Insights

New ideas and technology, coupled with traditional marketing and branding commitment, will help retailers hurdle the challenges of this new industry stage.

It is not the strongest that survive, but the one more responsive to change, it’s been said. Retailers were already dealt with a ton of change pre-pandemic, including the rise of e-commerce and the “death” of malls, but they had to rise again to a very unique challenge.

“To say the least, retailers have navigated a lifetime’s worth of change over the past two years,” wrote Amit Mathradas, president and COO of Avalara, in Forbes. “All of that change has prompted many to reinvent themselves and establish operations fit for a digital-based, omnichannel world.”

Yes, during the pandemic, consumers relied on e-commerce, but now that they’ve returned back to stores and restaurants they’re not leaving behind their digital shopping expectations. Customers want the best of both worlds. Here are the obstacles for retailers to avoid, according to Mathradas, when serving that new reality and providing “delivery options and multichannel shopping experiences so that consumers can shop when they want, where they want”:

Competition for Talent

Retail, of course, is not immune from the very tight labor market.

Forbes cited a 2021 survey that found that  94% of retailers were struggling to fill empty positions. To make matters worse, retailers need not only better talent but a bigger range of it to execute their ever-growing omnichannel businesses.

Vince Vitti, infinitee’s recruitment marketing guru who said “I have never seen a job market like I see today,” shared key strategies on the critical recruitment marketing front.

Supply Chain Disruption

Anybody who’s waited to find a new car for purchase or been surprised by the related soaring prices on the used car market knows about supply chain pains. Labor shortages, inflation, shipping delays, and demand peaks all play a part in the logistical logjam. On one hand, omnichannel means retailers can source from new or expanded supply chains — with larger companies that “can afford to pay for entire cargo ships and even planes to receive materials quicker” holding a sourcing advantage — but on the other, it also increases the potential impact that supply chain delays can have on business operations, according to Mathradas.

Cross-Channel Complexity

Omnichannel isn’t an “easy button”; it comes with complexities. Forbes uses the example of a retailer expanding into online marketplaces and having to navigate the complex shipping and tax requirements, such as the  45 U.S. states that require remote sellers to collect and pay sales tax based on customer location.

Mathradas asserts that a good deal of the omnichannel complexity is found at checkout and in “the backend technology infrastructure.” The more channels, the more demands on backend systems to keep business processes in sync, from inventory management to customer support.

The old saying “you can’t be in two places at the same time” is about as retail-relevant as a Blockbuster Video store. A sound omnichannel strategy will help your business cover all your bases, but the latest “retail restart” does come with the aforementioned obstacles.

“We’ll be here to assist in this new, exciting retail stage, of course,” said Marcia Homer, infinitee’s Director of Brand Management. “infinitee continues to mix the old like personal connection and the new, such as the latest digital strategies, knowing that the more things change with tech and data and omnichannel, the more they stay the same – like customer experience and the power of a good story.”

Navigating labor market dynamics and other variables, many companies rely on hybrid work models to strike the right balance with their RTO approach.

Your professional life doesn’t have to extend back beyond the era of flip phones and the dot-com bubble to know the ol’ management saying “Our employees are the most valuable resource.” Companies had to demonstrate that belief in unprecedented ways during COVID-19. Now post-pandemic bosses are pushing again for a return to office (RTO), but what’s the right approach in this new age of employee flexibility?

The Wall Street Journal examined the delicate balance between worker and workplace in a year with almost 120 million square feet of new office space on the way to a sector already experiencing a record 217.8 million square feet of available sublease space, according to Colliers.

Timing

Time was on the side of employees during the pandemic. We cited in this space research that predicted the increase in work from home would result in a 4.6 percent boost in productivity for the economy due to workers spending approximately 435 million fewer hours commuting each month, with about a third of that savings shifting to work time.

That was then, this is now. With Labor Day not only the traditional end of summer, but also a symbolic restart to routine, many company leaders used the calendar transition as an opportunity to transition back to the office. Some have taken a tougher stance on remote workers or sent reminders to staff or simply upped the number of in-office days required. The willingness of employees to return to the office has increased with COVID-19 cases in decline.

Leverage

WSJ reports that the position of bosses has strengthened due to the weakening economy. The threat of layoffs obviously leaves less ground to stand on for the more empowered workers of the last 2.5 years, thus making them feel more compelled to return to the office. Although with unemployment at 3.7%, the economy can’t quite be labeled an employer’s market yet, but big layoff headlines, including Ford Motor Company and Netflix, do carry a lot of weight.

