How tech is driving the reinvention of the modern retailer
Providing a fantastic shopping experience to customers, both online and offline through technology, is no longer a novelty – it is an essential part of successful retailing.
Australian retail has come a long way since the early 1900s’ department stores and today’s consumers expect fast, convenient and secure in-store mobile technologies to assist them in their shopping experience.
Now more than ever, it’s vital for retailers to add value and create a more human experience. SOTI’s recent State of Mobility in Retail Report found that two-thirds of consumers believe mobile technology delivers a better shopping experience, and that they want a personalised in-store experience via mobile devices.
Shopping online is just the beginning, however. In the same report, 1 in 3 consumers said they are comfortable with emerging delivery methods such as delivery drones and more than one-quarter (26.9%) with the idea of autonomous vehicle delivery. With the different ‘worlds of retail’ merging, how can Australian retailers reinvent themselves to stay relevant?
The customer is king – build your operations around them
The idea that ‘the customer is king’ has never been as apt as it is today. In fact, this status has been upgraded in recent years as online and offline retail continues to merge.
Over recent years, the ongoing rise of e-commerce appeared to pose a significant threat to physical stores, as a thirst for immediacy, efficiency and widespread shopping availability was being quenched. Since then, however, a revised – more traditional – retail appetite has come back into the fray. The idea of personalisation, customer service and interaction are now back on the agenda.
As many as 32.8% of consumers say they still prefer a traditional in-store experience while shopping, but this doesn’t necessarily signal a resistance to digital, especially when paired with research findings about mobile technology. Instead, it indicates there is hope for traditional retail stores to remain relevant by embedding more innovative solutions into their operations.
Emerging customer preferences – meeting their technological demands
In this new climate where customers want the best of both worlds – the immediacy of online shopping with the personal touch of a brand’s in-store experience – retailers must adapt and grow in response to shopper preferences. This only stands to benefit them by building a more loyal customer base over the long-term.
For some time now, there has been pressure on retailers to not only have technology in place, but the right technology. Now, 76% of consumers want personalised in-store experiences from mobile devices, and self-checkout devices are perceived to not only be beneficial to the shopping experience (40%), but necessary to improve the shopping experience (47.1%).
The research also indicated that shoppers would be happy with at least one or more delivery options outside of traditional in-store transactions. Shoppers are moving away from cash transactions to chip and pin, or contactless payments. This positive trajectory towards digital adoption and trust is a sure sign of retail’s initial mobile transformation.
In Australia, there is optimism for technology and its role in improving the retail arena, even if they would like these new solutions to complement more traditional systems rather than completely overhaul them. Retailers need to tune in to customer preferences.
From ‘bricks and mortar’ to ‘clicks and mortar’
Optimising both online and offline channels for consumers will become the ‘new normal’ as we move from ‘bricks and mortar’ to ‘clicks and mortar’. Inevitably, this not only impacts revenue streams, but also workers, and the overall retail environment and customer experience. The only way to get ahead of the curve is to encourage personalisation from the outset; to take in what consumers are calling for and respond to it now.
Retailers will need to blend the speed and convenience of digital, with the personal touch of more traditional human-based interactions, and this is no small feat, especially given the understandable resistance among shoppers to indulge in brand new digital tools right away. However, rethinking this entire process is a worthwhile investment for future success.
Customer preferences evolve for good reason. Shoppers want to enhance their own experience. They want instant results, competitive prices, personalisation and discounts, and retailers need to see it as their obligation to respond to this desire. Any retailer can operate a physical store, but those who take the time to reconsider their processes and inject digitisation and personalisation into the process will be the ones who will continue to operate successfully.
Written by Michael Dyson, Managing Director of Australia and New Zealand at SOTI