When I first saw the video below of how Tesco’s Korean subsidiary Homeplus had tested a "virtual supermarket" in Seoul’s Hangangjin subway station I was impressed with the customer-centric use of mobile technology to innovate the shopping experience. The test included using basic posters with QR codes to enable the customer to create an order for delivery while on their way home.
Now we have learned that Homeplus is extending the trial to other Seoul subway stations next month with a view to rolling the format out across South Korea within two years.
What makes this possible? First and foremost an investment in a services-oriented architecture that Tesco began years ago, along with a consumer market well adapted to using mobile technology in their day-to-day life, and an operational capability to pick the items and faciliate delivery. It is intriguing to see how this test paints a future where physical displays – be they printed or digital – can be used to enhance the cross-touchpoint research, purchase, and service. Ideally these need to be highly integrated to the commerce platform to support real-time price, inventory availability, promotion, and content updates that enable full cross touch-point commerce, with this yet another interface to support shopping.
For those of you that put up with my tweeting on Twitter, you will already know that I am obsessed with customer service. Or to be more accurate, I am obsessed with being treated like a customer. While a polite Englishman at heart, I am not prepared to tolerate poor customer service. In the words of David/Bruce Banner, “You won’t like me when I am angry.”
“But what has this to do with ITIL?” I hear you screaming at your screen. Please bear with me as I recount last Saturday night and Sunday morning (thankfully there is no link to the film of the same name).
Last weekend I spent a single night at a “chain” hotel. The customer service upon arrival was excellent, on the back of my loyalty card I received a room upgrade and complimentary soft drinks and chocolate bars in the room. Ah, the world was good and I was “living the dream.” I felt like a valued customer. Fast-forward to the following morning and the picture couldn’t have been more different.
During the night the room had been so hot that it was difficult to sleep. “You should have turned down the heating or opened the window,” I hear you cry. Check and check. The wall-mounted thermostat made no difference. The window, somewhat morbidly, had been screwed shut. I didn’t call down to reception as I couldn’t face a handyman/woman messing around in my room in the middle of the night (if they were actually available).
Following my blog post from a couple of weeks ago where I wrote about the need to take a local approach in Europe, I’d like to take a few minutes to say something about the first of our country-specific reports.
It was natural to start with the UK Online Retail Overview, 2011, for two reasons. The first is that I live in the UK, so it’s the market and retail environment that I’m most familiar with, but secondly and more importantly, it’s the largest online market in Europe. Based on the figures in our European Online Retail Forecast, the UK online retail market will be worth £28.6 billion in 2011; this represents 9.4% of the overall national retail market, almost double the online penetration of any other European country.
So there are some big numbers but also some interesting trends to examine.
The UK market is increasingly dominated by multichannel retailers. While there are a range of notable online pure play success stories (Amazon.com, Asos, Net a Porter, and Play, to name a few), we are seeing an increasing level of sophistication in how the major high-street retailers are integrating their on- and offline properties. Initiatives like Click and Collect are now commonplace, and the pace of innovation isn’t slowing, with new initiatives such as Argos’ 90 minute Shutl delivery service being a prime example. So there are plenty of examples here to be inspired by.