Data is another option for strengthening management’s RTO case. WSJ reports that some corporate leaders are linking identification-badge swipe data with other metrics to communicate how employees who go to the office regularly are more productive and engaged.

Balancing Act

There are undeniable factors going against RTO. Employees have embraced flexibility and there is certainly no love lost between employees and their old commutes. As for following expanded freedom with a forced policy, Katarina Berg, Spotify’s human-resources chief, told WSJ, “If you recruit grown-ups and then you treat them as kids, it’s going to backfire.”

With bosses more interested in the benefits of coming into the office and workers such fans of flexibility, what can be done? Balance is key and the hybrid work model is the best solution to that end. It promotes collaboration, including helping younger employees connect with senior colleagues, and helps energize corporate culture.

“People choose to work in flexible office and traditional company office spaces for similar reasons — largely to socialize, collaborate and feel connected,” said Bryan Berthold, global lead of Workplace Experience at Cushman & Wakefield.

“We’ve heard the saying ‘never waste a good crisis,’ well now we’re past the crisis, but a major challenge remains,” said Vince Vitti, infinitee’s vice president of business development and the firm’s recruitment marketing guru. “Negotiating a successful return to the office will demand not only management authenticity and transparency and upgraded amenities, but also deftly harmonizing HR efforts with a flexibility-focused and much more aware, health-conscious employee. We are here to help!”

Omnichannel performance and a widening window of opportunity are two big retail priorities to keep an eye on in fourth quarter.

Beset by huge challenges of the uncharted territory variety in the past decade-plus — see e-commerce and COVID-19 — the retail industry will gladly tackle known knowns this holiday season. Yes, supply chain issues, labor shortages and inflation will be major factors, but the industry enters its biggest sales season with pent-up energy and fresh omnichannel balance to counter those headwinds.

We’ve said before in this space that there’s no substitute for substance in retail marketing. That includes good data for advanced analytics. To help the marketing cause, Paris-based advertising tech company Criteo combed through millions of consumer transactions from its retailer partners and findings from its global monthly Consumer Sentiment Index survey to make these five predictions about the retail holiday season:

1. Cyber Month will continue to steal Black Friday's thunder

The rise of e-commerce has shifted consumer attention away from the one-day buying binge known as Black Friday and spread it across all of November. What’s come to be known as “Cyber Month” should get a faster start as shoppers start buying earlier to counter lingering supply chain and labor shortage issues. More than three-quarters of Americans (77%) told Criteo that they “often purchase holiday gifts during Amazon Prime Day and the competing events offered by other retailers in July.”

2. Acquisition opportunities will be strongest at the beginning of the season

It follows from the above that earlier season shopping volume makes the period an important time to acquire new customers. Criteo asserts that later in December is the time to focus on returning customers and client loyalty.

3. Highly variable shopping journeys will require agile marketing

Interestingly, Criteo found that for the one-quarter of U.S. consumers with the shortest path to purchase the average time between a first-page view and a purchase was just a half hour. For the quarter of consumers with the longest path to purchase the average time was 48 days! This confirms that consumer journeys aren’t all the same and, as we discussed in late June, the importance of digital experience analytics in understanding customers and tailoring your online offerings to meet their needs.

4. Stores and online will both be strong this season

Omnichannel is more than multi-channel; it harnesses consumer tendencies and preferences to mix bricks and clicks for their best match. In-store shoppers buy almost twice as often when they also visit the retailer’s website, according to Criteo sales data, and survey findings point to increased year-over-year volumes of people buying online and picking up in-store.

Michael Rivera, infinitee’s creative director, wrote in August that with a smart omni-channel strategy retailers can complement their digital game with physical engagement, strengthened through experiential offerings. It really hits home when one considers the Forester finding that 72 percent of U.S. retail transactions will occur in physical stores, and that 62 percent of online orders are fulfilled at physical locations, according to ICSC.

5. Shoppers will start checking off their gift lists now

Some still scoff at Halloween store displays in August or Christmas ones right after Halloween, but Criteo’s findings support early consumer engagement. Its ongoing global consumer survey found that half of respondents started thinking of holiday gifts in July 2021, and 30 percent had bought gifts in August 2021.  

