Retail

Retail Space

Challenges With Using Self-Checkouts

Shoppers are increasingly becoming proficient in using technology and automation is entering retail spaces already. My own assessment of the self-checkout machines — the kiosks that help speed up billing at a reasonably lesser space, has been positive, and that it helps clear the shopper lanes quickly thereby streamlining the sales cycle. Although, when I visit this local store, I have observed, the customers aren’t judged well while using the self-checkouts. In fact, some of the cashiers quite blatantly confide that one should use the cash counters thereby sparking a moral debate around the installation and use of self-checkout kiosks. Many fear that these machines would eventually create job losses.

We have to understand the purpose of this rapid change which has psychologically affected store employees and fuelled the debate of ‘humans vs machines’ yet again. This particular big brand store is located within a busy mall and experiences medium to heavy traffic during most parts of the day. The natural response in this scenario would be to keep the traffic flowing is to increase the cash counters and employ more cashiers, although, despite having 6 counters sometimes the line just goes haywire and customers have to wait endlessly for their turn. Moreover, the space constraints inside the store prevent the management from adding more counters with a suitable area for movement.

There are various emotional challenges in dealing with the issue of using self-checkout kiosks. Often times I have waited for at least 10-15 minutes at the counter and the excruciating wait-times has bothered me to a large extent, in which case, I have either left without completing the purchase or reconsidered my decision and removed some items from the cart. In other scenarios, customers needed privacy to discreetly buy items without the fear of being judged. This means that external factors, such as wait times and individual privacy, could have a negative influence on a consumer’s purchase decision and hurt revenue streams in the long run. Large grocery stores, such as Food Basics and No Name, have a separate counter for 10 or fewer items which is served by a representative yet it does not solve the problems I stated above. Moreover, there are contextual factors that could be preventing them from rolling out the self-checkout machines.

Self-checkout machines are now a common feature across several Canadian big box stores and watched over by attendants, such as Walmart, Shoppers Drug Mart, IKEA, Loblaw, and Canadian Tire. These stores have an influx of customers at most times of the day and the role of the machines could be viewed as easing the pressure of manual billing on the cashiers and putting the onus of the purchase on the customers. Although it has been a challenge for some shoppers to transition to the self-checkout model for several reasons ranging from old age issues to technical glitches, even interaction issues arising out of an unclear or cluttered and disparate use of user-interface design languages — every brand has their own interpretation of shopping items and purchase rules that can confuse consumers while using the kiosk’s user-interface in the checkout process. Perhaps a uniformity in overall systems design could help resolve the crisis. However, it’s evident that grocery and retail stores are eager to roll out self-checkout kiosks to address the latent needs of the tech-savvy millennials also based on their spending behaviour. In a study, Accenture has predicted that by 2020 Millennials will account for nearly $1.4 trillion in spending power. And moreover, despite the ease of online shopping, a large number of millennials continue to prefer visiting bricks and mortar over websites.

It’s obvious that retail stores aren’t doing enough to address the insecurities of its store employees who continue to look negatively at the rising trend of self-serve kiosks. One solution is to leverage their respective loyalty programs to benefit customers by giving discounts and bonus points on select products, thereby encouraging greater customer influx in keeping the stores busy. In such a scenario, the role of cashiers or sales executives would continue to be critical in enhancing the customer experience and influencing buying decisions as much as self-serve kiosks. Their involvement at every step of the customer buying process would stimulate a positive environment. Although the inevitable shift is towards automation their subjective functions should not be abandoned for the sake of the machines.

The (Very) Dreadful Return Policy Of Nike

Nike Logo

I never thought I would someday write this about a brand like Nike that it probably has one of the worst possible return policies of the big brands that I have experienced so far and so discriminatory. There’s simply an air of superiority & control as they leverage their branding dominance while negotiating with customers who want to return their products due to faulty workmanship on the part of Nike. And I’m surprised, that a multi-billion dollar brand as big as Nike, still haven’t figured out an easy solution to products which have a manufacturing flaw and not physically damaged.

A portion of the ubiquitous swoosh logo on one of the sneakers I purchased recently at mall outlet had come off despite using the pair sparingly and exclusively for normal activities such as walking, so when I went to that outlet to ask for a replacement I was surprisingly told to call up Nike. After giving them a call I was asked to ship the product so one of the Nike inspectors would take a decision on whether or not it warranted a replacement or otherwise. It’s totally on the discretion of the inspectors I was told. The weird replacement policy also suggests that regardless of the colour at the time of the purchase Nike does not guarantee it would replace the sneakers with the same shade although they definitely guarantee the size. So god forbid, but how much I’d hate myself to be ogled on the streets with bright fluorescent orange shoes! Wasn’t Nike’s product messaging attributed to ‘personalization’ and individualism? This again, is left at the discretion of the inspectors. Moreover, when I bought the shoes I was just told about the 30-day return policy and nothing about paying the shipping costs in case I opt to return the product. Clearly, this has to be one of the most ridiculous return policies from a well-known brand. Here’s what I learned during my conversation with the Nike representatives and it’ll shock you.

