By Hal Charnley, Mobee
Shopping in 2016 is all about strengthening the connection between shoppers and their favorite brands and retailers. Customers are using smartphones in-store to compare prices, write reviews and participate in mystery shopping missions. In the midst of the consumer mobile revolution, retailers are undergoing a revolution of their own: adopting the Internet of Things (IoT).
From smart mirrors in the dressing room to in-store beacons, retailers are finding new ways to interact with customers and collect useful data to better serve them. In fact, 72% of retailers surveyed reported that they have IoT-related projects under way, according to a recent Retail Systems Research (RSR) report.
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Nordstrom, for example, is using the Pinterest app to track what’s trending with their customer base. Walmart uses big data for consumer insights and store-level merchandising. Amazon has created a Dash Button (WiFi enabled) for simple reordering — a consumer in need of laundry detergent can simply press the button on his or her washing machine, and Amazon will immediately ship more detergent.
Born in the age of omnichannel, IoT technologies monitor cross-channel inventory, shopper experiences, traffic and more in real time. The need for real-time data is skyrocketing as retailers discover new applications for IoT and how to tap into the billions of devices in the hands of consumers — from enhanced point-of-sale (POS) systems to mobile mystery shopping.
Picture this: A big box retailer is wondering whether its stores are displaying the correct promotional signage. The retailer could train, deploy and debrief a few traditional mystery shoppers over three to six months through expensive, in-store merchandising services companies; or, it could send an army of smartphone-wielding consumers to do their usual shopping, while taking pictures of promotional signage.
These “mobile mystery shoppers” can report right on their smartphones how clean the store is, how knowledgeable the associates are and how well products are displayed. In turn, the retailer can immediately hone in on opportunities to enhance the customer experience at specific locations using the data collected, often in real time. While traditional mystery shopping has been tried and tested, this is one situation where IoT provides valuable enhancement.
IoT also encompasses real-time alerting functions that can notify managers if competitor pricing changes and allow for immediate, remediating action. Real-time alerting is also important when a customer can’t find a specific product on the shelf, notifying the store manager to restock or reorder. IoT-enabled high-resolution cameras and sensors built into shelves can deliver minute-by-minute updates on what is understocked, overstocked, underperforming and more — ensuring the customer can always find what they need, and the retailer can keep them coming back. Even customer traffic patterns and buying behaviors are connected to IoT with smart cameras and beacons that allow store associates to react quickly to their customers, drastically reducing wait times.
IoT technologies allow retailers to get inside the mind of the consumer at scale, with speed and for a fractional cost. Increased visibility into the “human condition” in their stores allows retail decision-makers to customize the shopping experience around individuals. The world has moved from shaping the consumer around the brand, to shaping the brand around the consumer.
The Internet of Things has become the new holy grail of retail, and the cup is only getting bigger. Retailers who implement IoT technologies and utilize them well will be faster and smarter in the years ahead.
Hal Charnley is the CEO of Mobee, the leading provider of integrated crowdsourcing solutions for global brands, retailers and asset management firms. Mobee’s app, data warehouse and intelligence dashboard work together to deliver actionable insights that power strategic business decisions. Follow him @MobeeRetail.
