technology in retail
DESCRIPTION
Technological advancements have elevated consumers’ expectations for the in-store shopping experience. The future of retail is about choice, consistency and customization. Consumers’ want the ability to choose how, when and where they shop, and retailers need to be prepared to meet those preferences. Outdoor retailers can leverage the support of in-store technologies to not only meet customers’ expectations, but create inventory transparency, reduce inventory overhead costs, provide a wider selection of products, and most importantly, gather customer data to better adapt to their shopping behaviors. Analysts agree that retailers who adopt trending technologies for business development are the most likely to grow their revenue and market share. Factors to consider when designing your in-store technology platform: •Look at how consumers are using mobile devices in-store to determine which technology will be most effective (focus on simplifying and assisting in their shopping experience). •Start small with one product (i.e. mobile app or an iPad display) and then add on elements to reduce risk. •Be flexible, watch and analyze – in-store technologies have website-like analytics to track user behavior (traffic, visits, click-throughs) and understand whether it’s effective. •Create a unified supply chain strategy where orders can be placed and fulfilled through any channel before launching a mobile POS platform. •Focus on providing a consistent and seamless experience by aligning Online and in-store efforts. The following is a sample of how retailers have used advanced technologies to provide enhancements to the in-store shopping experience.TRANSCRIPT
Technology in Retail: Industry & Cross-Industry Examples
2
Convenience
Kate Spade Saturday Digital Window Shop
In‐Store Enhancement: Allowing customers to truly shop 24/7.
Tactic: Kate Spade partnered with eBay to create a digitally‐enhanced window shopping experience. Shoppers can access the new fashion line anytime of the day.
Next to the merchandise is a large touchscreen where users can browse colors, sizes and place orders for free delivery.
Double‐click on image to watch video.
“The future of retail – physical and otherwise – is convenience. Consumer’s expectations are drastically changing, and it’s led by mobile. People get what they want, when they want it.”
‐ Healey Cypher, Head of Retail Innovation, eBay
Source: http://youtu.be/5fMMm5PNeDw
3
Instant Access
Target’s Image Recognition Mobile App
In‐Store Enhancement:Making it easy to find and purchase Target merchandise wherever they are.
Tactic: Target’s image recognition mobile app, “In a Snap,” provides instant access to merchandise featured in their print ads, catalogs and in‐store signage. Customers use the app to photograph specific products in order to see details as well as purchase them. Items can also be saved to a shopper’s cart and Snap history.
“All this can lead to better conversion since the messages can become more relevant and personalized (collecting data through the app).”
‐ Vivek Agrawal, Vice President of Mobile and Emerging Technologies, Skava.
https://www.youtube.com/watch?v=GG5liV2U0Qg
4
Choices
Mark & Spencer’s Virtual Rack
In‐Store Enhancement: Allowing consumers to explore the full inventory of products, even those that may not be currently in‐stock.
Tactic: Mark & Spencer “virtual rack” allows consumers to shop products, check prices and availability, watch a video of a model wearing the clothes and even place an order in the store.
Save Money on Overhead Costs: Virtual displays allow retailers to “display” a wide range of products without having to store everything in‐house. “Videos play on the rack, too, and it will recommend matches to
items you have scanned or selected. It’s sort of like an incredibly sophisticated Mr. Potato Head.”
– Ben Davis, eConsultancy
5
Informative
LL Bean’s RFID‐Based Customer Engagement Tool
In‐Store Enhancement: Providing digital content for shoppers in‐store and collecting data on how many times products were handled by potential buyers.
Tactic: L.L. Bean is testing InMotion Retail Marketing’s RFID‐based solution in five of its Northeast stores. When a consumer picks up a product or brochure (for larger items like tents) off the display/shelf, product information is sent to a large monitor that shows the product in 3D from all angles, and product information like specs, pricing, usage information and customer reviews. “The solution is very popular with sporting equipment and
footwear retailers that carry products that have a complex story to tell consumers.”
‐ InMotion Marketing
6
Targeted Offers
VF’s Timberland’s Messages through iBeacon
In‐store Enhancement: Delivering a higher level of personalization to customers.
Tactic: Timberland partnered with iBeacon mobile marketing platform, Swirl, to deliver more relevant content based on location and expressed interests (i.e. outdoor footwear, apparel) through its mobile app. Swirl can send messages to people who are located within a certain mile radius and those who are shopping in the store.
The app also connects to devices in‐store to track how long Swirl users are spending with different products. If customers spend a significant amount of time with a specific item, the app will push a promotional offer to entice them to make the purchase.
