Technology Changing The Way We Shop

Smart phones are changing the experience & expectations of consumers built up over the years. On the one hand it has given us the enhanced virtual world experience while on the other it has also fractured the consumer journey into hundreds of real-time, intent-driven micro-moments. Interestingly, both have created a critical opportunity for brands to influence consumer decisions and preferences. This technological leap has also given rise to expectations from brands and retailers to address consumer needs with real-time and relevant information. Consumers expect them to be there anytime, anywhere and help them fulfill their intent in the quickest possible way.

The earlier era when consumers would walk in a store to experience products, check availability and prices and finally purchase it. Today consumers are well informed and are looking up for these products on their smart phones and computers. The consumer awareness mode has evolved. While nobody can beat the immediacy and experience of a physical retail shop, the yawning gap that consumers experience post product purchase decision, they do not know which shop has that particular product and at what price. While E-commerce has not have taken away a huge pie of the physical retail at just one percent of the total purchase in each category, this new format has ushered some changes as well. It has built a robust new media for product discovery. This tool despite being powerful has been limited by its availability for retailers who also need to be there on the same platform for users to let to know that they too are available at just a click and perhaps have an edge in both pricing as well as speed of delivery. This will be the key to win or keep the footfalls flowing.

Available market research data supports the hypothesis that the quality of footfalls earned through online research or digital influence tends to have a much larger conversion and basket size. Another big pull lately for the consumers is the coupon world, brands see it more of a marketing tool but consumers see it a discount factor It is by far the most performance oriented marketing tool which can be customized for the exact marketing objective that a Brand Manager or a Retail CMO may have. These could vary from product sampling to outright stock liquidation! With growing Consumers inclination and advance technologies behind mobile coupons, it can become a formidable tool to drive consumers to the store. Especially in an environment where the newly changed FDI norms encourage online market places to behave true to its business model i.e. a market place any brand or offline retailer would agree to the fact that one consumer in store is worth 10 online. Retail shops now need to provide experience and service more than ever before, Considering that today’s consumer is well travelled and hence more demanding of specific quality of service.

Know what they want

For Amazon, it is said that about 30% of Amazon’s Sale is driven through their recommendation system. Of the wide range of SKU’s they know precisely which ones will interest you. So, if a retail store can use smart phones and other technologies supporting to create a more engaging and personalized experience for the consumers who enter the store half the battle is won. If SKU’s plays a big part for online players, the floor staff is a major influencer to bring customers to your store.

Empower Floor staff with Tablets

Humans crave for validation, guidance and assurance. As consumers’ knowledge has evolved, retailers need to now empower their floor staff with mobiles or tablets that keeps them updated with latest product information, store and brand offers, and services and helps them with other intelligent and interactive solutions. A knowledgeable floor staff can has always been a major magnet for repeat customer business as well a major influencer to increase consumer basket size. Retailers who have understood the game around the world have already implemented the engagement solutions to this end.

Make Them Feel Special

Taking the consumer for granted or in fact not having a satisfactory in store engagement previously has enabled online competitor’s take business away from Physical Retail. Loyalty program customers while signing up are urging retailers to pamper them silly. And it means more than few extra points. The Shoppers Stop preview sale makes Gold members feel special. Now through technology brands and retailers can make personalized offers to targeted consumers at just the right moment when they are at the relevant shelf.