One of the latest innovations in retail technology makes use of smartphone locations to deliver highly targeting advertisements and services to shoppers. Apple's iBeacons allow retailers to pinpoint a customer's precise location through opt-in technology, making it possible to deliver ads based on details like whether a patron is standing in front of a specific display. Philips developed a similar system using store lighting to send information to shoppers' smartphones as they browse the aisles and request data on apps. Other stores have used information from devices that are connected to their Wi-Fi networks to assess shopping trends and interact with customers.

These options are beginning to gain a foothold in the retail industry. For example, Alex and Ani recently implemented an iBeacon system in all 40 of its store locations, Retail Info System News reported. The jewelry seller uses the technology to send messages to customers' smartphones based on their precise location within the store, after they opt-in to the micro-location Bluetooth service. The source noted that Alex and Ani enjoyed a 75 percent engagement rate during their pilot program.

Deciding on location-based strategies
How can retailers know whether this strategy is right for them? There are many advantages to gathering more data about shoppers' habits and interacting with them in a more personalized manner. However, there are some considerations that merchants should take to mind before deciding on new technology for retail marketing. 

Street Fight Magazine offered a few guidelines for merchants considering location-based marketing tools. In the immediate future, the source explained, larger retailers with a significant amount of foot traffic are more likely to benefit from the technology than smaller stores. Merchants also need to make sure they will be able to analyze and effectively use the data. Location-based technology is an investment, and it requires additional services to be in place, including retail management software that facilitates data analytics.

Store managers should also make sure that customers will be open to location-based technology. Medill Reports described how some hyper-personalized marketing based on location can seem invasive to shoppers. Offering shoppers the option to opt-in to location-based services can help avoid making them feel like they have Big Brother looking over their shoulder. Merchants should also evaluate how the technology can add value for their customers, Street Fight recommended. To assess this factor, retailers can consider their consumer base, the general shopping experience and patrons' preferences. 

This entry was posted by Retail Pro on Tuesday, March 11th, 2014 at 9:59 am .

Retail industry leaders are driving changes to enhance the customer experience across their channels. According to a recent survey, this strategy is a wise one, since providing excellent service has a positive impact on the bottom line. The J.D. Power 2014 Customer Champions recognized how high-performing companies are prioritizing customer relationships to drive their business success.

"Not only does satisfaction encourage customer loyalty, but happy customers also become advocates of the brand to others. Particularly given the ability of today's consumers to easily communicate their experiences far and wide through social media and online reviews, customer advocacy can be critical to a company's bottom line," said Finbarr O'Neill, president of J.D. Power.

Innovations in retail technology offer merchants additional resources to empower their employees to better assist patrons. For example, mobile POS systems allow clerks to be more present to customers in the store and offer them convenient check-out options. The key to the success of these initiatives is to engage employees and make sure they're on board with programs and processes, such as by providing better training to ensure they're comfortable with the technology. Other organizations have found success in creating fun engagement strategies that put customer service at the center of the company culture, CIO Magazine explained. For example, FreshDesk introduced a game-like point system to motivate its workers to provide better service.

This entry was posted by Retail Pro on Tuesday, March 11th, 2014 at 7:06 am .

Although cold weather kept many shoppers indoors last month, consumer sentiment indexes continued their slow but steady rise, offering optimistic news for the retail industry. The Thomson Reuters/University of Michigan final index of consumer sentiment increased to 81.6 in February, up from 81.2 in January. The February result was slightly above analysts' predictions.

"While the harsh winter weather has kept consumers away from retail outlets, it has not had a detrimental impact on their outlook for future economic conditions," said Richard Curtin, chief economist for the consumer sentiment survey. "Consumers have displayed remarkable resiliency in the face of the polar vortex as well as higher utility bills and minimal employment gains."

Money News mentioned that shoppers' growing optimism comes from their expectations to have higher incomes over the next year, giving them more disposable income – even if they wait for the weather to warm up before hitting stores.

"Consumer spending will continue on the same pace and grow modestly throughout the year," predicted Yelena Shulyatyeva, U.S. economist at BNP Paribas in New York, according to Bloomberg. 

The economy still has a long way to go on its recovery, but these numbers offer hope that retail customer trends will continue to move in a positive direction.

This entry was posted by Retail Pro on Tuesday, March 11th, 2014 at 7:01 am .

In today's world, retail marketing usually involves multiple channels of advertising and customer engagement. New technological innovations have lead to the rise of online sales and new expectations among customers for faster responses and greater options for making purchases. As retailers branch out to take advantage of additional points of interaction with shoppers, they should make sure that they're maintaining a consistent, unified brand and experience. Seamless interaction across channels will be crucial for the coming era of retail, according to The Guardian's recent roundtable of industry leaders.

