Retailers should consider technology’s benefit before using it
With the increasing number of mobile devices available to consumers, many retail industry professionals are considering how to use this technology and its related trends within their industry. Organizations that don't do this may find themselves playing catch up against savvy companies that have integrated smartphones, apps and other modern innovations into their business strategies.
However, retailers should consider how these changes may benefit their companies as well as the shopping experience they offer their patrons. Just because something is popular and new does not mean that it is applicable for merchants' operations. Even if other shops have integrated certain technologies into their business, the same practice may not be appropriate for the specific market that a brand caters to.
One common feature that many chains have added to improve the in-store experience and encourage customers to shop longer is free WiFi. Major franchises like McDonalds and Starbucks typically offer the service, and for establishments focused on dining or drink, this may be appropriate. However, for other businesses, it may not accomplish retailers' goals.
WiFi outside the food industry
For more generalized or apparel retailers, free wireless access may not be a worthwhile investment. This appears to be the case with J.C. Penney, which recently decided to end its WiFi program, according to BuzzFeed. A company representative informed the source that only a few customers were using the service, and ending the initiative will save the chain $7 million annually.
BuzzFeed speculated that many patrons may not be aware that they can use a store's wireless network. Fortune highlighted that Macy's added the service, but it didn't advertise it in the store. This could be affecting why shoppers are not using in-store WiFi, and brands that emphasize it could see more return on their investment.
However, wireless initiatives can improve the functionality of branded apps and enable the use of mobile payment methods at the point of sale. Rather than relying on uncertain 4G or 3G reception, stores can ensure their customers are fully able to use their smartphones while shopping. Companies that offer WiFi can expand their data-gathering efforts and customer customization endeavors, but only if they are prepared to do so.
Before integrating new, potentially costly, services to a chain's standard operation, decision-makers should consider how it applies to customers and staff members, and what additional steps may be necessary to enhance their implementation throughout the business.
