The Future of Retail
At one point or another, anyone discussing the future of personalization in offline retail has quoted Minority Report. The virtual billboards scan Tom Cruise, and immediately customize their message. The virtual assistant in Gap refers to the last time he entered the store, and inquires about his recent purchase. Now, 13 years later, some of these technologies are becoming mainstream. For example, large retailers like Target and venues like the new Levi’s Stadium are equipped with beacons to customize your experience.
At Target, customers are served with aisle location information and interactive maps, deals on products, recommendations on nearby items, and the ability to request the help of a nearby team member (albeit a “real” team member, not yet a virtual one). This is the type of adaptation that is critical for retailers to maintain a relationship with millennials, who will represent one third of the adult population and 1.4 trillion in spending power by 2020.
So, what drives this segment? Price comparison shopping, a sense of adventure fueled by the need to discover and share new trends on social media, a demand for instant gratification, and a focus on brand values are all key characteristics that define this slice of the market.
So what comes next for the industry?
Connected Devices
There are a few obvious areas of investment happening today, such as leveraging new connected devices like the Apple Watch. These investments have focused most on identity, with use cases like unlocking hotel room doors and paying for your Starbucks coffee. Some of these devices—like virtual reality (VR) headset Oculus Rift – have the chance to revolutionize e-commerce, while other technologies are set to change the in-store experience.
While some believe VR technology might displace brick and mortar, I’m of the opinion the impact will be felt more on e-commerce. The Facebook acquisition of Oculus means we’re in for a social-media enabled VR future: think 3D malls, potentially reinvigorating the “social shopping” fad from a few years ago. Brands will have a new, enhanced medium beyond Web, mobile and TV to engage with customers in their homes. This, of course, exacerbates the omnichannel problem, increasing the need for technologies to deliver a fluid customer experience across channels.
Embracing Comparison Shopping
Across all generations, price is 5x more influential on a purchase than any other criteria. The study also showed that 90% of people look online for deals before they go shopping. It’s also no secret that shoppers, at least 40%, compare prices online while shopping in a physical store. Further, 45% of those shoppers surveyed actually ended up buying the item through a channel other than the store, such as a mobile app or through a website (and not necessarily the retailer’s properties). So how can a retailer compete?
Coordination Between Brands and Stores
Most retailers offer a wide selection of products from a variety of brands. Each one of these brands has its own digital presence and data about their customers’ buying habits and interests, which could be integrated into the physical store experience.
The big takeaway? Retailers must connect technology advances with generational habits. From smart clothing to VR social shopping, the sales – and the consumer data – these tactics can provide will change the way we do business – and sooner than you think.
-By Lars Kamp, VP of business development, Crittercism
At Target, customers are served with aisle location information and interactive maps, deals on products, recommendations on nearby items, and the ability to request the help of a nearby team member (albeit a “real” team member, not yet a virtual one). This is the type of adaptation that is critical for retailers to maintain a relationship with millennials, who will represent one third of the adult population and 1.4 trillion in spending power by 2020.
So, what drives this segment? Price comparison shopping, a sense of adventure fueled by the need to discover and share new trends on social media, a demand for instant gratification, and a focus on brand values are all key characteristics that define this slice of the market.
So what comes next for the industry?
Connected Devices
There are a few obvious areas of investment happening today, such as leveraging new connected devices like the Apple Watch. These investments have focused most on identity, with use cases like unlocking hotel room doors and paying for your Starbucks coffee. Some of these devices—like virtual reality (VR) headset Oculus Rift – have the chance to revolutionize e-commerce, while other technologies are set to change the in-store experience.
While some believe VR technology might displace brick and mortar, I’m of the opinion the impact will be felt more on e-commerce. The Facebook acquisition of Oculus means we’re in for a social-media enabled VR future: think 3D malls, potentially reinvigorating the “social shopping” fad from a few years ago. Brands will have a new, enhanced medium beyond Web, mobile and TV to engage with customers in their homes. This, of course, exacerbates the omnichannel problem, increasing the need for technologies to deliver a fluid customer experience across channels.
Embracing Comparison Shopping
Across all generations, price is 5x more influential on a purchase than any other criteria. The study also showed that 90% of people look online for deals before they go shopping. It’s also no secret that shoppers, at least 40%, compare prices online while shopping in a physical store. Further, 45% of those shoppers surveyed actually ended up buying the item through a channel other than the store, such as a mobile app or through a website (and not necessarily the retailer’s properties). So how can a retailer compete?
Coordination Between Brands and Stores
Most retailers offer a wide selection of products from a variety of brands. Each one of these brands has its own digital presence and data about their customers’ buying habits and interests, which could be integrated into the physical store experience.
The big takeaway? Retailers must connect technology advances with generational habits. From smart clothing to VR social shopping, the sales – and the consumer data – these tactics can provide will change the way we do business – and sooner than you think.
-By Lars Kamp, VP of business development, Crittercism