“The things that make us storytellers and creative advocates in business also help give us a finer appreciation of the holidays, I believe,” said Marcia Homer, infinitee’s Director of Brand Management. “Our firm’s personal touch and habit of having fun along the way are definitely conducive to brightening the season. We’re here to brighten your retail business and branding prospects all throughout the year.”

Make sure your company masters these five customer experience fundamentals to win business and keep customers coming back.

There may not be more ways to wrong a customer these days, but there are certainly more ways for that customer to voice his or her displeasure and much less time required for them to find a replacement for their consumer dollars. Customer experience (CX) has never been more critical for businesses, as shown by the global customer experience management market increasing 16.9 percent year-over-year to as much as $7.6 billion in 2020, according to Grandview Research.

Did you know that 89 percent of consumers are more likely to make another purchase after a positive customer service experience? Yet, it takes 12 positive customer experiences to make up for one negative one, according to one industry expert.

“So it goes in a world where customer loyalty often hinges on the quality of the experience,” writes Craig Halliday in Newsweek. The CEO of the Virginia-based software company Unanet offered five ways to implement an “effortless, loyalty-building” CX:

1. Be Comprehensive, Caring & Connected

Make sure your service and support are the best they can be across all your channels. You can’t just check the proverbial box in this omni-channel customer service environment. If you show up, you better show out. Whether B2B or B2C, Halliday says that customers “expect smooth, natural conversations and interactions that cater to their communications preferences” from text to chat to phone.

2. If You’re Not Improving, You’re Falling Behind

It’s important to constantly monitor and refine your company’s CX. When you regularly measure programs and new initiatives, you collect important, actionable data that will help you move forward and improve, eliminating friction points and whatever else that’s not working. Feedback — “via quick, in-the-moment surveys and other non-disruptive methods that provide insight into the attitudes, opinions and priorities of your audience,” Halliday writes — and enhanced data analytics will help your organization evaluate the real customer journey. Guesswork doesn’t work.

3. Emphasize Employee Satisfaction

The Golden Rule applies to your workforce as well. It’s critical to make sure your employees feel valued, especially in this labor market. After all, a happy customer service front line means that critical connection with the lifeblood of your business will be the best that it can be. “When your customer-facing teams feel valued and aligned with your organization's goals, they excel at their jobs. They're also more likely to stick around,” Halliday asserts.

4. Become an Indispensable Resource

Like that trusted handyman in the neighborhood who always makes time for a neighbor in need, you can make an incredible connection by making your knowledge, both institutional and industry, available to customers who need help. Free advice now can really pay off down the road with deeper, long-lasting business relationships.

5. Go the Distance

Speaking of relationships, you and your team should aim to be partners throughout the customer journey. Your clients notice when someone prioritizes a transaction over a connection and relationship, just like they know that the accessibility, accountability and trust are hallmarks of the latter. What lasts long after the initial sale? Loyalty. What lasts a long time with loyalty? Your business.

“We’ve all had that no-show, not-my-problem or other terrible customer experience,” said Michael Rivera, infinitee’s Creative Director. “To avoid those things and really embrace quality CX on the service side, let’s empathize and forge that understanding and enduring team dynamic that values all parts of and parties in the consumer equation. At infinitee, it’s not only about our unique, innovative ideas, but how we deliver them with a personal touch to the client.”

Content marketers committed to attracting more eyes to their brands should keep a firm focus on these market movements and preferences.

Companies have always aimed to attract, engage and retain customers. In the digital age, the sales funnel — getting people to know the brand, then progress to liking, trusting and finally buying from it — can start anywhere at any second.

That’s why it’s important to have a strong content marketing strategy so a company, by creating and sharing articles, videos and other media, can get noticed and known by people whenever and wherever and grow that connection to bigger business. Ella Neale of Relevance has suggested the following content marketing trends for proven brand success:

1. Personalization

Content marketing is no secret obviously; you can tell by the sheer volume of multi-channel messages aiming to make an impression. How do you stand out from the barrage of business messages out there? Personalize!

There’s no greater connection than a personal one. In fact, 80% of consumers are more likely to buy from a brand that provides a personalized experience, according to Epsilon. And this is not just about including the target customer’s name on a mailer or e-blast. As Neale explains, the “hyper-personalization” approach is “data-driven, utilizing consumer data, analytics, artificial intelligence (AI) and automation to create bespoke client interactions. Digital marketers can consider their buyer’s characteristics and cater to everything from content and design to product recommendations.”

