Be our Guest: How the Hospitality mindset can elevate the Retail experience
This article is provided by BRC Associate Member, Womble Bond Dickinson.
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Retailers are tapping into hospitality’s guest first mindset to deliver richer experiences, smarter personalisation and faster service recovery. Olivia Graham, Solicitor and Claire Wilkinson, Head of Retail, Hospitality and Leisure at international law firm Womble Bond Dickinson, reveals what each sector can learn from the other.
By their very nature, the retail and hospitality industries have always been closely linked: the success of both industries depends on attracting customers, meeting (often high) expectations, and creating memorable experiences that encourage repeat business. It's easy to see how each industry might be able to take learnings from the other's best practices, and the hospitality industry, in particular, can offer valuable insights on how to ensure businesses thrive in progressively more challenging economic times. Increasingly, we're seeing retailers embrace these learnings, and key trends are emerging.
1. Putting experience at the heart: the customer as a "guest"
Experience is at the core of the hospitality industry. The industry understands that customers don't just buy a meal, or a room: they're investing in an overall experience.
Retailers can take inspiration from this approach, by viewing every part of a customer's interaction when entering a store, or shopping online, as part of the product for sale. Value-adds like in-store cafes, comfortable lounges and tailored events can increase brand immersion and give customers something more, in return for their spending.
Stores that create welcoming and customer-focused environments are more likely to encourage shoppers to engage in longer shopping times, and as a result, enjoy higher sales conversion rates – just as well-designed hotels encourage longer stays and higher guest spending.
2. Personalisation – without intrusion
Both the retail and hospitality industries have always valued knowing their customer, and this has never been more important than in today's world of targeted online advertising in highly saturated markets.
The top tiers of the hospitality industry excel at subtle personalisation, whether that be welcoming returning guests by name, giving them their preferred table, or implementing loyalty schemes for repeat customers. There are parallels for the retail industry – retailers can use customer data responsibly to enhance their experience, and equally to make sure the right products are placed in front of the customers. Recognising loyalty and individuality, remembering customers' preferences and tailoring recommendations in a thoughtful way can make customers feel valued, rather than targeted.
3. Repair: as important as delivery
As all retailers know, how you handle problems is just as important as getting things right the first time. Linking back to the customer experience, the approach taken by the service provider when issues arise can make or break whether the customer will return.
Comprehensive training that empowers staff to solve problems is crucial to enhancing the retail experience and setting a retailer apart from its competitors. Empathetic and solution-focused staff are essential to this ethos. In the hospitality industry, staff are often trained to think laterally and recover a negative experience quickly and proactively – for example, a free drink in return for a lengthy wait, or money off the bill for a negative dining experience. In a retail context, this could mean allowing staff to offer small gestures to customers without manager approval – turning potential problems into opportunities to strengthen customer loyalty.
Conclusion
The hospitality industry offers retailers a reminder that, in large part, success is built on relationships, not just sales. By focusing on creating an exceptional customer experience, maintaining consistency and treating the customer with genuine empathy, retailers can build inviting spaces that encourage customers to return (and to spread the word).
As more retailers draw inspiration from the hospitality sector, many are also seeking guidance on the legal, commercial and regulatory considerations underpinning these experience led strategies. Womble Bond Dickinson's Retail, Hospitality & Leisure team advises brands across the industry from digital transformation and data driven customer journeys to operational policies, loyalty frameworks and regulatory compliance, helping ensure great customer experiences are supported by robust, future proof foundations.
