Are You Being Served? The Future Of In-Store Experience

© copyright 2014 rickpalmerconsulting.com
| the future of in-store experience |
a rick palmer insight report
© copyright rickpalmerconsulting.com 2014

Changes in Consumer Behaviour
The rise of the connected shopper has permanently altered
the shopping experience. Online shopping has transformed
consumer purchasing behaviour, giving rise to cross-channel
shopping and far higher service level expectation, yet the in
store experience has altered remarkably little since the early
days of the shopkeeper.

Technology is driving the shift
85% of consumers are now digital shoppers, researching and
purchasing products using the Internet, with the average
connected shopper gathering information from 10 different
sources prior to each purchase.

Expectations are rising
The Internet provides consumers with a wealth of product
and brand information, allowing for highly-informed purchase
decisions to be formed prior to purchase. We are also
increasingly opting to share personal information with brands
in order to enjoy a personalized shopping experience.
AWAITING IMAGE

Bricks and mortar retailers are falling short
There exists a growing divide between customer expectation
and in store experience. We are becoming ever more reliant
on the high levels of service and personalization delivered
online. This has given rise to a growing discontent with the
level of service available in store.

“In this new reality, incremental adjustments to the store format will no longer be
sufficient. To survive, a radical rethink of the purpose of the store in the consumer
shopping journey is required.”

| defining the connected shopper |

The Digital Mass Market
By age, the “Digital Mass Market” (the 85% of us who use
technology to inform our purchase decisions) is dominated
by Generation Y (18-29 years of age), Generation X (30-39
years of age) males and females, and baby boomer females
(50-64 years of age).
GEN X
30-39 M/F
BABY
BOOMERS
50-64 F
GEN Y
18-29 M/F
85%
Other
15%

50 50♂
♀There is an even 50/50 divide of men and women in the digital mass market

Mobile adoption is accelerating
Smartphone and tablet use, with its tactile input method and
always-on connectivity, has now reached a tipping point with
50% penetration amongst the digital mass market and
further growth projected year-on-year as smart mobile
device adoption increases.

Touchscreen devices are becoming ubiquitous
▪ 54% are currently using or would like to use digital
touchscreens in store
▪ 48% are currently using or would like to use a smartphone
to shop in store
▪ 47% are currently using or would like to use a tablet to
shop while at home

5
Five facts about the connected shopper
1. They represent a very broad demographic and are growing in numbers year-on-year
2. They use tablets and PCs at home and smartphones and touchscreens when shopping
3. They demand access to a large amount of information to help inform their purchasing decisions
4. They increasingly expect a personalized service thanks to existing online shopping behaviours
5. They are frustrated with today’s bricks and mortar retail experience

| introducing the connected store |

“In a truly multichannel world, the purpose of the store changes from driving sales of the
product in store to being a brand and product showroom that drives revenues across all
channels”

Reinventing the store experience
The connected store should offer a seamless cross-channel
experience to the customer - personalized, information
abundant, inclusive and “touch and feel”.
It will provide a new purpose and meaning to the store; one
who’s aim is to delight and engage the customer in ways not
possible online.

5
Five facts about tomorrow’s connected store
1. It will offer a personalized shopping experience
2. It will be information abundant, providing the shopper with access to in-depth product info
3. It will be entertaining. In store theatre will become ever more important
4. It will be connected. Wi-fi will be ubiquitous, providing super-fast Internet access
5. It will form part of a seamless, cross-channel brand vision

Brand Experience Destination
With the ability to deliver an unrivalled sense of occasion and
theatre, combined with the touch and feel experience of the
physical product, and the personal service offered by store
personnel, bricks and mortar stores have an opportunity to
deliver a retail experience that both complements and
enhances their relationship with the connected shopper.
BRAND

Technology as Enabler
The role of technology should be one of enabler, ensuring
shoppers the optimum cross-channel retail experience,
without over-complicating the purchase cycle.
Technology as dressing should be avoided and a strong focus
on ROI should be remain at the heart of all technology
implementation.
ROI

Connected Stores for Connected Shoppers
Digital shoppers want access to additional and supporting
content via their own devices as well as on store-provided
devices.
They also expect and value a personalized service and a
guided shopping experience, allowing them to browse and
select a broader range than the store can physically
showcase.