2. Localization

The pandemic should’ve taught brands many things, including the importance of localized and unique experiences. When millions of consumers were shut down and socially distanced, they yearned for experiences and had little more to consider than what was local to them. In addition to personalization, an effective localization strategy should modify content and adjust channels to appeal to the target audiences' preferences or local customs.

3. The Metaverse

While the graybeards among us were deriding the utility of this shared virtual space, an estimated 85 million people used augmented reality (AR) or virtual reality (VR) in 2021, according to Forbes. The numbers don’t lie. Neale asserts that digital marketers must understand the nuances of the metaverse to take advantage of its growth, including, for example, creating digital experiences that parallel your brand’s real-world experiences.

4. Sustainability

The trust part of the sales funnel looms even larger these days as Millennials, Gen Z and alphas want to know that the brands they’re patronizing really care, especially about the environment. Neale cites an Accenture study that found that 63% of consumers prefer to support purpose-driven brands and will reject those that don’t show real, quantifiable commitment to green causes. Just look to the rise of ESG (environmental, social and governance) investments and protocols in recent years.

Like a company’s overall operations, content marketers should explore how to use resources more responsibly. Neale offers the re-commerce alternative, a second-hand buying approach that has been found to help reduce fashion’s carbon emissions by up to 90%, according to a global marketplace for pre-owned styles.

5. Inclusivity

The social part of ESG stands for diversity, equity and inclusion (DEI), which are big priorities for Millennials, now three years into being the nation's largest living adult generation. Traditional marketing messaging would miss from the standpoint of access and representation. Have you assessed your content marketing efforts through a DEI lens? As Neale says, customers identify with brands when they see people like themselves reflected in the marketing.

“You never want to miss an opportunity to establish your expertise, promote brand awareness and keep your business top of mind, but while those goals remain the same your content marketing tactics must evolve and be responsive to the latest trends and market shifts,” said Michael Rivera, Infinitee’s Creative Director. “Our limitless possibilities mindset embraces this reactive impetus and then forges ahead with innovative ideas for high-engagement branding solutions.”

The new chapter of retail calls for more than the same-old approach, and experiential offerings are an excellent way to engage the consumer wave.

For the desperate desert wanderer any ol’ oasis will do. The urgency of the situation usually eliminates any tendency to be choosy. Although consumers have persevered through their own barren landscape of sorts during COVID-19, retailers shouldn’t count on their pent-up demand alone to drive sales.

Shoppers, diners and consumers of entertainment are breaking out in a big way and looking for special outlets for their dollars. Retailers should respond with special engagement efforts even to the point of retail reinvention.

“It’s not just about shopping. It’s about food and beverage, family entertainment concepts, theater, art, gathering spaces and activation,” said Whitney Livingston, president and COO of Centennial REC, at France Media’s Entertainment Experience Evolution conference earlier this year. “The most successful centers are going to be the ones that are thinking differently, and those will be the most dominant destinations of the future.”

Staying power is a fine thing in business and even more appreciated after the last two challenging years of social distancing and other operational disruptions. It has added meaning though for retail developers looking to create — or reimagine — properties that keep customers on site for longer. In other words, retail centers that appeal, using the range of senses, to a range of people will have much better engagement and thus greater sales. One-stop destinations offering an array of shopping experiences accomplish that.

And integration of different uses at a retail location does more than simply turn the shopper into a shopper plus diner, etc. Different consumer segments will be engaged from the daytime office worker and one-stop errand-runner to multifamily residents, families, tourists and others.

Last but definitely not least, smart retailers and retail developers know that e-commerce is transforming, not eclipsing, bricks and mortar offerings. With a smart omni-channel strategy, retailers can complement their digital game with physical engagement, strengthened through experiential offerings. Consider that 72 percent of U.S. retail transactions will occur in physical stores, according to Forester, and ICSC found that 62 percent of online orders are fulfilled at physical locations.

“The true value of the retail environment today is… in the less tangible, yet critical, value of emotional and experiential engagement that only physical retail can offer,” George Gottl, co-founder of UXUS wrote in Fast Company. “These softer elements are fundamental to establishing long-term consumer loyalty, brand reputation, differentiation, and, ultimately, sales.”

We at infinitee agree and our team’s great ideas, personal touch and endless possibilities have already been applied to  retail reinvention or reimagining.

