Retail success is dependent on understanding and meeting the needs of shoppers. But what happens when your customers unexpectedly shift their behaviors and years of data goes out the window?
COVID-19 has upended customer preferences and behaviors, and these new habits will likely continue after the pandemic ends. The AWS Retail team has been working closely with retailers to reimagine and reinvent their customers’ journeys to adapt to constantly evolving behaviors and needs. Being able to rapidly “sense and respond” to changing shopper behaviors and needs has helped our customers adjust their store and digital execution efforts more efficiently and profitably as they deal with the crisis.
Some behavioral shifts have been broad strokes or even mandated, making them easy to identify and address. For example, establishing social distancing measures and offering contactless experiences for in-store shoppers, or expanding digital and mobile shopping options to include in-store or curbside pickup for online shoppers. We’ve also identified shoppers that have made more nuanced behavioral shifts, three of which we will profile in this article: the risk averse shopper, the retail butterfly and the basic bargain hunter.
The Risk-Averse Shopper
Before the pandemic, this shopper preferred to shop in-store because it was a familiar and trusted experience. Now this shopper has either moved online or wants some reassurance that returning to the store is safe. They want to understand safety protocols, special hours for the at-risk community and whether the items they want are in stock before venturing out.
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To put the risk-averse shopper’s mind at ease, many retailers have had to find ways to handle this influx of inquiries from customers. Grocers, like Morrisons in the UK, used Amazon Connect to immediately respond to the challenges of the pandemic. Amazon Connect’s integration with Salesforce enabled Morrisons to gain insights about why customers were calling in and used automated messages to help them. Messaging was updated almost every day to keep customers informed at every step.
The agility of Amazon Connect also enabled Morrisons to quickly deploy a new service providing doorstep deliveries for people more vulnerable to COVID-19. Self-isolating customers without access to the internet or a Morrisons.com account could call through Amazon Connect to order groceries over the phone — no account or internet needed.
The Retail Butterfly
This shopper has grown accustomed to personalized shopping experiences with their favorite retailers. They prefer retailers that offer unique loyalty programs or perks, such as early access to deals or product launches, and personal shoppers that understand their unique style preferences. However, the pandemic is testing their loyalty, transforming them from a loyal customer to a retail butterfly. If a retailer is no longer able to cater to their needs, which now extend beyond the typical retail experience, they are willing to move on to a retailer that can.
To regain their loyalty, there are several ways retailers can engage with the retail butterfly in this new environment — from adding a personal touch to new services to offering new ways to engage and excite. For example, Nike came up with a way to address their shoppers’ needs during the pandemic while providing a unique, on-brand experience. When shoppers who use Nike’s buy online, pick up in-store (BOPIS) service arrive to pick up their items, they now scan their digital ID in the Nike app to open a locker with their order inside, limiting contact while reinforcing the Nike experience.
Retailers can also work to recreate the human touch of a retail experience online. One way to stay connected with customers is to turn in-store personal shoppers into digital stylists. By creating remote selling capabilities, retailers can empower store associates to interact with their clients — anytime, anywhere — through touch points such as digital look books personalized for each shopper’s unique style and taste. This enables the retailer to maintain the personal relationships and brand loyalty that were created in the store.
The Basic Bargain Hunter
High unemployment rates and economic uncertainty have increased the number of frugal shoppers looking to save more and spend less. They are making financial decisions based on less or lost income, and have become very selective with how and where they spend their money, prioritizing essentials and seeking out the best deals.
Retailers that sell the “basics” — such as food, gas and medication — have the product and inventory to attract these shoppers, along with the opportunity to keep them coming back if they’re able to offer meaningful cost-saving benefits. For this customer, retailers should use artificial intelligence and machine learning to generate counterintuitive and previously unseen insights that enable them to create personalized deals and offers. For example, AWS works with Parkland, a leading fuel and convenience store operator that completes over one million transactions every day. Based on valuable insights into evolving needs and preferences, the company is able to provide its customers with enhanced services, products and personalized offers, giving them the items they need at the price they want.
As shoppers’ behaviors unexpectedly shift due to the pandemic, so do their expectations for every place they shop, be it a big box retail chain or convenience store, specialty shop or local grocer. As their customers evolve, it is imperative that retailers keep pace. The cloud has been and will continue to be a strategic investment that enables retailers to innovate through volatility, making it possible to quickly identify changing needs and implement solutions that previously would have taken months of planning and testing. Plus, experience gained now can help protect retailers with future unexpected events and disruptions in the future.
Tom Litchford is Head of Worldwide Retail at AWS. He leads AWS‘s industry strategy and guides the leadership team for marketing and sales enablement, channel development, and the solution offerings required to address customers’ business needs. Litchford’s 35 years of experience in systems engineering, sales, product management and marketing of technology business solutions for the retail and hospitality industries has included leadership positions at NCR Corporation and Microsoft. Prior to joining AWS in 2017, Litchford served as VP of Retail Technologies at the National Retail Federation, where he oversaw the organization’s cybersecurity program, the Association for Retail Technology Standards (ARTS) programs and its technology communities, including the invite-only CIO Council, Women in Retail IT, IT Security Council and the Tech Council.
