There is constant pressure on retailers to innovate and get ahead of their competition. But in their pursuit of innovation, they may be overlooking the value of the basics. Of course, the problem with ‘basics’ is that the word is usually preceded by ‘going back to’, and no company wants to be seen to be going backwards.
However, I think some retailers might be falling foul of complexity bias. This is where people start to believe that a more complex approach is more sophisticated, or more innovative, and it makes it difficult for them to embrace simplicity. The beauty of simplicity is that it can give clarity of purpose, improve decision making, enhance efficiency and productivity, improve customer satisfaction, and provide a clear brand differentiation. I’m sure these are some of the most important principles of successful retailing.
Having worked in retail and technology my whole career, you might think that it’s strange that I’m building a case against innovation, which of course I’m not. I’m a big fan of innovation, after all it is the key to unlocking the future: it requires us to think differently, challenge current convention, and relentlessly pursue progress. But I don’t think that retailers need rocket science either. They don’t need to fly to the moon to be successful, they just need to be able to satisfy the needs of their customers.
“Retailers need to be like chameleons: adaptable, flexible, and able to change their colours to fit their surroundings. They need to keep up with the latest trends, and share customer preferences, while still maintaining their own unique identity. They should provide excellent service, treating their customers like VIPs, always willing to go that extra mile. And most importantly they need a positive attitude for what they do.”
The above is the answer ChatGPT gave me when I asked, “What do retailers need to do to be successful?”. It’s not wrong, but it is just a synopsis. There is no detail, a statement of intent rather than actionable insight. But when you break it down, the fundamental things retailers need to get right are the same now, as they have always been.
- They need to buy and promote the products that their customers want to buy.
- These products must be priced appropriately to their customer’s budget.
- Customers need to be able to make purchases, where and when they want.
- Stock inventory must be appropriately sized and managed to ensure that each time a customer wants to buy a product, it’s available.
Yes, there are more sales channels available today than ever before. And there are increased customer touchpoints across both the supply chain, and the fulfilment processes. But the good news is that the technology to not only support, but enhance the customer experience is readily available. With this in mind, it is surprising how many retailers still don’t seem to be able to effectively manage their inventory. Customers are let down, the experience is ruined, and loyalty is lost, sometimes forever.
When I talk about getting back to basics, this is what I mean. Get the things that make the biggest difference right, before embarking on something you think will be great, but in actual fact doesn’t really add business value. It doesn’t matter how immersive the shopping experience is, if the customer can’t make a purchase then it’s all irrelevant.
So, don’t see ‘getting back to basics’ as reverse momentum, it’s not. When retailers get the fundamentals right, customers respond positively, sales are made, and long standing and positive relationships are forged.