Future Consumer Index: Can you reopen with certainty in an uncertain world?

That’s something we see in our own EY Index. Respondents from all over the world continue to cite anxiety amid the ongoing pandemic.³ For example, China was one of the first countries to emerge from lockdown, yet many of its citizens are still concerned about the pandemic and remain cautious about “returning to normal.” On the flip side, the safer consumers feel in your retail environment, the more likely they are to embrace it.

How can you adapt today?

• Walk the talk on safety. Cautious consumers are evaluating risks regularly, as many still worry about getting sick. Let go of what worked yesterday and start seeing your physical space through your customers’ eyes today. Some restaurants and coffee shops have started moving cashiers and products closer to front entrances, limiting circulation to curb virus transmission at indoor retail spaces. Getting creative about how your operation runs could go a long way to making your customers comfortable enough to come in.
  
  
• Make your team a top priority. Staggering checkout lines and wearing masks shouldn’t only be about creating a safer space for your consumers. Understanding what would help your front-line staff feel more comfortable is equally important. Remember: your people are your brand ambassadors. Like consumers, they have fears and concerns. Making them comfortable and safe at work is a business imperative that sends a clear message to all your stakeholders (external and internal alike).
  
  
• Show, don’t tell. However you’re adapting to help consumers and employees feel safe, reinforce those measures throughout your physical space. Creating visual cues and markers for lines, distancing and shop flow can help consumers and staff interact safely, while reinforcing the message that you have their wellbeing top of mind. That makes for better consumer experiences in an uncertain market.

How can you adapt today?

• Align your marketing with your purpose. We’re emerging from the pandemic into an economy now grounded in health and caring. Companies that show intentional and – above all – genuine efforts to support charitable and community-centric campaigns are more attractive to consumers who are looking to buy from authentic, honest brands. Making donations or shifting production towards personal protective equipment (like one Canadian retailer that donated 60,000 face shields to the federal government and 1,000 pairs of safety glasses to a provincial health authority) says a lot about what your brand stands for. Ensuring your marketing efforts shine the light on how your organization is making an impact can position you well in the eyes of increasingly selective consumers.
  
  
• Paint pricing in a new way. It goes without saying: consumers concerned with job security and finances are highly sensitive to price. That means companies face a range of pricing challenges compounded by fluctuating demand (from a drop to an increase to an all-out pause). Now’s the time to explore adaptable pricing models or payment alternatives that could offer the kind of short-term relief cautious consumers now value. From terms to credits against future purchases or one-time promotions, evolving your pricing can be a step in an authentically transparent direction.
  
  
• Expand in-store training to online channels. The last few months have made it clear that there are more ways than one for retailers to engage with consumers. Retraining in-store staff to engage digitally can help customers feel more connected to their shopping experience, even from home. Creating content like short videos and hosting customer live streams are key ways to differentiate your retail operation and build relationships better suited to the new reality. Case in point: one Canadian women’s fashion brand is using digital channels to host live styling sessions that sales associates would otherwise have conducted in stores. That same retailer is also designating product and brand experts to consult on fit or style through Instagram. In another case, a global athletic apparel retailer based in Canada is delivering safe and engaging digital experiences through home workouts. By acquiring a tech company that transforms mirrors into interactive home gyms, they’ve increased digital visitor participation in their virtual workouts from 64% to 75% during the pandemic.⁵ Technology means the possibilities are endless; training makes those possibilities feasible.

How can you adapt today?

• Augment reality to augment value. Your customer may no longer be as comfortable testing products out in the store. Now’s the time to think outside the box about how you provide a similarly valuable experience in a way that works for them. Augmented reality (AR) can help replicate the in-store experience, enabling customers to make remote choices beyond just how a product looks. AR can allow shoppers to get a sense of size, fit and feel by creating a remote visual sensory experience. For example, one Canadian cosmetics company that implemented AR smart mirrors in its stores has seen a surge of online global business so promising they’re now rolling the tool out in Europe, South America and the Middle East.

• Rethink retail spaces. It’s no secret that Canada is over-retailed given our population size to retail square footage and inventory levels. That’s leading to more and more empty retail spaces right now – and a whole lot of opportunity. Companies can transform vacant lots into micro-fulfilment centres or use them as contactless curbside pickup spots. Envisioning that empty parking lot as a potential space to support last-mile delivery (or a range of other ideas) can make a big difference in how you evolve next. One Canadian grocery store is doing exactly that, transitioning their loyalty offering of click-and-collect points outdoors to enable contactless, curbside pickup. This appeals to anxious consumers’ needs, reduces indoor foot traffic and tells consumers: we understand what matters to you most.

• Embrace new tools to plan for supply and demand. Consumers want predictability. They’re putting higher value on knowing whether essential products will be available at the right place and time. Next-generation artificial intelligence and machine learning (AI/MIL) capabilities can enhance the consumer experience by offering better inventory line of sight. That enables you to deliver products more efficiently, while optimizing price and creating a more predictable customer experience. For example, one Chinese ecommerce giant recently engaged in a supply chain transformation partnership with a US digital solution provider. The goal was to help partners and vendors better monitor and respond to customer needs. The partnership also provided the retailer with new ways of predicting potential supply chain disruptions. Embracing these kinds of tools can help you adapt to consumers’ changing values while operating more efficiently at the very same time.