The future of self-service in stores is dire

Through a special arrangement, what follows is a summary of an article from Retail Paradox, RSR Research’s weekly analysis on emerging issues facing retailers, presented here for discussion.

For shoppers, self-service has historically been perceived as better than waiting around for an employee to show up — and certainly better than waiting for an uninformed, untrained associate who doesn’t know what they’re doing.

As consumers turn to their own technology (smartphones) to gain access to whatever self-service information they need, they are increasingly asking themselves why they bothered to come to the store in the first place.

A lot of retailers appear to be embracing the old perspective that consumers want more self-service. And yet that perspective is getting dated. If I can get the same experience (or better) from my laptop at home, or even from my phone in the parking lot, why do I need to go to the store at all? In essence, self-service, in the sense of forcing the consumer to do all the work themselves, has no future.

I see a new bar for store experience manifesting into two main areas in 2016:

Differentiated self-service. If retailers are going to offer self-service, it will need to be an experience that goes beyond what a consumer can get for themselves with their mobile phone. Interaction with larger screens and with physical products in digital spaces — almost as if the consumer’s mobile phone is a remote control — will be the kinds of “differentiated” self-service we’ll start to see.

Moreover, as online content reaches parity with store content, the store experience will need to compensate by providing information that you can’t get easily by shopping strictly online.

Employee services needs to be more differentiated. Employees are the one thing online clearly does not have. If a retailer has high turnover, low motivation, no-training employees, it’s a pretty sure bet they are adding little to the customer experience that a shopper can’t already do for herself — thanks to her mobile phone.

The trend toward assisted selling and clienteling seen at high-end stores may reach pretty far down into general merchandise, especially if a company like Walmart is feeling the pinch.

BrainTrust

"If retailers want customers to visit stores, they need to make the in-store experience superior to the online experience. Otherwise, why shop in-store?"

Max Goldberg

President, Max Goldberg & Associates


"Retailers have been drawn to self-service for one particular purpose — to reduce payroll. Unfortunately, this practice further erodes the reason that brick-and-mortar even exists."

Adrian Weidmann

Managing Director, StoreStream Metrics, LLC


"Self-service as we have known it is not going to work much longer. Retailers can improve the self-service experience, but a major effort has to be put into proper empowerment of those few store associates who would be left to actually help a customer in need."

Bob Amster

Principal, Retail Technology Group


Discussion Questions

DISCUSSION QUESTIONS: Do you agree that self-service as currently configured in stores is failing shoppers? How might stores with self-service orientation be reimagined to appeal to digitally-attuned consumers?

Poll

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Max Goldberg
Max Goldberg
8 years ago

Retailers are failing shoppers and shareholders by not offering better customer service. Better customer service starts with investing in employees: training, wages, benefits and better management. If retailers want customers to visit stores, they need to make the in-store experience superior to the online experience. Otherwise, why shop in-store?

Steve Montgomery
Steve Montgomery
8 years ago

The consumer attitude regarding the self-service model depends on a lot of factors. One of which is what you are shopping for. For example, most customers in a club store, supermarket, home improvement store, etc., accept and expect self-service to be the rule.

The issue comes when they need assistance whether it be to buy a more expensive item, one that they are unfamiliar with or one they simply can’t find. Then the issue is, can I find someone who actually has the knowledge to help me? Whether that is simply to find someone to provide directions or someone who actually has product knowledge. Then the lack of customer service becomes an issue and the model breaks down.

Is the current customer service model failing? Based on all the complaints I hear and my own personal experience, the answer is yes. Will technology fix it? Tech can help but it still will take friendly, knowledgeable people to be there when needed.

Dr. Stephen Needel
Dr. Stephen Needel
8 years ago

No, I don’t agree (sorry Nicki). I might look at coffee makers online to understand features and ratings, but I go to Walmart or Bed Bath & Beyond to see if I really like the look of it, if it is easy to take apart to clean, etc. Same for electronics — I want to see the product before I spend big bucks. I’m still happy with self-service. I don’t go to the stores for an experience and I’m still skeptical that many people do. They go to buy something or to look at something they may want to buy. The experience is much less important to most people than we make it out to be, IMHO.

