VARs Can Profit In Retail With The Shift Toward Customer-Centric Stores
For many of Dade Behring's customers, next-day delivery is not good enough. The $1.3 billion laboratory instrument manufacturer often has to ensure same-day delivery. Integrating technologies with its new SAP system helps Dade Behring deliver the goods on time.
With the availability of more retail options and new technologies, it is apparent that the customers are now calling the shots. In order to survive, retailers have to focus on improving their customers' shopping experience and maximizing customer satisfaction.
The Customer Focus In Retail
In this customer-centric retail environment, technology must be able to contribute to the customer satisfaction equation. Although technology must still deliver operational improvements and increased financial returns, retailers must also evaluate technology expenditures based on how well technology improves the customers' shopping experience.
Customers do not care which technology platform a retailer uses. Customers want a shopping experience where they get products they need quickly and the retailer shows appreciation for customer loyalty.
The VAR Opportunities With This Trend
How can VARs benefit? By providing their retail clients with technology that contributes to customer satisfaction. This a natural fit for VARs because they are in the business of satisfying their retail customers. VARs are also comfortable with the idea of value-added service. It is the value-added component of these technologies that makes a difference in retail.
Components of a customer-centric solution can include any combination of technologies, but should include these core technologies: POS, customer loyalty and kiosks.
- Point Of Sale - Savvy retailers know that it is at POS where they interact with their customers, and that this opportunity must not be wasted. Therefore, retailers are making sure that POS systems are accurate, durable and easy to use so that customer checkout is quick and accurate. Retailers know that there are few frustrations harder to endure than standing in line while a POS system malfunctions or a cashier fumbles for the right price.
Due to high cashier turnover, POS systems must be easy to learn so that customers aren't inconvenienced by untrained or confused store personnel. GUI interfaces and touch screens are now commonplace and are invaluable components in the cashier training process.
- Customer Loyalty - Many retailers make the mistake of treating all customers the same, despite wide variance in current customer value and/or potential value. To make sure customers are rewarded for their loyalty, a customer loyalty program is becoming a competitive necessity.
How a retailer identifies valuable customers, segments customer purchase behavior and rewards customers varies based on the availability of internal resources and market conditions. Resellers can help retailers with this challenge by offering customer loyalty packages that are flexible. Likewise, because loyalty programs are challenging to implement, resellers should offer consulting services so that all customers' loyalty options are properly evaluated.
- Kiosks - To improve their shopping experience, customers want access to information (such as product location, nutritional information and recipes) and promotions while they are in the store. Mass marketing, although an option, is considered to be ineffective. Direct mail, while more effective, can get expensive. Both are inconvenient for the customer, who has to clip coupons from a circular or direct mail piece.
Kiosks are proving to be an inexpensive option. By having information and incentives tailored to customer shopping activity at the store, retailers are better meeting customer needs. Kiosks also serve as an attraction, which draws customers to a store.
Your Next Step
There is no doubt that customer demand for greater convenience is challenging retailers as never before. VARs have the unique opportunity to provide value-added technology solutions that will help position their retailer clients for long-term success in today's customer-centric retail environment.
John Lucke is director of marketing for SASI. He can be reached at (215) 785-4321.