From a customer perspective, which digital should be implemented to improve customer experience in supermarkets?

Abstract

In recent years, the concept of "customer experience" has gained significant importance as businesses strive to better understand and cater to their customers' desires and habits. Originating from Lewis Carbone's 1994 article "Engineering Customer Experiences," customer experience encompasses every aspect of a business's interaction with its customers (McKinsey & Company, 2022). It has become increasingly vital for companies to adapt to the changing landscape of consumer behavior and market dynamics, particularly in light of rapid technological advancements and digitalization. Digitalization, defined as the use of digital technologies to transform business models and create new value opportunities (Gartner, s.d.), has accelerated in response to both technological innovation and the global COVID-19 pandemic. The shift from traditional brick-and-mortar retail to online platforms has placed immense pressure on retailers to innovate or risk obsolescence. The food retail sector, in particular, has been heavily impacted, with significant challenges such as declining profit margins (Belga, 2023), increased competition from e-commerce giants like Amazon (Roster, 2012), and the effects of inflation and energy crises (Dominique, 2023). Belgium's food retail sector exemplifies these challenges, where traditional supermarket chains face severe competition from both smart discounters and e-commerce platforms. The closure of the Makro chain at the end of 2022 (Lambrecht, 2022) and the ongoing struggles of Carrefour's Mestdagh shops (Gondola Group, 2018) highlight the critical need for businesses to innovate and embrace digitalization. The introduction of digital signage, automated checkout processes, and other technological advancements are no longer optional but necessary for survival in an increasingly competitive market. To help retailers implement the right tools with important and useful features for consumers, a qualitative study was conducted. The objective was to understand how retailers should implement technologies in their stores to improve customer experience. The results show that consumers are positive about digital tools in physical supermarkets and know what they need to have a better store experience. This research concluded that although digital tools are necessary and appreciated by consumers, retailers must implement them with parsimony and reflection. Recommendations include that retailers listen and pay attention to customer requests and ensure they are properly informed of the risk that these tools will degrade the experience instead of improving it.