# Mind the gap: plugging the physical disconnect in a digital-first retail era Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-03 Category: BUSINESS Category URL: https://financedigest.com/category/business Meta Title: Retailers Struggle to Maintain Brand Loyalty Amid Online Shift Meta Description: Discover how the pandemic has affected consumer loyalty in retail, leading to disillusionment, lack of engagement, and the need for brands to bridge the gap URL: https://financedigest.com/mind-the-gap-plugging-the-physical-disconnect-in-a-digital-first-retail-erahtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/dm032420161938-1-1736838079036-compressed.jpg) _By **Christophe Pecoraro**, Managing Director at_ _PFS Europe_ It is no exaggeration to say that the past 12 months have turned the retail environment on its head. As consumers slowly start to rise above the parapet and lockdown restrictions ease, retailers are having to overcome the physical disconnect between themselves and their customers. With retail moving almost entirely online during 2020, and continuing to dominate the arena as we navigate the ongoing effects of the pandemic, consumers started missing the more tangible aspects of the retail experience. As a result, brands struggled to preserve the [brand connections needed to maintain](https://www.financedigest.com/how-a-british-brand-catered-to-hnwis-can-maintain-its-position-within-the-global-luxury-sphere-and-even-grow-in-these-current-circumstances.html "How a British brand catered to HNWIs can maintain its position within the global luxury sphere, and even grow, in these current circumstances") loyalty. **A disillusioned consumer** Our latest research illustrated how consumers became increasingly disillusioned by the online performance of their favourite and preferred brands. In fact, over a third (35%) complained they had such an unsatisfactory shopping experience with a previously [trusted brand](https://www.financedigest.com/how-sonic-branding-can-build-trust-and-confidence.html "How sonic branding can build trust and confidence"), that they had moved on to a competitor. Younger consumers were shown to be the most fickle of all, with 63% of Gen Z consumers jumping ship. Slow delivery, lack of available stock and difficult returns processes were all cited as common frustrations. Long-held loyalty crumbled during lockdown due to a disconnect between physical offerings and online experiences hastily [put together by retailers](https://www.financedigest.com/putting-your-right-foot-forward-the-secret-of-successful-retail-bank-footprints-is-in-the-data.html "Putting your right foot forward – the secret of successful retail bank footprints is in the data"). It was often a case of a lack of engagement. Almost a quarter (23%) of consumers agreed that [online stores](https://www.financedigest.com/the-benefits-of-developing-online-stores-through-shopify.html "The Benefits of Developing Online Stores Through Shopify") either didn’t do enough to engage with them, that they only wanted their money and didn’t care about their satisfaction. **The barriers to brand loyalty** Even on its organic trajectory, consumer [expectations pre-pandemic around](https://www.financedigest.com/polyimide-fibers-market-is-expected-to-increase-at-a-healthy-cagr-of-around-5-over-the-forecast-period-of-2021-2031.html "Polyimide Fibers Market is expected to increase at a healthy CAGR of around 5% over the forecast period of 2021-2031") online perks were extending far beyond convenience and accessibility. The [pandemic has only accelerated](https://www.financedigest.com/post-pandemic-tech-innovation-the-role-of-accelerators-and-5g-testbeds.html "Post pandemic tech innovation: The role of accelerators and 5G testbeds") this. Consumer’s exposure to disruptive [start-ups and alternative global](https://www.financedigest.com/setsquaredskills-up-start-ups-to-pitch-for-global-funding.html "SETsquaredskills up start-ups to pitch for global funding") brands skyrocketed. Some elements simply cannot be tangibly replicated digitally. Out of the aspects that four-in-five (80%) of consumers said they were missing, perhaps inevitably, were not being able to physically touch products (43%) and not being able to [test certain items for suitability across aspects such as size](https://www.financedigest.com/non-invasive-prenatal-testing-market-size-to-reach-us-5-1-billion-and-registering-a-cagr-of-16-4-by-2027.html "Non-Invasive Prenatal Testing Market Size to Reach US$ 5.1 Billion and Registering a CAGR of 16.4% by 2027") or colour (41%). Of course, retailers are not completely oblivious to these inherent shortfalls. We’ve seen the rise of self-service online tools such as [website chatbots to address customer service cravings, or augmented reality](https://www.screenmedia.co.uk/lab/the-future-of-online-shopping-how-chatbots-ar-and-voice-are-disrupting-ecommerce/) to bring a sense of tangibility to products such as sunglasses or cosmetics in the past 12 months. FAQ pages have become more informative, and product and item descriptions have become clearer, both assisting in the [purchasing and delivery process as well as minimising customer](https://www.financedigest.com/britains-nationwide-curbs-cryptocurrency-purchases-by-customers.html "Britain’s Nationwide curbs cryptocurrency purchases by customers") returns. But there is clearly more to be done to satisfy today’s shopper. And there is more brands can do to alleviate challenges. **[Bridging the gap](https://www.financedigest.com/using-technology-to-help-bridge-the-widening-financial-advice-gap.html "Using technology to help bridge the widening financial advice gap") with fulfilment** Brands need to act fast, preventatively not reactively, to strike a chord with