Technology Empowers Customers in the Face of Retail Labor Shortages

The rise of e-commerce amidst the pandemic and beyond undeniably shifted consumer expectations in retail. Customers now expect a fast, convenient and innovative shopping experience both online and in-store.

Meeting that expectation amidst persisting labor shortages in retail is a challenge, but innovation in retail technology continues to be key. It’s not just about addressing a lack of personnel, but also getting to the heart of what’s driving customer expectations. Customers want options, flexibility, convenience and agency. They want a shopping experience that empowers them.

Customer empowerment is now largely driving technology advancements and innovation. While the concept of customer empowerment sort of implies less staff interference, balancing customer service with customer empowerment and embracing new technologies is key. Retailers must adapt quickly to meet changing customer expectations to stay competitive. From in-store wayfinding technology to real-time inventory management systems, here we discuss some of the technologies retailers can leverage to do just that.

Innovation often faces skepticism before gaining widespread acceptance and proving its worth. The bicycle, for example, was initially dismissed as a fad. It was considered an unsafe mode of transportation inferior to the horse and carriage, and it was even perceived as a threat to women’s physical and mental wellbeing in the 1800s. Improvements in design and safety and shifts in social expectations over the years made bicycles the accepted tried-and-true means of transport, recreation and exercise they are today.

As a relatively new technology, self-checkout systems have faced plenty of criticism of their own related to increased theft, frequent malfunctions and lack of adequate in-person assistance, leading some retail stores to withdraw self-checkout completely. But for all its initial hiccups, customer demand for a self-checkout option continues to prevail, indicating that what customers really want is improvements to these systems.

Retailers have also come to rely on self-checkout to compensate for labor shortages. The path forward points to refining these systems to minimize disruptions to customer shopping experience, improving loss prevention methods at point of sale and factoring in responsive customer service support. Balancing technology with human touch is key here, but advancements in video surveillance are also improving these systems.

Food lockers are an increasingly popular self-service capability, popping up in on-the-go food vendors, including fast food restaurants. Customers can order ahead online or at a physical kiosk, and they are provided with a locker number and code to retrieve their order. When their food is ready, they simply enter the provided code to open the locker.

Innovations in self-service meet customer demands and simplify employees' tasks, not only reducing the need for more staff, but also reducing bottlenecks and enhancing overall efficiency. This model has also been a game changer for third-party delivery services such as Grub Hub and Uber Eats, enabling more efficient pickup and delivery of customer orders.

By equipping store associates with mobile checkout devices, retailers can significantly reduce wait times and alleviate the frustration associated with traditional checkout lines. This innovation allows customers to complete their purchases from virtually anywhere in the store, contributing to a more flexible and seamless shopping journey.

Apple Stores have long used mobile checkout technology, for example, equipping their employees with handheld devices to assist customers with purchases on the spot. This eliminates lines at a central register, streamlines customer service and speeds up the transaction process.

Digital signage, which includes electronic displays such as LED screens, kiosks and video walls, has become a powerful tool for engaging customers and enhancing the shopping experience. If you’ve been in the freezer section at CVS lately, you may have noticed that customers are able to browse the contents of the freezer on a screen without opening the door. This not only prevents unnecessary temperature fluctuation and energy loss, but also enables customers to quickly identify products they’re looking for.

Radio Frequency Identification (RFID) technology, which uses electromagnetic fields to automatically identify and track tags attached to objects, is complementing digital displays and price tags by providing real-time data and interactivity. This translates to more accurate pricing and inventory on the shelves.

Beacon technology utilizes small wireless devices that transmit Bluetooth signals to nearby receivers, smartphones and tablets. This technology is being integrated into signage to help customers with wayfinding through large stores, making it easier to locate products and navigate the shopping environment.

It's also helping retailers personalize content and offers to customers as they approach specific areas of the store. For example, a customer browsing near the electronics section may receive a notification about special discounts on the latest gadgets. This targeted approach boosts sales and enhances the customer experience by providing relevant and timely information. It also eases customer reliance on staff.

Traditional video surveillance has long been a cornerstone of retail security, but with the integration of AI, these systems are evolving to help identify anomalies and potential crimes in real time.

Also referred to as “computer vision,” this technology leverages artificial intelligence (AI) and focuses on enabling machines to interpret and understand digital images from cameras, videos and other visual inputs. AI-enabled cameras can flag unusual behavior that might indicate shoplifting. They can also monitor transactions to prevent discrepancies and fraudulent transactions.

Another traditional loss prevention method includes locking items behind glass cabinets, which then requires staff assistance to retrieve. However, this method has been clearly linked to a deterrent in sales where the balance between staff availability and customer service has been misaligned.

Innovative solutions have emerged to balance loss prevention measures with customer empowerment. Membership card scanning and smart lockers are being leveraged to provide access to locked items without having to wait for a staff member.

Consumers expect the seamlessness of online shopping when they visit brick-and-mortar stores. Online and in-store apps are one way retailers are trying to achieve unified commerce, giving customers the best of both worlds. These apps allow customers to search for products, check prices and even make purchases directly from their smartphones.

The "buy online, pick up in-store" (BOPIS) model has also become a powerful customer empowerment tool. As with self-checkout, however, this technology has also been marred by bad experiences. For example, customers who order online or in-app may arrive at stores only to find the item they expected to be available or already purchased out of stock, despite online indications.

Advanced inventory management systems with real-time inventory and pricing updates are where improvements are being made to meet customer demand and enhance the shopping experience. We’ll discuss this more in a moment.

Self-service kiosks, equipped with AI-driven chatbots and avatar assistants, are popping up in some of the more tech-forward stores. Think “price check stations” like those you’ve seen around Target, but with substantial intelligent and interactive capabilities.

Kiosks can provide customers with basic product information, special offers, shopping suggestions and even wayfinding directions to help customers find the product they’re looking for in the store. Layer AI on top of this and you have a personalized, intelligent customer assistant.

On the forefront of cutting-edge retail technology is virtual reality (VR) assisted shopping. These technologies have been applied to allow virtual clothing try-on with smart mirrors in much the same way some online shopping apps enable customers to see how a piece of furniture might look in their space before they buy it. It can even suggest complementing articles and accessories. This not only enhances convenience but also reduces the need for physical changing rooms and the need for staff assistance. While still in its infancy and yet to see wide adoption, VR technology is starting to become more accessible and could become a popular in-store feature for retail stores soon.

Another major benefit to these technologies is that they can be configured to address the needs of multilingual customers, including those using American Sign Language (ASL), to ensure inclusivity.

In the face of retail labor shortages, technology is not just a bandage. It is an opportunity to enhance the customer experience and improve overall business operations. By empowering both customers and employees with innovative retail technology, pushing past initial hiccups toward smoother implementations, retailers can transform the shopping experience for their customers.

CDW’s expertise, cutting-edge solutions, and commitment to excellence make us an ideal partner for retailers seeking to transform retail operations and customer experience. Our deep experience implementing retail technology solutions uniquely positions us to help customize the right solution for your business.