“If anything, there’s an even greater thirst for unique retail experiences coming out of the pandemic,” said  Michael Rivera, infinitee’s Creartive Director. “Doing it right can mean a powerful connection that serves the brand long-term.”

What retailers don't want you to know — some actually prefer that you keep your returns and unwanted items... and are willing to pay you to do so.

In today’s increasingly automated world that emphasizes easy, quick, and convenient shopping, consumers are able to buy anything, anywhere, at any time. Retailers have widely adopted the “consumer-first” mindset to make shopping a pleasant and trouble-free experience with benefits like fast shipping, free returns, and full refunds. The small inconveniences that buyers face when returning unwanted items (such as time and effort to make the return) are minor in comparison to what some retailers are left with.

High inventory levels have become a big problem for some retailers. A new discovery indicates that some retailers are finding it easier to pay customers to just keep their unwanted items.

Retailers face an estimated $264 billion worth of merchandise returned each year, according to a report by USA today, and the low margin from reselling returned items is not enough to justify accepting the return.  Marrie Rossiter pointed out that processing returned merchandise can cost businesses between 20% and 60% of the original item price, which has heavily incentivized minimizing costs and time associated with product returns.

When customers return their unwanted, damaged, or used items, retailers can either place items in good condition back on the shelf at a full or discounted price, refurbish damaged items and give them to liquidators to sell at a discount (either in the US or overseas), or hire third-party firms to handle their merchandise returns. Each of these solutions, however, comes with more problems. Returned items sold at a discount typically lessen the value of the company, shipping returned items to liquidators overseas is difficult due to recent container shortages, and hiring third-party firms is equally, if not more, expensive than processing the return internally. In light of these complications, retailers have turned to a “Just Keep It” policy.

In addition to the high cost of returns and excessive inventory levels, most unwanted items end up lost, damaged, or wasted in landfills – creating a greater issue for society at large. Thomas S. Robertson pointed out in his interview with Wharton that there “are statistics around how many tons of clothing wind up in landfills per month, and that is a concern for many of us who are worried about sustainability.” According to CNN Money, “5 billion pounds of returned items end up in the trash heap.”

‍In a recent customer testimony about their experience with Chewy – an online retailer of pet products – the customer accidentally ordered the wrong type of dog leash. Instead of sending it back, Chewy asked the customer to donate the leash to a local rescue or shelter. Then, the customer ordered the correct leash and accidentally received two leashes, but despite their own order mistake, Chewy said to not return the second leash, but donate it as well. This new policy benefits the customer by eliminating the hassle of making a return, but it also builds company rapport and improves their CSR ratings. Encouraging social good over personal gain increases customer appreciation of a brand and hopefully builds brand loyalty in the long run.

So, what does a new era of “returnless returns” mean for most retailers? Obviously, there are consequences with this idea. Companies may become victims of fraud if customers who are aware of the policy start abusing the system by seeking free merchandise. Some companies are trying to hide their ‘Just Keep It’ return policy so that customers do not take advantage of it for the wrong reasons.

Whether retailers like it or not, issuing refunds without accepting merchandise may be the new path forward for returns as we see it. Not only is it more costly to return items, but it also contributes to a massive amount of wasted product. This shift in managing returns may cause some retailers to think differently about their brand moving forward. With less waste, lower shipping costs, decreased excess inventory, and greater social impact, retailers are helping their company and their customers as they recognize what is most beneficial for all.

With the labor market having experienced a revolution, as seen by ‘The Great Resignation,’ commercial real estate firms need to elevate their HR approach.

“Most people don't like their jobs, but you go out there and find something that makes you happy,” Jennifer Anniston’s character says near the end of the 1999 comedic film Office Space.

It’s a different era, of course — wish we could have traded 2020 for the non-event that was Y2K, right? — but people are acting on that professional fulfillment feeling or lack thereof — in a major way. The en masse exodus of employees from their jobs, beginning in early 2021, has been called the Great Resignation.

Although the recent unemployment rate held at a low 3.6 percent, the U.S. Department of Labor reported earlier this year that the almost 4.3 million people who quit their jobs in January nearly eclipsed the record set in November. The 11.3 million job openings that month came in just shy of December’s record.

Pandemic experiences and the now very global job market have all affected employees’ views, values and thus choices. Combine those things with continued housing shortages and student debt burdens and now inflationary trends and it’s easy to see why it’s go-time for countless workers.

