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DIGITAL & RETAIL STORES

The digital marketplace transforming traditional stores and personal selling

SOFIA AGROMAYOR / / FILM 240 00 FILM 240

Digitization is having a huge impact on traditional retailers, bricks-and-mortar stores, the shopping experience, and a brand’s connection with consumers.

CHANGING THE RETAIL ENIRONMENT

"Digital interactions influenced 36 cents of every U.S. dollar spent in a retail store—or approximately $1.1trillion in 2013 (Deloitte, 2014). By the end of 2014, that number was expected to climb to 50 percent, or $1.5 trillion of total store sales." (4)

"SHOWROOMING"

Consumers visit retailers'stores to "touch and

feel" a product, but theyconsummate theireventual purchase

online. (4)

THE ROLE OF BRICK AND MORTAR STORES

About one-third of

consumers say they have

showroomed, with 50

percent of showroomers

saying they always intended

to buy online but wanted to

see the product in person

before buying (comScore

[Webinar], 2014).

THE ROLE OF RICK AND MORTAR STORES

SIX DRIVERS ( 1 )

GENERATING DIGITAL CAPABILITIES

Employee Productivity

Innovation

Customer Experience

Supply Chain &

Logistics

Sustainability

Asset Utilization

"Retailers increasinglyrealize that digital

technology hastransformed the in-store

experience. iPads areavailable in several stores

for shoppers to viewcatwalk shows, browseproduct specifications,

and enter theirinformation for customerrelationship management

purposes and marketinglists."(3)

CHANGING RETAIL ENVIRONMENT

Consumers are becoming increasingly comfortable with using digital technology in the shopping environment and will begin measuring a retailer on how well it supports and adapts to this change. (3)

ADAPTING TO CONSUMER PREFERENCES

56% OF RETAIL JOBS WILL HAVE A DIGITAL COMPONENT BY 2019.

47% OF RETAILERS USE AUTOMATION FOR CUSTOMER INTERACTIONS. (9)

THE WORKFORCE

Online shopper reviews are

generally considered more

trustworthy than retail sales

associates making an online

community paramount for

brands.

86% OF RETAILERS AGREE THAT TRUST IS A CORNERSTONE OF DIGITAL ECONOMY (9 )

TRUST

"Retailers will find ways to rethink shopper loyalty to create reasons for shoppers to come to their stores. This will include differentiated in-store experiences, enhanced service models and new loyalty program benefits. Exclusive brands and products will also become important to retailers, as a way to differentiate from the competition. These changes can affect the accounting for many pre-existing loyalty plans, or create newer and more complex structures."(3)

BRAND LOYALTY

KEYS TO INCORPORATING DIGITAL INTO RETAIL

1. CONSISTENCYThis is the day and age of the mobile,omni-channel shopper. They expect

a seamless experience across thephysical and digital world. Retailers

must show consistency among allplatforms an have an integrated

strategy.(7)


2. INTERACTION

Retailers must find ways to incorporate virtual-reality

technology to make their own brand's advertising more

"emotional" and "immersive." Consumer interaction and

co-creation with the brand is essential. (2)


3. SEAMLESSMillennials are changing the expected

consumer experience: "They grew up usingthe internet and mobile technology, andthey don’t have patience for inefficient

procedures. Outdated processes can ruinthe customer experience for millennials,

who know someone else can do it better."(8)


4. GEOLOCATIONIn the brick-and-mortar world, some

retailers are using geolocationtechnology to collect data on

consumer behavior and create morepersonalized experiences for in-store

customers. When a shopper can’tautomatically predict what the

experience will be like, it revitalizeswhat it means to shop in a brick-

and-mortar location. (8)


"THE KEY TO RETAIL SUCCESS IN THIS ERA OF ROBOT-LIKE ONLINE SHOPPING LIES IN FINDING CREATIVE WAYS TO TURN IT INTO A REAL EXPERIENCE. SELL THE EXPERIENCE AS THE PRODUCT"(8)

PERSONAL SELLING Digital technology has extended the retailer's reach by eliminating the need for shoppers to enter a bricks-and-mortar environment, or to be at a computer, diminishing and changing the role of personal selling. (3)

IMPLICATIONS

Retailers’ new mission is

to utilize technology to

continuously connect

and incorporate their

greatest asset — the

consumer.(6)

IMPLICATIONS

IMPLICATIONS

EXPERIENCE "By incorporating the best of digital into the human experience of shopping IRL (in real life), customers will be able to recapture the nostalgic joy of shopping." (8)

1. Barbier, Joel, Nicole France, and Shaun Kirby. "A Roadmap To Digital Value In The Retail Industry". connectedfuturesmag.com. N.p., 2017. Web. 2 Mar. 2017.

2. Campbell, Colin and Lawrence J. Marks. "Good Native Advertising Isn’T A Secret". Business Horizons 58.6 (2015): 599-606. Web.

3. "Digital Retail: Analyzing The Effect On Retailers". Ey.com. N.p., 2017. Web. 4 Mar. 2017.

4. Fulgoni, Gian. "“Omni-Channel” Retail Insights And The Consumer’S Path-To-Purchase: How Digital Has Transformed The Way People Make Purchasing Decisions". Journal of Advertising Research (2014): 377-380. Print.

5. "How Digital Is Transforming Retail: The View From Ebay". McKinsey & Company. N.p., 2017. Web. 2 Mar. 2017.

6. "Implications For Retailers And Brands". Ey.com. N.p., 2017. Web. 1 Mar. 2017.

7. Matrix, Sidneyeve. FILM 240. Module 2 Lecture 2.

8. Newman, Daniel. "How Social And Digital Create The New Retail Experience". Forbes.com. N.p., 2017. Web. 1 Mar. 2017.

9. "Retail Tech Trends 2016 - Accenture Retail Technology Vision". Accenture.com. N.p., 2017. Web. Mar. 2017.

REFERENCES

https://www.google.ca/search? as_st=y&tbm=isch&hl=en&as_q=retail&as_epq=&as_oq=&as_eq=&cr=&as_sitese arch=&safe=images&tbs=sur:fm#as_st=y&hl=en&tbs=sur:fm&tbm=isch&q=shop ping+bags&*&imgrc=F0TDoPVXoiKCkM:

https://encrypted-tbn0.gstatic.com/images? q=tbn:ANd9GcTOmFcXA4LdFPQaqt0py4NrOXMiUEBP1yQ-ep8qjokVTtAZjzy1

https://pixabay.com/en/business-shoes-bags-leather-goods-888146/

All other images gathered from: https://www.pexels.com

IMAGES