The retail industry is in the midst of an evolution in the way it does business. Thanks to connected technology, consumers’ expectations on the retail experience have changed. As a result, it’s important that merchants refocus their efforts on enhancing the customer experience to achieve retention and maintain loyalty.
In Austin-based Square Root’s latest study with Forrester Consulting, Close The Gap Between High- and Low-Performing Stores: Management and Measurement of Brick-and-Mortar Retail Locations, retail store performance issues that affect customer experience and loyalty were identified. Upon surveying more than 100 retail operations leaders across 250 store locations, the study revealed barriers blocking growth and the key performance indicators being used for measurement.
When it comes to improving brick-and-mortar locations with poor performance, the biggest barrier identified was implementing change in the stores themselves. Additionally, it was found that 33 percent of retail executives said identifying operational issues is a barrier to successful locations, and 30 percent cited store execution management systems.
One finding that may be key to understanding why brick-and-mortar locations aren’t doing well is that brands haven’t yet figured out how to both understand and measure how the customer experience affects financial performance. It also found that many retailers are still using legacy technology and haven’t yet integrated the latest technology to help meet the needs of today’s consumer.
Square Root CEO Chris Taylor commented on the retail landscape and what’s needed to improve brick-and-mortar success down the line. “Retail is vastly different than it was 10 years ago, yet the tools and techniques used to identify store performance gaps haven’t changed. In an industry that demands agility, SRM technology is now key for pinpointing areas of improvement, more quickly diagnosing problems, collaborating on improvement plans and empowering teams to make informed decisions.”