The shopping habits of millennial's are a perpetual source of anxiety for retailers. Within the past week, The Economist discussed how established companies can win over these customers, and Deloitte released the results from their 2018 Millennial Survey Report. The crux of the matter is that many retailers are finding it difficult to connect with millennial shoppers. Even when able to sell to them, they are often unable to sustain the relationship. Findings from Centriam’s Retail Study confirm this: millennials are more price sensitive, less likely to repurchase, and 40% more likely to be detractors.
When it comes to improving customer experience, not all retailers are the same. Different business models, customer bases, and product selections prevent a one size fits all approach to providing great customer service. In their recent article titled “The Great Retail Bifurcation: Why the retail “apocalypse” is really a renaissance”, Deloitte divided retailers into three groups—price-based, balanced offering, and premier—to help explain differences in retail business performance post-recession.
The Mall of America delights patrons with a chatbot creating a high-tech, engaging retail customer experience.
With the increase in online shopping and questions whirling around the relevancy of brick and mortar shopping malls, our local retail icon, Mall of America, welcomed a new chatbot named Pepper. The chatbot can not only direct visitors to specific locations within the mall, it can talk about deals and promotions, and even connect them to an actual human being. We connected with Justine Santa Cruz, VP of Partnerships at Satisfi Labs, the company behind the Pepper Robot at Mall of America, to learn about Pepper, artificial intelligence(AI) and its impact on customer experience (CX).
Make Shopping Enjoyable to Encourage Sales
On a previous blog, I shared a finding from Centriam’s 2017 Retail Study: customers who had an enjoyable shopping experience were more likely to be promoters. This finding is especially robust among millennials, the largest generation in the US. Millennials who said their experience was extremely enjoyable were nine times more likely to be satisfied with the price they paid, and twice as likely to repurchase as millennials who said their shopping trip was slightly or not enjoyable. These findings suggest that making shopping enjoyable could potentially double your sales among this key demographic!
Using conclusions drawn from Centriam’s 2017 Retail Study, we have proposed areas of focus to enhance customer experience for two common NPS objectives.