Technological advancements have elevated consumers’ expectations for the in-store shopping experience. The future of retail is about choice, consistency and customization. Consumers’ want the ability to choose how, when and where they shop, and retailers need to be prepared to meet those preferences. Outdoor retailers can leverage the support of in-store technologies to not only meet customers’ expectations, but create inventory transparency, reduce inventory overhead costs, provide a wider selection of products, and most importantly, gather customer data to better adapt to their shopping behaviors. Analysts agree that retailers who adopt trending technologies for business development are the most likely to grow their revenue and market share.
Factors to consider when designing your in-store technology platform:
•Look at how consumers are using mobile devices in-store to determine which technology will be most effective (focus on simplifying and assisting in their shopping experience).
•Start small with one product (i.e. mobile app or an iPad display) and then add on elements to reduce risk.
•Be flexible, watch and analyze – in-store technologies have website-like analytics to track user behavior (traffic, visits, click-throughs) and understand whether it’s effective.
•Create a unified supply chain strategy where orders can be placed and fulfilled through any channel before launching a mobile POS platform.
•Focus on providing a consistent and seamless experience by aligning Online and in-store efforts.
The following is a sample of how retailers have used advanced technologies to provide enhancements to the in-store shopping experience.
2. 2
Convenience
Kate Spade Saturday Digital Window Shop
In‐Store Enhancement: Allowing customers
to truly shop 24/7.
Tactic: Kate Spade partnered with eBay to
create a digitally‐enhanced window
shopping experience. Shoppers can access
the new fashion line anytime of the day.
Next to the merchandise is a large
touchscreen where users can browse
colors, sizes and place orders for free
delivery.
Double‐click on image to watch video.
Source: http://youtu.be/5fMMm5PNeDw
“The future of retail – physical and otherwise – is convenience.
Consumer’s expectations are drastically changing, and it’s led
by mobile. People get what they want, when they want it.”
‐ Healey Cypher, Head of Retail Innovation, eBay
3. 3
Instant Access
Target’s Image Recognition Mobile App
In‐Store Enhancement: Making it easy to
find and purchase Target merchandise
wherever they are.
Tactic: Target’s image recognition mobile
app, “In a Snap,” provides instant access to
merchandise featured in their print ads,
catalogs and in‐store signage. Customers
use the app to photograph specific
products in order to see details as well as
purchase them. Items can also be saved to
a shopper’s cart and Snap history.
“All this can lead to better conversion since the messages can
become more relevant and personalized (collecting data
through the app).”
‐ Vivek Agrawal, Vice President of Mobile and
Emerging Technologies, Skava.
4. https://www.youtube.com/watch?v=GG5liV2U0Qg
4
Choices
Mark & Spencer’s Virtual Rack
In‐Store Enhancement: Allowing consumers
to explore the full inventory of products,
even those that may not be currently in‐stock.
Tactic: Mark & Spencer “virtual rack” allows
consumers to shop products, check prices
and availability, watch a video of a model
wearing the clothes and even place an
order in the store.
Save Money on Overhead Costs: Virtual
displays allow retailers to “display” a wide
range of products without having to store
everything in‐house. “Videos play on the rack, too, and it will recommend matches to
items you have scanned or selected. It’s sort of like an incredibly
sophisticated Mr. Potato Head.”
– Ben Davis, eConsultancy
5. 5
Informative
LL Bean’s RFID‐Based Customer Engagement Tool
In‐Store Enhancement: Providing digital
content for shoppers in‐store and collecting
data on how many times products were
handled by potential buyers.
Tactic: L.L. Bean is testing InMotion Retail
Marketing’s RFID‐based solution in five of its
Northeast stores. When a consumer picks
up a product or brochure (for larger items
like tents) off the display/shelf, product
information is sent to a large monitor that
shows the product in 3D from all angles, and
product information like specs, pricing,
usage information and customer reviews. “The solution is very popular with sporting equipment and
footwear retailers that carry products that have a complex story
to tell consumers.”
‐ InMotion Marketing
6. 6
Targeted Offers
VF’s Timberland’s Messages through iBeacon
In‐store Enhancement: Delivering a higher
level of personalization to customers.
Tactic: Timberland partnered with iBeacon
mobile marketing platform, Swirl, to deliver
more relevant content based on location and
expressed interests (i.e. outdoor footwear,
apparel) through its mobile app. Swirl can send
messages to people who are located within a
certain mile radius and those who are
shopping in the store.
The app also connects to devices in‐store to
track how long Swirl users are spending with
different products. If customers spend a
significant amount of time with a specific item,
the app will push a promotional offer to entice
them to make the purchase.
