Technology is playing a central role in improving customer experience. Anna Richardson Taylor finds out how retailers are using it.

The introduction of new technology to the shopfloor is central to customer engagement

As customers interact with retailers through an increasingly multifaceted prism of new technologies and digital platforms, retailers in turn need to implement technologies that make the customer experience more seamless or engaging.

But mixing and matching the right combination of technological innovation with a focus on the user experience is vital. Whether it involves in-store wi-fi or kiosks, click-and-collect or mobile-optimised websites, the technology should always be determined by customer needs.

“The customer is firmly in the driving seat in the new multichannel landscape,” says Benjy Meyer, head of new channel development at Marks & Spencer. “Our goal is to improve the customer experience, and there are occasions where technology can help - but we mustn’t force it. Deployed thoughtfully, technology is helping to make shopping easier and more convenient, as well as providing a more inspirational and engaging experience for customers.”

Customer-centric approach

Omid Rezvani, director of mobile solutions at consultancy eCommera, agrees: “Key to survival in this new climate is customer-centricity: understanding and organising your business around the customer and learning how to attract their custom and nurture their loyalty.”

So which technologies are delivering that customer-centric approach, and measurably enhancing the customer experience? Technology that allows customers to shop wherever they are and tailors delivery or pick-up to suit their needs should be a no-brainer for retailers. Marks & Spencer calls it ‘Shop Your Way’, and for many retailers this includes shopping across several devices with various different delivery options, such as precise arrival time slots or the option to collect in store.

Optimising web and mobile sites is a central part of this. Most retailers perform multivariate and split testing to constantly examine the user experience as the mobile device becomes ubiquitous.

For etailer Shop Direct, mobile is a big focus. About 40% of its online sessions come via the medium, and towards the end of last year its customers increasingly made purchases through that channel, according to Sam Barton, head of user experience at Shop Direct Group. Shop Direct devotes at least 75% of its user experience testing either to tablets or smartphones, he adds, “because that’s where we see our customers really participating or engaging with us”.

Mobile devices are also helping related technologies take off. For example, Shop Direct is contemplating the use of QR codes on packaging to link to instructions or videos explaining how to set up a particular product at home. “It would give the customer a much richer experience, so we see that as a very big opportunity for us,” says Barton.

Another practical application that Shop Direct has recently been trying on its Very.co.uk website is the Metail virtual fitting room, which allows customers to enter their dimensions and see what a product might look like when it is being worn. The fitting room has increased conversion rates, although the main advantage has been the reduction in returns - Barton says there are plans to implement it across other sites.

Virtual fitting rooms can be rolled out on mobile phones as well. One provider, Fits.me, which works with retailers such as Superdry and Thomas Pink, says these also help improve conversion rates and engagement.

The Fits.me app is designed to improve customer conversion rates

The Fits.me app is designed to improve customer conversion rates

New ways to pay

But new technologies are not just about making things easier and more seamless for the customer. Engagement, inspiration and brand affinity are also high on the list when it comes to what technology should deliver.

Many retailers are keen to create engaging experiences. For Shop Direct, a large part of that is achieved through social media, and the group is implementing a social platform that allows customers to create online personas, write reviews and share information with friends.

Pets at Home is about to relaunch its web offer, aiming to develop a community-focused microsite for each store that allows customers to explore services at a local level. It has already launched a Live Chat function to bring its employees’ expertise and advice online.

When it comes to priorities in 2013, many are keeping a close eye on payment technologies. Retailers including the Co-operative were already piloting contactless payment last year, and a report by Mastercard last autumn forecast that 44% of retailers would offer contactless payment this year.

Marks & Spencer also conducted trials in some of London shops last year, and Meyer says this is one of the “big areas to watch”, alongside mobile. Pets at Home will launch PayPal payment in store in the next few months. It already rolled it out online last year, in what has been “a fantastic success”, according to multichannel director Matt Stead. He points out that the roll-out is not just about making the payment process easier, but it also taps into a customer mindset that payment via a PayPal account is more palatable than parting with hard cash.

Meanwhile, one of the biggest strategic imperatives for Shop Direct this year is to give customers a personalised experience across all platforms, says Barton, “so that they come to our sites and feel they’re almost getting a one-to-one experience”. He adds: “The days of blanket emails are gone, and if we can nail personalisation on mobile - giving customers something relevant in a short space of time - that’s going to be critical. It’s a huge focus in 2013, creating true personalisation.”

Ikea’s plans for customer technology

Benedetto Conversano

Benedetto Conversano

Ikea posted a healthy profit jump of 8% in January, following some significant investment in the shopper experience. Ikea IT strategy implementation leader Benedetto Conversano explains the role technology plays in this.

“Multichannel is still a big theme, and we are continuing to roll out our strategy this year. We are paying more attention to making sure that the customer has a very pleasant experience in store.

“The level of inspiration that our customers experience while visiting the store is a competitive advantage for us.

That’s why we are launching projects such as wi-fi and kiosks in store - if you don’t have these services these days you are below the threshold of customer expectation.

“Other technologies we’re working on are in-store apps to help customers with their shopping, or just to enhance their experience.

“There is a process that every customer goes through when they want to make their home better. We want to make sure their journey is the most inspiring and removes all the physical barriers that prevent them from getting the value they want. When we try to implement technology we want to avoid creating confusion for the customer, because it takes away productivity. Having 10 IT tools makes you less efficient. It doesn’t add any value to the inspirational moment. Only the combination of technology and inspiration adds value - for example sitting down with a home furnishing expert in store and using a simulation tool to design your living space.

“We have also just completed implementation of the self-service check-out. The upgrade of the payment system is extremely time-consuming and expensive. But it’s about trying to understand what can make the payment process for an Ikea customer completely different, not just whether we save them 30 seconds or a minute.

“For us, multichannel is not about adding technology to enable the customers to reach us in different ways, but rather about building a new way of facilitating the experience in the store, and keeping the store at the centre of the customer experience.”