At Flame, we had the pleasure of interviewing Francesca Mastrocola about the ever-evolving retail sector. With extensive experience in the industry, specializing in fashion and retail, and expertise in Behavioral Sciences, she provided deep insights into the enduring relevance of offline stores, the unique advantages of online versus offline shopping, and the critical role of technology in enhancing customer experiences.
Discover her perspectives on building customer loyalty, the major challenges facing retail today, and the exciting future that lies ahead. Don’t miss out on this engaging conversation! Check out the full interview here.
Interview: “An holistic experience in retail”
We start by assessing the current context of the retail sector. Will offline disappear?
Offline will not disappear, at least not in the immediate future. Being two different channels with their own identities allow them to satisfy different needs. Just think about the post pandemic, people running back into the stores for shopping or think about e-commerce giants that are also experimenting their business offline, through pop up store with huge success.
What are its defects and virtues in front of online retail?
The advantage of online retail is that customers can buy any sort of things from anywhere in the world, that can, in some cases, give the impression of uniqueness, plus online gives the opportunity to buy 24/7. On the other hand, brick and mortar have the one thing that we, as human, crave: the possibility of relating to another human being. The fact is that people need relationship, and entering a store interacting with a sales advisor, even just with eye contact or saying hallo, knowing that there is someone you can go for advice, makes a big difference, also the fact that a product can be seen and touched satisfy needs that cannot be achieved by shopping online.
The key to customer loyalty is the ability to build an honest relationship with them
What is the biggest problem or weakness that retail has to face?
Offline stores who want to succeed need to focus on the experience they can give to the customers, that is the way to stay in business today and be successful. Give a holistic experience not only focusing on the product, rethink and innovate the store instead of thinking of it as a space to fill with merchandise. Unfortunately, we are now seeing what this last approach could do even to a solid business who had built its fortune on experience and is now taking it away from its store refocusing on merchandise only (thinking about Starbucks right now). It looks like some offline stores are chasing online business approach without a real vision in mind, retailer should stop and think before they act, otherwise it wouldn’t end well for them.
Another big issue that retail is facing is high turnover and lack to attract new talent. Data shows that turnover has significantly increased after the pandemic, understanding employees need has never been so important.
In the current context, what role does technology play in retail?
Big data are powerful tool, collecting information and knowing how to interpret them can be an advantage, it can help with having the right product at the right time for the right customer. This not only increase sales but decreases cost, it can diminish overproduction, and logistic costs due to the transfers of unsold products.
Another useful tool is e-learning, especially through app, where personnel can find all sort of information regarding the company and its policy, also some companies have app that allow store members from all over the world to chat and exchange information or experiences that help solve problems they could face on the shop floor, it is also a good tool to socialize with other people from the same company increasing the sense of belonging.
To me a big impact and difference is made by the people
What does it take for a store to work? Is there a magic recipe?
It’s a very complex environment, we can think about all the single ingredients that could make a good recipe, starting from the location, the architectural features, lights, equipment, fitting rooms, cash desk, moving through the products, right product at the right time, in the right quantity, prices…
To me a big impact and difference is made by the people: all these ingredients together can only work when there is a good team of people in the store, who really enjoy their work, knows what to do and is motivated to do a good job. To achieve this result companies need to invest in a culture where their people are valued and their wellbeing at work is taken into account, this will also help to reduce turnover intention and attract new talents. Training programs are also crucial, giving store members all the information and tool they need to perform well means to delegate, to give them trust. Share company values with every member of the team is also vital, store leaders who act accordingly to those value will lead by example. Whenever we have members of a team that identifies themselves with the company values, we will have a team that thrive.
How is customer loyalty achieved? How do you engage your customers?
The key to customer loyalty is the ability to build an honest relationship with them, store team members have a pivotal role in this. Research shows that sales advisor who really listen to their customers, understand their true needs, are capable of building a relationship with them based on trust, and this will make the customers come back. Also, a very good knowledge of the product is crucial, customers today are well informed and when they catch you in a lie, with the sole purpose of selling a product, they will never step foot into the store again.
How do you see the future of retail?
It’s plenty of new and exciting challenges, a shift of paradigm is necessary, it will take time, no good result can be achieved in a blink of an eye, build a holistic experience for the customers so they have reason to come in the shop instead of buying online, assess the sustainability issue and let the customers know what you are doing to make a difference, this is a very big issue nowadays really taken to heart by people and I think there are interesting approach to add to the debate.
