How is customer service different or the same for traditional retail and online retail

Online and offline retailers are at war.

For years, offline retailers have been struggling to stem the tide of shoppers leaving their stores, abandoning them for the convenience of online shopping. But this year, finally, their efforts have seen some positive press. It’s not a matter of if, but when. So here’s the question for both retailers: How does online and offline customer service compare, and does it really make a difference?

To answer this question, let’s start by looking at the contrast between online and offline customer service.

Differences between traditional and online customer service

When you start dissecting the customer service process for both online and offline brands, you will immediately notice some pretty stark differences. For example, the recent surge in mobile online shopping could lead you to believe that online customer service is more important for your brand. But 57% shoppers¹ see customer service as the reason they choose to buy from an offline retailer instead of an online store.  

So despite the larger trend, the truth is that customers choose to shop offline so that they can get better customer service. This service could come from knowledgeable store associates, better signage to help shoppers locate an item, or a dedicated customer service desk that helps with customer issues and questions.

But the other side of that coin is that you arguably have more to lose if you provide poor customer service in your store. In fact, bad customer service also makes the top five list of things customers hate about in-store retailers.  

That brings us to a sort of strange yet notable difference between online and offline customer service. While we often see offline customer service as more important, consumers believe that online customer service is the more personalized of the two.

One of the biggest changes to many in-store retailers in the past few years, is an increase in technology that provides a self-service shopping experience. In some cases, retailers are even pushing shoppers to use their phones for help with troubleshooting while they’re still in the store. This means two things:

– Physical retailers now have fewer associates.

– The associates they do have, are working on day-to-day tasks.

Naturally, this leads to fewer alternatives to personalized service than with a website or an online service option. The technology that makes everyone’s lives easier ironically results in associates ignoring them when they go to a brick-and-mortar store.

Digital shoppers have become used to certain standards for customer service that they’re bringing to in-store retailers.

Specifically, they want curated, personalized experiences that have as little friction as possible. If they go to a physical store and don’t have this kind of experience, they aren’t likely to come back.

Online customer service that uses emails, personalized content, or even self-serve knowledge bases is much more personal and more useful than disinterested store associates. 

This now brings us to the final difference between offline and online customer service: The fact that online customer service should have a proactive element. Studies have shown that most customers choose to search online first when they have an issue with a brand or product. 

This means that online retailers should research potential issues, and then provide helpful and easy solutions on their websites that are easy to find. But offline retailers don’t have this luxury. If a customer has an issue, the retailer can only wait until they come to the store in person or call to try to fix things.

At this point, you hopefully see a clear divide between offline and online customer service. So let’s switch gears and talk about some of the ways that they’re similar.

Similarities between traditional and online customer service

Not everything is different between traditional and online customer service. In fact, there are some fairly surprising ways in which the two are equals. One of the biggest similarities between the two is that customers will react the same way to good or bad customer service.

Studies have shown that when a happy customer gets good service, they’ll tell approximately nine people about it². But an unhappy customer is likely to tell at least 16 people about their experience.

Unhappy customers do more harm to your business than the happy ones do good. That’s true across every channel. So you need to create happy customers, no matter which sales channel you use.

When you look even closer at the negative results of a bad experience, you’ll find that they’re pretty much the same. A bad experience either online or offline will get you:

– Fewer conversions and sales

– A bad reputation

– Lower customer lifetime value

– Worse employee performance

– Loss of profits

These potential losses show just how important it is to constantly create better customer service experiences. Keep in mind that how you deliver service is also important. Your tone, or how you sound when delivering service, is just as important online as it is in person.

Just imagine a scenario where a customer comes to a customer support desk, and the associate greets them with snarky, impatient answers. Or, what if they get their answers, but the associate gives it to them in a cold, robotic, almost lifeless way?

Either option would be upsetting.

The same principles apply to online service. Snarky blog posts that answer detailed questions may be more insulting than helpful. The key is to keep your human element alive in each case. Care about your customers.

And if you opt to go online, remember that automating doesn’t mean that you have to sound robotic. But the similarities don’t end there. Whether you’re serving customers online or offline, there are few factors you must always employ:

– You must always respect your customers’ time.

– Benchmark-driven improvement and analysis is essential.

– Service will always boil down to discovering your customers’ needs.

And the list could go on. The point is that online and offline customer service for retail business isn’t something you should skimp on. Each one plays an important role for brands in their respective niches, so treat both as essential pillars of your business.

The key? do both well

Retail shopping, and thus retail customer service, is a complicated beast these days. The rise of the omnishopper has wreaked havoc with retailers expectations and game plans. If you have both a physical and online store, staying ahead is tough.

Recent statistics show that at least 55% of customers³ will look at a product in-store and then buy it online. That means that they see both your online and offline customer service in action. The only way you can effectively keep up with both, is by finding a way to merge the two into one unified experience that keeps customers happy and coming back.

Crafting such an experience will, of course, take time to get right. But one of the best ways to accelerate your growth is by finding brands who are already doing both online and offline service well. Then, see what you can learn.

One such brand is IKEA. Here’s a look at what they offer their customer for online support:

This is a self-service option that’s robust and user-friendly. It can help customers quickly find what they need. But they don’t stop there. IKEA goes above and beyond in their physical stores to provide a pleasant and easy experience. Associates wear bright yellow so that they’re easy to find. They even sell food to give you energy and keep you in the store. And if you want to learn more about a product immediately, they make it simple to find it on their website.

With all of this combined, a customer can have a pleasant experience whether they shop in-store or online. When you achieve this kind of ubiquitous coverage with your brand, you’ll be moving in the right direction.

Conclusion

Offline and online retailers may be at war, but they still have a lot to learn from each other. When it comes to differences, offline retailers seem to be winning the customer service war for now. But customers still have plenty of things to hate about offline retailers that online options can fix. Personalization and self-service are the key elements that stand out in favor of online customer service.

These are some of the differences between these warring retailers. But the real lessons are in the similarities.

Unhappy customers are the same liability both online and offline. And customer service is a non-negotiable asset to any retailer. More importantly, keeping the human element alive in both is also key. Plus, you still need to find avenues for improvement, no matter how you sell your products.

Finally, to wrap it all up, you have to understand that doing both online and offline customer service well is the key to growth. One without the other just isn’t good enough.

So differences aside, learn from both sides to find ways to improve your customer service. If you do, you’ll be much more prepared for whatever lies ahead.

Source:

1–https://www.retailtouchpoints.com/topics/shopper-experience/customer-service-draws-57-of-shoppers-to-traditional-retailers

2–https://lumoa.me/blog/how-to-collect-customer-feedback

3–https://www.retaildive.com/news/why-many-shoppers-go-to-stores-before-buying-online/441112/