The roundtable cautioned that expanding into multiple channels can cause brands to splinter or lose their consistency. Instead, merchants should integrate their operations as much as possible and make sure they're sending a unified message to consumers, taking into consideration shoppers' preferences and need for convenient options.

"Consumers are very impatient, they always look at the best in class," one of the roundtable participants said. "It is very hard to create that friction-free world and adapt your internal technologies at the rate you have to."

Business Reporter also emphasized the importance of giving customers a consistent experience. Consolidating data from digital platforms also enables merchants to derive insights and form a more comprehensive view of their patrons, the source added.

This entry was posted by Retail Pro on Tuesday, March 11th, 2014 at 6:22 am .

In addition to the general success of ecommerce, mobile platforms are increasingly crucial for the retail industry. Customers are completing more transactions on mobile devices, but the possibilities for retailers extend beyond actual sales. Merchants can benefit from mobile advertising and promotional opportunities, taking advantage of the prominent place smartphones and tablets hold in consumers' lives.

Mobile advertising is a different ballgame than other types of marketing. To make their efforts more effective, merchants should pay attention to retail reports that identify consumer responsiveness to mobile engagement techniques. PricewaterhouseCoopers' (PwC) recent report revealed that shoppers are receptive to mobile ads, but context and relevancy are crucial, Mobile Marketing Watch summarized. The study found that marketers must be creative in order to overcome the common perception that mobile devices should be ad-free. Largely because of this perception, many consumers don't respond to ads on mobile phones, especially because they often find them to be irrelevant, Forbes reported. Interactive features on smartphones offer additional possibilities for engagement, suggested PwC.

Marketing Profs offered the following tips for optimizing mobile marketing:

• Engagement must be timely – over half of conversions occur in the hour following a shopper's mobile search.
• Sites should be simple and easy to navigate.
• Context is crucial – retailers should use data to send personalized ads that are more effective.

This entry was posted by Retail Pro on Monday, March 10th, 2014 at 12:45 pm .

From in-store innovations to ecommerce platforms, merchants are seeing exciting ways to use retail technology to improve the customer experience and engage shoppers. Mobile platforms offer a wealth of possibilities, particularly as smartphones become more integrated within the lives of most Americans. Retailers can use mobile technology both to capture online sales and draw more shoppers into their physical stores. The trick is implementing creative strategies that integrate well with the rest of the store management technology. Here are a few ideas:

1. Offer mobile coupons. Allowing shoppers to download and redeem promotions via smartphone can reduce printing costs and provide convenient options for customers, Biz Community suggested.
2. Track in-store conversion rates. According to Business 2 Community contributor Himanshu Sareen, founder and CEO of Icreon Tech, merchants can use mobile technology to track window-to-conversion rates, allowing them to better assess their displays' effectiveness.
3. Showcase brand personalities. As part of an effort to be more accessible and appealing to consumers, retailers can give their brands a more "human" face through interactive features on mobile platforms, such as video clips, suggested The Guardian.
4. Take loyalty programs to mobile. Merchants can make it easier for customers to participate in loyalty programs by integrating them with their mobile POS systems and by providing loyalty apps so customers don't even need to carry a card, Biz Community advised.

This entry was posted by Retail Pro on Monday, March 10th, 2014 at 7:56 am .

Retailers have been honing their multichannel marketing strategies to take advantage of the growing popularity of smartphones and tablets. According to recent retail reports, customers are increasingly using tablets to seek information and make purchases. Therefore, merchants should make sure their websites and ecommerce software adapt well to the platform.

Javelin Strategy & Research's study revealed that tablets accounted for more than half of mobile commerce in 2013, surpassing smartphones for the first time. Customers spent $28.7 billion dollars on tablets, which was more than five times the amount of tablet payments in 2012. The Neilson Company similarly found that consumers are turning to their tablets more often than their smartphones for researching products, reading reviews, making digital purchases and buying physical items.

In addition to creating online shopping resources that are optimized for tablets, merchants should be aware of customer preferences for app-based or Web-based transactions, the report noted. 

"While functionality should differ between the two methods, it is also critical for vendors to ensure that the user experience is similar for both methods so that crossover is frictionless," said Mary Monahan, executive vice president and research director of mobile at Javelin Strategy & Research. "Similar visual elements and layouts should be used to simplify the process and build a recognizable brand experience."

