Five Steps To A Personalized Retail Experience

Tuesday, 23 June 2015 08:25

Written by  Ben Saren, Cayan              

                      

As the lines between our virtual and physical worlds continue to blur, the brick-and-mortar retail experience is changing. And there’s a common trend among those retailers leading the way: A movement toward greater personalization.

 

But while in-store technology like beacons and interactive product displays are becoming more commonplace, large-scale adoption remains a work in progress, creating a less-than-ideal customer experience. A recent report from Google found that 79% of shoppers seek information essential to their purchasing decisions while in a retail store, but only two out of every three actually find the answers they need.

 

The study also found that personalizing the customer experience is a crucial step in winning back the hearts and wallets of frustrated shoppers who aren’t finding the merchandise or the environment they prefer.

 

Consumers have more options than ever, both from Internet retailers and brick-and-mortar stores. Having the best product selection doesn’t cut it anymore. (And frankly, the definition of an ideal product selection differs from shopper to shopper, anyway.) Stores need to embrace digital tools in a way that makes millions of shoppers feel like they’re being catered to individually, at least if they want to remain competitive.

 

Creating a truly personalized shopping experience doesn’t happen overnight. It’s a multi-step process, but one that’s vital for any retailer looking to remain competitive in an increasingly digitally driven world. Here are five steps brick and mortar stores can take to adopt the right technology and target customers with customized, memorable experiences.

 

Step 1: Understand Your Demographic

Example: In today’s tech-dominated landscape, the market rewards those who know their demographic best. In the case of Toys “R” Us, that audience is parents — and those parents are undeniably busy and always on-the-go.

 

The toy store understands this reality; parents are not looking to spend hours upon hours browsing aisles, reading descriptions for each toy they encounter. So they created a suite of mobile apps that make it easier and faster to get through the store and back to playtime.

 

Scanning the Internet for deals is replaced by text and email alerts; in-store barcode scanning allows shoppers to pull up product details in seconds; and shareable wish lists make avoiding duplicates in the playroom effortless. And when it’s time to pay, the store welcomes mobile payments from shoppers, a convenient choice that also allows the retailer to build a relationship with their customers even after they’ve left the store.

 

The takeaway: While tailoring the shopping experience to your target demographic is only the first step to personalization, it’s a crucial one. The best technology solutions take into account what real consumers’ lives look like. Understanding whether your customer base enjoys spending hours browsing or prefers to get what they need quickly is an essential step in determining where to invest your technology budget.

 

Step 2: Use Location To Your Advantage

Example: Location-aware technology can help retailers make shoppers feel less like one in a million and more like a shop’s number-one priority. It’s a great second step on the road to personalizing the experience that consumers have with your brand. Retailers large and small are leveraging these technologies to better target and engage consumers not just at the store, but also at specific locations within the store.

 

Lord & Taylor, for example, has capitalized on this opportunity in several ways, integrating third-party apps like mystery coupon-generator SnipSnap that pings users’ phones with a deal that can only be revealed when inside the walls of a store. This rewards customers for coming to the brick and mortar location and makes them feel like the retailer cares about their visit.

 

Shopkick’s “shopBeacon” program is another star in the burgeoning area of hyper-local. Currently active at two Macy’s department stores, one in San Francisco and one in New York City, the beacons turn customer phones into personal shoppers, guiding them through the in-store experience from the moment they step inside to the purchase-decision process. In addition to promoting deals and product suggestions, shopBeacon also channels previous in-app behavior to aid in buying decisions. For example, if a shopper indicated interest in a dress while browsing through products on the app, she might get a sale notification when she enters the formalwear department.

 

The takeaway: Context- and location-aware technology can be very powerful tools for retailers to give customers what they want at the right time and in the right place and truly enrich their local shopping experience. Moreover, with the right technology, major pain points of the brick and mortar retail experience — like crowds and hard-to-navigate stores — can be mitigated, making the entire retail experience more enjoyable and personal.

 

Step 3: Use Tools To Empower Associates

Example: Dealing with limited inventory and returns from unhappy customers has always been a part of the sales associate’s day — until now. To truly cater to each customer’s specific preferences, more and more stores are bridging the gap between physical stock and the digital world.

 

How are they doing this? One example is three-dimensional scanning app Shoefitr, a service blurring the lines between shoppers’ digital and actual worlds, bringing its ability to scan customers’ feet and determine ideal shoe size to over 1,000 footwear brands like Cole Haan and Puma. Sales associates equipped with this technology can help customers make more informed purchases, which ultimately leads to fewer returns.

 

Another player helping make this happen is eBay. The site now offers a selection of retail tools called the Retail Associate Platform, with early adopters including Aeropostale, DSW and Nine West. When a shopper has their sights set on an out-of-stock item, eBay’s platform simplifies the process of getting it to them. Its “Endless Aisle” app provides browsing access to a store’s full stock at all locations and allows associates to process purchases directly via the app. These retailers are now using the platform in 1,500 stores, making virtually any merchandise request easy to fulfill.

 

The takeaway: When shoppers have trouble finding the item they need, they may decide they don’t need it that bad after all, move on to a different store or go online, eliminating the retailer from the equation altogether. Now, technology like the services offered by Shoefitr and eBay connects shoppers to the items they want and need—no matter where they’re located. Suddenly, the store’s square footage doesn’t have to be so limiting, and sales associates have more ways to connect customers with the products they want and need.

 

Step 4: Democratize The Personal Shopper Experience

Example: Chico’s has made headlines for its omnichannel success — and rightfully so. The retailer’s tech tool belt includes everything from RFID technology to tablets that enable associates to enter customer information gathered during a visit and continue providing item recommendations once that shopper has left the store.

 

It was a hefty up-front investment, but it’s paying off in spades. Customer engagement is a top priority for the brand, and now sales associates can communicate with shoppers in a multitude of ways, even scheduling one-on-one styling sessions.

 

They also feature “tech tables,” touchscreen stations that allow shoppers to interact with the brand in a more in-depth way, not only browsing a greater range of apparel than a single store could stock, but also accessing content that helps them make buying decisions. While consumers are interacting with Chicos’ in-store technology, they’re also providing valuable information that can help the retailer make more informed shopping suggestions.

 

According to the Wall Street Journal, Chico’s isn’t done with the high-tech advancements; future in-store offerings could include digital signs that sense a shopper’s presence and make customized shopping suggestions.

 

The takeaway: In order to democratize the personal shopping experience, Chico’s has used technology to offer one-on-one styling, personalized recommendations and access to a wider range of stock than a single store could carry on its own. In doing this, they’ve taken an experience that was once limited to the wealthiest customers and made it available to everyone, making shopping more personal and enjoyable.

 

Step 5: Use Data To Keep Shoppers Loyal

Example: While the first four steps will help create a memorable shopping experience and put you on the path toward personalization, there’s one final step to ensuring that your efforts don’t ultimately go to waste: fostering loyalty.

 

Successful loyalty programs go well beyond paper punch cards, bridging the gap between online and in-store experiences. The best programs motivate shoppers to make that first purchase, come back to your store again and again and ultimately develop a preference for your brand. Staying connected to consumers and understanding their shopping habits is the best way to develop loyalty, and the right technology can make this process much easier.

 

The good news is that today's advanced payment and customer relationship management systems make it possible to learn more than ever about your customers. With this data, you can offer loyalty programs that are tailored to their specific interests and that foster customer lifetime value. This is where the rubber meets the road.

 

Take the Loyallist program from Bloomingdale’s. Not only are frequent shoppers rewarded with extra points they can redeem for gift cards and complimentary shipping, but the retailer also offers apps that make the shopping experience more personal and memorable.

 

Downloaders of the Big Brown Bag app, which integrates with the Loyallist program, get the royal shopping treatment with the ability to sync local in-store events with their calendars, manage registries and even settle up their accounts. They can also redeem rewards points right from their phones. By giving customers the tools to personalize their experience and build their ideal interaction with the store, Bloomingdales has taken an important step in fostering loyalty.

 

Takeaway: Using technology to power your loyalty program is a great way to make shoppers feel like they have exclusive access to a retailer’s best offerings. With services like the Loyallist program that create a more personal relationship between consumer and brand, everyone wins.

The options for bringing personalization into the retail world are vast, so it may feel overwhelming to keep up with the changing times. While we’re still in the early stages of adoption, the technology used by a select group of companies today will soon become mainstream. By following the five steps outlined above, retailers can build an attainable strategy and work to bring the most effective solutions into their stores.

 

As you work towards choosing which technologies to integrate, keep in mind that the best retail tech allows stores to better connect with shoppers and revolutionize the way they interact with products, long before they step into the store and long after they’ve left. To remain ahead of the pack, retailers need to create and continually refine the shopping experience so it’s easier to navigate, more convenient and better personalized to each individual shopper.

 

To view the original article visit: http://www.retailtouchpoints.com/features/executive-viewpoints/keeping-up-with-the-times-five-steps-to-a-personalized-retail-experience

Preparing Your Business for EMV

In October of 2015, EMV will become a reality for those individuals involved in the process of accepting credit cards. While Visa, Mastercard, Discover, and American Express, each has their own unique description for the changes in liability, beginning in October 2015 when a fraudulent transaction occurs, liability for any resulting counterfeit losses will fall on whichever part of the chain is responsible for the EMV transaction not occurring.
If your business is not EMV ready, now is the time to begin developing and implementing your EMV roadmap. Learn more about EMV, the liability shift, and your responsibilities in our latest infographic below.



Click Infographic to Enlarge



To view the original article please visit: https://cayan.com/preparing-your-business-for-emv

And don't forget to sign up for Take it to the Next Level: The Ideal Retail Experience where you can speak directly to Cayan and many other industry experts!! Sign up TODAY! http://nextlevelretailer.com/

Biggest Event of the Year for Specialty Retailers 6.4.15 in Seal Beach, CA

5 Things Retail 2.0 Can Teach Brick and Mortar

By Henry Helgeson, CEO, Cayan — January 27, 2015       

A new brand of retail companies has been popping up in recent years. Call it Retail 2.0. Many of them started out with e-commerce, focusing on delivering tailored, unique offerings within stagnant industries such as eyeglasses and jewelry.

Now many are moving to open brick-and-mortar stores as well, but they aren't doing it the traditional way. Instead they are redefining what retail means, by thinking about the customer experience holistically and not just stopping at the storefronts they occupy.

For example, many of these storefronts are pop-up shops -- showrooms that turn the concept of showrooming on its head. They actually encourage shoppers to check out the goods in their stores and then, often, to purchase online (or order in-store for home delivery). It might seem like a simple tactic on the surface, but it's completely disrupting consumers' expectations of what they think a retail experience should be.

As the creative strategies of today's e-commerce startups shake up how Americans view retail, traditional brick-and- mortar companies have a lot to learn. Here are a few examples of lessons from the trenches of the Retail 2.0 revolution:

1. Don't go against the grain
Example: Warby Parker
 People often like to shop online for convenience. They also know it's easier to shop around and make sure they get the best deal. But there are certain things we still prefer to shop for in person. Many consumers want to touch fabrics, try on clothing, examine jewelry, see colors in person, etc. It's silly to try to prevent people from showrooming (as some big-box stores have done) - instead, recognize why they do it and think about how you can use it to your advantage. Warby Parker realized long ago that people will happily buy glasses online (especially for $100 a pop), but they prefer to be able to try their frames on first. That's why they offer at-home try-ons. But they've also taken it a step further, opening showrooms in Boston, New York, Los Angeles and beyond. Some of the more traditional big-box stores, such as Best Buy, have similarly found that trying to defeat showrooming isn't going to work. As senior vice president of marketing Scott Moore explained, "The thing about showrooming is it's not the ideal experience to do research at home, go to the store, do more research, then hit pause, go home and order and hope it arrives on time," he said. "There's a better way." In other words, if you can't beat ‘em, join ‘em.

