The Digital In-Store
Traditional brick and mortar retailers have a massive trump card in their physical locations – one that can be a substantial competitive advantage if retailers can deliver the desired retail experience. However, with foot traffic in US retail stores dropping by over 9% annually over the past several years the challenge for retailers is in creating meaningful in-store retail experiences that translate to higher customer conversion rates, no matter the channel. In fact, depending on the product category, most consumers still prefer a direct or physical interaction with a product. Even for product categories – such as electronics, computers and applications – that are typically researched online, many customers prefer to purchase these items in physical retail stores. The
challenge for retailers today – amidst slowing traffic – is to create a store environment that facilitates customer conversion. Retailers are experimenting today with strategies like format conversion and creating more engaging “shopping experiences”. However, what still fundamentally drives a shopper’s behavior and retailer selection is predictably tied to price, product in-stock availability and services like return policies.
What is also clear is that these factors cannot be viewed in isolation and are often intricately connected. With the changes to the “role” of the retail store and changing customer expectations, there is a growing premium being placed on today’s retail associates. According to shoppers one of the leading contributions to a more engaging in-store experience begins with interacting with sales associates with comprehensive product knowledge and the ability to access accurate inventory information in real time. Equipping retail associates with modern mobile solutions represents a critical investment for retailers driving innovation around in-store experience. With innovative
brands like Apple setting the bar on customer service and retail in-store customer engagement, the focus towards capabilities like personalized services, post-sale engagement and in-depth product knowledge is directly contributing to customer satisfaction and sales.
These trends are confirmed by research conducted by VDC Research among retail technology investment decision makers. When asked about the leading factors driving investment in mobile retail solutions, the highest rated criteria investment in mobile retail solutions, the highest rated criteria emphasized investments that improved the customer experience and drove increased sales and loyalty. This represents a substantial shift over previous years when retailers’ mobility investment was much more centered on retail operations and material management. Research has validated that consumers value interactions with empowered associates, especially those equipped with the tools to provide accurate inventory information and applications to more accurately identify customer preferences.
From a customer’s perspective this also means creating a seamless retail experience across all available retail channels. Transitioning from and across digital – mobile, desktop, in-store digital display – and physical channels represents a growing requirement and differentiating opportunity for those that can accomplish it. Beyond bridging the physical and digital
domains, visibility is ultimately what delivers the greatest value and most differentiates leaders from laggards. This means seamless access to accurate product information across any channel, the ability to track orders and the opportunity for a connected shopping experience.
