In-store media: Retail’s next frontier

Integrating e-commerce with physical retail has created a significant challenge for retailers in recent years. And while many focus on determining the right mix of physical and online touchpoints, some retailers are also recognizing the role in-store media can play in building customer engagement.

Hence, many exhibits and education sessions during the recent groceryshop show at Mandalay Bay in Las Vegas focused on the rising importance of in-store retail media.

One technology session explored how in-store retail media can provide retailers and brands information about guests to improve customer engagement.

"For traditional grocers, their in-store audience is bigger than their online audience, and Freeosk helps digitize these moments that matter and truly unlock the power of in-store," panelist Matt Eichorn, co-founder, president and CEO at Freeosk, said during the session.

Freeosk provides a network of in-store sampling kiosks that allow shoppers to receive free samples in exchange for providing some information about themselves.

A successful in-store campaign

A one-week Freeosk sampling program provided 800,000 laundry product samples to shoppers, 150,000 of which became purchasers, Eichorn said. Three quarters of those who became purchasers in four weeks were new to that item.

"It's also creating an entirely new data set for retail media networks," Eichorn said. Since Freeosk users register their email to receive a sample, the data allows the retailer or brand to continue the conversation beyond the store through email.

"It's really about multi-sensory content that puts the brand at the center of the experience, Eichorn said. "We want to help shoppers discover their new favorite products.

"It's also creating an entirely new data set for retail media networks," he said.

In-store video evolves

Panelist Devo Harris, founder and CEO of Adventr, a cloud-based, AI-powered platform that enables creators to produce, publish and share interactive videos across various platforms, emphasized the benefits of in-store media for retailers.

"Video is transforming from what's been classically an awareness tool to something that is more connected, intelligent and active," Harris said. "This is where we see media going, to not just be interactive, but being truly connected in real time."

Harris confirmed Eichorn's comments about the benefits of data from in-store retail media.

"There's so much data that we have, and at best, we can use it for internal insights," he said. "But how do we start to use this data for more powerful external communication?

"Data from different data sources can in real time change your experience," Harris said, noting that the only way to create more relevant content is with more shopper data. Brands and retailers are able to offer live video and audio promotions in-store customized to shoppers on site based on such data.

"How do we respect those choices that the viewer made and give them something relevant?" Harris asked. "The days of you as a vendor making one piece of content and shipping it out to millions of people hoping that it works are done."

In-store: The new retail media space

"Retailers across the board are trying to figure out how they enter this space," said panelist Shariq Siddiqui, founder and CEO at Veeve, a provider of smart shopping carts that leverage computer vision.

A Veeve device that attaches to a shopping cart hosts sensors and cameras that allow Veeve to view every step the customer takes throughout the store, registering what is happening in the cart, in the aisle and on the shelves. The screen on the cart automatically shows the shopper top selling items in the appropriate category and changes as the cart moves.

"The best part is that using computer vision we can identify where the customer is … and we can present the right offers, promotions and coupons to the customer, in the right place at the right time," Siddiqui said.

A personalized customer shopping message, which can include coupons and promotions, can increase basket size by 30%, Siddiqui said.

Veeve also provides a retailer intelligence dashboard that allows customized interaction.

"Our CMS system allows you to trigger events," Siddiqui said. The dashboard shows all the devices that are online, can identify what is and is not in stock and can detect shrinkage.

"In-store is entirely uncharted territory where nobody really understands what happens. Now they have the ability to kind of understand the customers across different channels."

Online habits change shopper expectations

Panelist Neha Singh, founder and CEO of Obsess, a virtual reality and augmented reality software platform that allows brands and retailers to offer a 3D shopping experience for web, mobile app and custom channels, said 3D is becoming the consumer expectation for online shopping.

Singh said 3D experiences have been shown to deliver higher retail sales.

"Customers are looking for a personalized shopping experience," Siddiqui agreed.

Bernardine Wu, executive managing director, OSF Digital, moderated the session.