The retail landscape has changed dramatically in recent years, and brick-and-mortar stores are struggling to stay relevant in a digitally-driven world. From the closing of hundreds and thousands of long-established stores like JCPenneyto the utter downfall of the toy empire Toys ‘R’ Us, the evidence is obvious. Mom-and-pop stores are still facing hard times too, with most bankruptcy filings coming from retailers with only one location. Most of these retailers can attribute their financial troubles to a number of reasons: crippling debt, online competition and customer loss. But what all of these stores have in common is a failure to adapt to change.
Retailers have struggled to keep up as technology has slowly made its way into every facet of the business. Though every store has different customers, different needs and a different culture to consider, there are a few solutions for digital transformation that all retailers can adopt.
After a tumultuous 2017, expect retailers to make major changes, both in their physical and digital stores. These are some concepts and ideas stores will — and should — adopt in 2018:
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Friction-Free Commerce Is The Only Commerce
You probably learned in science class that friction is the force that resists relative motion between two bodies. As friction relates to motion so it does to retail. There are obstacles, or forces, that can keep a customer from purchasing, or moving. A number of factors can contribute to the friction, and if that friction is strong enough, the customer will abandon the transaction altogether.
In e-Commerce, the web site is the equivalent of a physical storefront, and the storefront operations must be maintained to provide the best experience possible. Compelling, error-free content informs consumers of what kinds of products or services are available. A responsive design that works on laptops, tablets and smartphones is also essential since 24% of all online purchases are made on mobile devices. Perhaps most importantly, the site needs to be functional. Retailers should have the tech support needed to address any potential malfunctions or customer problems.
Traditional retailers arguably have a tougher job in creating a friction-free environment since the obstacles are physical and can’t be addressed as quickly as online issues. When determining the hurdles customers face in-store, retailers should first consider why a customer would bow out. Is the item not available to purchase? Are the fitting rooms disorganized? Are employees unable to answer questions? By prioritizing answers to these problems first, retailers can make more impactful changes in a shorter amount of time.
Using The Right Technology For A Unique User Experience Is Key
Taking advantage of technology reduces friction, making the customer experience seamless from beginning to end, but choosing the most user-friendly digital tools and platforms is vital to a retailer’s success. After all, bombarding employees and consumers with a lot of information can create more problems than solutions.
While most retailers use digital tools and platforms every day, they’re falling behind when it comes to some of the most advanced technology available, like AR/VR and blockchain. For some retailers, adopting augmented reality and virtual reality seems like something out of a sci-fi movie, but just because the technology is unfamiliar doesn’t mean it’s inaccessible. Sephora and IKEA are some of the most well-known retailers utilizing VR right now, allowing users to virtually try on makeup and picture what furniture would look like in a specific space respectively.
Though blockchain is not widely used by retailers yet, the process of keeping a digital record of linked data and transactions is poised to completely revolutionize the retail industry beginning in 2018. Walmart has already invested in the technology, filing a patent for a “smart package” that records updates on a product’s location, environmental conditions and more. Able to safely and accurately store a virtually endless amount of information, blockchain technology will help stores with virtually every step of the retail process, from manufacturing to delivery.
Smarter In-Store Experiences Are A Must
Where so many retailers have failed in recent years is not their products or services. It’s the fulfilment of those products and services. Consumers don’t want to just buy; they want an experience. That’s why the experiential retail trend is on the rise.
Combining the technology and personalization of e-Commerce with in-store showmanship, experiential retail can come in many forms, from a pop-up store to an art show, all depending on the retailer. These “events” use the best of digital and physical to offer truly unique customer experiences. For example, Warby Parker decided to turn its Melrose Avenue location into an homage to moviemaking, complete with a Hollywood-inspired mural and a “Green Room” where customers can film videos against 12 different backdrops.
But retailers don’t need to install a complicated setup for an effective in-store experience. Installing in-store digital touch points like interactive catalogs and even price checkers can contribute to a better customer experience.
To succeed in 2018 and beyond, retailers will have to adapt in an industry that’s constantly changing. By avoiding the mistakes of declining stores and creating seamless, tech-driven retail experiences, stores of all sizes have a strong chance of thriving.
Bart Mroz is the co-founder and CEO of SUMO Heavy, a digital commerce consulting and strategy firm. He is a serial entrepreneur with over a decade of business management and technology experience. Mroz was a founding partner of multiple consulting companies and a thought leader who has been published in top e-Commerce publications including Internet Retailer and AdExchanger. Prior to founding SUMO Heavy, Mroz was a partner at round3 media, a creative e-Commerce agency, as well as owner and managing director of SimplyHelp, an IT firm based in Philadelphia.