Empowered Store Assistants
Store assistants should be empowered with the same high
level of information access as their customers. This should
be demonstrated through the effective use of in store
technology, such as store touch screens and mobile tablet
devices, providing a bridge between the customers own
access to knowledge and the personal service which can be
provided in store.

| technology |

Technology plays an integral role in serving the connected shopper
The following technologies are redefining the retail experience and should be considered
golden opportunities for companies willing to embrace this changing landscape now.

touch and gestural interaction

Touch and Gestural Interaction
New and highly engaging interaction methods are becoming
increasingly cheap to realise.
Today, a screen within reach that does not react to touch is
perceived as broken.
Additionally, gestural input is removing the need to touch the
screen completely, creating surprising and magical new ways
to interact with shoppers.
touch and gestural interaction

Touch touch and gestural interaction
Today, touchscreen technology is ubiquitous, thanks to the proliferation of smartphones and tablet computers. In fact, a
screen within reach that does not react to touch is perceived as broken. In addition to standard touchscreens, touchfilm
can touch-enable any flat surface, allowing for a¨far greater range of opportunities, such as interactive window display.
touchscreen touchfilm
for display for attraction

Touchless Visual Detection touch and gestural interaction
Devices such as Microsoft’s Kinect and Leap Motion have brought in an era of touchless interaction, allowing
customers to control visual displays (such as projections or onscreen content) using in-air gestures alone.
This ‘Minority Report’ interaction provides brands with arresting engagement opportunities.
leap motion
kinect

Holographics touch and gestural interaction
A truly magical presentation medium, holographic display is unrivalled in its ability to create theatre and magic in
window and product displays.
Used primarily as attraction media, holographics can also be employed to create stunning in store product display.
product display cabinet
in window

Transparent LCD touch and gestural interaction
Used to great effect in product display cases, transparent LCD allows for A/V content to “co-exist” with real
world products, creating stunning visual presentations.
Can be used both as attraction media and as a practical method for delivering rich content and product
information to the on site shopper.

computer vision

Computer Vision
Through the use of motion and depth-sensing cameras we
can now “see” the customer. This lends itself to a number of
powerful interactions and tracking opportunities, where
interactive presentation content, alongside valuable tracking
analytics, can be triggered by the presence of a customer.
computer vision

Display Media, Attraction Media, Analytics computer vision
Computer Vision can be used to initiate an interactive product or brand experience at the shelf or deployed as highly effective
attraction media in window displays.
CV can detect physical proximity and other movement, as well as metrics such as height, motion, proximity, location, gender, skin
tone and even apparel. This provides the retailer with numerous opportunities to deliver both a high impact and highly personalized
experience to the shopper.
Through the measurement of environment and product interaction rates, retailers can also benefit from the study of consumer
behaviour, helping to drive future learnings.
in display in window
store analytics

projection

Projection
When used in small spaces, such as product display,
(interactive) projection can be employed to enhance real-
world objects with additional contextual and/or informative
content.
Projection can also be employed to dramatic effect on large
architectural structures using 3D projection mapping, to
convert large scale objects into stunning AV presentations.
projection

Display Media & Attraction Media projection
For Display – projection can be used to produce theatre and interactive display at product display. When used in
combination with computer vision, products can be made “interactive” through predetermined hotspots, triggering
animation, sound or interactive content display.
For Attraction Media – projection is particularly effective when used to produce large format AV displays. Using 3D-
mapping, projection can transform architectural objects, such as a shop front or entire building, into a fully animated,
cinematic AV canvas.
for display for attraction

printed electronics

Printed Electronics
Electro-Conductive inks now allow for printing of fully
functional electronics directly on to packaging materials,
such as paper, plastic and glass.
When coupled with inductive shelving and wireless power,
printed electronics offer impressive on-packaging lighting
displays and interaction opportunities to attract and delight
shoppers, both in store and in window.
printed electronics

Display Media printed electronics
When printed directly on to packaging, printed electronics can produce impressive lighting effects, directly onto
product packaging. Thanks to the printable nature of the e-ink, complex images and text can be lit and
animated, bringing product packaging to life and producing stunning visual theatre in the store environment.

wireless interactivity (RFID / NFC)

