Gentle introduction of retail technology converts customers
Retail technology is continuously advancing, offering more opportunities for businesses and more convenience for customers. But some consumers are wary about adopting the latest trends and they could be alienated if companies change their systems too abruptly or aggressively. To capitalize on the benefits of retail technology, such as POS software or mobile payment systems, businesses should take a lesson from Starbucks: Introducing small, unthreatening options is the best way to get consumers on board.
How Starbucks became a leader in mobile payments
Even by 2011, Starbucks hit the 26 million transaction mark for mobile payments, Computer World reported. The coffee giant currently offers two apps: One that allows customers to pay with their Starbucks Card by tapping their phone, and another that pays through credit or debit accounts. This strategy for fueling customer adoption could help expand what USA Today noted is now a relatively small pool of tech-savvy mobile payers.
CIO magazine explained that Starbucks catalyzed its retail technology venture by starting with something simple and comfortable for customers: Good, old-fashioned Starbucks gift cards. The cards were an easy transition for customers used to paying by plastic, the source said, and Starbucks focused its holiday retail marketing on selling gift cards. Then, with millions of cards in the hands of coffee drinkers, Starbucks launched a campaign to promote its Starbucks Card app, encouraging consumers to put their gift card dollars into app accounts. After years of using a special Starbucks card to pay at the shop, CIO magazine suggested, customers were more comfortable using a special app to pay instead.
Slow and gentle is good general advice for retail technology
Starbucks' insight that easing people slowly into the sometimes intimidating frontier of technology is wise advice for the retail industry. No one likes to feel pressured to change to a new system, and an inviting approach gives customers the space to see how a new option is advantageous and convenient, without the negative experience of being forced to adapt.
To this end, retailers can incorporate some forms of technology while maintaining traditional options, at least at first. For example, a store switching to mobile point of sale might find customers more satisfied if they still have the choice to go to a traditional check out line. Over time, as customers become more comfortable with the new system, the store could switch over completely.
