Is retail tech hiding under the sofa?

Is retail tech hiding under the sofa?

The future of retail won’t look like ‘the future’ at all.

That’s exactly what the UK’s biggest retailers are aiming for.

In the last few weeks I’ve had customer and innovation focused people from both John Lewis and House of Fraser stop by my People Tell Richard Stuff podcast.

I found it a fascinating insight into the thought processes of these companies, and how they try and balance the lightning speed of new tech development with the adoption rates of their audiences.

 “Technology needs to be embedded in the architecture of where you are. People need to see it and believe it and want to go and explore. Because if they see cables on the table, or, you know, there’s electronics on the desk, people are a little bit less … more kind of skeptical around engaging and exploring – ‘I might break it’, or ‘I’m not digital.’”

John Vary, Innovation Manager, John Lewis

Striking the right balance is tough. However, when it comes to shopping, it’s all about the customer experience.

Last year I spoke to Jeremy Fennell, MD of Dixons Carphone. He knows this struggle well. I asked him about what he thinks about when trying to deliver an amazing customer experience in this tech-focused world.

“Yes, customers want to look on the internet and see what’s available and understand what’s going on. Read articles, look at ranges, look at the pricing, technical specifications…

But actually, they want to come in and see the products, touch the products, feel the products, understand how the products work together and have a conversation with somebody about what’s right for them.

And they might well go home and complete their shopping experience online or they may convert in the store. It really doesn’t matter, but the store, the multichannel experience and the people that we employ, the colleagues that we employ to deal with customers are where we add value.”

Jeremy Fennell, MD, Dixons Carphone

Really, this kind of philosophy isn’t new – in fact, it can be boiled down to three words - It just works”.

In the tech industry, those ‘three little words’ make the world turn.

Watch the first 30 seconds of this beta launch video from 2008.  In it, a founder and CEO introduces a brand new company called Dropbox, a new way to store and share files online (imagine that!).

Within the first 10 seconds, there it is - “it just works”.  You’ve probably heard Steve Jobs say it as well. It points to a simplicity and effortlessness when it comes to the customer experience.

We’re entering an age of ultra-convenience in retail. Consumers are telling retailers that they want the easiest journey possible. Amazon Prime, free ASOS returns and one hour delivery are evidence of that. 

But making it easy for a consumer is increasingly difficult to achieve in a world where we all now switch at will between the physical and digital. How many businesses focus on making that process effortless, as opposed to squeezing more revenue out of the consumer?

That’s why John Lewis’ experimental sofa project is so exciting. 

It blends the physical - in this case mini models of sofas that customers can touch and feel and get a true understanding of the dimensions of - with the digital, where customers can see how a sofa would look with different fabrics, getting a better idea of how it will fit in their house. 

Yes, lots of “cool” technologies were used to make it happen - but that’s broadly irrelevant when it comes to you and I the shopper. What really stood out for me is that the team at John Lewis worked hard to “hide the technology” and focus on the customer experience. John told me the revenue uplift was around 50% for those sofa shapes.

So, back to the future of retail. As we look ahead to a world where the like of Internet enabled devices will increasingly enter our homes and virtual reality becomes mainstream, the winners will be those that focus on hiding the technology and enhancing the customer experience.

Those businesses that don't, will find themselves gradually being ignored by the only person that matters, the customer.

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