Digitalising the In-store Experience

Digital is here.. consumers are embracing it, as retailers if we embrace it too, it can help us to win the customer experience battle.

We all hear and read about consumer trends changing, those of us in retail see it. We know customers are looking for retail expediencies rather than just transactions. Retailers that have a seamless omni-channel or 'Total Retail' experience seem to be reaping benefits from this approach. Pure-play online retailers have entered the bricks & mortar space, giving way to a new era of Digitalisation and a wakeup call to many traditional retailers.

Making predictions is always a risky move, but it's safe to say that retailers should focus on this trend, one of which is to create digitally enabled physical stores by implementing the right technology in the space between physical and digital retail.

There are some great example of brands using technology in stores to improve the customer experience.

When it comes to implementing technology across stores, retailers can often find it difficult to know where to start. This usually ends with either a piecemeal approach that doesn’t fit the wider business strategy or excessive amounts of money being invested in only one type of technologywith limited success. 

Forward-thinking retailers should focus on building a robust digital strategy. With the right technology device management solutions, this strategy will become the foundation on which retailers bridge the gap between their offline and online commerce and digital activity.

So what are some proven benefits to the type of technology being introduced into stores?

It’s proven that some digital technology can increase dwell time, allowing the retailer to showcase products and build relationships with customers.

Digitally Inspiring experiences has increased both sales and conversion.

As an average, lets say the conversion rate is 15% in-store, that means 85% of customers have left without purchasing something, with the use of digital technology can you increase conversion, or at least capture the data of the 85% of customers to re-engage with them later.

Despite many market commentators predicting a future with fewer physical stores, this is not an outcome that is going unchallenged. There is already some exciting work being done by retailers around the world, relying on making the most of the intersection between walk-in and digital spaces.

So what example are being utilised?

The Digital Store

Wi-Fi – most people expect stores to provide easy access fast complementary Wi-Fi, also a great way to capture customer data. This is also needed for portable POS or for tablets if staff are using these to capture people’s data or share information along with e-commerce instore activity.

Aps – Is their a future for plastic cards? Customers are expecting to be able to carry their membership cards, loyalty programs etc.. on their mobile devices, its easy, convenient and a great way to communicate marketing activities direct to customers. 

Mobile Payment – Supermarkets have done a good job of providing this option, can other stores also take a leaf out of apples book and provide mobile payment instore or self checkouts to reduce staff being tied up in one activity or reduce queues at checkouts? 

Facial Recognition – malls and retailers are using this on digital interactive boards and mirrors along with CRM devices to provide an enhanced customer experience. But facial recognition and tracking capability has many more useful functions such as heat mapping store visitors etc. 

IOT – Internet of Things – great word, this can mean so much, some simple examples of this digital technology is Inventory tracking and stock check up etc.. its 2019 and still as retailers we have missed sales because of inventory being in the wrong place at the wrong time or out of stock. 

Digital Screens – What I’m sure you all are seeing is more and more conventional store windows being replaced with digital screens, whether for advertising content or consumer interactive, it’s a great way of capturing passing trade, bringing the store to life and engaging with customers. 

Beacons – Near Field Communication and QR codes are all proven digital examples of interaction with customers to engage, convert and build consumer loyalty.  

Smart Mirrors - I’m not fully convinced the technology is as good as it needs to be for magic mirrors to be fully effective, but its certainly on its way to proving its place in the retail scene. 

eCom – when I launched a trading website for a multi-brand sports retailer I was surprised to see that 50% of online transaction was click and collect. Where we failed was not having instore devices for customers to log onto and either update their baskets, transact or have a wider variety than instore. The endless isle is coming, brands and principles are less concerned where the product is purchased, either through their own stores, online, offline, or through partners, The key is to provide a seamless retail experience and journey and provide a service that builds customer loyalty. 

NPS/Feedback – I’m still surprised that retailers are not using google enough to promote their stores for pretty much nothing, or replying to customers reviews, or updating the information available on the WWW. Many retailers and brands are doing away with store sales KPI’s and replacing them with NPS – I implemented a platform called Rateit in some store concepts, it was an easy way for customers to provide feedback, for us to hear the customers voice and to use the date to improve product ranges, choices and improve service.

