Dr. Misty Blessley is Associate Professor of Supply Chain Management at West Virginia University. She can be reached at misty.blessley@mail.wvu.edu
In Module D of your Heizer/Render/Munson textbook, the psychology of customer wait times is discussed. Most would agree that waiting can be a painful experience. To make waiting less unpleasant, organizations often use distraction as a strategy. Some companies have mastered this approach by leveraging a strategic asset that transforms customer wait time into sales revenue. The rapid expansion of electric vehicle (EV) charging infrastructure provides a compelling example of how firms are creating a competitive advantage built around customer waiting.
According to a recent study, EV charging stations located near grocery stores experience usage rates nearly 5 times higher than stations in many other locations. This finding suggests that EV drivers prefer to combine charging with activities they already need to complete, such as grocery shopping. Rather than viewing charging as wasted time, customers can use that time productively while businesses benefit from additional sales that might otherwise have been lost.
Retailers have been quick to recognize this opportunity. Despite slowing EV sales, Walmart, along with other major retailers, is emerging as a significant player in the EV charging market. Industry experts estimate that charging stations located near retail stores can increase sales by approximately 5%. By 2030, it is projected that 1 in 5 fast-charging stations in the U.S. will be located in the parking lots of big-box retailers.
Restaurants are also capitalizing on this trend. Bojangles, for example, is expanding EV charging capabilities at select locations, recognizing that drivers waiting for their vehicles to charge are potential customers looking for a meal, snack, or comfortable place to relax.
This trend underscores the importance of service operations design. Companies are not simply deciding where to place charging stations, they are strategically integrating an ancillary service into locations where customer dwell time can be leveraged to create additional value. The charging station becomes part of a broader service system that ends with happier customers and more profitable companies.
Classroom Discussion Questions:
- Other than the firms mentioned here, what other types of businesses may/may not benefit from installing EV charging stations?
- Think of a time when you experienced the pain of waiting in line. What could the business have done to make the experience less unpleasant?