Gordon Arnold
Gordon Arnold
8 years ago

One or two peak-hour observations of self checkout through a security camera with sound will demonstrate quite clearly what people are saying and feeling about the retailer’s service. Aside from learning a few vulgar vernacular expressions the general consensus will demonstrate the need for additional trained associates. The search for customer service still leads to continence in the land of illusion for the majority of shoppers.

Adrian Weidmann
Adrian Weidmann
8 years ago

Retailers have been drawn to self-service for one particular purpose — to reduce payroll. It’s the one line-item on the CFO’s spreadsheet that, when reduced, can affect the balance sheet with the greatest impact. Unfortunately, this practice further erodes the reason that brick-and-mortar even exists. Assisted selling and clienteling has to be integrated into the self-service experience for the digitally-empowered shopper.

The ubiquitous mobile device will play an integral part of a valued experience. I recently visited the Lowe’s store in Manhattan and observed shoppers and the various digital media touchpoints Lowe’s have in play. Of particular interest was the OneShop appliance interactive screen. There were two sales associates chatting at the appliance service desk adjacent to the screen. One was kind enough to show me how to navigate the screen after which she returned to her personal chat with her colleague. Given the location and the afternoon sun glare, I could barely view the display.

The interactive display was a very nice tactical implementation in desperate search of a strategy. I left unfulfilled. The experience could have been much more rewarding had the sales associate taken the opportunity to work with me and guide me through the shopping journey. Instead, the technology was left to replace human interaction — a lost opportunity to leverage the value of the personal in-store visit. Lowe’s might as well just have a room with kiosks with a delivery service. It would be cheaper and much more valuable to the shopper.

Ralph Jacobson
Ralph Jacobson
8 years ago

There are examples of self-service operators that are succeeding in their programs. However, as Nikki states, “differentiation” is critical in both self- and full-service environments. Store staff is the best way to drive that differentiation, of course. Now I’m seeing the emergence of robotic self-service stores globally, and if a machine can do something for you, why not let it?

Bob Amster
Bob Amster
8 years ago

Self-service as we have known it is not going to work much longer. Retailers can improve the self-service experience, but not without an investment in things like digital displays that talk about product, interactive displays that enable information, selection and purchase, price-check stations everywhere and maybe self-checkout in the appropriate environments.

A major effort has to be put into proper empowerment of those few store associates who would be left to actually help a customer in need. This can be accomplished through training and through easy, rapid access to information that can render the associates useful to a customer. A new product to improve retail employee productivity being piloted and rolled out is the Communicator from a company called Theatro Labs: a wearable, voice-activated, communications device.

Tony Orlando
Tony Orlando
8 years ago

Self-service, as some have said, is fine for grocery stores and big box stores, where customers can grab stuff they need without needing a store employee to discuss Tide pods. The department stores need to make sure that the employees who are in their stores are top notch in the service they provide, since buying a dress or a suit, including new shoes, still needs a sharp salesperson to help out in the final purchase. Lowe’s and Home Depot have also cut back on employees, and this trend will continue as wages keep climbing.

Consumers are very savvy at finding the best price, as they are armed with tons of high tech gadgets, and many will simply go online and order it to be shipped to their homes.
There will always be a need for superior customer interaction in high-end jewelry stores, art galleries, white tablecloth restaurants and big-ticket items, but self-service is here to stay for the weekly items we need, as excess labor will kill the bottom line in stores. Service delis and meat cases also need sharp employees to engage the customers in cooking tips, along with suggestive selling to make the consumers’ home party a success.
Bottom line as I have said many times: There is no excuse for lousy service at any level, and the ones that do it the best will win every time.

Jonathan Spooner
Jonathan Spooner
8 years ago

Self-service is different than the ability to self-sell.

Self-service always feels like the shopper is getting the “short end of the deal.” If it costs a retailer $15 an hour to have a cashier ring me out then why don’t I get a discount or incentive for doing that work myself? The “time savings” just isn’t that valuable. Similarly the Costcos and Sam’s Clubs remove a layer of customer service by having items on warehouse shelves but they pass some of that labor cost savings on to the customer.