Clientelling – In a world where there is less brand loyalty, its evermore important to to build long term relationships with customers. 20 Years ago I would have my local menswear store call me up to tell me that some new products had arrived in the store and they had put some aside in my size that they felt would be perfect for me, of course I felt obliged to pop down and buy one or two. I felt special, they had a regular customer, win win. Today technology has to be assistive, blending in to the consumer experience without being invasive and personalising the experience. 

The Social Foot

In 2016 with my team we launched a sneaker concept called ‘The Social Foot’ – just to share with you 4 simple non expensive digital practical examples that worked were:

A digital laser engraving machine that allowed us to personalise sneakers purchased in store. Customers can add a phrase, name or image on their sneaker to have a truly one of a kind products. This also created ‘retail theatre’ in store, increased dwell time and build customer loyalty.

Digital windows are now very cost effective, when you work out the savings you make form not having to change windows regularly and the cost of props makes sense. The key of course is to have the content available to put on your screens.

Another digital application was creating a selfie corner in the store that allowed customers to not only tag themselves on theirs and our social media but also to have their 15 seconds of fame by being promoted on the store window with their recent purchase.

These digital applications were successful in driving traffic to The Social Foot, increasing conversion and building loyalty. The key though is not to allow digital experience to stagnate but to keep on innovating – I like to use the phrase - Innovate or Die.

Digital Examples

Sticking to the sports, fashion and lifestyle retailing category, here are 4 examples or suggestions I would recommend assessing the suitability in your digital journey:

WI-FI – providing complementary Wi-Fi does increase dwell time, also allows you to then move on to digitalising the store with other applications like arming employees with in-store tablets to help them check in-store stock, assist customers with finding products on line if you have an eCom site, and for larger stores, this could also help employees restock more efficiently using relevant software.

It’s clear that most customers often have their smartphone in hand that typically has data and location information switched on, so why not use that to the store’s advantage by sending them personalized, live offers to tempt them? This is achieved by enticing customers to sign on to the shop’s Wi-Fi network, downloading the app and sending a subsequent push notification whenever they are within range of the beacons that recognize their location.

Using Portable POS devices could also free up employees from the tether of wired registers, allowing them to be with customers through their purchasing journey (like Apple and others) as well as gathered customer details if you install a simple CRM programme. 

Leaders generally are unaware what’s happening on the shop floor, creating a simple WhatsApp group where staff can report feedback directly to management has no cost, but a simple and effective way of using digital to improve communication.

Social Network  - I’m sure all of us have used google to search for store locations, checked ratings and feedback online. Gen Z have been born into a digital world with Social-Sharing & online communication as part of everyday life. It’s important to do this right, to have a clear social strategy and to remain true and genuine. It still surprises me to see honest feedback on social media sites from customers but no response from the brand or principle. And for those that take the time to post comments, surly to build a positive customer experience, wouldn’t it make sense to respond? Many companies are building Digital teams by integrating their customer service, Marketing and Ecomteams into one digital team… that’s food for thought…

CRM – If only we knew what our customers wanted, how their experience was and what was missing from the store or service, well with a simple CRM strategy that’s simple and effective to have. There is a lot of data available today, I read that over 70% of the worlds data has been generated in the last 5 years alone. If you implement data capture into your business, its really important firstly to secure that data, secondly on how to use it effectively. Data is powerful, misuse of data will be detrimental to your business.

eCom – It’s actually not easy to make money from eCom in the short term. But eCom should not be thought of as just a transactional strategy, your website or 3rd party eCom retailer is a porthole into your brand and products. It’s another touch point into your customers purchase process whether they buy online or offline. I’m sure we have all done it, researched a brand or product online, and then gone into a store to touch and feel the product along with getting product information – we may have even opted to purchase online and have it delivered, the point is, you need this as a part of your digital strategy.

Physical and digital platforms both offer something the other can’t, so integrating the best of both will help provide an outstanding shopping experience. The most successful retailers in 2019 and beyond will be those that enable their employees to provide the best interactions for customers.

