Does in-store technology really improve the shopping experience?
Over the last 20 years, how consumers buy from brands has changed dramatically. The proliferation of mobile phones and fast data network coverage has empowered consumers to shop however and whenever they like.?
Shoppers move fluidly through different channels, from in-store to online: viewing reviews on third party sites, downloading coupons, accessing content on social media, and often combining physical and digital worlds at the same time e.g., checking products on their mobile while in a shop.
With the customer journey so unpredictable, brands need to make sure that they’re not only optimising the customer experience on every touchpoint, but these touchpoints and channels are integrated so that the customer has a seamless, connected experience receiving real-time, personalised content to keep them engaged with the brand.?
However, developing a successful omnichannel strategy is no easy task, especially on the high street where marketers have very little data to inform them about customer behaviour.?
Despite a lot of uncertainty over the future of shopping centres in the face of a cost-of-living crisis, physical shopping is still the primary shopping method (70% in the UK) and not going away.?
To succeed and differentiate in an increasingly digital environment, retailers must rethink how to improve digital experiences in-store. This is especially important for brands that don’t have their own retail presence on the high street, but sell their products in large department stores, such as John Lewis, or specialist retailers, like Currys.?
In these environments, products sit alongside competitive offerings on the shelf and the brands have very little information about how customer interact with their products and lack control over the shopping experience. But the experience is critical as many shoppers engage in “showrooming” where they might visit a store to touch and try a product but then go and buy it online. Especially so with high value products such as electricals and luxury items.
Many studies demonstrate that technology that improves personalisation and interactivity will enhance the customers experience and lead to consumer behaviour change in terms of satisfaction, engagement, and purchase intention.?
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However, not all technology experiences in the retail environment are as valuable to customers in the same way. While the more exciting cutting-edge technologies like VR, smart mirrors or robots will grab headlines and appeal to the novelty-seeking shopper, the costs are high and the actual improvement on customer experience to support widespread roll out remains unproven.?
The real value today lies in technology that streamlines the shopping experience, making it easy to find more information and to buy.?
Research by the CapGemini Research Institute in 2019 investigated the impact of such smart technology e.g., sensors, digital signage, mobile apps and cameras, in stores. The study showed that, if applied appropriately, in-store smart technologies had a positive effect on customer satisfaction, loyalty, and shopping frequency, as well as providing valuable data and insights to brands and retailers.?
So while the future potential for in-store technology is huge, the first step is to ensure you actually know how your customers are shopping in-store today. Then make that journey as frictionless as possible and use the data collected to adjust and personalise your marketing, sales support and product positioning strategies accordingly.
To find out more about benefits of data and creating a in-store digital strategy, please reach out to Ray Rafferty or visit our website here