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Location-based mobile marketing yields gains for retailers

Retail customer trends have shown that shoppers are increasingly turning to their mobile devices to look up product and store information and to make purchasing decisions. Merchants are taking advantage of this trend by offering mobile apps and responsive websites to reach consumers more effectively. In fact, compared to other industries, retailers are now leading the charge for mobile apps.

According to Inside Mobile Apps, xAd's 2013 Year in Review Report showed that retail apps were the most popular category, ahead of auto, banking and finance, restaurants and telecommunications. This is largely due to the fast-paced nature of retail transactions compared to other sectors – shoppers often need to make decisions about products relatively quickly and want convenient options.

"The rise of geo-precise targeting is a testament to how effective techniques like geo-fencing and geo-conquesting are for driving customers to visit retail locations," said xAD CEO Dipanshu Sharma, as reported by Mobile Apps. "This is particularly true for retailers, where consumers are often looking to make a fast transaction."

Enhancing mobile marketing strategies, location-based services enable retailers to target their advertisements and promotions more effectively. The majority of customers are receptive to messages they receive while shopping in stores, Information Age explained. Stores can use geo-location technology, like iBeacons, or offer free WiFi to identify shoppers and send them promotions.






Emerging retail trend: browse online, buy in store

As merchants streamline their multichannel store operations and focus on enhancing the customer experience, many shoppers are choosing to return to stores to make their purchases. Even if they first browse online, consumers sometimes prefer to buy products in stores, where they can see the item and maybe try it on before completing the transaction. This trend, which Accenture calls "webrooming," demonstrates how integrated retail marketing approaches are changing the way customers shop.

"Today's shopper expects to be able to shop easily across different channels to fulfill their shopping mission. In fact, it is expected that well over half of retail sales will be influenced by online and mobile, regardless of where the ultimate purchase is made," said Renato Scaff, executive partner of Accenture, according to MSNBC.

Accenture's study found that 78 percent of shoppers have looked at product information online and then purchased an item from a physical store location. In addition to the in-store experience, shoppers were motivated to purchase off-line if stores had the items stocked so they could take them home on the same day instead of waiting for delivery. The study emphasized the importance of seamless retail marketing for customers, who want to be able to choose how and where they purchase products without feeling a difference between channels.






Mobile commerce expected to rise in 2014

Retail marketing campaigns have found great success in mobile apps and advertisement campaigns, but studies show that consumers are increasingly choosing the platform to make purchases as well. As mobile devices become ever more popular and shoppers gain confidence in using them for secure transactions, mobile commerce will likely be a key channel for merchants. Therefore, businesses will need to make sure that their mobile strategy includes shopping options so they can capture these sales.

Loyalty, branding – and sales
According to a 2013 EPiServer survey, merchants typically regard mobile initiatives as excellent strategies for building customer loyalty and developing their brand image, Point of Sale reported. Smaller retailers offer cool applications and mobile experiences in an effort to draw customers and compete with large online retailers like Amazon. However, the source argued that merchants shouldn't overlook the sales potential in mobile strategies. Up from 16 percent last year, 22 percent of survey respondents indicated that at least 20 percent of their sales came from mobile commerce. And this could very likely continue to grow.

InMobi's 2014 Mobile Media Consumption Report highlighted the increasing revenue potential in mobile commerce. According to the report, 68 percent of consumers have spent money via mobile devices and 83 percent plan to make purchases on their mobile devices in the next 12 months. This is up 15 percent from last year, the report noted. As mobile advertising continues to meet great success, shoppers are also increasingly likely to click "buy now" on their mobile devices.

"This year, we find that mobile has really become an essential part of daily life, even a daily workhorse, that has replaced the desktop and TV for everything from gathering key information, media consumption and accomplishing daily tasks, like shopping and paying bills," said Naveen Tewari, CEO of InMobi. "Furthermore, with mobile content gaining similar prominence as TV, mobile advertising is now impacting consumer behavior across the entire purchasing lifecycle from small day-to-day purchases, to bigger purchases, like cars."

Successful advertising
The 2014 report indicated that the majority of shoppers noticed mobile advertising and were as comfortable with the messages as they were with television and online promotions. In response to mobile advertisements, over half bought something on their devices, and even more respondents said that they downloaded an app or visited a website.

As opportunities for mobile sales continue to expand, retailers should consider whether their ecommerce software facilitates multiple devices. For example, retailers can enhance their websites by creating mobile-first designs or using responsive frameworks that adapt well to multiple screen sizes.






How retail technology can empower your store clerks

Retail marketing is currently focused on improving the customer experience, but merchants should also consider how retail technology can benefit their employees. Not only do happier workers usually lead to satisfied customers and bigger profits, but technology can empower workers to be more productive and provide better service.

When choosing retail management systems and devices, such as mobile point of sale solutions, retailers should focus on improving their employees' workflows. After implementing retail tools, merchants should train their staff and adjust business processes to take full advantage of the opportunities offered by these resources. Here are a few ways that retail technology can impact employee performance:

  • