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How Digital is Revolutionizing the

In-Store Experience
Engaging consumers in-store with digital shopping experiences

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CONTENT
Digital Influence Factor 3

Showrooming 4

Privacy vs. Personalization 5

Other Digital Touch Points 6

Empowering the Digital Associate 7

Use Case 8

Key Takeaways 9

Sources 10

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Digital Influence Factor

90% of retail still


happens at brick and
Did You Know?
25% of consumer
mortar stores
dissatisfaction
centers around Source: Harris Interactive. (2013). Showrooming and Webrooming: A Tale of Two Trends.

• Coupons
• Sales associate Digital shopping is influencing the way consumers are shopping across all
availability channels, causing retailers to question how digital commerce is impacting
in-store. As shopping behaviors change, consumers are finding new forms of
• Customer service
digital communication to improve their shopping experiences.

Although many retailers find showrooming, browsing in-store then purchasing


online, a threat to their business, digital shoppers are actually producing higher in-
store traffic, conversions, and spending.

84% of in-store shoppers use devices


before or during shopping trips.
TWEET THIS
Source: Deloitte. (2014). The New Digital Divide.

According to a recent Motorola study, the majority of shoppers agreed that


self-help technologies, such as kiosks, improve shopping experiences.

Retailers are striving to push in-store solutions to ensure a rich, immersive


in-store shopping experience for digital consumers.

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Showrooming

Consumers are blending online and offline shopping experiences in today’s retail
age. The rise of smartphone adoption has drawn concerns over consumers using
brick and mortar stores as showrooms.

While in store, consumers search on mobile devices for better deals and special
offers. They will not hesitate to make their shopping and purchasing decisions at
Did You Know? another retailer with exceptional pricing, discounts, and promotions.
Consumers
increasingly use Recent studies show that consumers are now more commonly reverse
mobile apps to: showrooming or webrooming - searching products online then purchasing
in-store. Ultimately, consumers showroom and webroom to find the best possible
• Check prices
deals and prices. According to Business Insider, while 46% of shoppers have
• Search for coupons
showroomed in the U.S., the remaining 69% have reverse showroomed.
• Scan barcodes

6 in10 9 in10
WEBROOMERS SHOWROOMERS

HAVE SHOWROOMED HAVE WEBROOMED


Source: Accenture. (2014). U.S. Seamless Retail Survey Results 2014.

But what drives showroomers to flip the switch from buying online
to purchasing in-store?
• To avoid shipping costs
• The need to physically touch and feel products
• Checking available inventory to avoid out of stock scenarios

Webrooming is a trend that brick and mortar stores must recognize as a form of
in-store consumer engagement. Although retailers believe showrooming has a
negative impact, this consumer behavior is shifting the opportunity back to brick
and mortar stores to drive consumers and help reinforce different channels.

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Privacy vs. Personalization

As connected consumers continually search for the best deals, retailers must find
a way to meet their needs. Leading retailers are approaching in-store tracking
techniques to provide useful information to consumers. To understand consumer
behavior and optimize store environment, retailers are combining technologies
and data sources enabled by WiFi, beacons, video, and GPS.

Did You Know? Brick and mortar stores are using beacon technology to track shoppers’ location
Nearly six out of and send discounts and promotions directly to their smartphones. Consumers
10 showroomers in are not overly comfortable sharing their personal information. However, they are
The Harris Poll said willing to share in exchange for a special offer and flexibility to control how their
they most frequently personal information is used. 61% of consumers expect discount offers while
ended up buying 53% expect to receive free products in return for sharing personal information.
from Amazon.

+10%
31%
31% of shoppers
believe they will
21% secure a better
price online, up
from 21% in 2013.

2013 2015
SHOPPERS SHOPPERS
Source: Accenture. (2014). U.S. Seamless Retail Survey Results 2014.

Since mobile devices are most used in-store, today’s consumers seem to be
receptive to beacons to enhance their shopping experiences. 45% of shoppers
reported using their mobile device for mobile coupons, which represents a seven
percent increase from 2013.

Beacons provide a more personalized shopping experience for deal hunters and
smartphone users alike. In order for beacon technology to work, consumers
must turn on Bluetooth, enable location services, and opt-in to receive in-store
notifications. Retailers must provide consumers a comfortable approach to
beacon technology for hesitant consumers to walk in a store.

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Other Digital Touch Points

Today’s demanding consumers expect retailers to deliver in-store digital


technologies for more interactivity and a better shopping experience. Since digital
consumers use their mobile device in stores to look up product reviews, pricing,
discount offers, and more, they are more likely to use in-store technology that
gives the same value.

Did You Know? In-store product finders, product inventory, registries, and kiosks are helpful in
45% of shoppers providing consumers a personalized shopping experience. Meanwhile, 55% of
would buy up to 50% store shoppers find in-store kiosks helpful.
more merchandise
from retailers that

52
provided better
customer service.
%
OF CONSUMERS
SAY THEY WOULD ENJOY
THEIR RETAIL EXPERIENCE MORE
IF THEY HAD AN INTERACTIVE ENVIRONMENT
Source: Motorola. (2014). Motorola Solutions Shopping Study. TWEET THIS

An interactive kiosk is its own sales associate, providing customer assistance


in an instant and begins the sales process. In-store kiosks ease the browsing
process with endless aisle features, providing product inventory and keeping
customers in-store and more likely to buy.