“Through customer conversations, we hear comments like ‘it definitely got me to buy more’ and ‘I would’ve walked right by Timberland if I didn’t get the alert.”
‐Rachel Panetta, Head of Retail and Ecommerce Marketing, Timberland
7
Enhanced Customer Service
Moosejaw’s Mobile POS
In‐Store Enhancement: Providing a more personalized shopping experience.
Tactic: Sales staff use a modified iPod Touch device to access customer purchase history, product and price information, product recommendations and inventory status to provide a more personalized experience. The device has a credit card scanner to checkout customers anywhere in the store.
Results: Moosejaw was able to feature a wider assortment of new products after decreasing the amount of cash registers and relying more on mobile checkout.
Moosejaw is seeing strong results, reporting that 70% of in‐store transactions are taking place via mobile POS.
“This is really the next logical step in removing barriers between our customers and sales staff.”
– Eoin Comerford, Chief Executive Officer, Moosejaw
8
Personal Shopping Assistance
Sephora’s 3D Augmented Reality Mirror
In‐Store Enhancement: Delivering a personalized experience to customers.
Tactic: Sephora’s 3D Augmented Reality Mirror simulates cosmetics on customers’ faces in real‐time. Using technology from virtual makeover provider ModiFace, the mirror identifies a user's facial features and applies makeup directly through a video feed. Through the mirror, shoppers can try on different shades of cosmetics by tapping a palette on the screen and also view their face from different angles as they move their head from side to side.
“After several in‐store experiments with various retailers and brands, we found that an instant mirror‐like virtual‐product simulation could increase the counter and booth traffic for skin‐care brands by 120%, and substantially increase in‐store conversions.”
‐ Parham Aarabi, CEO, ModiFace
9
Solves Problems
Lowe’s Holoroom
In‐Store Enhancement: Helping customers visualize products in a real‐life setting.
Tactic: Lowe’s Holoroom is a home improvement simulator which applies 3D and augmented reality technologies to allow home owners to view a 3D model of their room at home, make design changes, add products, and share the model with family and friends through their mobile app.
“Lowe’s wants to lead innovation by developing disruptive technologies that will help us establish a long‐term competitive advantage.”
‐ Kyle Nel, Executive Director, Lowe’s Innovation Labs
10
Greater Control
Philips’ In‐Store Navigation System
In‐store Enhancement: Helping shoppers find their way around a store while notifying them of relevant offers.
Tactic: Philips launched an intelligent lighting system with location‐sensing beacons. The system interacts with a shopper’s mobile device after they enter the store. As they move around the store, shoppers can view a map to find products, get targeted offers and product information as well as personalized product recommendations.
“Knowing where in‐store their customers browse can provide valuable insights on product preferences to drive future traffic with relevant offers based on the items customers have considered.”
– Karen Pattani‐Hason, Director of agency relations, Urban Airship
11
Social Sharing
Tommy Hilfiger’s iPad Kiosk
In‐store enhancement: Engaging customers in meaningful ways.
Tactic: Tommy Hilfiger’s new clothing stores in London have installed BouncePad’s mounted iPad kiosks in the dressing rooms to invite customers to take pictures of themselves in the clothing, share them socially and/or e‐mail them to friends for pre‐purchase input.
“Bringing the digital brand into the store environment creates more touch points for the customer, increases dwell time, and makes for more engaged shoppers.”
‐ Bas Bruijninckx, IT Director for Ecommerce & Digital at Tommy Hilfiger
12
Customization for Less
Adidas’ Virtual Footwear Wall
In‐Store Enhancement: Providing a more customized product for consumers.
Tactic: Adidas partnered with Intel to pilot a virtual footwear wall that enables shoppers to create different versions of a shoe, order them as well as get live Twitter feeds about the product and read trivia about the athletes that wear the shoes.
Results: Adidas saw a 500% sales increase from the London pilot and a 133% sales increase from the Germany pilot.
13
Fast Checkout
Starbucks’ Mobile App
In‐Store Enhancement: Streamlining checkout by accessing payment options on a smartphone or tablet.
Tactic: Starbucks mobile app features a 2D barcode that can be scanned at point‐of‐sale.
Results: In March 2014, Starbucks announced that nearly 10 million customers are using mobile apps to pay for products.
“Starbucks is a clear leader in mobile payments and we are encouraged by how consumers have embraced mobile apps as a way to pay.”
– Howard Schultz