how digital is revolutionizing the in-store experience · an interactive kiosk is its own sales...

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How Digital is Revolutionizing the In-Store ExperienceEngaging consumers in-store with digital shopping experiences

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Digital Influence Factor

Showrooming

Privacy vs. Personalization

Other Digital Touch Points

Empowering the Digital Associate

Use Case

Key Takeaways

Sources

CONTENT

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Digital shopping is influencing the way consumers are shopping across all channels, causing retailers to question how digital commerce is impacting in-store. As shopping behaviors change, consumers are finding new forms of digital communication to improve their shopping experiences.

Although many retailers find showrooming, browsing in-store then purchasing online, a threat to their business, digital shoppers are actually producing higher in-store traffic, conversions, and spending.

According to a recent Motorola study, the majority of shoppers agreed that self-help technologies, such as kiosks, improve shopping experiences.

Retailers are striving to push in-store solutions to ensure a rich, immersive in-store shopping experience for digital consumers.

Digital Influence Factor

84% of in-store shoppers use devices before or during shopping trips.

90% of retail still happens at brick and

mortar storesDid You Know?

25% of consumer dissatisfaction centers around• Coupons

• Sales associate availability

• Customer service

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TWEET THIS

Source: Harris Interactive. (2013). Showrooming and Webrooming: A Tale of Two Trends.

Source: Deloitte. (2014). The New Digital Divide.

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Consumers are blending online and offline shopping experiences in today’s retail age. The rise of smartphone adoption has drawn concerns over consumers using brick and mortar stores as showrooms.

While in store, consumers search on mobile devices for better deals and special offers. They will not hesitate to make their shopping and purchasing decisions at another retailer with exceptional pricing, discounts, and promotions.

Recent studies show that consumers are now more commonly reverse showrooming or webrooming - searching products online then purchasing in-store. Ultimately, consumers showroom and webroom to find the best possible deals and prices. According to Business Insider, while 46% of shoppers have showroomed in the U.S., the remaining 69% have reverse showroomed.

Showrooming

But what drives showroomers to flip the switch from buying online to purchasing in-store?

• To avoid shipping costs• The need to physically touch and feel products• Checking available inventory to avoid out of stock scenarios

Webrooming is a trend that brick and mortar stores must recognize as a form of in-store consumer engagement. Although retailers believe showrooming has a negative impact, this consumer behavior is shifting the opportunity back to brick and mortar stores to drive consumers and help reinforce different channels.

HAVE WEBROOMEDHAVE SHOWROOMED

6 in10 9 in10WEBROOMERS SHOWROOMERS

Did You Know?

Consumers increasingly use mobile apps to:• Check prices

• Search for coupons

• Scan barcodes

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Source: Accenture. (2014). U.S. Seamless Retail Survey Results 2014.

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As connected consumers continually search for the best deals, retailers must find a way to meet their needs. Leading retailers are approaching in-store tracking techniques to provide useful information to consumers. To understand consumer behavior and optimize store environment, retailers are combining technologies and data sources enabled by WiFi, beacons, video, and GPS.

Brick and mortar stores are using beacon technology to track shoppers’ location and send discounts and promotions directly to their smartphones. Consumers are not overly comfortable sharing their personal information. However, they are willing to share in exchange for a special offer and flexibility to control how their personal information is used. 61% of consumers expect discount offers while 53% expect to receive free products in return for sharing personal information.

Privacy vs. Personalization

Since mobile devices are most used in-store, today’s consumers seem to be receptive to beacons to enhance their shopping experiences. 45% of shoppers reported using their mobile device for mobile coupons, which represents a seven percent increase from 2013.

Beacons provide a more personalized shopping experience for deal hunters and smartphone users alike. In order for beacon technology to work, consumers must turn on Bluetooth, enable location services, and opt-in to receive in-store notifications. Retailers must provide consumers a comfortable approach to beacon technology for hesitant consumers to walk in a store.

2013SHOPPERS

2015SHOPPERS

21%

+10%

31%

31% of shoppers believe they will secure a betterprice online, up from 21% in 2013.

Did You Know?

Nearly six out of 10 showroomers in The Harris Poll said they most frequently ended up buying from Amazon.

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Source: Accenture. (2014). U.S. Seamless Retail Survey Results 2014.

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Today’s demanding consumers expect retailers to deliver in-store digital technologies for more interactivity and a better shopping experience. Since digital consumers use their mobile device in stores to look up product reviews, pricing, discount offers, and more, they are more likely to use in-store technology that gives the same value.

In-store product finders, product inventory, registries, and kiosks are helpful in providing consumers a personalized shopping experience. Meanwhile, 55% of store shoppers find in-store kiosks helpful.

Other Digital Touch Points

An interactive kiosk is its own sales associate, providing customer assistance in an instant and begins the sales process. In-store kiosks ease the browsing process with endless aisle features, providing product inventory and keeping customers in-store and more likely to buy.

By combining digital product information in-store and immediate access to those products, retailers will immediately drive sales. Market and Spencer’s Digital Flagship department stores provide more ways to access products including virtual makeover counters with facial recognition technology. Build-A-Bear is also taking the digital in-store approach by displaying large digital screens at every station during the bear making process, increasing their sales by 30%.

