FINAL WORD
The pandemic has massively impacted the UK high street but has led to a boom in e-commerce . One of the biggest gains has been persuading net-new customers to come online – many of them from older demographics that had traditionally shied away from online stores . As a result , e-tailers are adapting the shopping experience and one of the biggest changes is the metamorphosis of customer service focused high street brands – of which Marks and Spencer is a great example – that are extending their ethos into online communities .
Bright sparks
As one of the UK ’ s oldest and most trusted retailers , Marks and Spencer has been an exemplar of the massive disruption that the pandemic has had on the traditional bricks and mortar sector . Last year , M & S posted its first loss in its 94 years as a public company , as Coronavirus kept shoppers locked down at home .
Yet the company has been moving into more services , including online , over the last decade and the pandemic has accelerated these efforts through several innovate steps . The first wave , early on in lockdown , used technology to overcome some customer and staff store access issues . For example , it became the first major UK retailer to roll-out appointment shopping to help customers plan with reserved shopping slots . The system allowed customers to make online reservation service to all its 566 foodhalls to offer convenient visits instead of experiencing the lengthy and panic scrums that occurred at several other retailers .
Another instore innovation was the launch of checkout-free technology using mobile payment to all its UK stores , allowing instore customers to skip checkout queues by self-scanning and paying for their items using their smartphone and then simply leaving the store . Yet , even with these efforts , the practical issues around lockdown caused M & S , like most high street stores , to experience a massive reduction in sales .
However , its online e-commerce sales were up 75 % according to its latest interim results . And the firm is also set to launch 46 new websites to expand its reach to over 100 countries , from Argentina to Uzbekistan . The website experience itself has also improved – with many subtle additions enhancing the online user experience . An interesting example is the implementation of guest accounts , which allow customers to pick , pay and go without having to setup a full-blown account . The average cart abandonment rate is just under 70 % and being forced to create an account is a top reason why people leave . In fact , 34 % say they would abandon for that reason alone , with no remorse about moving to a competing retailer that does not require account creation .
Every little bit helps
Although its online retail activities have grown , M & S has made the decision to slim down some of its ancillary financial services . However , the opposite is true of its high street rival , Tesco , the UK ’ s largest retailer that also launched a retail banking division in 1997 . The bank maintains 5.3 million customer accounts and has continually expanded its offering to span a range of banking , credit card and insurance products . The company was an early pioneer in generating customer insights through data and its banking products are also tied to its loyalty card scheme , another UK first , which offers customers a connected set of benefits .
In September 2020 , Tesco Bank also became the first UK bank to use open banking to enable credit card holders to pay their balance . The service allows its 2.6 million credit card customers to make payments directly from their current account via electronic payment services . The new feature is made possible because of the EU ’ s Open Banking legislation and in terms of simplicity , customers do not have to remember any account details or find their debit card to make a payment . Customers can also make safe and easy payments from non-Tesco Bank accounts using their bank ’ s usual online or mobile app login details to verify payment .
The support of the Open Banking initiative is part of a wider push by retailers like Tesco to provide a more seamless experience for customers across not just physical goods but digital services . However , as retailers have organically grown online , many of these services are often provided by third parties . This has led to the perception of a ‘ single brand ’ but in practical terms this may require customers to log into separate websites , with differing credentials – and then complete multiple stages of form filling because the identity data is not shared between the brand and the various service delivery participants .
THE AVERAGE CART ABANDONMENT RATE IS JUST UNDER 70 % AND BEING FORCED TO CREATE AN ACCOUNT IS A TOP REASON WHY PEOPLE LEAVE . IN FACT , 34 % SAY THEY WOULD ABANDON FOR THAT REASON ALONE .
Emma Maslen , VP & General Manager , EMEA & APAC , Ping Identity
www . intelligentcxo . com
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