2. Maximize space, minimize investment
Example: Bonobos
Bonobos's CEO has said that, "Brick and mortar isn't going away but it is evolving into something more exciting." Bonobos Guideshops have no inventory. The company doesn't have to deal with carrying costs or buy a "scale" of different sizes and colors, some of which inevitably end up being marked down and sent to the outlets at traditional retail stores. Additionally, Bonobos' employee costs are lower than traditional retail stores because there's no need for a huge staff to interact with everyone who's browsing, manage all the inventory and run to the back room to retrieve stocked merchandise. Without the need for a store room, Bonobos uses less real estate (its stores max out at 1,500 square feet) and its overall costs are lower. Sound like something that can only apply to this special scenario? In fact, brick-and-mortar stores can try many of these tactics. For example, look for ways to minimize costs by keeping samples in the store and storing inventory in less expensive warehouse space. Then offer cheap or free shipping right to customers' doorsteps. If you make it easy for them to get the best of both worlds, you can save costs while delivering a better customer experience.

3. Take customer engagement seriously
Example: Blank Label
Blank Label, a Boston-based men's custom clothing retailer, knows that happy, engaged customers buy more clothes. The company started out with an online shop where men could purchase bespoke shirts, suits and more. Using a simple online tool that collects information such as height, weight and typical clothing sizes, Blank Label has been able to offer customized fits without the need for measuring. This type of personalized, high-quality service is not only engaging for the customer but highly scalable. Recently, the etailer opened up two Pattern Shops in its native city where customers can get the tactile experience that many of them crave when it comes to purchasing clothing, especially high-end goods such as dress shirts and suits. Of course, it makes a lot of sense for a bespoke fashion retailer to take this approach, but brick-and-mortar stores of all types can learn from it. They should focus on how they can increase engagement and provide a more personalized experience to a wider range of consumers. Today's shoppers expect attentive service, personalized marketing and a seamless online to offline experience, and Blank Label provides a pattern for how to make this work in the current climate.

4. Test the waters without diving in
Example: Gemvara
 Gemvara tested out a pop-up shop on Newbury Street in Boston from November 2013 to February 2014. Ultimately, the shop didn't get much foot traffic, so the company decided not to open a full-time brick-and-mortar shop. Although this type of "failure" may seem like a bummer on the surface, it was a smart, low-investment way to test out the concept without committing to a full-year lease in an expensive area. Ultimately, Gemvara elected to open two appointment-only stores in Boston and New York, allowing their customers to get the hands-on experience without hiring round-the-clock staff. Many restaurants are trying out similar tactics today as well -- testing concepts via pop-ups or food trucks before they open actual brick-and-mortar spaces. Trying out your ideas at a market, opening a limited-time storefront or testing a pop-up in someone else's retail space can be a worthwhile experiment even for more traditional types of businesses. Ideally, lessons learned can be translated into a better customer experience, whether that ultimately lives online or offline.

5. Use real estate for marketing (and market research)
Example: Ministry of Supply
Some companies get caught up in thinking of their storefronts as simply a place to sell things. But it's important to recognize that physical retail locations are also (perhaps more importantly) a way of marketing your company -- getting the word out and letting people experience your brand in a visual, tangible way. Boston's Ministry of Supply recently opened a pop-up to help get the word out in the city about its futuristic, space-age men's wear for commuters and professionals with an active lifestyle. The brand picked Newbury Street, a popular shopping avenue in Boston, to get in front of the right customers at the right time, in a way that's hard to do while you're growing your business online. Traditional brick-and-mortar companies should also think creatively and look at real estate as an opportunity to find new markets, test new products and develop a coherent brand over time.

Technology is changing the way we shop and shifting the relationship we have with brands. The five Retail 2.0 companies mentioned above have some valuable lessons that more traditional brick-and-mortar companies can learn from and put to work improving their businesses.

What is your company doing to stay competitive in the age of Retail 2.0?


Henry Helgeson is CEO of Cayan.

To view the original article please vist: http://apparel.edgl.com/news/5-Things-Retail-2-0-Can-Teach-Brick-and-Mortar97965