Self-selling is different that self-service in that the shopper is left to discover products and information on their own. But any task they might need help with can be fulfilled by a store associate. A self-selling customer might spend a good deal of time comparing items on a mobile or situated interface (such as a kiosk). But once they select an item to buy they can rely on the store associates to fulfill and transact.

Ian Percy
Ian Percy
8 years ago

We seem to be approaching life itself as a commodity.

Ads for car rentals brag that you don’t need to talk to anyone. You can shop without a single engagement, like the last shopper left on earth. I swear executives would write a love letter in bullet points with a computerized signature. And on and on. It’s all getting rather sad.

Has anyone else felt uplifted because of the attitude and spirit of a restaurant waitress? How about someone in a food store who shows you something to try you’ve not heard of before? A car wash guy who seemed to care for your car as though it were his own?

Shopping, and everything else, is part of LIFE, engage in it. It can really be quite wonderful if you try.

Brian Kelly
Brian Kelly
8 years ago

Self-service stores failing? It depends. Consumer mindset (shopper modality) and category are key to the relevance of self-service.

I think this is linked to the much heralded return of in-store “experience.” (As if it ever went away.)

It really doesn’t much matter if you are running in for diapers or buying a laundry pair. The success of “getting in and out” depends on the goal of the trip, or “run” as Target puts it. Retail ambiguity

Or as we like to say, “retail ain’t for sissies!”

Ross Ely
Ross Ely
8 years ago

Self-service checkout stations have met with mixed success at grocery retail. Some retailers are using them effectively to reduce lines and waiting periods, while others such as Albertsons have installed and then removed them in favor of human interaction in the checkout line.

It’s clear that well-educated, friendly employees can be a differentiator for retailers and enhance the in-store experience. Employees can provide food recommendations and answer questions better than an e-commerce system. At the same time, an efficient, easy-to-use self-checkout system can also be an element of a positive in-store experience.

Li McClelland
Li McClelland
8 years ago

There is self-service in the checkout — and self-service at the shelves. These are two wholly different “experiences” that must be approached/analyzed separately by retailers because they involve their customers in totally different ways.

Shep Hyken
Shep Hyken
8 years ago

The retailer may be confused about what self-service is. If you go to the supermarket, a self-service checkout is an option that a customer (who is comfortable using the system) can use to save time by avoiding longer lines at the traditional checkout lanes. The key is that the customer feels comfortable using the system. Yet it’s more than just a faster checkout experience.

If there are other ways of incorporating self-service in the retail experience, the customer must first see the value and then be able to navigate the system. That value can be similar to the checkout experience, in that the customer saves time. Maybe s/he can see more options, know if the item is in stock and much more.

I’ve written about this before. The airlines did a magnificent job of converting many of their customers to use the self-service option of purchasing tickets online and then checking in online. They trained the customer to use the system by offering incentives in the form of extra miles or a small discount to use the computer versus a reservations agent.

That said, if the airline customer has a problem or a question, there has to be a human backup. It’s no different in the store. The store must have sales people helping customers. There aren’t many stores that can work around that. Yet by providing some options for self-service, the store may be able to staff fewer people. The store needs to find the balance, just as the airlines have.

Ken Morris
Ken Morris
8 years ago

I agree that customers are frustrated with the current self-service configuration in-store and on the web. Self service has resulted in poor service until now. I believe the store associate of the future is the customer’s smartphone re-imagined as a tool to aid both the customer and retailer. As we move to a unified commerce and real-time retail environment in the store we will be able to reinvent the shopping experience to seamlessly merge the online and offline experience. That experience will be able to harmonize the in-store five senses of touch, sound, sight, smell and taste with a portfolio of online tools that complements and extends the brand. Being able to understand who the customer is, their purchase history and the real-time picture of the retailer’s supply chain and access to their chain-wide store associate expertise (perhaps using FaceTime) to talk to a person and not just the flat chat function typically offered today online. The guided selling model will revolutionize retail as we know it over the next five years and we need to sell to our children and not our parents.

