Expert Mode: Fulfillment is the Experience: Rethinking Customer Expectations in the Age of Agility
This article was based on the interview with Tom Schmitt, CEO at Radial by Greg Kihlström, AI and MarTech keynote speaker for The Agile Brand with Greg Kihlström podcast. Listen to the original episode here:
The retail landscape has undergone a seismic shift in recent years, driven by evolving consumer expectations and accelerated by the pandemic. Customers now demand seamless experiences, instant gratification, and personalized interactions. For brands, this means rethinking traditional approaches to fulfillment and recognizing its crucial role in shaping the overall customer experience. No longer a behind-the-scenes operation, fulfillment has taken center stage, directly impacting customer satisfaction, loyalty, and ultimately, the bottom line. This shift requires a new level of agility, adaptability, and a willingness to embrace change as the new constant. It’s about moving beyond simply meeting expectations to anticipating them, creating moments of delight, and fostering genuine connections with customers.
This article discusses the evolving world of retail fulfillment with Tom Schmitt, CEO of Radial, a leading omnichannel commerce provider. Drawing on his extensive experience in the industry, Schmitt offers valuable insights into the changing dynamics of consumer behavior, the critical role of technology in enhancing the customer experience, and the strategies brands can employ to thrive in this era of unprecedented change. His perspective provides a roadmap for navigating the complexities of modern retail, emphasizing the importance of agility, collaboration, and a customer-centric approach to fulfillment.
The Evolving Landscape of Consumer Expectations
Consumer expectations have dramatically shifted, demanding not just product quality, but a seamless, efficient, and personalized experience across all touchpoints. Schmitt highlights three key areas of focus that emerged from a recent Radial survey:
“When I go online and click, I want to have it now. So there’s something about delivery speed. The second thing is when you go online, you’re looking for something very specific most of the time, you want to make sure it’s in stock. The availability of the product is a huge deal. Then, depending on who you are and what it is you’re shopping for, the third item oftentimes is returns.”
This underscores the need for brands to prioritize speed, availability, and hassle-free returns as integral components of the customer experience. These expectations are no longer mere preferences; they’re the baseline for competing in today’s retail environment. Brands must adapt their fulfillment strategies to meet these demands, optimizing their supply chains for speed and efficiency, ensuring product availability through accurate inventory management, and implementing seamless return processes that minimize friction for customers.
Fulfillment as the Experience
Schmitt makes a compelling case for redefining the role of fulfillment:
“Fulfillment is the customer experience.”
This statement reflects a profound shift in how brands must approach fulfillment, moving from a transactional function to a strategic differentiator. It’s about recognizing that every interaction, from the moment an order is placed to its arrival at the customer’s doorstep, contributes to the overall perception of the brand. This requires a holistic approach, integrating fulfillment seamlessly into the customer journey, providing real-time tracking and updates, and ensuring a consistent and positive experience across all channels.
Navigating the Peaks and Valleys of Demand
The rise of e-commerce and the proliferation of promotional events have created a more volatile demand landscape, with peaks and valleys throughout the year. Schmitt offers practical advice for managing these fluctuations, balancing customer expectations with operational efficiency:
“So, what are best practices? So, when you’re in the fulfillment business… you try to de-peak a little bit by some of the tactics I just mentioned: extra incentives for ordering very early. And the second thing you do is, when you attract… multi-client warehouses… if you can figure out to get an online gardening company… to get a company that specializes in swimsuits. And so, you basically say, ‘Okay, if this is the typical November, December peak for the gift-giving kind of items, can you figure out who we need to attract?’ … So that you have a blend that actually keeps that level of pickiness in terms of what you have to accomplish in this building slightly more balanced.”
This approach recognizes the importance of proactive planning, collaboration, and creative solutions to manage fluctuating demand. By strategically de-peaking through incentives and diversifying product offerings within fulfillment centers, brands can optimize resource allocation and ensure a consistently high level of service, even during periods of increased demand.
Leading with Empathy and Embracing Agility
As CEO of Radial, Schmitt emphasizes the importance of empathy and agility in leadership:
“I do believe, and COVID certainly was an additional amplifier of that, this whole notion of empathy is becoming more important… We’re tough on expectations, we’re not tough on people personally. We’re saying sorry when we should before we go into problem-solving.”
This reflects a leadership philosophy that prioritizes understanding and addressing customer needs while fostering a culture of accountability and continuous improvement. It’s about recognizing that fulfillment is ultimately about people – both the customers being served and the teams working behind the scenes to deliver exceptional experiences.
In today’s rapidly changing retail environment, agility is no longer a luxury, but a necessity. Consumer expectations are constantly evolving, technology continues to disrupt traditional models, and new challenges emerge daily. Brands must cultivate a culture of adaptability, embracing experimentation, and continuous learning. This requires strong leadership, a willingness to challenge the status quo, and a commitment to prioritizing the customer experience above all else. By embracing these principles, brands can not only navigate the complexities of modern retail but thrive in the face of constant change.
The conversation with Tom Schmitt underscores the critical importance of fulfillment in shaping the modern customer experience. It’s no longer enough to simply deliver products; brands must create seamless, personalized, and memorable experiences that build loyalty and drive growth. By embracing agility, prioritizing collaboration, and leading with empathy, brands can transform fulfillment from a back-end operation to a strategic differentiator, forging stronger connections with customers and thriving in the ever-evolving world of retail.
