The future shopping experience
From a consumer and retailer point of view, how will the future shopping experience look like in the very near future? Will eCommerce and shopping in the physical world be seamlessly connected? Is it true that ”if it does not exist on the net, it does not exist at all”?
Shopping 1.0: The digital brick and mortar shop. Retailers started to get online with websites and product catalogs in the early 1990’s. It was only the frontrunners that differentiated themselves by having an online presence.
Shopping 2.0: Comparison-shopping engines. Comparison-shopping engines used to compare prices on products across stores, became popular in the late 1990’s. It was one of the first examples of indirect eCommerce services.
Shopping 3.0: The social consumer. As consumers with a busy lifestyle nowadays, we become more aware of what we want, and what value, we get for our money. In the pursuit of better quality for the money, and unique personal offers, the Internet has become the most important tool that helps the consumer to make faster decisions, than ever before. As digital consumers, we share tips and experiences with our friends on the social media. In our constant search for something cheaper, faster, better and more fun, we are disloyal consumers, in relation to our local shops and brands.
Shopping 4.0: The smart connected consumer. We are increasingly using international retailers offering global delivery, as long as we experience security and comfort by price, service and delivery. As long as the retailer’s interface is easy to understand, fast and convenient, then the physical distance plays no great importance. We are increasingly using the Internet and social media to be inspired in relation to shopping, to find the things we want, whether it is a special brand we are looking for, or not. If we experience being cheated online, it has become much easier to alert others. It takes only a few blog posts on the social media, before the whole world knows. Retailers know a lot about your actual needs, habits and shopping patterns, from your digital fingerprints, cookies and online profile. Retailers are communicating with your wearables, such as your smartphone, smart watch etc. and as it measures your financial and personal health condition, the retailers can automatically suggest products or services that are able to help you in your current situation. Now you can be guided indoor via sensors and beacons, in the mall and you will be instructed to purchase products in a specific store, guided by your personal digital shopping assistant. You will never again get lost in a shopping mall. Indoor shopping guidance will soon be as natural, as using the GPS in the car.
The shop becomes your private showroom and personal assistant. The shop can sense your online and physical presence, and always have access to your personal profile, and your actual health profile. Retailers will hit us by personalized advertisements that communicate directly with the individual consumer. All products in the store will be able to introduce themselves to you politely, as you walk around. As a service offering be able to provide you with detailed information and recommendations from your friends and social circles, and prevent you from buying products, that could trigger your potential allergy. You will be able to order products that are not in stock in the local physical store, and have it delivered directly from another store, to a delivery box on the same day, or directly to your home or office address, by a drone or other transportation robot. You will be able to tag products digitally in the store, to recommend physical products, shops, customer service personnel, and locations to your social network. Interactive billboards will know who you are, and be able to present you with personal targeted advertising and information. By knowing your buying habits and shopping patterns, the store will be able to offer daily, weekly or monthly product subscriptions, and direct deliveries to you.
Permissions and personal information as payment. Retailers will be able to offer individual pricing levels, based on specific customer behavior and profile, such as loyalty cards, membership clubs, points, rewards, reviews and other engagement in the store. The individual pricing level the store offers, will be reflected by the amount of information, you as a customer, are willing to give to the retailer. A physical shop will be able to attract and motivate customers online and offline, to visit physical stores for special bonuses etc., as the retailer will be able to detect the customer presence. The retailer will also be able to sell customer information and marketing permissions to third parties.
Improved transparency. The Internet and digital technology have created great transparency and turned the world upside down, in a lot of different industries already, and now the time has come for the retail industry. So you better prepare to engage with the new opportunities, rather than get stuck. It will be fatal for the business, not to join, explore and harvest the opportunities of the technology.
The Internet Of Things. Technologically we are moving towards a world where everything that surrounds us in our home and outside are interconnected electronically. Soon we will also have connected interfaces to our physical body — we already have electronic pacemakers etc. This offers new opportunities in the retail sector, where the use of technology, can be used to create a new form of contact and interaction with the consumer, in the store and melt online store experiences, with the physical presence. Your refrigerator will be able to automatically put items on your shopping list, and suggest ordering and delivery, from your favorite supplier. Grocery shops communicating with your electronics in your home, will automatically be able to give you alerts and notifications, reminding you to buy more toilet paper, because you are running out in 2 days.
Things to consider as a retailer:
· Understand mobiles impact on the business.
· Create strong synergies across all marketing channels.
· Understand the behavioral path of your customers.
· Focus on simplicity not only functionality.
· Offer great service.
· Do not forget security.
Things to consider as a consumer:
· Be aware of what information you share.
· Only buy from websites and retailers that you trust.
Conclusion:
· If you do not exist on the net, you do not exist at all!
Thanks for reading, I’ll see you down in the comments!
Martin Schaldemose loves startups and agile product development and gets nerdy about eCommerce, gadgets and future retail on his blog Innovazation
