Retail technology and innovation make brick-and-mortar an asset
Although ecommerce has dominated the news recently, brick-and-mortar locations can play a substantial role in consumer conversion and loyalty. According to a report by KPMG, novel uses of new retail technology are giving physical store locations a fresh purpose and potential. In fact, Chris Malone, a managing partner of Fidelum Partners, wrote in Forbes magazine that retail store experiences are critical for ecommerce success. Even without an ecommerce component, brick-and-mortar venues can stand out with some creative thinking and smart use of technology.
Play up your strengths
An enormous benefit of the physical storefront is the face-to-face interactions between consumers and employees. Humans are driven by relationships, and a positive store experience augmented by friendly, helpful staff will capture customer loyalty, according to KPMG. Businesses with knowledgeable, well-trained staff also earn the respect of customers as industry experts.
Provide in-store perks to draw customers inside
Another benefit of a local venue is the ability to provide special options and benefits in real-time. For example, some stores are integrating coffee shops or pharmacies into their space to give customers another reason to stop in and stay longer, The Nielsen Company reported. Pleasing store layouts and interactive displays also go a long way. KPMG called it "shopper-tainment" – people like to try things out and play with gadgets, which is a big plus over online shopping. Retailers should offer demonstrations and trials to keep people coming back.
Compete with online convenience
Shoppers like online purchases because they're fast and easy. Merchants can make their in-store operations fast and easy, too, especially with new retail technology. For example, POS software can enable customers to purchase an item anywhere in the store, without walking to the checkout lanes. Kiosks can extend product offerings otherwise limited by shelf space, as reported by KPMG. That way, customers can still see and touch physical items, but if they want a different color or model, they can immediately look it up at the kiosk.
Create cool experiences with new retail technology
As technology becomes more powerful and more portable, the opportunities are endless. Merchants need to think outside the box and use technology to shape and personalize the all-important customer experience. For example, the KPMG report mentioned that some retailers are using RFID smart tags on clothing to communicate with audio systems in their fitting rooms. The system chooses songs appropriate to the type of clothing a customer is trying on, which likely coordinates with the his or her preferences.
The report found that one of the main reasons managers are disappointed with the results of new technology is that they don't have the time or the knowledge to successfully integrate them with their business models. But with some guidance from experts, they can develop a cohesive technology strategy tailored to their companies to form an impressive customer experience.