If your company’s employee retention and recruitment approach hasn’t evolved, then it’s fallen behind. Bisnow offered four tips that CRE firms can use to help keep their best employees:

#1 Have Scheduled Check-Ins

Employees respond better to and perform better in an environment of trust and open communication. When superiors regularly check in to see how they’re doing and offer constructive feedback, workers feel valued and that their personal development matters versus just the company’s bottom line. “What have you done for me lately?” should be fired; the win-win mentality of connecting personal progress and fulfillment with team success gets the job... done.

Forbes reports that it’s not only important to set clear, measurable and attainable performance goals and have that continuous feedback, but it’s also important to turn performance reviews into career planning meetings. What motivates employees more — and ultimately helps to retain them: focusing on past missteps or tapping into their future aspirations and how their success can lead to bigger things?

#2 Create an Environment That Values Flexibility

We’ve talked about it before in this space: having a flexible work environment is essential for employee’s work-life balance and coping with unusual and/or stressful times in life, as well as building that critical organizational trust. Bisnow reported that a Future Forum survey indicated that 95% of employees preferred a work environment that allowed them to create their own schedules, while 78% wanted to choose where they would work.

#3 Encourage Learning Opportunities

Having the opportunity to learn from professionals in the field, take advantage of mentorship opportunities, and leverage continuing education and professional development courses taps the same self-improvement vein and future focus as career planning meetings. Employees who feel stuck inside a box, literal or because of lack of opportunity for advancement, will often look to leave. But those workers who get the value and variety of the above learning opportunities will see their personal growth more aligned with the company’s course.

#4 Pay What They Deserve (And Probably More)

It’s obvious that the employee’s bottom line, in the form of salary and benefits package, are critically important. Joe and Jenny aren’t staying on the job solely for the juice bar and casual Fridays. Remember also the importance of performance bonuses as rewarded employees are more likely to be retained ones.

“I have never seen a job market like I see today,” said Vince Vitti, infinitee’s vice president of business development and the firm’s recruitment marketing guru. “To be competitive, companies are offering unlimited vacation, work from anywhere options, college tuition, etc. Diversity, authenticity and transparency are hugely important.”

Until someone invents superhuman resources, CRE firms should follow the tips and takes above. And find a recruitment marketing partner with great experience and a ‘limitless possibilities’ mentality to embrace what’s next.

After surviving innovative disruption and pandemic paralysis, the retail sector faces down its next challenger — inflation.

The personal finance advice we’ve all heard about cutting out our daily restaurant cup of joe to save money is about as fresh as the 4 o’clock coffee pot dregs in the office kitchen. In this year of inflation and rising interest rates though many consumers have been jolted wide awake to greater cost consciousness, if not outright concern.

The Consumer Confidence Index fell in June to its lowest level since February 2021. Also, the Expectations Index, which is predicated on consumers’ short-term outlook for income, business and labor market conditions, fell sharply to its lowest level since March 2013.

“Consumers’ grimmer outlook was driven by increasing concerns about inflation, in particular rising gas and food prices,” said Lynn Franco, senior director of economic indicators at The Conference Board, which publishes the monthly Consumer Confidence Index. “Expectations have now fallen well below a reading of 80, suggesting weaker growth in the second half of 2022 as well as growing risk of recession by year’s end.”

There was some good news though with double-digit growth across nearly all retail sectors in May, according to  Mastercard SpendingPulse™, which measures in-store and online retail sales across all forms of payment (not adjusted for inflation). The report had total U.S. non-automotive retail sales increasing 10.5 percent year-over-year in May and 21.4 percent compared to pre-pandemic May 2019. Furthermore, U.S. (non-automotive) retail sales are expected to grow 7.5 percent compared to 2021 with department stores expected to be a refreshing highlight in that sales trend.

“While Mastercard SpendingPulse anticipates growth across sectors, retailers will need to find innovative ways to entice shoppers as discretionary spending potentially stretches thin as a result of increasing prices,” said Steve Sadove, senior advisor for Mastercard and former CEO and Chairman of Saks Incorporated.

How will retailers navigate this period of inflation? It’s a good thing that they have recently had to exercise their innovation and customer retention muscles during the pandemic. This new economic stage causing consumers to pinch pennies and make other budgetary cuts will be a test for sure, but the retail sector is quite accustomed to change and challenges.

