While technology is the number one retail investment today, two-thirds of retailers struggle to measure return on technology investments, a report said.

While many retailers are focused on technology investments and omnichannel integrations, store associates are often overlooked as crucial conduits for improved store performance, added the report entitled  “Rethinking Retail Operations: 2016 Achieving Excellence in Retail Operations (AERO)” by A T Kearney, a leading global management consulting firm.

The study also points to a misalignment between consumer expectations and retailer offerings, with retailers investing in services that customers may not want, need or expect, particularly in terms of fulfilment, in-store technology and social engagement.

Joel Alden, A T Kearney partner and co-author of the study said: “Gone are the days when a store’s success was based solely on the revenue generated within the four walls. Retailers need to fundamentally rethink how their associates engage with customers.”

Another key finding from the report was that although there is a race among retailers to near immediate shipping times – from next-day to same-day to one-hour shipping, three-quarters of consumers surveyed say they merely expect two days or more for shipping. Consumers are more interested in getting their products when they were told they would rather than getting the product immediately.

Shamail Siddiqi, principal at A.T. Kearney Middle East said: “The missed opportunity is when a retailer’s offering and the investments needed to produce it are far separated from customer expectations. What consumers value should underpin omnichannel investments in store operations.”

The study found that more than 60 percent of retailers continue to focus on mining social media to generate value, while two-thirds of consumers say they are not engaging with retailers on social media at all. For those that do, the primary reason is to get a coupon or a discount.

When asked to rank a number of touch points with retailers, consumers in the survey ranked current social media offerings the least valuable out of 13 listed. Store location, product selection, and store cleanliness topped the list. Retailers need to focus on the appropriate interaction through social media while continuing to look for and evaluate the efficacy of interactions to find the right connections.

Ryan Fisher, A T Kearney principal and co-author of the report said: “The AERO findings show that the real heroes of store operations are in-store associates, and they are often being overlooked. Customers say that experience and service have the greatest impact on store productivity, yet we consistently find that store associates get little investment focus.” – TradeArabia News Service