada, the implications are dire. These brands often lack the marketing muscle to combat the fallout of a retailer with poor technology. Did you know that approximately 62% of Canadians consider customer experience a deciding factor in their purchasing decisions? So when a retailer’s innovation misfires, it doesn’t just impact the shopping experience; it jeopardizes the relationship mid-market brands have worked hard to build with their customers.
Take, for example, the rollout of a new scanner technology at a major Canadian grocery chain last year. Instead of expediting the checkout process, the scanners misread barcodes and occasionally shut down entirely, leaving customers stranded and frustrated. Sales for a beloved mid-market snack brand plummeted by 20% during peak shopping hours as consumers exited the store in a huff, vowing never to return—or to repurchase their snacks.
So, what can mid-market CPG brands do to mitigate these negative experiences due to retailer innovation? First, they should advocate for customer-first policies by opening communication channels with their retail partners. It’s time for brands to voice their needs and expectations concerning technology’s role in enhancing the customer experience.
Moreover, temporary in-store promotions in problematic retail locations or giveaways should be considered to lessen the sting of technology mishaps. If customers will lose a few minutes of their lives wrestling with malfunctioning tech, why not sweeten the deal with a discount on their favourite product? This clever approach can shift focus back to the brand’s value proposition and foster goodwill.
Bolstering resources is another way to mitigate the impact on your brand as a result of retailers who are technology-challenged. You likely have some data and know where the challenges are. You can work with a fractional merchandising partner who likely already visit the stores you are listed in for other clients. This is a great way to take advantage of merchandising support cost-efficiently and get eyes on the ground where it matters most.
Finally, participating in or initiating discussions about technology improvements can help brands get ahead of the curve. Engaging with retailers about potential upgrades or user feedback ensures that technological innovation works for the customer, not against them—and it’s sure to cash in on the consumer’s heart (and wallet).
Regarding retailer innovation, aim for seamless connectivity, not chaotic confusion. Your mid-market brand’s success may hinge on it. Need merchandising support in Canada? Marketsupport is the best choice. Learn more about Marketsupport at www.marketsupport.ca.
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