SCMAP Perspective is our fortnightly column on PortCalls, tackling the latest developments in the supply chain industry, as well as updates from within SCMAP. On this column, Henrik Batallones looks at how supply chains can enable a more frictionless customer experience.
As frictionless as possible
Unfortunately, I am not getting any thinner.
Yes, I know the answer to this conundrum: diet and exercise. But setting aside time, self-control and fatigue, these things take time – and that’s time I can’t spend wearing ill-fitting clothes to events and meetings. I have no choice but to start buying new clothes. Besides, I badly need to update my wardrobe, too.
I visited a branch of a popular fashion chain, with the view of buying myself a new pair of jeans. Something I can wear in both professional and… not-so-professional settings, let’s just say. So dark denim would do. I found my style, but not my size. As it turns out, my size is not available in the store, or in any of the other stores either. “Larger sizes are now exclusively available in our app,” a sign next to the shelves said.
Well, that’s annoying. I came here to buy something, but now I have to buy it on an app? I’m already here, going out of my way to shop, but I’m being told that I should go further out of my way if I want to be served? No, thanks. I ended up buying a more expensive pair of jeans in another store, but considering the quality and, most importantly, the fact that I was able to buy it right then and there, I’d say the premium is worth it.
And then I thought about it a little more. Could this be a supply chain issue? Could the store have decided to cut on inventory costs by not stocking larger sizes locally, in branches, and instead store them in some centralized location somewhere? That’s a consideration that management would have presumably thought was best for them. Besides, they’re still selling it online, which others in management would probably like, as it would justify their tech spend, and not to mention increase data collection points on their customers. But is all that friction really necessary? How many customers did what I did and, frustrated – perhaps angry – they ended up spending their money elsewhere?
The growth of e-commerce – both in consumer appetite for it, and in stronger support from stakeholders across the supply chain to enable it – has opened new avenues for businesses and customers to interact. There are reasons for both sides to choose online options rather than offline ones. But if one thing has been made clear over the last five years, it’s that things will not move purely in one direction or the other.
Some of us must have thought everyone will be shopping online or through apps by this time, thanks to the transformative experience of the COVID-19 pandemic. But, for one, online supermarkets have not taken off, and people still choose to buy their groceries in person, every week, at a physical store. On the other hand, some stores have had to shift from selling items to letting people experience them because, as they are less urgent purchases – gadgets, for example – customers can freely find the best deals online. The focus is no longer just on being available, but rather on being where the customer wants you to be. Being a competitive business is not just about selling to the customer, but about making the customer experience a positive one.
Unfortunately, in some cases, the push to go online has been at the expense of this principle. Being technologically adept – showing that you’re technologically adept – has led to unnecessary friction in the customer experience. I’m certain you’ve heard of the story of a major mall that shifted its parking payment system to a cashless one, which isn’t a bad idea on paper – but a nightmare if you’re a mallgoer who suddenly has to pay extra for online payments that won’t go through because it’s a mobile phone dark spot.
It is up to businesses like us to make sure the technology we adopt to make things easier for us does not get in the way of the customer experience, that it does not provide unnecessary roadblocks. In the earlier example, how can you optimize inventory costs so that customers don’t have to jump extra hoops to get the sizes they want? You can, of course, further incentivize use of alternative interfaces like an app, but for those who don’t, well, there shouldn’t be a need to demonize them for going the way they want. A good customer experience means meeting them where they are, and that’s both from a customer service perspective, as well as a backroom, supply chain perspective. A little effort goes a long way.