This entry was posted by Retail Pro on Friday, March 7th, 2014 at 12:32 pm .

One of the advantages of retail technology is the opportunity to gather large amounts of data about customers and their shopping habits. This information can drive business intelligence initiatives, ultimately helping retailers to improve their store operations and enhance their marketing strategies.

Opportunities to collect information continue to grow
In addition to traditional methods to gather customer information, such as asking for data at check-out, merchants are finding opportunities to take information from smartphones that customers use in stores. Business Spectator explained that retailers can derive useful stats by offering free Wi-Fi in their stores. By storing anonymous information about connections, managers can collect information about store traffic and customers' movement through the aisles. iBeacons are also useful for gathering this type of data. For more targeted information, stores can offer apps through which customers authorize the system to identify them. This allows retailers to tie in-store habits to the rest of the shopper's information, such as demographics and purchase history.

Information is power
This data is only valuable when it can be turned into actionable insights. Merchants can run retail reports to analyze the information and use it to drive better marketing decisions. For example, a panel at the National Retail Federation's annual convention explained how store managers can use data to assess the profitability of their initiatives, such as offering home delivery. Business Spectator recommended incorporating information into customer loyalty programs or identifying which store locations are most popular. Better inventory management can be driven by more detailed sales data, Billing World suggested.

The key is to start with business objectives for data projects. Billing World emphasized the distinction between "objectives," such as collecting sales data, and "business objectives," such as knowing when to restock.  

But with power comes responsibility
Merchants have great opportunities to collect data and many ways to use that data to improve their marketing strategies. However, they must be careful about how they use and store customer information so shoppers don't feel violated or vulnerable.

"If one of your customers starts visiting baby shops, do you then send them a message congratulating them on the good news, saying 'I understand you're pregnant'? Obviously, no. Retailers need to be careful with information at hand. Follow the Google path: Let's not be evil about it," Ruckus' regional manager Chris Evans told Business Spectator.

When designing strategies that make use of data, retailers should keep information privacy at the front of their minds and use discretion with how they use data to interact with customers. 

This entry was posted by Retail Pro on Friday, March 7th, 2014 at 12:32 pm .

This year, the retail industry has devoted a lot of attention to improving the customer experience. Retail technology offers merchants great opportunities to empower their employees and provide better service.

"Retailers have a unique opportunity to provide a superior service by taking advantage of the influence digital has on the purchasing decision – therefore getting ahead of their online and offline competitors," Bruno Berthezene, Solocal Group UK managing director, told Real Business.   

However, the American Customer Satisfaction Index found that large retailers are struggling to meet customers' expectations in terms of quality service. Although some brick-and-mortar stores were able to increase shopper satisfaction by using technology to shorten check-out lines and better manage their inventory, according to The Atlantic Journal-Constitution, larger retailers faced challenges with employee morale and  integrating their system across their sizable operations. This made it difficult for them to provide fluid, consistent experiences for customers, Time Magazine explained.

For technology to serve as a true asset, it needs to be implemented correctly. Merchants should make sure their systems are designed to reduce redundancies and make processes smooth and efficient for customers. Training employees to use the technology effectively is also a vital step in improving in-store experiences.

This entry was posted by Retail Pro on Thursday, March 6th, 2014 at 10:18 am .

In the competitive world of retail marketing, merchants need to make use of multiple channels to engage customers and drive sales. Consumers are coming to expect multichannel retail as a given, PricewaterhouseCoopers explained, especially as technology becomes more prominent and integrated across their day-to-day activities. Retailers who want to gain a competitive edge are now seeking ways to create fluid, consistent experiences across channels. Here are five key strategies to make the most out of multiple commerce channels:

1. Integrate. Consolidating data, such as from CRM and Web operations, with comprehensive retail management software allows retailers to conduct better reports, Multichannel Merchant noted. This, in turn, leads to greater business intelligence opportunities. 
2. Standardize. Customers are looking for a consistent experience, regardless of the platform they use to shop. Processes, prices and branding should be the same across devices and channels.
3. Measure. To optimize marketing campaigns, merchants must be able to assess the outcome of their initiatives. The source recommended checking ROI for each conversion effort.
4. Personalize. Customized promotions based on retail customer intelligence are increasingly common and greatly effective. Retailers should pursue these targeted campaigns while ensuring personal data is protected, advised PwC. 
5. Empower. Technology gives employees great resources to provide more informed service to customers. To maintain accuracy across channels, associates and customers must have real-time access to updated inventory and product information.

This entry was posted by Retail Pro on Wednesday, March 5th, 2014 at 11:43 am .