Convenience, Integration, Context: the retail store experience 2020?
by Mark Howard, Head of Business Solutions — Digital Practice
As retailers exploit the opportunities offered by digital technology and ways of working to innovate their in-store customer experience; what might this look and feel like in 2020? Here are some ideas…
Convenience: The way customers physically purchase products will be as seamless as any digital channel experience and critically will encourage them not to use their smartphone (a distraction from the real world in-store environment that also brings competitors’ offerings within easy reach). In 2020, a customer can simply touch a button on the product itself or its point of sale display to purchase it instantly — like a biometric version of Amazon’s Dash Button technology that carries out the transaction authorised by the customer’s fingerprint. This simple, convenient process also means a customer doesn’t have the hassle of queuing up at a till — freeing up their time to explore the physical retail space further.
Integration: Delivery of purchased in-store products will rival any experience an online retailer can offer. Content such as films, music, books are downloaded immediately to the customer’s device of choice. Large and small physical goods can be dispatched from a warehouse and delivered direct to a customer’s home the same day (a service available today that is rapidly growing in scale led by retailers such as Argos). And because items can be sourced direct from distribution; the Retailer can lever greater supply chain efficiencies (such as reduced in-store inventory costs) to drive competitive, dynamic pricing to continually challenge competitors.
High Street retailers are already using cloud-driven big data analytics to accelerate and rationalise their own supply chain operations (for example, Zara levers such capabilities to achieve product lead times as short as two weeks from catwalk design to store). Further application of this “tech company” approach to achieve deeper supply chain and channel management integration could enable a fully converged physical and digital retail experience in 2020 that constantly exceeds customer expectations.
Context: Relevance with be a key way the in-store experience differentiates itself from digital-only channels in 2020. Whereas online personalisation arguably means funnelling a customer to a specific area of interest, a High Street retailer can also use other dynamic data and insights to enrich and contextualise this experience to create unique moments of delight only possible in the physical store environment.
By a customer choosing to share data (such as transmitting their location via their mobile’s Bluetooth capability to in-store beacons), the retailer can identify what product ranges he or she is browsing to trigger nearby interactive display screens that present more in-depth information about those items, share social media content such as user reviews or allocate a sales person to provide advice. Because the customer is in the physical retail space they are in complete control of their personalised shopping experience — moving to areas of interest based on their emotional reaction to the world around them without the limitations or constraints of a smartphone user interface. Nike’s emerging Fuel Station interactive store concept, where customers can choose to engage in different contextual situations (such as having their running style analysed when using an in-store treadmill to identify the right running shoes to enhance their performance) is one example of the potential power of in-store contextualisation that can’t be replicated digitally.
If you would like more information about how Sopra Steria can help your organisation benefit from digital transformation please contact the Sopra Steria Digital Practice.
Originally published at blog.soprasteria.co.uk on August 31, 2016.