Does retail need to get back to measuring and rewarding associates?
Through a special arrangement, presented here for discussion is a summary of a current article from the IMS (Integrated Marketing Solutions) blog.
Consumers are no longer driven to go to stores to conduct research or save money — they can do both online, often more efficiently. Omnichannel shoppers head to stores for the "experience." They want to see, feel and touch the products. Most importantly, they want assistance.
Highly informed omnichannel shoppers who have researched online, have new expectations for associates when they visit stores:
- They expect personal, courteous service;
- They expect associates to be able to demo or help them try products out;
- If products can't be demoed in store, they expect associates to provide resources for where to see more;
- They expect associates to consult on what is best for their lifestyle;
- They expect to be able to talk to someone if they have a problem.
Yet finding a quality associate has become harder as labor has been treated more as an "expense." Many stores still retain the big box model of paying labor on the lowest hourly wage possible, often part-time minimum hourly wages, with the premise of being able to compete on lowest price.
Moreover, with the shift to hourly pay, many stores simply do not measure individual associate performance or identify peak performers.
To survive in an omnichannel world where consumers place a premium on their experience, stores must address five critical success factors:
- Identify, quantify and hire talent that can deliver a personal consumer experience.
- Find metrics to measure individual performance that matters to consumers. Consumer satisfaction surveys and mystery shops are among the ways stores can measure the critical associate behaviors and experiences that consumers value.
- Implement metrics that measure individual value to the retail store. Measure sales by employee; not just total products sold, but sales by hour as well as basket size.
- Reward and recognize individuals. If not bonuses or commission, retailers must start recognizing peak sales producers, as well as the best performers for consumer service and experience.
- People tend to do what is inspected, more than what is expected. The corollary is that what gets measured can be managed. Associate performance needs to be made visible on scorecards for store managers, who are ultimately accountable for both consumer experience and the resulting sales.
Future success in retail stores will require measuring and rewarding individual associates for sales and service performance.