![]() ![]() Target heavily promoted free shipping and free returns, as well as offering enhanced free shipping and return options to RedCard (their store credit card) holders. Amazon began not even requiring customers to return some items, and simply issued refunds, instructing customers to keep the item. And the number one source of customer frustration? Having to pay to ship a return.īig box retailers like Amazon, Walmart, and Target recognized this and responded. Most were understanding of product shortages, but if a website or app was difficult to navigate, customers simply went elsewhere. Interestingly, customer tolerance varied by problem. They are calling the shots, and they will not relinquish that.” They can browse anywhere and buy anywhere. They are no longer handcuffed to the mall near their home. In fact, as Mark Cohen, director of retail studies at Columbia Business School shared, “Today's customer is in charge. Small businesses and restaurants seemed to be mostly insulated from these customer frustrations, but eCommerce retailers, mass merchandisers, department stores, and big box retailers found that customers were 35% less loyal after experiencing a problem. Unfortunately, customers did not rise to the occasion. Lack of Customer LoyaltyĪt a time when many retailers were struggling, some retail executives anticipated a grace period where customers would be more tolerant as brands tried to adjust to the pandemic’s impacts. Let’s break down each of these strategies to see how big box stores are responding to the pandemic and winning. Devoted additional resources to enhancing their digital or omnichannel experiences, like updates to mobile apps so that customers could check in for Curbside, or increased AI-driven product recommendations to guide customers to make additional purchases.Pivoted retail locations to become fulfillment centers, or reduced floor displays to make more warehouse room to fulfill orders. ![]() Quickly offered a variety of fulfillment options, from Curbside to BOPIS to same-day or next-day (or faster) delivery.Recognized that customer loyalty was upended by the pandemic, with customers purchasing wherever they could, whenever products were available, rather than relying on their go-to retailers. ![]() While each big box retailer had some unique approaches, there are clear overarching themes in their strategies. Yet their pandemic adjustments make useful case studies from which other brands can learn and take strategic cues. Most of us can’t compete with retail giants like Amazon, Walmart, and Target. ![]() This data paints a clear picture: while some retailers are still struggling to adapt and recover, others pivoted early on and have experienced significant growth in revenue thanks to their innovative responses to COVID-19. While things have come down, many shoppers remain committed to their new digital habits, with online penetration remaining at a steady 48%.
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