We recently launched a report outlining the opportunities for retail businesses that take advantage of wireless technology to support their business — and as the first Christmas products are already beginning to hit the shelves, now is the time to react ahead of the busiest period of the year.
For many businesses, Christmas is a make or break time, particularly as the high street struggles to compete with the significant challenge posed by the online sector.
In our report we identified that consumers expect to receive similar levels of personalisation as they get online while visiting traditional high street shops. Consumers also want the whole process to be as simple and enjoyable as possible. But, faced with a choice between battling the crowds in shopping centres and browsing from a tablet at home, many are understandably opting for the latter.
Enhancing the instore experience is therefore crucial to encouraging customers to leave their homes, and it’s in this area that wireless can make a massive difference – it’s not just encouraging people in to stores by providing basic phone signal.
At Christmas wireless can provide the connectivity for shop floor staff to be able to display personalised information on shoppers’ preferences on their tablets — with their consent, of course. Rather than having to spend time asking many basic questions, this will allow staff to quickly provide recommendations based on previous purchases — and will more likely result in a sale.
Wireless can also help mitigate one of the negative aspects of the retail customer experience at Christmas, the dreaded queues, something that will only become more important as customers migrate to contactless cards or applications such as Apple Pay. A number of retailers and restaurants are now even offering the option for payment via a dedicated app, removing the need for queuing and staff from the equation completely.
This is just as relevant for the grocery sector as well as retail. At a recent conference, Joanne Denney-Finch, CEO of IGD, predicted a retail world that entails “automated replenishment, smart queuing systems and enhanced click and collect services”, enhancing the store experience by “allowing consumers to engage with brands and avoid perceived mundane shopping processes.”
All of these are services that require wireless connectivity to function efficiently. However, there’s a danger that the focus is currently on services and applications and the communications infrastructure to support these has been forgotten.
Wireless isn’t an easy challenge to address — from provision across a complex building to the business case for the investment. For more information on the opportunities enabled by wireless and the business case to support them, download our guide here.
The retail sector is one of the most advanced in the use of consumer facing technology. Faced with strong competition from online retailers, the use of innovative technology – supported by in-store wireless – is being used to help encourage people back onto the high street and into stores, as well as opening up new revenue streams and services for the stores.
In this blog post we take a look at some of the retailers that are already making use of technology to enhance the customer experience, and the role that wireless plays in providing this.
Time for dedicated apps
Shopping centres and stores are now increasingly rolling out their own dedicated apps, providing customers with information and support, as well as the latest offers and bargains.
London’s Westfield centre offers a simple, yet effective, example; its app provides customers with offers from their preferred stores, alongside ‘express parking’ that removes the need for a parking ticket to be purchased each visit.
The endless shelf
The downside to shopping online is that we don’t get to see what we’re buying until it arrives, something that puts many people off when it comes to ‘big ticket’ items. On the other hand stores are limited by their physical storage and display space, limiting how much of their range they can stock and display at one time. There’s little more frustrating than seeing something online, visiting the store to see the physical product, and only then finding out it’s not actually in stock.
The Retail of Tomorrow project at Heidi.com’s flagship store in Switzerland attempts to tackle this issue, through the concept of the ‘endless shelf’. The store aims to stock a broad selection of its range, rather than a limited selection in many different sizes and editions. Customers can then get their hands on the product in some form, but then use large screens to view, select and order the product in the exact variation and fit required.
At Burberry’s flagship store on Regent Street, RFID tags are woven into products and accessories, allowing them to be linked to digital product listing and related multimedia content. The mirrors throughout the store are actually screens, which use this information to automatically detect the product being tried-on by the customer and display relevant information.
This system also attempts to enhance the customer’s experience and relationship with the Burberry brand, allowing them to also view runway footage and live streams of fashion events.
The end of queuing
While it may be considered an integral part of the British psyche, queuing is nonetheless a big frustration for shoppers – particularly at the busiest times of the year. It can also lead to sales being lost because some customers will simply not join a long queue.
Retailers are now looking at ways of improving the checkout experience, with point-of-sale (PoS) terminals becoming more dispersed across the shop floor and also providing staff with tablets they can use to display products and take payment.
