The interconnected retail sector that is growing in the digital age is made up of people-centric companies that aim to serve customers and understand their needs. They achieve their goals by developing smart and connected stores (connected store), adopting a 360 digital marketing strategy.
In particular, research has shown that companies are investing in technologies that will make it easier for customers, such as new payment options and order tracking. It seems that in 2021 many invested in click and collect services, as well as in-store services via an app. Investment in personalized marketing capabilities continues to grow, making it necessary to research and analyze the potential of personalized marketing in this article.
Below we will analyse these three pillars that characterise the “interconnected retailer” in order to inform and prepare companies that want to maintain their competitive advantage when consolidating the digital reality in retail.
Connected Customers (Connected Customer)
Modern customers demand a holistic digital experience due to the influx of technology in their daily lives. Effectively, there is a radical change in consumer behaviour, which should be followed by changes in retailers’ business strategies and all their customer interface points.
Modern customers:
- They are more informed than ever before, due to multiple sources of information, making them more demanding.
- They want personalised solutions and are turning their loyalty to brands that can offer them.
- They consist mainly of Millennials, increasing the purchasing power of this consumer group.
- They want to be able to start and end their shopping journey on any channel (computer, mobile phone, tablet, e-shop or social media or physical store) and as a result they demand the presence of brands on all channels.
- They demand high levels of service and speed regardless of the channel and seek recognition and rewards for their loyalty from brands.
Based on the above characteristics, it becomes critical to interface between retailers and their customers across digital and physical channels in a consistent manner. These include physical stores, online platforms & e-shop, social media, newsletters and direct mail as well as other outreach and advertising media.
The smart shop
Despite the development of digital reality and the changes in the public’s consumption habits, the importance of the physical store has not diminished but the role of stores has changed in order to meet the needs of the public. The reconfiguration of physical stores should start with identifying the needs of customers and aim to meet those needs through the physical store. Connecting consumers to the brand and meeting their requirements is the first step in building loyalty and maintaining it.
The realization of this need is the basis for the design of the store, the desired customer journey and the desired experience that the company wants to offer its customers through the physical stores. For example, Sephora has integrated digital mirrors in some of their stores in Spain that allow customers to see the product on them without trying it on using Artificial Intelligence. The need for such technology perhaps started with the COVID-19 pandemic where consumers were banned from using products in-store for added safety.
Businesses in the sector have to answer the question “What is the reason why consumers visit my shop?”
Smart stores will be divided into different “types” of stores depending on the phase of the shopping journey they are aiming to focus on. Physical stores will be a means of developing customer relationships, which can then be transferred to the other channels of the business. Researchers have shown that 91% of consumers will choose brands that they recognise, remember and provide relevant offers and recommendations for them. Effectively, it is clear that today’s consumers are looking for a personalised shopping experience both offline and online. The modern customer knows that they share data with brands, and they expect that data to be used to deliver personalized services. That’s why companies that upgrade their physical store to offer a customer experience are gaining a competitive advantage.
What does a Smart Store consist of?
A smart store is characterised by speed, correct flow of movement within the store and is visually appealing. Modern cloud technologies provide flexibility and operational efficiency. In particular, in Amazon’s physical stores, customers select the products of their choice and can leave the store without waiting at the checkout, as sensors installed in the store calculate the prices of the products and automatically charge the customer’s credit card stored in the app on their mobile phone. In addition, stock replenishment is done through sensors that count the stock and send a notification when it’s time to replenish. With modern cloud technologies, a comprehensive database of customers and their shopping history is created to send personalized offers to customers while they are in stores. Finally, the in-store environment allows for in-store and real-time data logging, but this logging alone – without drawing conclusions and making strategic decisions – is not enough to increase sales and boost customer loyalty.
Digital Marketing Trends
The role of Digital Marketing is further intensified by the influx of technology in the daily lives of the public and their desire to discover products, gather information and make purchases through the channel of their choice.
Personalization
Customers demand to receive targeted, personalised and relevant messages from companies. Based on statistics from the company’s various channels, companies can strategically make decisions to create personalized experiences for their consumers.
Customer Engagement
Companies can understand audience behaviours through the various statistical tools in order to provide the experience the user wants both online and offline.
Audience statistics are not only about who the customers are but also how they behave. Demographic and sales data must be combined from a variety of sources and with the consumer in mind.
Experiential E-Commerce
Experiential e-commerce will be essential for all companies that sell online. From retailers and subscription sites to software as service platforms, implementing interactive, experiential and highly customized channels will be a necessity to meet user expectations.
Companies are competing for their user base and experiential e-commerce will help companies gain a competitive advantage. With the rise of social media, content that is highly interactive is winning the audience’s impressions as it provides them with more entertainment and conveys the brand values.
Interconnected retail consists of support, product, logistics, store operations, marketing, sales and order support. It involves all stages of the customer journey and aims to satisfy consumers to gain their loyalty. Each channel has its own importance and acquires value according to the requirements of the audience.
Find out how your company can meet the needs of the public and set achievable goals to get the competitive advantage you need.
