For more than a century, the idea that the customer is always right has driven retailers who want to demonstrate a commitment to customer satisfaction above all else. The execution, however, has evolved with the times. Today, companies want to communicate with you on your terms. They want to recommend products that match your interests that you didn’t even know you wanted. They need to maintain an extensive inventory of colors and sizes, all ready to be shipped to your doorstep within two days and returned in-store at your convenience weeks later.
Many experts say these shifts in retail can be attributed to the rise of Amazon. When the e-commerce marketplace introduced free two-day shipping, flexible returns, and product recommendations, it upended consumer expectations. Suddenly, retailers had to dramatically rethink their business.
Now, augmented reality is entering the picture. Consumers can use their phones to visualize furniture in their homes or shop the outfits of passersby on the street. A focus on omnichannel engagement is also dominating, as consumers expect a seamless experience as they migrate from digital to physical and back again. They want to research products and compare costs online, enter a store to touch and feel and test, place an order through an app, and pay their bills via text message.
The end result is that retailers are no longer solely in competition with other brands in their category. Instead, every company is a technology company competing to launch the most innovative customer engagement tactics — or, at the very least, keep up.
“The moment you got your Starbucks app and realized you could order your drink from your phone, you didn’t just go, ‘This is incredible. Other coffee places should be like this,’” says Eddie Davila, who teaches supply chain management. “You thought, ‘Wait a second, every place should be like this.’ At that point, Starbucks made McDonald’s, Chipotle, and your doctor’s office look old and slow.”
These shifts are great for consumers — but what about future CEOs, data analysts, and marketing execs? How can today’s students stay nimble when the landscape could look entirely different by the time they graduate?
Feature originally appeared in the W. P. Carey School of Business alumni magazine.