The ‘Wild West’ holiday season of 2015, where we saw the old playbooks thrown out in place of fresh approaches for capturing wallet share, coupled with a recent string of store closings, point to a pivotal year ahead for the retail industry. As retailers realign their go-to-market strategies in response to market conditions, embracing a ‘mobile first’ approach to retailing must be a business priority, as today’s opportunistic economy is ruled by consumers with mobile ‘malls’ in their hands and an incredible array of choices at their fingertips.
Simply put, ‘mobile first’ is the recognition that most people today — whether on the job or going about their daily lives — are mobile. Therefore, developing apps, designing web sites, delivering information and making decisions with mobility as the primary driver makes good business sense.
How does ‘mobile first’ look then when it comes to retail? At its core, integrating mobility into every operation — from the supply chain to a store location — can improve the overall customer experience by giving retailers the agility to quickly and accurately respond to customer preferences. With the m-Commerce market expected to reach $142 billion this year according to Forrester Research1, influencing and winning over customers with tailored engagement strategies will be paramount for staying in the retail game this year. Here are five benefits of mobilizing operations:
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Digital and mobile strategies matter to your customers: Identifying the best engagement formulas — which include refining the timing and channel for targeting consumers with tailored offers — is a must in today’s digital marketplace. Statistics from a recent survey commissioned by Verizon reveal that 56% of smartphone owners made a purchase in 2015 using a mobile app. Though Millennials accounted for the lion share’s (70%), mobile app transactions by Gen Xers (66%) and Baby Boomers (39%) are on the rise. Digital outreach via a consumer’s mobile device that is either infrequent or not compelling runs the risk of ending up as a deleted app rather than a potential reward for both parties.
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Compelling and user-friendly digital storefronts: A key component of successful digital customer engagement involves assessing your supporting infrastructure and platform operations. What do your customers encounter once they’ve followed the digital path on their mobile device to your web site? Will your customer be personally greeted and is the functionality user-friendly and fast? Is it easy to get customer service support if needed, and will those associates recognize the returning customer? How good are your analytics for predicting inventory needs and customer preferences? And, most significantly, can your e-Commerce and m-Commerce platforms handle traffic increases around holidays and promotions? A flexible and secure network infrastructure and robust IT hosting environment are essential underpinnings of a strong operational model.
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A sound Unified Commerce strategy can earn more loyalty: Recognizing your customer and their shopping preferences and habits, whether they are online, mobile or in-store — without being intrusive — can earn the sought-after brand loyalty that is the holy grail for the industry. Achieving a ‘single view’ of your POS and CRM systems combined with your e-Commerce, m-Commerce, in-store and call center channels can enable one view across your entire business for streamlining operations and ultimately improving the customer experience.
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Brick-and-mortar locations reimagined as destinations: Consumers that make time to visit physical locations are looking for differentiated experiences defined by amenities, including complimentary WiFi and helpful sales associates. Fast, reliable and secure in-store WiFi is table stakes for today’s savvy consumers. And the investment in a robust WiFi network offers a two-way street for retailers, who can benefit from customer insights that will help with more precise decision-making. In addition, a floor associate armed with a mobile device and a friendly demeanor, who can quickly locate exactly what you are seeking, is a powerful brand reflection. And even better if that associate can process a POS transaction on the spot and have merchandise shipped to your customer if it’s not immediately available onsite. Catering to your customer’s needs in this way shows that you value their time and their business.
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More precise ‘back office’ operations and supply chain logistics: As retailers continue to introduce new practices that help speed merchandise delivery to consumers — such as expanding a retail location to double as a fulfillment center — mobilizing back office and supply chain operations is essential, as ultimately everything is a brand reflection. A robust logistics system is needed to ensure that communications with the customer to their channel of choice (e.g. mobile text, email, social, etc.) are consistent and accurate, and that when the customer arrives at the store, the ordered items are ready for pick-up as promised. Additionally, to raise the bar on the customer experience, in-store sales associates should be prepared to answer questions about the ordered merchandise and socialize complementary offerings that may entice the customer to make additional purchases that were not planned.
Further, when it comes to shipping, even though a late delivery may rest with a distributor, the retailer will always be in the hot seat. Best practices include better data forecasts across the supply chain, which can help to determine seasonal hiring needs and fleet requirements. In addition, better sorting methods by retailers can help to expedite the ‘last mile’ delivery process.
The process and pace for delivering products and services to market has been dramatically altered and accelerated in the digital era. Devices in the hands of consumers create expectations for immediacy and customization that a ‘mobile first’ strategy can help deliver on.
Michele Dupré is a Group Vice President at Verizon Enterprise Solutions where she leads sales for the Retail, Hospitality & Distribution vertical practices in addition to the company’s Canadian division.
1U.S. Mobile Phone And Tablet Commerce Forecast, 2015 To 2020, October 2015 Forrester Research Report