IBM Says Technology Can Help Make a Customer-Centric Store

Bob Thompson
Founder, CRMGuru.com
Member

Posted 08-Jun-2005 09:17 AM
IBM recently issued a press release proclaiming that "'One Size Fits All' Shopping Experience will Lose Customer Loyalty."

This study, conducted with a telephone survey of 1,000 American shoppers, found that "differentiation" and being "customer-centric" were key, and that "consumers favor friendly, knowledgeable, fast and personalized service, products that are easy to find, and interactive technology that recognizes and rewards them for their loyalty."

My first reaction was, well, duh. Of course that what consumers say they want. But how do explain the success of always-low-prices Wal-Mart and other discounters? And do you really want personalized service when you're buying toothpaste or a fresh pair of socks?

As for technology, I was puzzled how it can help make a store "customer-centric" since the whole point seems to be remove humans from the loop. That's not what I'm looking for when I shop at Nordstrom--they've got real live people trained not to sell me a polka dot tie with a striped shirt.

Anyway, to dig into this study further I spoke with Mark Campanello, IBM's marketing head for Big Blue's "Retail On Demand" initiative. He said that a "customer-centric" store is a departure from mass marketing, and has two main aspects:

* personalization in how the retailer interacts with the consumer (think 1:1 marketing)
* customization of the in-store experience

He said that Stop N Shop was piloting "shopping buddies" in the store, and no, that's not a personal type buddy we're talking about. You get a tablet PC to attach to your cart where you can access your shopping list, download your last purchases, look for sale items, and plot your trip around the store.

Regarding my concern about losing the human touch, Campanello said that some high-end and specialty retailers were trying to use technology to help the employees be more helpful, with training and coaching tools. He admitted this was in the early stage of adoption, no proven ROI as of yet.

Retail is a very challenging area for the practice of CRM. Please share your comment about:

* do you think use of "shopping assistants" in the store will make you more loyalty?
* do you know any retailers using technology to help their frontline employees be more "customer-centric"?

Thanks!
Bob

Bob Thompson
Founder, CRMGuru.com