How can retailers ensure they are catering for all consumer shopping trends around in-store, online and mobile retailing to offer customers a truly omni-channel experience in order to grow sales this Christmas and beyond?
“Many customers who go to the stores want to buy - if the product they want is not in-store, there is a real opportunity to offer it to them there and then in order to take full advantage of their desire to buy,” says Sharon Hartigan, client operations director at mobile and digital technology firm Fuerte International - its clients in the retail, payments and FMCG space include Dixons Carphone, Visa, Unilever, Red Bull and GSK.
“If the user can scan and order in a different size or specification through their mobile they are likely to complete the transaction,” said Hartigan. If they have to queue at the information or ordering point then they are less likely to order as the store may be too busy, she explained to ESM.
Customers want a full connected journey. A typical customer story could be Sarah, aged 25, who sees a supermarket's own-brand coat in a magazine and wants to buy it. She has a few options:
1) She orders it directly from the magazine by scanning a code or the product itself - (download app, scan the product and select size, and completes the transaction).
2) She is shopping and looks at the coat – it’s not in her size so she wants to scan the label through the app and order it for next-day delivery to her home.
3) She pre-orders it to be available in the supermarket store to collect - and collects it from a collect point.
Fuerte believes it is important for retailers to regularly review their mobile set-up and strategy as mobile changes fast. “New payment mechanisms, new technologies such as phone NFC, AppleWatch, etc. will soon allow people to make easier browsing, shopping and purchasing,” Hartigan explained.
So, why does she think it is essential for European retailers to have a robust mobile offering coming into the busy Christmas retailing period? “Customers’ propensity to buy on mobile is higher than through other digital or traditional sales channels, therefore to have a mobile sales channel is vital, and one that is a great customer journey and makes ordering and buying easy will increase sales significantly."
Customers are busy people, working, travelling, Mums and Dads - if they can buy on mobile it helps them make their lives easier and doesn’t take up valuable time having to go to the shops or browsing for hours online and at home, she added.
Dixons Carphone is Fuerte’s biggest client in the retail space and the company works with a wider team on the retailer’s Pinpoint option, and more recently, a customer app called Cell-IT.
Pin Point makes the process of buying a phone much easier. Staff help the shopper answer a few simple questions and Pin Point will then recommend the right choice of tariffs to suit his/her needs, help to saving money too. It also checks network coverage and looks at how shoppers use data to ensure in getting the package that's right for them.
New technology and easier shopping experiences will ultimately help retailers to make more sales, she says. “A great example of this is Pinpoint from Dixons Carphone - they have successfully increased conversions, sales and margin per sale through simplifying the in-store purchasing decision.”
Meanwhile, the official Cell-it app from Carphone Warehouse gives shoppers the real-time trade-in value of a mobile phone or tablet - smartphone owners can enter up to five different devices to find out their latest value.
So what does Hartigan envisage will be the major trends around mCommerce going into 2015 and beyond? “Connected journeys, one-step ordering purchasing, more usage of push notifications for open baskets. More retailers need to operate like Amazon and use simple payment mechanisms to increase sales. Remember cards and do not ask customers for too many details – it’s not necessary. Stripe payment is a great example of making payments easier.”
Shopping no longer begins when consumers walk through the door, says Thomas Clark of search market agency Blue Claw Search, with the journey now more typically starting at home. Whether prospective buyers have spotted a deal on a retail or community website, or are inspired by a friend’s post on Facebook, much influence now lies within online communities.
With the universal adoption of smartphones and tablets feeding deals and offers to the user, impulse buys need no longer be restricted to chocolate bars at the till, he explained.
While this has naturally proved a boom for online retailers, brick-and-mortar supermarkets must embrace this trend in order offer a truly omni-channel experience to the shopper.
“Consumers have become au fait with online purchases - click and collect models are acclaimed for the convenience and widespread choice that they offer: Ocado and Tesco have cornered the UK online grocery market, the latter also making great waves in retail technology.”
Click & collect presents a real opportunity for retailers to drive customer satisfaction but also sales, with 38% of UK shoppers making additional purchases when collecting orders in-store, according to latest research from Verdict Retail. However, the research firm stresses that retailers must ensure that the collection process runs smoothly– particular during peak Christmas trading.
“Retailers still haven’t quite worked out how to make the click & collect process seamless and quick – many were unprepared for the spike in online orders over the Black Friday weekend, creating a logistical nightmare for some,” said Verdict analyst Kate Ormrod. “Investment in sufficient staff, adequate space both on the shop floor and in the stock room, stock maintenance and logistics are all required to cope with the pressure.”
Andrew McClelland, chief operations and policy officer at UK online retailing organisation IMRG told ESM: "Mobile devices are bringing retail to consumers in new and more convenient ways. Tablets allow consumer to respond quickly to triggers in other channels, e.g. adverting on television or in magazines.”
Smartphones provide the mobile experience, bringing digital to the high street - this might be searching for reviews on a product they are looking at in-store, locating outlets nearby or even deciding to buy online whilst away from a shop or home, he explained.
Retailers, brands and tech firms are now realising that the power to succeed lies with the technologically-aware and deal-savvy consumer, creating an ever-shifting and incredibly competitive supermarket environment.
Supermarket shoppers are embracing technology such as hand-held scanning devices where available in-store. While ibeacon technology is still relatively new, with the arrival of wearable technology such as Google Glass and smart watches, these devices may become an integral part of the shopping experience yet, says Clark.
“Powered through contextual awareness, consumers are presented with deals and brand comparisons based on where they are in the shop, whilst also being offered opportunities to purchase out-of-stock items online.”
To find out the opportunities available regarding your retail technology product or service featuring in our upcoming eCommerce /omni-channel feature, please contact [email protected] in our advertising department.
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