Digital Transformation

Lead from the Front

Digital transformation demands executive vision and leadership. Since the disruption to an organization’s business and culture is so profound, the management team needs to be digitally savvy and able to use the right combination of carrots and sticks to move the organization through the next steps in its digital journey. 

According to the Harvard Business Review, digital transformations that don’t have strong leadership from the top tend to be ad hoc and chaotic: 

“While it is important to encourage local ownership of ideas and projects, turning them into game-changers requires clear, sometimes ruthless direction from the centre around which projects to scale and in what order. Only the CEO has the power to provide this kind of direction across the entire enterprise. To do that effectively, CEOs need a holistic view of the digital threats and opportunities facing key parts of the business, and a way to link them to an overall vision for how digital is reshaping the competitive landscape.”

With the executive vision and approval in place, digital transformation initiatives can be consolidated, combined, prioritized, and properly coordinated for maximum impact. 

It’s important to note than in order to provide this level of digital leadership, executives don’t need to be expert technologists. While the occasional social media post can be helpful, it’s more important for digital executives to consistently articulate a vision for how digitally transforming an organization will improve its operations, revenue, customer experience, and competitive position. 

Put Strategy Before Technology

Strong executive leadership must be coupled with a compelling and time-boxed digital transformation strategy. Organizations should begin by clearly documenting the end state of what the digital transformation looks like, with particular attention to the pain points and experience of the customer. 

By beginning with the end in mind, organizations can pursue the overarching cultural and technological changes needed to support their digital transformation. To do otherwise typically results in sub-optimising at the business process level and implementing technology in a piecemeal fashion.

Ability & Experience

It goes without saying that you need to have the right ability & experience in the business to design and execute a successful digital transformation. Digital transformation requires cultural and behavioural changes such as calculated risk taking, increased collaboration and customer centricity focus. Without the right skills and support in the business, it could be a recipe for disaster.

Reimagine the Customer Journey

With a strategy in place and cultural realignment underway, effective digital transformations use fact-based methods to identify customer pain points, then work backwards into a value proposition, features, and ultimately, the customer experience. 

Digital media offers many new ways to understand customer pain points, included advanced analytics, online customer surveys, and social media engagement, coupled with text analytics and data mining tools. 

When that data is distilled down into actionable customer insights, the organization can create new user journeys and user end states like “Our customers will have X product selection and purchasing experience.” 

The goal is not necessarily new technologies, but tools like multichannel integration via (CRM) systems and customer self-service applications help create compelling customer experiences. 

Disrupt Your Own Business

Sounds scary right - With new customer experiences in mind, organizations are then primed to digitally transform their operational processes. Digital automation, collaboration tools, and enterprise analytics platforms light the way to modify or replace old processes with faster, deeper, more integrated ways of working at all levels of the organization. 

Digitally transforming operations company-wide opens the door to digitally transforming your business. With less interference from operational silos or incompatible data, your company can pursue new digital products. Amazon is a prime example of a digitally-enabled enterprise launching and sustaining new digital business, starting with books, then quickly growing to many other consumer categories, video distribution, and cloud storage. 

Pursue New Technology

With a new strategy, culture, and business model in progress, companies can then evaluate their current technology stack against the goals of the digital transformation to find functionality or data gaps. 

Typically, this evaluation process includes comparing current capabilities to the problems that need to be solved in the digital transformation. The outcomes defined by the strategy and requirements of new customer experiences should help prioritize the technology roadmap for the digital transformation. 

New behaviorsfor digital transformation, include:

Data-driven decision-making , Increased ROI of transformation activities, Increased productivity, More competitive products and services, Greater customer satisfaction and Increased revenue

While the digital transformation path can be challenging and sometimes costly, businesses that successfully transform themselves open up new ways to collaborate, faster innovation and time-to-market, new revenue opportunities, and, most importantly, serve customers in new and compelling ways.

So What?

So in conclusion, Digital Transformation is happening, it’s happening at a faster pace than ever seen before, As retailers we need to take note of the current trends and understand what our customers needs are. We always need to have the end view in mind before taking a Digital transformation journey, however one thing is clear, doing nothing is no longer an option.