Nike Store Operations
It was during the call today that I realized to my surprised that Nike operates two categories of brick and mortar stores — one that’s owned and operated by Nike and the other are franchisee outlets. In other words, unlike the Apple stores which are owned and operated by Apple with clear branding & customer experience not all stores with the ‘swoosh’ identity are operated by Nike. Beware!

Return Policy
Per my conversation with the customer executives (Peter, Mary, Ozzie) based on your selection of the store the return policy differs to an extent. Products bought at the Nike-owned stores and Nike.com are accepted at the Nike-owned outlet and they bear all the shipping costs but anything that you buy at the franchise outlet must be shipped to Nike and the shipping costs must be paid buy the customer. And there’s no easy way to know which store is what unless you have a specific conversation with the sales executive on their return policy or make your purchases online on Nike.com.

From a customer standpoint, if Nike is selling its products through retail stores it shouldn’t matter if they are owned by Nike or by whoever because it’s the experience & value proposition in question, the store is simply a channel. Hence it has to stop its policy of discrimination as long as the customers are being charged for the brand, regardless of wherever. So if the franchisees are selling Nike products they receive the returns too at no extra cost to the customers. Clearly, there’s an underlying business tactic behind this deal which I’m not able to comprehend, but in simple terms, Nike should offer the same privileges to customers from their franchise stores as their online or at Retail Store. Where’s the question of paying for shipment for a product if there’s a manufacturing defect? Just Do It.

There’s More…
Once the sneakers are inspected by the so-called inspectors and they decide whether it’s worth sending a replacement. Physical wear and tear is not covered under this policy, most importantly, sneakers which are older than 2 years from the date of their manufacturing are not eligible so the next time you decide to go for a pair of Nike sneakers ensure this info by looking for the tag underneath the pad inside, the manufacturing date is legibly mentioned alongside the item no., something like BEXXXX-004. Why can’t the manager of the outlet where the Nike product was purchased take a call on whether a replacement could be afforded or not?

Don’t Be Left Cheated
It’s not surprising how the entire sales experience is played out to pull in customers but just like any other big product brand the service experience is pathetic and selective. And just so you don’t feel like a a complete idiot who was taken for a ride, here’s what I’d recommend you must do. Next time you make a purchase at any ‘Nike outlet’ make sure you check the sneakers for the manufacturing date. Ask the sales rep about the return policy and I’m pretty sure they’d end at telling you it’s 30-days, but that information is not enough as I have noted in my response. Prod them about the shipping details, etc. Trust me, this would save a lot of your invaluable time and energy going forward. Lastly, don’t take Nike’s word or for that matter, any other brand for granted on their quality standards. To put it plainly, it’s a manufacturing process and there will always be some flaw. It’s better to know the servicing process than curse the manufacturing one. In a nutshell, Nike is asking you to buy at the Nike Store or Nike.com and avoid Nike Partner Stores. Check the online store locator to find the Nike Store closest to you.

Accountability from Nike
Stick with whatever policy you might be comfortable be but be transparent about your service/return policies at least. Ensure that franchisees make it amply clear they don’t run the brand but are merely owning the place that sells Nike. When asked about return policy ask your franchisee outlets to outline the WHOLE process and not just the “30-day” version. Don’t make the customer feel as if you don’t care for their hard-earned money.

I have to say the toll-free customer service is grossly misguided and out of touch with current times. They sound awfully robotic and politically correct and perhaps they don’t have the freedom or the courage to empathize with a customer’s reasonable demand. Plus their lack of conversational skills and advocacy for what is truthfully justified is both surprising and sad because Nike is such a youthful brand. For example, when I asked if I could be given a discount on my next purchase — I was paying shipping costs, I wasn’t told about this complicated return policy and I had no discretion to choose the shade for the replacement or whether or not I’d get a replacement shoes, I was told I could go online on Nike.com where they put out promo codes every once in a while. That’s utterly shameful to hear on behalf of a top quality global brand.

I’m unable to comprehend Nike’s discriminatory retail strategy in penalizing buyers who prefer Nike partner outlets. Do they want to transition to single brand retail and are encouraging customers to move their purchase priorities to exclusive Nike-owned domains? Another rationale relates to the franchisee businesses who aren’t keen on after sales servicing. They’d rather have Nike to carry that load. Whatever the case may be, Nike should be accountable for fixing its fragmented buying experience and to stop differentiating customers on the basis of where they end up buying their items.

I learned several things dealing with Nike and the dilemma that many top brands face in the wake of competition although I would not like to put Amazon in the same basket as Nike or Apple. Because Amazon seems to have grasped the value of being truly ‘customer centric’ and ‘customer-driven’ without running a brick-mortar outlet and by engaging with them solely on the basis of feedback and data. In that sense, I feel Nike is light years away from figuring customer experience despite being the in the retail business for ages and successfully creating the impression of being a strong, vibrant entity largely thanks to their association with sports and sports personalities. The important question is, where does the buck stop for customer support and services? Nike stands for quality so if a customer is dissatisfied with the quality of his/her product which was bought at a store, how might they build a seamless return experience to assure its customers about its effectiveness? At this point, it’s anything but smooth or seamless, rather just painful and lopsided.