Retail Customer Experience: The 5 Biggest Retail Customer Experience Stories of 2009
Through a special arrangement, presented here for discussion is a summary of a current article from Retail Customer Experience, a daily news portal devoted to helping retailers differentiate the shopping experience.
If there was anybody more nervous than shoppers this year, it was retailers. The industry had just gone through a devastating holiday season -- "we've all just lived through it," said outgoing Walmart CEO H. Lee Scott, Jr. at the 2009 NRF show -- and found itself staring down the new year with fear and trembling.
But the recession officially ended, and bit by bit, consumers started feeling good about spending again -- especially online. Customer relationships with the brands they buy changed in 2009, and the coming months will demonstrate whether or not those relationships will change back or are fixed in new patterns for good.
Here are a few of the notable stories that caught our attention in 2009:
1. An emphasis on "value"
Walmart made a major shift in its marketing focus in 2009 -- and the buzzword became "value." Television ads touted the company's Great Value line of foods, telling the story of how parents could feed their families for $2 per meal. Part of the "Save Money, Live Better" campaign also included a branded web site with videos, free classified ads and a message board where shoppers swap tips on stretching paychecks.
2. Private label brands take center stage
One of the biggest beneficiaries of both the recession and the resulting push for value has been the private label brand. Historically, sales of private label products go up during a recession, then back down to normal levels once happy days are here again. This time, however, looks to be different.
3. The shadow of Apple
Computing giant Apple was all over the news this year. Its branded stores continue to be talked about virtually any time the phrase "great customer experience" is mentioned. They also weighed heavily on the minds of people contemplating the first branded Microsoft store, which opened in November.
4. Online price war creates the need for better experiences
Things started to get ugly in November between two of retail's biggest names, Amazon and Walmart. A back-and-forth discounting war started with hardcover books and DVDs, but quickly spread to other products throughout the store. In 2010, retailers will be forced to face the reality that if you can't compete strictly on price, you have to differentiate on the experience, and give your customers a reason to pay you more than your competitors for the same goods.
5. Retailers grapple with social media, mobile
That giant whooshing sound you may have heard earlier this year was probably the vacuum created by retailers rushing to figure out what to do with social media. Facebook pages were created, tweets were tweeted, and an awful lot of exploration was done to try to make sense of this incredible new set of media that is equal parts exciting and terrifying.
Discussion Questions: What do think were the biggest events or trends at retail in 2009? Of the stories mentioned in the article, which ones will have the most lasting impact on retail?