“Through customer conversations, we hear comments like ‘it
definitely got me to buy more’ and ‘I would’ve walked right by
Timberland if I didn’t get the alert.”
‐Rachel Panetta, Head of Retail and Ecommerce
Marketing, Timberland
7. 7
Enhanced Customer Service
Moosejaw’s Mobile POS
In‐Store Enhancement: Providing a more
personalized shopping experience.
Tactic: Sales staff use a modified iPod Touch
device to access customer purchase history,
product and price information, product
recommendations and inventory status to
provide a more personalized experience.
The device has a credit card scanner to
checkout customers anywhere in the store.
Results: Moosejaw was able to feature a
wider assortment of new products after
decreasing the amount of cash registers and
relying more on mobile checkout.
Moosejaw is seeing strong results, reporting
that 70% of in‐store transactions are taking
place via mobile POS.
“This is really the next logical step in removing barriers between
our customers and sales staff.”
– Eoin Comerford, Chief Executive Officer, Moosejaw
8. 8
Personal Shopping Assistance
Sephora’s 3D Augmented Reality Mirror
In‐Store Enhancement: Delivering a
personalized experience to customers.
Tactic: Sephora’s 3D Augmented Reality
Mirror simulates cosmetics on customers’
faces in real‐time. Using technology from
virtual makeover provider ModiFace, the
mirror identifies a user's facial features and
applies makeup directly through a video
feed. Through the mirror, shoppers can try on
different shades of cosmetics by tapping a
palette on the screen and also view their face
from different angles as they move their
head from side to side.
“After several in‐store experiments with various retailers and
brands, we found that an instant mirror‐like virtual‐product
simulation could increase the counter and booth traffic for skin‐care
brands by 120%, and substantially increase in‐store
conversions.”
‐ Parham Aarabi, CEO, ModiFace
9. 9
Solves Problems
Lowe’s Holoroom
In‐Store Enhancement: Helping customers
visualize products in a real‐life setting.
Tactic: Lowe’s Holoroom is a home
improvement simulator which applies 3D
and augmented reality technologies to
allow home owners to view a 3D model of
their room at home, make design changes,
add products, and share the model with
family and friends through their mobile
app.
“Lowe’s wants to lead innovation by developing disruptive
technologies that will help us establish a long‐term competitive
advantage.”
‐ Kyle Nel, Executive Director, Lowe’s Innovation Labs
10. 10
Greater Control
Philips’ In‐Store Navigation System
In‐store Enhancement: Helping shoppers
find their way around a store while
notifying them of relevant offers.
Tactic: Philips launched an intelligent
lighting system with location‐sensing
beacons. The system interacts with a
shopper’s mobile device after they enter
the store. As they move around the
store, shoppers can view a map to find
products, get targeted offers and product
information as well as personalized
product recommendations.
“Knowing where in‐store their customers browse can
provide valuable insights on product preferences to drive
future traffic with relevant offers based on the items
customers have considered.”
– Karen Pattani‐Hason, Director of agency relations,
Urban Airship
11. 11
Social Sharing
Tommy Hilfiger’s iPad Kiosk
In‐store enhancement: Engaging customers
in meaningful ways.
Tactic: Tommy Hilfiger’s new clothing stores
in London have installed BouncePad’s
mounted iPad kiosks in the dressing rooms
to invite customers to take pictures of
themselves in the clothing, share them
socially and/or e‐mail them to friends for
pre‐purchase input.
“Bringing the digital brand into the store environment
creates more touch points for the customer, increases dwell
time, and makes for more engaged shoppers.”
‐ Bas Bruijninckx, IT Director for Ecommerce &
Digital at Tommy Hilfiger
12. 12
Customization for Less
Adidas’ Virtual Footwear Wall
In‐Store Enhancement: Providing a more
customized product for consumers.
Tactic: Adidas partnered with Intel to pilot a
virtual footwear wall that enables shoppers
to create different versions of a shoe, order
them as well as get live Twitter feeds about
the product and read trivia about the
athletes that wear the shoes.
Results: Adidas saw a 500% sales
increase from the London pilot and a
133% sales increase from the Germany
pilot.
13. 13
Fast Checkout
Starbucks’ Mobile App
In‐Store Enhancement: Streamlining checkout
by accessing payment options on a
smartphone or tablet.
Tactic: Starbucks mobile app features a 2D
barcode that can be scanned at point‐of‐sale.
Results: In March 2014, Starbucks announced
that nearly 10 million customers are using
mobile apps to pay for products.
“Starbucks is a clear leader in mobile payments and we are
encouraged by how consumers have embraced mobile apps
as a way to pay.”
– Howard Schultz