Brick and mortar stores are given the opportunity to take their in-store experience to the next level, allowing consumers, to take a different approach to their shopping behavior.

SAY THEY WOULD ENJOY THEIR RETAIL EXPERIENCE MORE IF THEY HAD AN INTERACTIVE ENVIRONMENT

OF CONSUMERS

52%

Did You Know?

45% of shoppers would buy up to 50% more merchandise from retailers that provided better customer service.

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TWEET THISSource: Motorola. (2014). Motorola Solutions Shopping Study.

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Part of digitally enabling consumers in-store requires sales associates to be prepared to do so. Consumers expect sales associates to be digitally connected and embrace in-store technologies. Technology solutions are helping retailers improve every aspect of a shopper’s experience. Consumers are more likely to use their own mobile device or in-store technology than approach a sales associate to gain product and price information or complete checkout.

Sales associates using the latest technologies such as in-store services that offer electronic receipts, discounts, and assistance, create efficient shopping experiences. In a recent Motorola study, 58% of shoppers surveyed that they believe sale associates using handheld mobile devices enhanced their shopping experiences. In addition, 52% of retail associates recognized a positive effect of mobile point of sale (mPOS) allowing consumers to purchase on the spot.

Empowering the Digital Associate

Internal communication between associates and managers are lacking in retail stores, resulting to insufficient customer service. 80% of retail associates agreed that improving in-store communication would have a significant effect on consumer satisfaction. In the Motorola study, managers strongly agreed that empowering employees with better information and technology would improve the store’s processes.

Retailers must close the gap between sales associates and consumers to stay better connected to product and brand knowledge. Equipping sales associates with devices will gain consumer trust and loyalty to the store.

i 47%agreed that they have a better experience when sales associates use the latest technologies to assist them

OF SHOPPERS

Did You Know?

65% of store associates agreed that they could better serve customers if they were equipped with handheld mobile devices

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Source: Motorola. (2014). Motorola Solutions Shopping Study.

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A consumer walks into a clothing store to buy a pair of denim jeans. The consumer pulls out their mobile device and browses through the retailer’s website to look for any coupons and deals on denim jeans. The consumer shops throughout the store unable to find the product they came to buy. Ditching their personal mobile device, the shopper comes across an interactive kiosk and uses the large touch screen to quickly find the perfect pair of jeans. A product page appears that shows available in-store inventory as well as product information, pricing, and promotions.

Use Case

The consumer taps on a help button for further in-store assistance and the sales associate receives a beacon notification alerting for consumer assistance. The sales associate immediately appears with an associate tablet app and locates the pair of discounted denim jeans in-store. With the associate app, the shopper is able to checkout on the spot with the sales associate.

In this use case, both the shopper and sales associate met their goals: the shopper purchased a pair of jeans with a discount offer and the sales associate quickly made a sale and efficiently assisted the shopper with their associate device.

53%

OF SHOPPERS

SEARCH COUPONS

OF SHOPPERS48%

SCAN BARCODES

CHECK REVIEWS ONLINE IN-STORE

OF SHOPPERS

45%

Did You Know?

Less than one-third (29%) of shoppers reported finding information faster on their smartphones than asking a store associate for help.

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Showrooming is an opportunity for brick and mortar stores rather than a threat.

Webrooming is the latest consumer behavior and retailers must understand the need of webroomers.

Retailers must provide consumers a personalized shopping experience in-store that meet their needs.

In-store digital touch points create more consumer interaction and engagement that will ultimately drive sales.

Retailers must equip sales associates with devices to provide shoppers better assistance in-store.

Key Takeaways

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Sources

1 Deloitte. (2014). The New Digital Divide.

2 BI Intelligence. (2014). ‘Reverse Showrooming’: Bricks-And-Mortar Retailers Fight Back.

3 Internet Retailer. (2014). Consumers Just Say No to In-Store Mobile Tracking. http://www.internetretailer.com/2014/03/27/consumers-just-say no-store-mobile-tracking.

4 Motorola. (2014). Motorola Solutions Shopping Study.

5 CMO. (2014). How Digital is Improving the In-Store Experience for 3 Retailers. http://www.cmo.com/articles/2014/5/28/how_digital_is_impro.html.

6 Harris Interactive. (2013). Showrooming and Webrooming: A Tale of Two Trends. http://www.harrisinteractive.com/NewsRoom/HarrisPolls/tabid/447/ctl ReadCustom%20Default/mid/1508/ArticleId/1339/Default.aspx. 7

Accenture. (2014). U.S. Seamless Retail Survey Results 2014. http://www.

accenture.com/us-en/Pages/insight-accenture-seamless-retail-survey-2014- infographic.aspx.

Skava is powering the next generation of digital commerce experiences

for leading retailers worldwide by delivering the most versatile technology

platform in the industry. Skava develops and hosts mobile commerce

websites, apps, and other digital shopping experiences across mobile,

tablet, desktop, in-store, and all emerging channels. With over 10 years

experience in mobile, Skava is creating visionary technologies to prepare

retailers for the future of digital commerce.

For more information about our in-store solutions and other offerings, please contact Skava at 877.554.2176 or [email protected].

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