There is no denying that the current retail climate is demanding - recently high street brands Next and H&M have both warned of a ‘challenging year’ and they are by no means alone. With giants such as HMV and Jessops closing in early 2013 it has become apparent that to survive and thrive, retailers must work much harder to engage with customers.
One trend that has emerged in recent years is a reliance on vouchers, discount codes and promotions to drive sales. However, this activity relies on an assumption that the shopper will plan their trip in advance, and be in a position to make s purchase, for example they’re not away on holiday.
In addition, the proliferation of this activity has led to increased fickleness amongst consumers, who will switch allegiance depending on the best deal, rather than develop the loyalty retailers crave. The argument is that this has led to consumer apathy, as shoppers look for a simple, low-maintenance experience that ensures the best deals for minimum effort.
Yet retailers are missing a trick here. Rather than luring the time-poor customer into the store with a voucher that is not relevant to their needs, may expire quickly, or is ignored because it is delivered at an inopportune time, there are more effective tools retailers can take by harnessing mobile phone technology.
Mobile technologies offer a way to target customers while they are in-store, engaged with the retailer and predisposed to purchase. Our innovative technology, Retail Mesh does just this, by tracking the customer’s unique code on their smartphone when they enter a store. A sensor located in-store uses this data to provide retailers with accurate footfall statistics, plus statistic on duration of visits, frequency and their journey throughout the store – are they spending the most time in the women’s fashion area, or in home-wares? Are they engaging with planned promotions in-store or ignoring them? Furthermore, a smartphone prompt invites the shopper to join the free wi-fi and, if accepted, this allows personalised marketing messages to be delivered in the future via SMS when they return to the store.
This puts retailers in an enviable position – being able to target customers with bespoke, personalised offers while they are on their premises. Just like the ‘three for two’ offers in supermarkets that the shopper didn’t realise they wanted until they saw it, brands can suggest promotions, offers and purchase ideas that are likely to appeal to that individual.
There is huge potential here for using this mobile technology to convert sales while consumers are physically in the right environment, at the right time, and in a purchasing mind-set, receptive to tailored marketing messages and promotions. This solution can help businesses tap into potentially millions in lost sales on the shop floor.
Leading fashion brand French Connection is rolling out Retail Mesh across its store in Brighton, Sussex over the next three months. Retail Mesh will complement the retailer’s foray into embedding new technology into its sales tactics, such as shop floor staff using tablets to process orders, and giving the store’s visual merchandisers access to digital content on the intranet while working on store displays.
The technology has obvious benefits for consumers too. No longer will they have to search for vouchers before leaving home, only to discover the voucher sitting on their email has expired. Or, if they enter a store and spot a dress that they like, they will not have to search the internet using a 3G connection for any current discount schemes – they’ll be alerted via their mobile of any deals applicable to that shopping trip.
Mobile technology such as Retail Mesh promises to cut through the clutter of randomly generated email and SMS offers. What use is an email or SMS deal for a time-specific discount on merchandise, when the recipient is on holiday? The typical response is for the user to delete it, rather than clog up their inbox. Consumers are tired of intrusive, one-size fits all marketing tactics, that, likewise are a wasted investment for the retailer.
The retail industry has changed significantly in the past few decades. Who could have predicted twenty years ago the growth of internet shopping? And in the boom years, no-one would believe that an average of 20 stores a day would be closing in Britain? Yet with the economic downturn, has emerged a more savvy consumer who will choose to spend the little spare money they do have wisely and will not respond to a ‘one size fits all’ approach.
Technology has been a double-edged sword for retailers – internet shopping has meant the high street has had to up its game and innovate in order to survive. Therefore, the retailers reaping rewards are those that maximise the opportunities technology offers, rather than burying their head in the sand.
Over 50% of individuals in the UK own a smartphone, and this proportion is significantly higher amongst younger people with more disposable income, who are more inclined to embrace this technology. The future of retail must be personalised, a result of analysing customer behaviour and reacting appropriately in real-time, and utilising mobile phone technology to do so will increase engagement and impact positively on the bottom line.
Source: Fourthsource (http://goo.gl/CaoJP)
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