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How Customer Experience & Expectations are Changing in Retail & Hospitality

How Customer Experience & Expectations are Changing in Retail & Hospitality

Written by

Abbie Dawson


May 8, 2017


Latest research

It’s no news that customer experience in retail and hospitality venues is changing. Technology is evolving, expectations are higher, and businesses are having to work harder in order to ensure they are giving consumers the ‘on-demand’ treatment that people are now so used to.

Advancements in technology and service that were not long ago ‘wowing’ customers have become the norm, therefore it’s taking more for businesses to impress and stand out from the competition.

How can we see this in retail?

Physical stores are constantly having to compete with e-commerce businesses like Amazon. The convenience and ease of online shopping allows us to find a product and complete the purchase within minutes - whether we’re at home or on the go - making it the preferred way to shop by 51% of consumers.

However, physical shopping experiences are still a source of pleasure and social enjoyment for many, and the evolution of bricks-and-mortar spaces has proven that they will still reign as the preferred source of discovery and inspiration for shopping experiences. After all, one area in which e-commerce cannot compete is the level of sensory engagement in retail stores, which, despite developments in personalisation and augmented reality online, will never be emulated there.

Nevertheless, physical venues need to progress their in-store experiences to ensure they are ahead of the game. While many stores are still adapting to technologies and upgrades such as contactless payment and loyalty schemes - basic expectations of modern retail - others are going above and beyond to surpass the desires of consumers.

What about 'concept stores'?

The appeal of the ‘concept store’ is now very apparent, and large brands in particular are beginning to invest more into inspirational and interactive store experiences. The whole idea of this is to offer consumers a way to connect with the brand, experience more of their offering, and become a part of their community.

This concept can be related to expectations in various sectors, as we know that consumers respond very well to fulfilling experiences that elicit an emotional reaction. They want to test, taste, compare and learn - as well as leaving satisfied with a purchase. In turn, this engagement can aid the business by resulting in longer customer dwell-time, increased spend, return visits and recommendations.

And in hospitality?

Adapting to customer expectations is also extremely important across the hospitality industry, as supported by the Harvard Review’s findings that consumers spend 140% more in venues when they’ve had a positive experience. This is why customer experience is highly correlated with loyalty - one area in which bars, restaurants and the like should be investing in.

Using technology, successful businesses are now employing loyalty schemes and targeting consumers at different stages of their journeys - when a booking is made, prior to their visit, once they have left a venue, etc. This not only allows them to build a relationship with the consumer, but also enables them to collect further data for future use, such as personalised advertising and messaging to specific groups and individuals.

Another significant factor of customer experience in venues is the speed and ease of service. The evolution of technologies that make purchasing processes more efficient, such as self-checkouts and mobile payments, demonstrates how the industry is striving towards this more streamlined experience. What’s more, as retail and hospitality businesses now have the means to tackle issues like long queues and poor card machine receptions, the risk of frustrated customers, who aren’t seeing their needs met, is higher.

Having technologies like tablets available can now enable retail and hospitality businesses to make tasks such as taking orders, splitting bills and submitting customer requests much easier, and the findings that consumers welcome these suggest higher expectations. Before long, using tablets mobile technology and the like to streamline customer experiences will become standard, and for businesses with a disconnect to technology, this is bound to impact their bottom line.

At Startle, we understand the importance of delivering a great venue experience. To find out how we can help you, get in touch.

How Customer Experience & Expectations are Changing in Retail & Hospitality

Abbie Dawson

Marketing Executive at Startle. It's my job to manage marketing, making sure to spread the word of Startle to as many brands as possible. When I'm not working, you'll find me vinyl shopping to add to my collection or working out at the gym (usually making enemies with a punching bag).

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