Can Chinese new retail model revolutionise customer experience?
A public venue equipped with autonomous robots serving people was merely a science fiction theme a few years ago. It has now been fast-tracked to become a reality in US and China. The realisation might begin with the Amazon Go concept store, followed by a Chinese start-up firm Bingobox opened its first unmanned convenience store in 2017, then recently a unmanned hotel Flyzoo was launched by the Chinese e-commerce giant Alibaba.
As both public and private sectors in China are investing heavily into the research and development of artificial intelligence and robotics, it is no surprise to view those unmanned concepts as new technology demonstrations, first and foremost. The unmanned concept may improve operational efficiency with standardised procedures. But in this post, I would like to focus on the impact of advanced technology on customer experience.
In an unmanned hotel, there will be no staff greeting you at the reception lounge, you will be automatically checked-in through facial recognition or scanning a QR code from your mobile. You will then be guided by a robot to your room, using in-room smart speakers to control lighting and appliances. Finally, your smart phone can issue payment after checking out.
Many people surveyed believe such experience is cool from a technology standpoint. Some even argue using robot instead of human can be a solution to end the service quality inconsistency problems that are pervasive among Chinese retail industry, partly caused by fast raising hiring costs, high staff attrition rate, and lack of professional training and talent development. However, in my view, the advanced technology is also a double-edged sword, especially considering that the increasing level of automation will push for less human interactions which can be crucial for retail staff to develop and improve.
In an increasingly digitalised world, Australian retailers have also adopted new technologies. However, so far, the technology adoptions are only concentrated in certain areas, like reducing operation cost (i.e. automation for lighting and climate control), reducing waste (i.e. sales prediction) and expanding digital payment options, but not on the replacement of human interactions. Like always, when I am entering a local café or restaurant, I can still enjoy the conversation with the staffs on so many different topics, from recent news, new dishes they create, to my family, the little one’s eating behaviours etc.
No doubt, we are in the era of digital revolution. A new retail model is on horizon. It will eventually combine online and offline (O2O) retailing into a seamless experience. But does that mean advanced technology replaces the roles of human beings will be the only outcome?
I believe the answer is no. Customers of retail stores who are just attracted by the novelty of new technologies may lose their interests as the excitement wears off, thus may not be loyal for long. To retain customers, a really successful venue relies on providing superior experience, e.g. respect, care and convenience that any customer can feel. A good use of advanced technology should reduce stress in the workplace, so that staffs are willing and able to spend more time with customer, to gain more experience and thus improve the quality of customer service.
Retail industry in China has been quickly improving on its utilising of new technologies. Make no mistake, the adoption of advanced technologies is just a mean to an end. The real goal is to improve the overall customer experience. With that in mind, I see Australian professional services that are specialised in customer service training may find good opportunities in the Chinese market soon.
