Brick and Mortar Retail Is On Its Way to Becoming a Media Channel
Many brick and mortar retailers have invested in providing customers exciting, engaging and satisfying shopping experiences in order to effectively compete against e-commerce.
Online retailers have done a remarkable job of offering shoppers the goods, pricing, and availability they want. The most recent figures available show continued strength for e-commerce sales: According to the U.S. Census Bureau, total e-commerce sales for 2016 were estimated at $394.9 billion, an increase of 15.1 percent (±1.8%) from 2015. Online orders increased 8.9% in the third quarter of 2016.
Retailers with a base of operations in the physical world are now not only deftly entering the e-commerce arena, but they are leveraging their physical presence as well.
Brands becoming part of the in-store experience
Today, brick and mortar retail is on its way to becoming a media channel. In fact, some have suggested that retailers will not simply offer products for sale, but actually charge brands an upfront fee for the privilege of being a part of the in-store experience. So retailers might have a larger selection available online to customers, but a few, select lines are actually available to see “in person” on the showroom floor.
Think of brand boutiques in larger stores as a similar example of the strategy, but more curated, and the brands pay the retailer for the privilege.
Beacons used for personalized suggestive selling
Beacon technology is another way retailers can learn about shopper behavior.
These devices can learn where shoppers linger within a store and also provide shopper-specific information if a client agrees to opt-in to that type of data collection. That information can then be used by retailers to personalize the in-store experience, for example, suggesting available merchandise.
Beacons can also remind shoppers of products they may have overlooked during the current shopping trip that they have previously bought. Beacons can also spotlight products a customer has previously expressed interest in, as the technology detects customers’ lingering in particular locations.
Instead of associates spending all their time and energy on duties such as stocking shelves, counting inventory, cleaning, etc., they can instead focus on providing the best customer service possible. Managers can then invest more time learning how the store functions as a destination and how it can improve to exceed customer expectations.