Flying around blogs and bylines there is a lot of rhetoric about the future of retail being the battle of this, or the death of that. For example, there has been talk that Amazon’s new phone will be “the death of offline and local retail.” It’s all a bit exaggerated, don’t you reckon?
At Vend, we’re fortunate to have our point of sale working for retailers in more than 140 countries, and we don’t hear them talk much about death or battle. What we do hear from them is how amazing the power of cloud software is, and how much more it lets them know about their business.
In fact, the growth of e-Commerce over the last decade offers great lessons and tools for brick-and-mortar retail. Since the vast majority of sales still occur in traditional, offline stores, it’s essential for offline retail to learn everything it can from its online cousin.
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To win the future, real world stores need to concentrate on offering experiences that shopping online can’t match. And brick-and-mortar shops do need to ensure that e-Commerce is part of their plans, giving their customers the convenience of being open 24/7. Customers have shown they want this, and the first principle of retail is that the customer is always right.
Bricks-and-mortar stores can also now benefit from some of the great metrics that online stores use to their advantage. Real world stores need to be tracking and analyzing shopping data and habits in the same way e-Commerce does now to maximize sales and understand customers better.
For the retail stores that are winning (and those that want to win), here are some of the trends we’re seeing to improve customer experience and help keep up with the future of retail.
The Power Of Mobile — Get Out From Behind The Counter
Reduced prices aren’t the only factors driving customers to purchase online instead of in-store. Many factors, including inefficient point of sale (POS) systems and long lines, can prevent customers from completing sales.
However, the introduction of mobile technology in brick-and-mortar presents the ability to untether the check-out process from a static counter or register. This gives customers the freedom to purchase their items from anywhere in the store while reducing wait times and lines.
The power of beacon technology takes mobile a step further. Beacons enable customers to pay for their merchandise through their mobile devices. Stores can develop apps that allow customers to check in to the store and accept payments automatically without removing their devices from their pockets. In short, they can provide a frictionless shopping experience that is entirely hands-free for consumers.
Embrace Pop-Up Stores
Today, brick-and-mortar retailers can take their businesses practically anywhere, setting up pop-up shops at temporary storefronts or kiosks at festivals and boardwalks to gain exposure outside of their normal parameters, while still delivering the unique in-store experience.
Pop-up stores are growing in number and popularity largely because mobile POS systems make it easy to set up shop anywhere. According to Specialty Retail, the temporary retail industry is valued at $8 billion.
In the past four years, pop up stores in the U.S. have grown by 16% from 2009 to 2013. Because they are less expensive to set up and maintain compared to traditional stores, pop-ups are a popular choice for retailers that wish to venture into new markets or experiment with unique in-store environments that will enhance the customer experience.
Incentivize Loyal Customers
It comes as no surprise that loyalty programs that keep customers coming back are growing more popular for retailers. According to “Leading on the Edge of Chaos: The 10 Critical Elements for Success in Volatile Times”, the bulk of profit comes from repeat customers with 80% of future profits coming from just 20% of existing customers.
Brick-and-mortars need to utilize creative and enticing reward systems to incentivize loyal shoppers. This can be done through a points system that repays customers through discounts or special gifts.
Of note, more retailers are integrating their rewards systems into their POS. This easily allows them to use one system to complete sales and keep track of customer rewards, which ensures that customers are receiving the appropriate rewards based on their purchases. This also provides customers with a tangible view of their investments in individual brick-and-mortar stores and how they can continue to capitalize on these investments by coming back.
Self-Directed Browsing And Purchasing
Smartphones have given customers the power to compare products in-store to ensure that they are purchasing the best products at the best price. Apps enable browsers to scan, read reviews, and find lower prices right inside a store. Known as “showrooming,” we have seen this trend emerging as a potential threat to brick-and-mortar retailers.
To combat showrooming, retailers must recognize that the significant benefits of technology extend to them as well. The integration of customer-driven shopping apps creates endless opportunities for improving in-store efficiency with data analytics, personal recommendations, discounts, and in-app social media sharing options.
By actually encouraging customers to find out more about the products inside the store, showrooming can be embraced rather than feared. Utilizing mobile apps gives stores an advantage over e-Commerce because in-store customer service representatives are also available alongside the sales floor to guide customers throughout the entire process. This is a hybrid approach that leverages both technology and in-store customer service.
Intelligent Foot Traffic And Sales Conversion
Google Analytics is an incredibly powerful tool for online retailers. Understanding how many anonymous visitors land on a web site and how many of those convert into paying customers can give webmasters valuable, real-time feedback on how changes to a web site affects conversion rates.
Retailers can do the same thing in their brick-and-mortar stores. Information collected from people passing by is processed into easy-to-read data, allowing businesses to see how much foot traffic there is in the vicinity, how many shoppers came in, and the number of people who actually completed a purchase.
Even with the rising popularity of e-Commerce, consumers will look to brick-and-mortar retailers for unique in-store experiences and unparalleled customer service more than ever. By integrating mobile technology and analytics, brick-and-mortar retailers are well-equipped to improve the shopping experience and remain even more relevant in this e-Commerce driven society. And that is all win!
Vaughan Rowsell is founder and CEO of Vend, cloud-based retail software platform, which enables retailers to accept payments, manage their inventories, reward customer loyalty, and garner insights into their business in real-time. Vaughan has 15 years of experience as a software engineer and executive. These days Vaughan spends less time on the code and more time helping retailers across the globe use Vend’s cloud solutions to grow their businesses.