By combining digital product information in-store and immediate access to those


products, retailers will immediately drive sales. Market and Spencer’s Digital
Flagship department stores provide more ways to access products including
virtual makeover counters with facial recognition technology. Build-A-Bear is also
taking the digital in-store approach by displaying large digital screens at every
station during the bear making process, increasing their sales by 30%.

Brick and mortar stores are given the opportunity to take their in-store experience
to the next level, allowing consumers, to take a different approach to their
shopping behavior.

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Empowering the Digital Associate

Part of digitally enabling consumers in-store requires sales associates to be


prepared to do so. Consumers expect sales associates to be digitally connected
and embrace in-store technologies. Technology solutions are helping retailers
improve every aspect of a shopper’s experience. Consumers are more likely
to use their own mobile device or in-store technology than approach a sales
associate to gain product and price information or complete checkout.
Did You Know?
65% of store Sales associates using the latest technologies such as in-store services that
associates agreed offer electronic receipts, discounts, and assistance, create efficient shopping
that they could experiences. In a recent Motorola study, 58% of shoppers surveyed that they
better serve believe sale associates using handheld mobile devices enhanced their shopping
customers if they experiences. In addition, 52% of retail associates recognized a positive effect of
were equipped with mobile point of sale (mPOS) allowing consumers to purchase on the spot.
handheld mobile
devices
TWEET THIS

i
47 %
OF SHOPPERS
agreed that they have a better experience
when sales associates use the latest
technologies to assist them
Source: Motorola. (2014). Motorola Solutions Shopping Study.

Internal communication between associates and managers are lacking in retail


stores, resulting to insufficient customer service. 80% of retail associates
agreed that improving in-store communication would have a significant effect
on consumer satisfaction. In the Motorola study, managers strongly agreed that
empowering employees with better information and technology would improve
the store’s processes.

Retailers must close the gap between sales associates and consumers to stay
better connected to product and brand knowledge. Equipping sales associates
with devices will gain consumer trust and loyalty to the store.

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Use Case

A consumer walks into a clothing store to buy a pair of denim jeans. The
consumer pulls out their mobile device and browses through the retailer’s
website to look for any coupons and deals on denim jeans. The consumer shops
throughout the store unable to find the product they came to buy. Ditching their
personal mobile device, the shopper comes across an interactive kiosk and uses
the large touch screen to quickly find the perfect pair of jeans. A product page
Did You Know? appears that shows available in-store inventory as well as product information,
Less than one-third pricing, and promotions.
(29%) of shoppers
reported finding
information faster
on their smartphones
than asking a store
53 %
48 %
associate for help.

OF SHOPPERS

SEARCH OF SHOPPERS
COUPONS SCAN BARCODES

OF SHOPPERS

45% CHECK REVIEWS


ONLINE IN-STORE

The consumer taps on a help button for further in-store assistance and the sales
associate receives a beacon notification alerting for consumer assistance. The
sales associate immediately appears with an associate tablet app and locates
the pair of discounted denim jeans in-store. With the associate app, the shopper
is able to checkout on the spot with the sales associate.

In this use case, both the shopper and sales associate met their goals: the
shopper purchased a pair of jeans with a discount offer and the sales associate
quickly made a sale and efficiently assisted the shopper with their associate
device.

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Key Takeaways

Showrooming is an opportunity for brick and


mortar stores rather than a threat.

Webrooming is the latest consumer behavior and


retailers must understand the need of webroomers.

Retailers must provide consumers a personalized


shopping experience in-store that meet their needs.

In-store digital touch points create more consumer


interaction and engagement that will ultimately
drive sales.

i
Retailers must equip sales associates with devices
to provide shoppers better assistance in-store.

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Sources

1 Deloitte. (2014). The New Digital Divide.

2 BI Intelligence. (2014). ‘Reverse Showrooming’: Bricks-And-Mortar Retailers


Fight Back.

3 Internet Retailer. (2014). Consumers Just Say No to In-Store Mobile


Tracking. http://www.internetretailer.com/2014/03/27/consumers-just-say
no-store-mobile-tracking.

4 Motorola. (2014). Motorola Solutions Shopping Study.

5 CMO. (2014). How Digital is Improving the In-Store Experience for 3 Retailers.
http://www.cmo.com/articles/2014/5/28/how_digital_is_impro.html.

6 Harris Interactive. (2013). Showrooming and Webrooming: A Tale of Two


Trends. http://www.harrisinteractive.com/NewsRoom/HarrisPolls/tabid/447/ctl
ReadCustom%20Default/mid/1508/ArticleId/1339/Default.aspx.

7 Accenture. (2014). U.S. Seamless Retail Survey Results 2014. http://www.


accenture.com/us-en/Pages/insight-accenture-seamless-retail-survey-2014-
infographic.aspx.

Skava is powering the next generation of digital commerce experiences


for leading retailers worldwide by delivering the most versatile technology
platform in the industry. Skava develops and hosts mobile commerce
websites, apps, and other digital shopping experiences across mobile,
tablet, desktop, in-store, and all emerging channels. With over 10 years
experience in mobile, Skava is creating visionary technologies to prepare
retailers for the future of digital commerce.

For more information about our in-store solutions and other offerings,
please contact Skava at 877.554.2176 or info@skava.com.

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