About a hundred years ago, I did some research with a grocery
retailer about 'scan it yourself' shopping - when you do all the
hard work, scanning each item, packing your bags as you go and then
whizz through the special checkout. What struck me at the time
(apart from the fact that male shoppers loved showing off with the
hardware) was that it wasn't just speed and convenience that
mattered. The killer benefit was that it gave people on a
budget (everyone from mums to students) a way of avoiding that
awful moment at the checkout when they realise they've spent more
than they meant to.
Now, we talk constantly about consumers being in control, but do
we really mean it? So many businesses benefit when customers spend
in a relatively uncontrolled manner or can't easily grasp how they
use a product they pre-pay for, like a mobile tariff or a digital
TV subscription or a packaged bank account. Often, it feels
that the needs of the customers fight head on with those of the
business.
It takes an intelligent business to play for the long-term and
recognise the value of putting customers more in control. The
type of utility that really benefits the customer, unambiguously
and self-evidently - is still pretty rare amongst mainstream brands
and retailers.
Fast forward to more research for a different retailer.
When we gave customers sight of digital tools that would enable
them to understand and proactively plan and control their spend and
to make savings where necessary - it was clear that the resulting
high levels of loyalty and stickiness engendered would more than
compensate for small, short-term losses in spend. What are
also lost are the feelings of inadequacy, guilt and lack of
empowerment that the customer associates with
overspending.
So that's a win for both parties. In my view, real utility that
supports, empowers and inspires customers is worth a big bet or
two.
Kate Wheaton
Director of Strategy