Vahe Katros
Vahe Katros
8 years ago

Retailers should leverage their geographic know-how. That translates into learning from your unique shopper base and turning that into item level information that hopefully conveys usage tips or the unknown-unknowns that relate to installation or ownership issues that are unique to the people and places that relate to the store’s local audience. The value increases with high-involvement items especially products that can be called platforms. Learning how to capture stories and turn them into media will be a competency that will help improve the customer intervention. A smile helps too.

Herb Sorensen, Ph.D.
Herb Sorensen, Ph.D.
8 years ago

There is really nothing wrong with the self-service concept, and in general, calls for more service are VERY wide of the mark. The problem is that retailers do not design their stores for the convenience of the shoppers, but rather for their own convenience. And why not? Their staff spends a great deal more time themselves in the store than ANY shopper does.

But then, in most cases, they get more bottom-line profit from their suppliers than they do from the shoppers anyway. Ever heard about the plan to put milk in the back corner of the store, in hopes of selling the shopper something more on the trip back there? Balderdash!

Milk is put in the back of the store because it is heavy, delivered several times a week, and that’s the most convenient place for the refrigerated cases and associated refrigerated storage to serve them conveniently stock the displays from the back. Convenient for whom? That’s right, the store.

In fact, I’ve heard any number of supposed shopper geniuses explaining how to get shoppers to go where they don’t want to go, and to spend more time there than they want to. Need more service in a self-service store? You have got to be kidding!

Richard J. George, Ph.D.
Richard J. George, Ph.D.
8 years ago

Self-service has been the hallmark of supermarkets. In fact, the Smithsonian Institute declared King Kullen’s, which opened in 1930 in Queens, as “America’s First Supermarket.” Michael Cullen, who worked for Kroger at the time, used his work experience, observations, and insight in the grocery business pioneer the idea for mass merchandising — selling high volume at low profit margins. Having said this, there is much that supermarkets could do today to enhance their service.

From a technology point of view, iBeacons are an outstanding tool to connect with the customer in the aisles while shopping in the supermarket. This technology, in conjunction with smartphones, allows customers to bring their own screens (BYOS) into the shopping environment, capturing more insight and personalization than merely roaming the aisles in search of products. Likewise, in all those parts of the shopping experience in which a customer is asked to queue or take a number, technology can enhance the shopping experience.

In addition, as noted in the article, bricks and mortar retailers offer something online does not have, namely, an associate face to face with the customer in the store, who can act as a store ambassador and shopper consultant. However, most supermarkets missed the opportunity to do this when they introduced self-checkout lanes. Instead of taking some of the front end labor and re-training and re-deploying to other parts of the store, center of store (COS) for example, they reduced labor (and costs) by the savings generated via self-checkout. Can you imagine the impact on the customer and shopping experience, if someone was stationed in the COS to help customers with decision-making, e.g., best brand, best way to prepare, best value, etc.? Similarly, how about a trained associate on the outside of the meat department, not behind the sliding glass, who helps customers select the best type of meat, preparation, serving suggestions, etc. for a special occasion dinner?

It’s not that Michael Cullen was wrong. It’s that stores have not taken full advantage of technology to match the inroads of the online providers. In addition, the one real advantage, vis a vis online, is the presence of employees who need to be retrained and redeployed to make for a more delightful shopping experience.

Larry Negrich
Larry Negrich
8 years ago

Most retailers don’t really seem to have found a way to offer a satisfying self-service experience. The experience has to be information/service delivered via the phone (promote the info which can be accessed via the phone, but don’t make them interact with any other device) that enhances the physical visit to the store.

Retailers need to invest in creating the experience taking into account customer, product, goal. Surely a good retailer can create an experience with a combination of Phone + physical product + store experience + immediacy + some level of personal service – travel time, disappointment factor of not finding product/size/color/etc., to add up to something better than the online experience alone.