McKinsey & Company recommended six actions that retailers could take to navigate inflation with the goal of more efficient operations, greater customer retention and, of course, profit growth. They include enhanced supply chain visibility and diversification, recalibration of product category strategies for better balance with rapidly shifting consumer preferences, granular pricing and promotion (rather than the more visible and potentially triggering broad price increases) and rethinking store operations to boost productivity.

“What we talk about so much, from innovating through a major pivot to staying on top of changing consumer preferences and optimizing customer experience, is not only about maximizing efficiency and opportunity, but also being able to answer the bell in demanding times such as this inflationary period,” said Amy Norton, infinitee’s Director of Strategy & Accounts. “Retail life comes at you fast, as seen by the last two-plus years of challenges. It’s critical to have a plan and a brand builder and marketing partner that are responsive and can meet the moment.”

Making customers happy means quickly identifying and efficiently addressing impediments to their online journey.

There’s a friend of the firm named Keith. We like Keith and Keith likes efficiency. In fact, he’s emphasized that value so much that the acronym KER, for Keith’s Efficiency Rating, has entered the office vernacular. KER was first commonly applied to road trips — for example, if your pitstop included miscommunications, botched orders or other delays it would score a low KER — but now it can cover practically anything, including a customer’s online journey.

Digital transformation, including the ability to provide a frictionless online customer experience, was already a high priority for businesses before 2020. However,  the pandemic really magnified the need as consumers across various industries, including Keith, concentrated and relied on digital service and delivery more. To grow revenue, companies had to keep customers happy during very unusual times. The logistical linchpin in that equation is, as Gary Drenik writes in Forbes, “a seamless digital customer experience, which has become the key to driving conversions and boosting brand loyalty.”

It follows then that companies need to know how customers are experiencing their websites and apps, what flows well and what are the sticking points. Increasingly, businesses are relying on analytics for the keen digital insights to ensure the online experience of customers is the best it can be. Worse than a technical glitch or “customer behavior anomaly” on your digital platform, as Yaron Morgenstern, CEO of Glassbox, puts it, is not knowing about it.

"Leveraging digital experience analytics (DEA) insights, brands can better understand their customers, tailoring the digital experience to suit consumer needs, which in turn drives success and business growth," Morgenstern said.

Using DEA, businesses can find and fix the glitches that negatively impact the customer journey. The top “pain points” in the customer’s digital experience include excessive pop-ups, slow page load times, difficult to navigate website/app, technical errors/website performance and forced account creation, according to Morgenstern. How important is that? Glassbox’s research found that three out of every 10 users will abandon in-app purchases when performance is sluggish. No two ways about it: there is a direct correlation between customer experience, revenue and brand loyalty, he asserts.

“We’ve talked a lot about retail’s more responsive future and that future is now,” said Marcia Homer, infinitee’s Director of Brand Management. “Customers will always want convenience and choice, which means retailers better be balanced and their digital CX must be a personal, constantly refined thing based on the latest analytics and evolving demand.”

Efficiency isn’t a new thing – just ask Keith – but the tools and approaches to achieve it certainly are in this post-pandemic stage of the digital age. The names may change but the needs stay the same: Happy customers are ones that get what they want without delays, confusion or outright frustration. Knowing the strengths and weaknesses of a digital platform means knowing a better, more efficient way forward to optimize the customer journey. We join all companies smartly leveraging DEA to say enjoy your online stay!

Hybrid office teams should focus on several key habits to ensure office equality and reap the proper rewards of the workplace flexibility model.

It’s said that absence makes the heart grow fonder. Yet, in the world of business, as it makes another monumental transition from working fully remote to a hybrid office approach, out of sight could mean out of mind for those professionals not in the office when big decisions are being made and greater trust forged. How will fairness and equality be achieved within teams spread out across multiple sites? And will resulting hybrid habits help or hinder the workplace flexibility model

There’s a reason why firms spend 14 percent of total operating costs on change management. The only constant is change, which, everybody knows, got turned up several notches since the start of the pandemic. Laurel Farrer, the president of the Remote Work Association, wrote in Forbes that without intentional change management and equality support, hybrid work models can be “riddled with complications and potential blind spots.” Based on the research of veteran hybrid organizations, including Microsoft, Dell, and GitHub, she shared several key habits that all hybrid teams should be developing to assure and secure equality and unity from headquarters to the home office.

