Retail
Diebold Nixdorf retail VP Arvin Jawa: 2021 success strategies
Arvin Jawa, vice president of global retail strategy and regional VP, Americas Retail, at Diebold Nixdorf, offers an inside look at the strategies deployed by retailers during the recent unusual holiday season and what they should do going forward.
March 10, 2021 by Judy Mottl — Editor, RetailCustomerExperience.com & DigitalSignageToday.com
(Editor's note: An earlier version of this article ran on Retail Customer Experience, a Kiosk Marketplace sister publication.)
There's been no holiday season like last year's given the ongoing COVID-19 pandemic and all the challenges it's brought to the retail segment. Arvin Jawa, vice president of global retail strategy and regional vice president for Americas retail at Diebold Nixdorf, offered his insight and perspective on what retailers are doing and need to do going forward in 2021 in an interview with this website.
In this role, Jawa is responsible for Diebold Nixdorf's ongoing consumer-centric strategy for growth in the retail business. He has held various leadership roles focused on retail strategy throughout his career, including positions at Vera Bradley Designs and LakeWest group, America's largest independent retail management consulting firm. Arvin received his MBA from Case Western Reserve University's Weatherhead School of Management, focusing on entrepreneurship and marketing. He also holds a bachelor's degree in art and art history from the University of Rochester.
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| Arvin Jawa said retailers must continue to focus on creating value that includes both physical and digital formats. |
Jawa shared how the in-store experience will never be the same, why technology is at the forefront of the future of retail and why retailers must offer a frictionless experience from start to finish. Following are excerpts from this interview.
Q. Obviously COVID-19 was the prime driver for the online spending surge this past holiday season. But did you expect it to be higher or lower and going forward? Do you think that surge will continue past the holiday season?
A. Spending habits have indeed shifted during the pandemic — some would call it the "homebody economy" — which means that consumers who may have spent more on travel and eating out are now spending more on treats and consumption at home. For as long as COVID-19 affects people's lifestyles, this is likely to be a trend that continues. Having said that, we are in a recession, and therefore, are additionally looking for value. This is why we are seeing record spend in these blockbuster shopping events.
Q. For the retailer impacted by this trend does that mean their retail customer experience strategy should reflect a greater, deeper emphasis on the online experience, and what is a prime focal point they need to focus on?
A. Clearly there has been an acceleration towards online and digital brought about by the pandemic as consumers have been under stay-at-home restrictions or have had other challenges with venturing out into stores. However, it is important for retailers to stay focused on the main objective: a better overall shopping experience. The experience must create value for their customer as well as for the retailer and leverage the best of both physical and digital. That is, and should remain, the focal point. It can be easy to look at the pandemic and its effect on retail spending as something against which a retailer ought to pivot dramatically, but this isn't the best solution. There is an array of customer shopping journeys and preferences that leverage physical and digital optimally — and many retailers had been focused on transforming themselves to adapt to this construct well before the pandemic. They long ago realized the many benefits of encouraging customers to shop across both store and online channels. Stores are generally the most cost-effective way to serve customers, and many retailers report that customers who shop across multiple channels purchase more frequently, spend more and are more profitable than single-channel customers. These broader, longitudinal behavior changes and attitudes toward digital acceptance are what drive the customer experience strategies. The pandemic has simply been an accelerant in the execution of the original strategies, and in the consideration of how best to welcome shoppers back into stores: for example, offering curbside pick-up, being able to check and reserve stock in-store from home, contactless payments and offering self-service journeys like self-checkout.
Q. The online and in-store customer experience is radically different in nature and culture but the same tenets run through both (making products easy to find, seamless checkout and easy returns). What are some strategies in play that you've seen or heard of that are working to make the e-commerce environment as welcoming and embracing as the in-store environment in retail?
A. We believe the best approach is a converging of online and in-store to offer customers a journey that suits their particular shopping mission. Stores are uniquely placed to offer a great customer experience: they have access to knowledgeable and friendly associates; immediate fulfillment; and a full sensory understanding of the products the consumer is considering purchasing. Online can be very convenient in that it takes less effort to click and shop than to travel, navigate and check out — but it comes at the cost of time in fulfillment. The most innovative retailers today are finding ways to make best use of their assets — be they physical, digital, human or brand — to serve the customer based upon the experience and journey that most optimally meet the primary requirements of the mission in that moment: is it getting a deal, convenience, better service or saving time? The customer typically makes that trade off in their mind — and they often change missions — which means retailers need to prepare for multiple journey types that take advantage of this online and offline convergence.
We see retailers using design thinking to craft new journeys and experiences that maximize key tenets from each of the environments — real-time access to data, personalization and frictionless flow from digital meet the tenets of speed, service and sensory immersion from physical. Curbside is one example where the convenience of the digitally transacting is combined with the (relatively) instantaneous satisfaction of in-store fulfillment; another example is connecting the high-quality service and product knowledge of in-store staff virtually to customers via video chat so they can discuss products that will be purchased digitally and therefore avoid a trip to the store and leverage human resources from the store network.
Q. How valuable is the mobile shopping experience for the retailer today — and what are some strategies to ensuring that mobile device purchases are as smooth and rewarding as desktop/PC online?
A. Mobile has played a significant role in shaping how we shop, and all retailers need to consider how they engage with customers through their mobiles and how can they use them to reduce friction as they shop. However, mobile shouldn't be viewed simply as a channel or an interface compared side-by-side with desktop or PC. Rather, mobile provides a new power beyond browsing and adding to cart — it is a payment mechanism, it is an information gatherer, it is a navigation device, it is a sensor. Contactless payment using a digital wallet like Samsung or Apple Pay is a simple example. However, using mobile in-store to design and support more complex consumer journeys for the benefit of the customer and the retailer can be powerful. Introducing the mobile device into these newer journey types needs to be carefully thought through as it can have important implications to staff and business processes in-store. For example, some grocers have developed apps that allow consumers to scan and bag items in the aisles using their mobile phones and then make payment either through the app or at a terminal, such as a self-checkout station. What needs to be considered is how to manage specific products, like those that need to be age-verified, such as alcohol or fresh produce that needs to be weighed, or how to support specific services like redeeming coupons. These details influence not only the checkout process, but also the operation of the store. Staff need to be well-trained to be able to help customers with these new processes. Security is also a consideration. If retailers don't consider these details, then the experience becomes frustrating for the customer, and retailers don't get the returns on the investment.
Q. Finally, what do you predict will happen in 2021 with regard to the retail segment and what will they need to be prepared for given this year and the tech savvy consumer?
A. Flexibility and resilience will continue to be required as we go through 2021. Although the health crisis will hopefully abate, retailers will still face a tough economic environment. Technology plays a huge role in the lives of the consumer, and of course, retailers should develop fantastic digital customer journeys. However, they also need to leverage technology that reduces the cost and increases the effectiveness of store and digital operations alike, while simultaneously supporting the staff who play such a crucial role in delivering great customer experience.
For an update on how the coronavirus pandemic is affecting kiosks, click here.
About Judy Mottl
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