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Amazon v. Traditional Retailers — Can The Latter Maintain Customer Expectations?

By Mayur Anadkat, Five9

It’s no secret that retail customer service has changed because now consumers want a shopping experience that’s quick, convenient and affordable. That’s why e-Commerce giants with excellent service features have become so popular. After all, who doesn’t like purchasing a product with one click and having it delivered two days later? Major e-Commerce retailers like Amazon have utterly transformed the retail customer service landscape, offering above-and-beyond service and sparking a new kind of instant gratification.

But where does that leave traditional brick-and-mortar retailers, like Kohl’s and Macy’s? Sure, these brands have an online presence but e-Commerce is not their bread and butter, and they most certainly weren’t born in the dot-com era. Most of these department stores are tired and worn out, which often prevents consumers from walking through their doors when they have the option to shop online. In 2015, U.S. retailers experienced the weakest sales year since 2009. Meanwhile, this year’s Amazon Prime Day saw booming profits.

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In the modern age of customer service, online retailers — especially fan favorites like Amazon and Zappos — are luring business away from traditional brick-and-mortar retailers. Why? Because consumers care about the experience — they want their shopping trips (whether online or in-person) to be quick and seamless.

There is also a mobile-first aspect to this shift in customer service. The online shopping experience is something that customers have at their fingertips, and can access on their own time. E-Commerce brands have demonstrated their understanding of “always on” in terms of adapting to customers’ mobile expectations.

And as consumer expectations continue to evolve, it will take more than an online shop for brick-and-mortar retailers to compete with gigantic e-Commerce companies. But what will it take to keep up? Traditional retailers need to revamp their customer service operations to keep their customers both physically in-store and online.

Here are a couple of ways that retailers can jump-start their customer service strategies:

  • Support customer service through all channels: Whether via Twitter, phone call or online chat, today’s consumers want the ability to reach a company anywhere, anytime. It’s important for retailers to accommodate customer service interactions through all types of channels because not everyone will reach out in the same way.
  • Adopt new technologies: Retailers need the right technology to support customers through all channels. Although things like email and chat seem the most common, modern technologies like video and virtual assistants are emerging, providing consumers with that “wow” experience and the tools that retailers need to help resolve service issues quickly and efficiently.

Above all, traditional retailers must integrate the channels and technologies that will provide their customers with a great overall experience. In today’s retail landscape, consumers are demanding higher standards of customer service. It’s up to traditional retailers to make their customers happy in order to keep up with the Amazons of the world.


Mayur Anadkat is the Vice President of Product Marketing at Five9. He has 15+ years of experience in the contact center industry, working in a variety of strategic marketing roles. Prior to Five9, Anadkat has worked at Genesys, Avaya, Hyperion and Visa. He has a MBA from Santa Clara University.

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