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How prepared are you? Sometimes, the most routine mishaps can snowball during busy periods, taking employees off the sales floor while you scramble to contact insurance providers. This week, we look at why a simple risk management checklist is one of the most important things you can do to safeguard your bottom line. We also examine why “friction,” and the quest to eliminate it, can actually be bad for retail.
But before we get into it, check out how this Costco cashier became a millionaire.
[ FIRST GLANCE ]
[ THE TOP LINE ]
When slower is better: Why frictionless retail isn’t always best
Conventional wisdom says that eliminating “friction” from retail–extra steps, delays or decisions–is better because it makes things easier for the customer. But removing too much from the buying experience can also make it forgettable. Good friction often slows customers down to learn more about a product or consider a new one. It can also protect customers from accidentally deleting something important or highlight the fine print. Trader Joe’s employs friction with its high-touch checkout, ensuring customers leave remembering a positive interaction. Not coincidentally, TJs also scores high for customer experience and sales per square foot.
Why this matters: Take a page from Trader Joe’s book: instead of focusing all your energy on getting customers to the cashier and out the door quickly, take a beat to make them feel good about their purchase. Remember that small delays can pay dividends. (Customer Experience Dive)
The retail risks you don’t see until it’s too late
Retail risk management and preparedness can often take a back seat to generating revenue, but it’s during busy times like peak retail season that routine issues like a slip-and-fall or a winter storm can escalate–and bite into your bottom line. Build preparedness with repeatable habits and clear expectations, including running safety checks during peak hours, making sure aisleways are clear, documenting accidents immediately, reviewing your insurance coverage regularly, planning for weather risks and training staff on procedures. And always loop in your insurer early, even if something doesn’t seem “serious.”
Why this matters: All it takes is a single incident during a busy time to incur legal costs, reputational damage and lost revenue. Smart store layouts, clear employee roles and consistent processes can save you time and money in vulnerable moments. (Retail Customer Experience)
[ POLL ]
Do you have a risk management and preparedness checklist in place?
[ THE LOWDOWN ]
[ THE THINK TANK ]
Reddit to retailers: stop sounding slick, start being real
“We’re seeing tons—I think it’s billions actually—of people appending the word Reddit to their Google search,” Haffner said. “This is a really interesting behavior and it’s risen year over year … I think that’s a signal from the user that they’re looking for human, trustworthy information.”
Reddit, which used to be a fringe chat forum, has become a go-to source for shoppers in research mode, and retailers have taken notice. It’s the reason Haffner says shoppers add “Reddit” to their searches–to find recommendations from real people who have used a product. AI even cites Reddit more than Wikipedia or YouTube for factual information. Retailers advertising here tend to show up within the feed experience, contributing to conversations by answering questions, providing useful information and engaging with humor and transparency.
Why this matters: Reddit’s popularity among consumers is forcing retailer-advertisers to rethink their tone and content. Think and sound like a shopper instead of a brand, and meet customers where they are instead of trying to redirect them elsewhere. (Retail Touchpoints)
[ THE DOWNLOAD ]
Warning label: Why dynamic pricing erodes customer trust, loyalty
AI-powered dynamic pricing seems like a good idea on paper, making real-time adjustments based on demand. But it fails to take human psychology into account, including key customer behaviors such as trust, fairness and perception. Once a shopper feels that AI (and by extension, a retailer) is trying to outmaneuver them, they resist and eventually abandon ship. That’s not to say AI-driven pricing systems are useless; they are helpful for tracking long-term demand. The trap lies in focusing only on short-term efficiency.
Why this matters: Retailers with staying power understand that trust, consistency, fairness and goodwill are built over the long-term, and regard dynamic pricing as more of a poison pill than a silver bullet. (The Robin Report)
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The SKUpe is curated and written by Marcy Medina, and edited by Bianca Prieto.