The other approach is building payment into a dedicated app — something Wagamama rolled out earlier this year. The app enables customers to pay directly and quickly through their smartphone, rather than having to get the attention of staff.
Smarter customer service
Technology is enabling high street retailers to bring the personalised experience that customers enjoy online increasingly inside their stores, delivering recommendations based on previous purchases.
Rather than requiring a sales assistant to spend time asking questions to establish your likes and dislikes, simply scanning a loyalty card using a tablet can instantly provide the assistant with your purchase history – and even tailored special offers.
This functionality gives store staff more information than they’ve traditionally had access to, allowing them to enhance their credibility with customers, and enabling them to take advantage of information from product reviews and accessory lists that they may not otherwise be familiar with.
Looking further ahead, virtual reality offers the potential to add a further dimension to both the in-store and at-home shopping experience. We’re already seeing some stores experimenting with this technology, thanks to the consumer-friendly offerings from Oculus Rift and Google Cardboard.
Virtual reality could also be used to enhance the experience of customers at home, providing a much better idea of how a sofa or TV would look in their lounge, or by enabling them to explore in-store displays in much more detail.
The wireless need
All of these applications rely on some form of data connectivity, and the vast majority rely upon this being wireless connectivity. Whether that’s a secure and robust Wi-Fi network for staff tablets, or mobile coverage so customers can use your dedicated app, wireless is an essential component in the future of retail.
72% of consumers use their smartphone while shopping and more than half of consumers under the age of 40 use their smartphone to get a second opinion before making a purchase. Without proper connectivity, consumers can’t use their phone and are likely to go elsewhere as a result.
In fact, without proper connectivity, consumers may abandon the store altogether and not come back. Recent research has found that 1 in 4 (25%) shoppers admit that they leave a shop if they can’t get online, and 1 in 4 (25%) leave immediately if the shop does not provide Wi-Fi. By contrast, 1 in 3 (34%) extend their visit and nearly half (46%) return if the connectivity is good.
Retailers therefore need to consider a dedicated in-building wireless system, one that provides a clear business benefit to staff and customers alike. For more information take a look at our recent report on the benefits of wireless to the retail sector: http://www.realwireless.biz/wireless-and-retail/
The media love a good “the high street is dying — online shopping is the future” story. Compelling headlines that talk about the death of one industry in favour of another make for an entertaining read, and who wants the truth to stand in the way of a good headline?
The reality is that bricks-and-mortar shops are not disappearing. On the contrary, retailers and property owners are taking actions to encourage people to use the “real” experience of shopping to complement the online experience. However, the retail stores of today are significantly different to those in the past in how they attract and retain customers. Although each shop will have its own unique strategy for attraction and retention, the key trend of 2015 points to improving the customer experience and we at Real Wireless see technology playing a crucial role in achieving this.
But, of course, most stores are unlikely to want to invest in technology like that, certainly not at the early stage of any technology initiative. However, the premise of using tech to improve the customer experience remains important to every store. So, most retailers are focusing on how to capitalise on a piece of technology that almost every consumer has in their pocket nowadays — the smartphone — in a way that enhances the experience andultimately improves business performance.
As consumers become more accustomed to using smartphone technology, they increasingly expect retailers to replace loyalty cards with a digital app, provide personalised discounts based on the consumer’s own preferences, interact with consumers through social media, accept contactless payment, let consumers themselves scan items to speed up the checkout process, and roll out countless other enhancements. At the same time the customer may want to do online comparisons and get an opinion from their friends through social media before making the purchase, so the customers need to be able to get online.
The key to capitalising on smartphones lies in wirelessconnectivity — not just Wi-Fi, but 3G and 4G too. If a retailer fails to meet today’s consumer’s connectivity needs, they risk losing out on sales. But by addressing those needs, retailers can enhance the customer experience, driving brand loyalty and, ultimately, improving sales.
To help retailers get the most out of good connectivity, Real Wireless has published a report detailing the importance of wireless for the retail industry, the business case for generating a return on technology investment, and how to overcome the challenges that any rollout will face.