A digital customer experience revolution will rejuvenate bricks-and-mortar retailing, but stores must start on the back foot
CAIRO, Egypt, 11th December, 2015:
In-store retailing has been under rising pressure from increased costs
of doing business, as well as the growth of online shopping. Yet,
bricks-and-mortar sales still accounts for the majority of retail spend.
As per a recent report,
according to a new publication from Hamburg-based yStats.com, online
shopper penetration in Egypt stood at below 10%. The country is still
behind a number of other emerging economies in the ecommerce stakes due
to factors such as delivery challenges, a preference for face-to-face,
lack of choice due to limited range of online products and services, no
price differential as compared to as compared to in-store purchases,
consumer privacy concerns, prevalence of cash on delivery and others.
Jacob Chacko, Business Lead – SMB & Commercial, Middle East & Turkey at Aruba, a Hewlett Packard Enterprise Company believes
that the retail model of the future will be a radically different
experience from today, largely driven by the changing shopping demands
of the younger hyper-connected consumer. Bricks-and-mortar retailing
will remain to be a very significant part in retail, however the lines
between channels will erode at the benefit of both the customer and the
business. Advances in technology will significantly improve the
relationships between retailers and customers, much the way analytics is
already doing to online shopping.
Real opportunity lies
in responding to this change, focusing on delivering a truly integrated
and seamless omni-channel experience. The future of retail is an
exciting one, and over the next few years we expect to see a number of
key developments taking place in stores around the globe:
The emergence of the smart personal shopper
Online retail will
continue to exist for customers who want to buy a specific product and
have it delivered to their home. But those who enter a store do so to
learn, to view and feel items and to speak to a person. As the physical
environment of a store changes, communication barriers between customers
and employees such as counters will be removed, enabling staff to
provide a more personalised experience.
Mobile technology will
revolutionise the sales process and experience. Tomorrow’s retail staff
will be unleashed from the sale counter, and given the equipment to
connect with customers across the entire store, offering a more
consultative approach. In fashion retail for example, assistants will be
able to show customers a range of outfits and styles a particular item
could work with.
With a real time view
of stock and availability, they will be far more capable of closing
sales, only recommending items that are both in stock and in size,
whilst offering further choice and reducing wait time for shoppers.
The rise of immersive engagement
Walking past a store, a
customer’s phone buzzes, offering them to try on the same pair of jeans
they saved in their online basket a few days ago. Enticing them in, as
they’ve already shopped online, for today only they will get an
additional 10% off all purchases.
Location-aware
technology will identify customers’ mobile devices, enabling upsell and
cross-sell offers based not just on what they’re viewing, but also what
they’ve purchased before. As customers roam the store, engagement
programmes will link with in-store beacons to dynamically offer up
suggestions at various points along the store path.
Here, the loyalty
programme and the new found freedom of the retail assistant will combine
and, with a shared purchase history, the best retailers will enable
assistants to make personal style recommendations, based on customer
preference and items they may already own.
Experiences will
extend loyalty beyond purchases too, offering experience enhancements
such as VIP parking spots when customers approach retail stores, and
recognising regular customers on entry.
The end of cash and plastic
Part of matching the
new connected consumers’ expectations will be delivering a seamless,
frictionless payment experience, removing any barriers slowing down the
speed of a retail sale. Eliminating queues from stores, roaming staff,
now empowered by mobile technology will be able to transact with
customers in seconds, as shoppers keep focus on the purchase experience
rather than the cost.
One of the most
important factors to consumers, payment security requires additional
compliance with higher security standards, ensuring consumers are
protected from fraudulent activity and avoiding the irreparable
reputational damage and financial costs associated with a breach in
payment security for the retailer.
This adoption of
mobile, digital payments will further enable retailers to offer things
like on-demand delivery options, where products can be delivered
straight to the customer’s home or even car.
For retail businesses,
this will also likely lead to higher revenues. Just as the shift from
cash to plastic showed consumers are willing to spend more when not
parting with cash, so too will sales be further strengthened by further
dissociation from the traditional bank instrument - the card.
The road to the future
These hyper-connected
consumers already in the marketplace have a rapidly growing share of
spending power. This always-on generation demand things like fast
internet access and a more seamless, digital experience they’re already
getting from other services.
While new innovations
are being tested and tried in today’s market, much of this development
is stifled by existing and fragmented existing IT infrastructure,
negatively impacting the customer experience, and slowing the consumer
adoption of new technologies that could help drive the retail business
forward.
Because of this,
retailers are already starting on the back foot. To build a successful
platform for innovation across multiple channels, they must ensure the
technological needs of today’s customers are fully met, otherwise they
face being left in the dust. Focus on enriching the customer experience
immediately, and set the stage for rapid innovation in the coming years.