Dive Brief:
- Lowe’s is putting more technology at the forefront as it continues to improve its in-store CX for DIY and professional customers, executives said during a Q2 2024 earnings call Tuesday.
- The retailer’s mobile app now has an in-store mode that provides customers with detailed product information, including its precise location, according to Joe McFarland, EVP of stores. This frees up associates to spend more time answering specific questions instead of guiding shoppers to the right aisle.
- Lowe’s is still testing an in-store virtual reality experience that lets customers visualize and design 3D kitchens using Apple Vision Pro headsets.
Dive Insight:
Lowe’s is improving the in-store experience to help the company stand out among competitors — particularly with professional customers.
“Regardless of what level of fulfillment and fulfillment capabilities you have, in home improvement, your stores will still be an incredibly important part of fulfilling project needs for the pro customer,” CEO Marvin Ellison said during the call.
Ellison admitted that Lowe’s in-store service used to be “subpar at best,” but he noted that McFarland and his team have since improved the brick-and-mortar experience.
Customer satisfaction scores are up compared to Q2 2023, according to McFarland. Lowe’s has put an emphasis on freeing up associates from non-customer facing tasks so they can focus on assisting shoppers — an effort McFarland credited for the customer satisfaction improvement.
In that vein, Lowe’s rolled out an enhanced returns desk, which lets associates process returns with a quick scan. From there, the computer system calculates the necessary return policies to complete the process.
Lowe’s is also developing AI-powered CX solutions with Nvidia, OpenAI and Palantir, according to Ellison.
“We've been working smarter with tech-enabled solutions that make our associates more productive while enhancing customer service,” McFarland said during the call.
The overall CX improvements, which are part of a long-term store transformation plan, were credited for a single-digit comparable sales increase to pro customers in the face of an overall 5.1% comparable sales decline for the quarter.
