“You need to think about how you create a seamless experience for people who are having a digital experience and a physical one … so you’re not getting a different experience in both,” Tomlinson said.
“At the same time, the way we think about our channels, whether it be in a physical store or a digital experience, is as an ecosystem. They’re not binary. So it’s about making sure we’re designing with a really good insight of what kinds of customers want to shop in a physical environment and what are they there for.”
Spark’s newly designed flagship Manukau Store attracted a large crowd on its opening day.
Tomlinson said Spark had always designed stores with people in mind, but the way customers interact with physical stores needed to change.
One example Tomlinson gave was point of sale (POS) lanes, where a team member would stand and serve customers, often creating a queue through the store to deal with.
Replacing that format is a central, open-plan table operating as a flexible environment where staff can support customers with laptops that can be moved around the store.
Spark has also introduced digital ticketing and digital signage, allowing customers to place their phone over labels which take them to Spark’s website, where they can get more information about the product.
But perhaps the largest change is the self-service kiosks, which Tomlinson said would begin rolling out in the next six months.
Tomlinson said of Spark’s 59-store network, roughly 20% would likely trial the kiosks before a wider rollout.
“We have a lot of customers that come into our stores that want to pay for their bills, or do prepaid top-ups, really simple transactions. We’re giving them the opportunity to be able to serve themselves in store.
“If they want to talk to one of our team, fantastic, but if they actually want to be in the physical space or they happen to be in the centre and they’re coming in to do something, they’ve got other options as well.”
Customers across the country will soon have access to self-serve kiosks in Spark’s retail stores, similar to the one seen in the render above.
Tomlinson said the move was based on customer feedback, particularly in giving options to customers who were time-poor or in a rush.
Tomlinson could not confirm how much Spark was investing in the technology, but said the investment was worth it, particularly regarding the company’s net promoter score (NPS).
“I think for us the payoff becomes the satisfaction we get from our customers. NPS is one of the things we live and breathe in the business, and we know we need to keep showing up for our customers and lifting our experience.
“We know that this is an opportunity for us, so we want to try to create that space and that option for customers where it makes sense.”
The in-store experience is still important to Spark’s customers, with data provided by Spark showing roughly 30% of customers visit a store before buying online, while about 40% research online before heading in-store.
Tomlinson said the rollout would begin in select stores to ensure the company has got the experience right, with plans to test the kiosks in each of Spark’s flagship, metro and regional store categories.
As for the store redesigns, they will begin rolling out across flagships in key metro areas and in more regional locations, although Tomlinson couldn’t share more on when to expect the changes, nor how much they will cost.
“We really understand the role that physical plays in our overall strategy, and we understand that even though digital is growing – and that’s an important thing for New Zealand and us – that doesn’t replace the store.
“It’s not about us choosing between digital or physical, it’s about how you bring the best of both of them together and that you’re meeting customers where they are.”
Spark’s share price reached its lowest level in 16 years last week, dropping to $1.77.
Earlier this year, the telco reported its net profit had nearly doubled to $64 million, or $73m on an adjusted basis. The analyst consensus was adjusted net profit of $96m.
Earnings before interest, tax, depreciation, amortisation and investment income (ebitdai) increased 10.3% to $448m, or $471m on an adjusted basis. The analyst consensus was $493m.
Adjusted revenue (after a year of partial and full asset sales) fell 1.1% to $1.92 billion, in line with analyst expectations.
Tom Raynel is a multimedia business journalist for the Herald, covering small business, retail and tourism.
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