Wireless Interactivity (RFID / NFC)
RFID can be employed to track location, trigger AV content,
lighting or touchscreen content, all at the point of customer
interaction with an RFID-tagged product.
NFC can be employed to deliver content and links directly to
any NFC-enabled device, driving content delivery to
customers whilst retaining closer control over the customer
journey.
wireless interactivity (RFID / NFC)

Display Media & POS / Counter wireless interactivity (RFID / NFC)
RFID can be used to trigger both complementary content and theatre when the customer interacts with a product.
Similarly, NFC can be used to deliver complementary content to a customer’s own NFC-enabled device, or an in store
device, providing fast, simple access to information based on proximity to a product.
Both technologies can also be employed at the counter, allowing supporting media to be displayed based on the
customers product choice.
RFID tagged bottles trigger
On-screen content
NFC product drives shopper
to web URL
NFC social links

captive portal / passive analytics

captive portal / passive analytics
Captive Portal / Passive Analytics
Until now, the ability to track customer behaviour and
preferences has been confined largely to a brand’s website,
where tracking forms an essential part of the marketing
arsenal.
It is now possible to gain the same insight into store traffic,
providing retailers with data such as dwell times, bounce
rates, repeat visits and in-store positioning.

Captive Portal / Passive Analytics captive portal / passive analytics
In Store Tracking – Through the tracking of the unique signals emitted by consumers’ personal devices, granular data
can be extracted, including customer dwell times, store positioning, bounce rates and repeat visits. Powerful data which
can be used to refine the in store experience
Opt-In Targeting – By offering customers access to a captive Wi-fi portal, brands can further control the customer
journey by offering tailored content to each individual, based on demonstrated interest and build long-term relationships
via email communications.
in store tracking opt-in targeting

mobile payment

mobile payment
Mobile Payment
Decentralized POS removes transaction bottlenecks and
opens up the store to entirely new design concepts. Whether
through the use of sales staff POS devices, or via the
customers own device, mobile payment offers retailers
multiple benefits over the traditional POS counter.

Mobile Payment mobile payment
There are a number of sales staff POS systems available, providing fast, mobile payment alternatives for
customers. Additionally, companies like Square and iZettle are empowering consumer electronic devices. The
future of payment is undoubtedly mobile.
Soon, we will also be able to place orders remotely, and retailers will recognize us on store entry, without the
need to even take the device out of our pocket. Seamless, personal transaction and invisible retail technology is
becoming a reality.

augmented reality

augmented reality
Augmented Reality
Augmented Reality combines a live view of physical reality
(through a camera) with augmented (virtual) content, such
as video, sound, graphics and data.
It provides countless opportunities for brand engagement,
such as virtual product exploration (“try before you buy”
virtual wardrobes) as well as location finding opportunities to
provide directions to products in store and links to more
information online.

Augmented Reality augmented reality
At home - “Try before you buy” provides a highly engaging customer experience, allowing consumers to virtually
experience a product from the comfort of their own homes.
In Store - AR can be used to provide fast, contextual access to additional product information as well as ’magical’ brand
experiences, such as magic mirrors.
Attraction - By allowing potential customers to interact with the brand and its products from the highstreet, AR offers
powerful engagement opportunities to drive in store visits.
at home
attraction
in store

| recommendations |

A Multichannel Retail Vision
A multichannel retail vision is required to deliver a seamless
experience across channels and to maintain and drive
competitive differentiation..
Online
In Store
On Mobile

A Seamless Cross-Channel Customer Experience
The same level of personalization, customization, access to
information and good service needs to be delivered both on
and offline.

A Suitable IT Infrastructure
A channel-agnostic, flexible IT infrastructure is required to
allow for easy integration of existing and emerging
applications, centred on the customer, not the channel.

Embrace Change
Retailers need to make change “normal” and embrace
continual assessment of the operating model in order to
determine if they are delivering effectively to the connected
shopper.

In Store Theatre
The bricks and mortar experience should centre on a sense
of occasion and theatre, provide the customer with the all-
important touch and feel opportunity and over-deliver
against the brand values of the company, whilst maintaining
a seamless, connected experience to the customer.

A Focus on ROI
In addition to the obvious experience benefits possible
through the successful implementation of technology, the
goal should be to create efficiencies, drive sales and deliver
valuable data to the marketing team.

thanks for reading!
rickpalmerconsulting.com

Are You Being Served? The Future Of In-Store Experience

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Are You Being Served? The Future Of In-Store Experience