Tina Lahti
Tina Lahti
8 years ago

It’s interesting that we’re discussing the state of self-service in retail stores when digital providers of goods are becoming more full service by including super-fast delivery, easy billing, excellent return and exchange programs, etc. This is something that small local retailers may be able to leverage more quickly than large national chains, perhaps in conjunction with delivery specific start-ups.

William Hogben
William Hogben
8 years ago

Actually the author has it backwards — the proliferation of mobile won’t kill self service, it will save it!

Full disclosure: my company has developed and deployed mobile self service apps in grocery stores, so I am knowledgable on this topic.

To start, let’s define Mobile Self Service apps: Customers download a retailer’s app from the App Store, on their own phones. Then they use the app like a self checkout kiosk — scanning their items with the camera and paying on the phone.

There are the obvious advantages over kiosks. For the retailer the hardware costs are eliminated entirely, and additional front end space is freed up for merchandising. For the shopper they get to interact with their phone, a very personal device, rather than a shared and typically grubby kiosk.

Then there are the less obvious benefits. Having an app on a customer’s phone opens an ongoing conversation with that customer. They can get notified when store specials change. They can build shopping lists and receive personalized offers. Most importantly of all, they can receive relevant promotions in the store, while they’re scanning items.

The future for self service is far from bleak — sure, kiosks are out, but they were always a transitional technology. Mobile self service provides all the operational savings of kiosks while delivering the convenience and personalization shoppers have come to expect from eCommerce.

Tom Redd
Tom Redd
8 years ago

From my history in the development of self-service, we found that the only real value point with self service was addressing lines. Thus we created self-serve check in terminals and gas station pumps. In stores, even more important then self-service is floor service. Floor service ranges from simply helping people find merchandise to advising them on their purchase. Self serve cannot do these things.

Self-serve checkout at Kroger and Walmart are great examples of successes in-store self service. Redbox extends the airline check in approach (avoid video line/get value item fast).

Sorry Nicky, I just know this space well due to age and watching it live in stores. It is not time yet. The time calls for more floor talent, like Costco’s TV department experts … lots of them and loaded with TV knowledge.

richard freund
richard freund
8 years ago

I have returned to shopping in brick & mortar locations for many reasons. One of them is great customer service and product knowledge.

Joan Treistman
Joan Treistman
8 years ago

It seems to me that the self-service initiatives are based on leveraging technology rather than using technology to improve the customer experience.

As presented in the article, self-service is a substitute for online transactions, but with the added cost of gas, time and looking for a parking space. With an emphasis on improving the customer experience self-service has an opportunity to empower shoppers, facilitate transactions and create customer satisfaction.

Karen S. Herman
Karen S. Herman
8 years ago

For digital savvy shoppers, interactive displays and kiosks in-store are an excellent way to connect with their favorite brands and get coupons, use reward programs, find healthy recipes, etc. Having this access to technology facilitates the shopping experience and helps to save money and time. Today, shoppers are looking for this convenience.

The benefit for retailers is that most have already invested in a website and many, mobile marketing, so their digital assets already exist and can be used in these new digital solutions.

Steve Johnson
Steve Johnson
8 years ago

It depends. Supermarket systems are pretty well developed, but could do lots more. For example, for allergy sufferers. When you scan a product it immediately tells you.

My own business is personalisation software for fashion retail. We turn store assistants into highly trained personal shoppers. This is where customers do need help as simply finding what looks great on you is a challenge. 40% online clothing returns highlights this challenge.

I don’t agree shoppers want experiences at store. They want great customer service. In terms of convenience, efficiency and added value. All delivered simply. To achieve this, retailers need to invest in technology that helps store staff serve the customer.

Better understanding who their customer is, is the starting point. Collecting and using the right data is key, as is the user experience of applications that support the customer (and staff member) journeys.

Kay Seljeseth
Kay Seljeseth
7 years ago

Yes, I agree. The customer experience is not acknowledged and the service provided is less than optimal. One solution is to combine the self-service feeling that customers prefer with staff presence in the checkout area.

I believe new checkout methods can improve the shopping experience, as they’re faster, the cashier is present and they can also easily support mobile payments, the use of coupons, restricted item sales and the features we are used to from the manned checkouts.