First off, proximity and presence do not equal productivity, Farrer asserts. It’s time for organizations to transition from that outdated office-based line of thinking to measuring performance based on actual output and results, regardless of work location. We at infinitee liken it to a community grand opening where you need to staff the welcoming/sign-in table, the property tours, the food and beverage areas, and more. Though spread out in different places, each is essential to the whole mission and making the operation a success.

Also, managers and team leaders should focus on how to ensure daily rituals are inclusive and help to enable the connection of a distributed team. Thinking that culture building only happens on annual retreats is wrong as is the leader mindset that returning to the office equals developing company culture. What about the off-site team members?

By offering a combination of physical and virtual culture development activities, nobody will be excluded from team development.

The “there’s some cake in the break room" mindset doesn’t work anymore in the hybrid work model, Farrer reminds us. To avoid that obvious location bias, it’s important to offer equal rewards. Issuing frequent announcements, gifts and rewards using mail, email and shared communications platforms establishes a sense of equal opportunity and equal reward, which keeps teams working efficiently and together.

Finally, managers should seek frequent feedback. What works for Karl in this hybrid work setup doesn’t necessarily work for Katelyn. And thoughts, feelings and opinions from early 2020 when the pandemic was new and especially unnerving definitely shouldn’t inform managerial decisions now. As Farrer maintains, employee satisfaction is dependent on so many x-factors, such as the percentage of team members in the office, a child’s learning-from-home status, internet speeds, or how company leadership embraces workplace flexibility. Stay in tune with the changing needs of your workforce.

“ Our firm is about people and our special personal touch,” said Tim Patton, infinitee’s CEO. “At the same time, it’s about having a ‘limitless possibilities’ customer service mentality. While the last couple of years – and resulting flexible work models – have altered the personal touch approach some, it’s strengthened our range through the new range of possibilities. At the end of the day though, it’s still all about serving people.”

Despite supply chain and other problems, retailers must maintain an elevated customer-centric approach, including digital experience.

Maybe the Greek philosopher Heraclitus doubled as a retailer. His famous quote “the only constant in life is change” definitely seems to describe the retail sector. As if retailers hadn’t faced enough adversity from the Great Recession through the advent of e-commerce, they’ve gone head on with a global pandemic the past couple of years and now are dealing with its aftermath.

Brand loyalty is falling victim to resulting supply chain adversity and high inflation, directly impacting consumer habits and preferences. As a result, 79% of people say they would purchase the next best option if their favorite brands are sold out or in low supply, according to a survey by shopping rewards app Shopkick, which surveyed more than 20,000 consumers across the country to determine how consumer behaviors have evolved since 2021.

59% said they are very willing to try a new brand and do so regularly, while 44% said their habits have changed with the retailers they shop at and brands they buy from. For the majority of consumers who say they have changed where they shop, 59% are now shopping at big box retailers such as Target and Walmart more frequently, as well as doing more research online before making purchases in-store (43%) and shopping more at local, independently-owned retailers (27%).

“In order for brands and retailers to retain customers' share of wallet, heart and mind, it is more important than ever to deliver a frictionless - and connected - online and in-store experience to ensure a positive interaction each and every time," said Brittany Billings, executive VP of strategic markets and marketing at Shopkick.

We at infinitee agree. It’s been discussed before in this space how customers were always bound to return to stores after the pandemic, but they were not going to return to pre-COVID expectations of the level of digital customer experience (CX) a retailer should provide. A five-country survey cited by Chain Store Age last year showed that 56% of respondents worried that brands may not maintain the level of effort in improving digital customer experience once the pandemic has ended, and 59% said their expectations for how brands interact and communicate with them will continue to rise post-pandemic. Nearly four out of every five respondents (78%) said those expectations rose during COVID-19.

The Shopkick survey found that a majority of consumers said online shopping habits have changed, and, of those, three-quarters said they are making more online purchases, 26% have signed up for more online memberships to take advantage of shopping rewards and promotions and 20% have tried new brands due to their go-to brands rising in price or being out of stock.

“It’s like the ol’ saying that one man’s problem is another man’s opportunity,” said Marcia Homer, infinitee’s Director of Brand Management. “Yes, there are macro issues out there, but retailers must control what they can control. Never losing the lessons from the pandemic about digital CX, let’s get to work making sure your brand connects with consumers in a unique and authentic way that makes an impact.”