customers and fulfilment is a key [differentiator brands](https://www.financedigest.com/how-music-sound-can-help-financial-brands-differentiate-in-a-competitive-world.html "How Music & Sound Can Help Financial Brands Differentiate in a Competitive World") should leverage. In this era of consumers becoming – quite rightly – more [aware of their environmental impact](https://www.financedigest.com/sap-boosts-brand-awareness-using-gumgums-high-impact-ad-formats-and-veritytm-gumgums-advanced-contextual-targeting-solution.html "SAP boosts brand awareness using GumGum’s high impact ad formats and VerityTM, GumGum’s advanced contextual targeting solution"), including their carbon footprint and how a product is packaged and delivered is increasingly a determining factor. In fact, PFS’ research found that 64% of consumers would be more loyal to brands that provide them with delivery timeframe options, whilst 52% would prefer to shop with companies that help them to minimise their carbon footprint. The option of buying and returning in-store, or to use click and collect when [shopping online](https://www.financedigest.com/the-high-street-is-dead-long-live-online-shopping.html "The high street is dead – long live online shopping! ") is also becoming popular. Most [retailers have now got their point of sale](https://www.financedigest.com/uk-retailers-turn-positive-on-sales-hopes-after-bleak-winter.html "UK retailers turn positive on sales hopes after bleak winter") (POS) to a satisfactory standard. However, they are more likely to hit the mark with consumers based on value-add considerations. [Brands need to put themselves in the consumers’](https://www.financedigest.com/how-financial-brands-can-appeal-to-consumers-emotions-with-sms-rmm.html "How Financial Brands Can Appeal to Consumers’ Emotions with SMS/RMM") shoes and understand the specific drivers of each demographic. **Questions need to be asked such as:** - How quickly does our customer demographic want their purchase to be delivered and what can we do to make that happen? - Can we give consumers flexibility over delivery timeframes? - Even how items are packaged has the potential to add further value. Can our inventory and stock facilitate both online and in-store availability? - How simple and sustainable is our returns system and what can we do to minimise returns? - How ethical or [environmentally conscious](https://uk.pfscommerce.com/blog/green-with-envy-setting-sustainable-ecommerce-brands-apart/) is our supply network? Today’s consumers want it all. A [strong POS experience](https://www.financedigest.com/can-there-ever-be-a-balance-between-strong-authentication-and-customer-experience.html "Can there ever be a balance between strong authentication and customer experience?") won’t offset poor fulfilment options, and vice versa. [Retailers need to ensure that they tick all the boxes](https://www.financedigest.com/uk-retailers-see-40-jump-in-boxing-day-shoppers-springboard.html "UK retailers see 40% jump in Boxing Day shoppers -Springboard") of the post-pandemic consumer to guarantee long-term brand connections. **Taking ownership** [Retailers should be owning and rethinking](https://www.financedigest.com/rethinking-retail-banking-embracing-a-customer-centricvalue-proposition.html "Rethinking retail banking: Embracing a customer-centricvalue proposition") their supply chain, looking for solutions that can help further elevate the post-click process. Making a wider variety of products available to consumers more quickly is essential – with accessibility [leading the way](https://www.financedigest.com/bank-of-the-future-challengers-leading-the-way-to-cloud-adoption.html "Bank of the future – challengers leading the way to cloud adoption"). Appealing to the veteran online shopper as well as the novice must be considered to cover all bases when it comes to succeeding in eCommerce – but without [losing sight](https://www.financedigest.com/soccer-jittery-arsenal-losing-their-grip-with-summit-in-sight.html "Soccer-Jittery Arsenal losing their grip with summit in sight") of your brand’s core customer demographic. Operational excellence will be vital to this and brands [must ensure all processes are optimised to avoid any frictions](https://www.financedigest.com/fintechs-must-remove-security-and-compliance-friction-to-unlock-new-growth.html "Fintechs Must Remove Security and Compliance Friction to Unlock New Growth") that could damage customer loyalty. After all, speed, the condition of the product and the overall delivery [experience will leave a lasting impression on the customer](https://www.financedigest.com/the-new-client-adviser-experience-in-the-age-of-the-customer.html "The New Client-Adviser Experience in the Age of the Customer"). There will always be elements of the online experience that cannot match brick-and-mortar. For this reason, brands need to take control of what they can, to instil and [maintain brand loyalty](https://www.financedigest.com/how-to-maintain-customer-loyalty-and-trust-in-the-face-of-a-pandemic-and-digital-competition.html "How to maintain customer loyalty and trust in the face of a pandemic and digital competition") – and this starts with fulfilment. From the findings of our research, barriers to brand loyalty are clearly as much to do with a brand’s warehouse as their POS. And the [key to overcoming](https://www.financedigest.com/disadvantages-key-challenges-to-overcome-when-working-from-home.html "Disadvantages – key challenges to overcome when working from home") these barriers is to enable options and flexibility. The more choice that is made available to consumers, the more likely they are to remember that ease and variety – even subconsciously. --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---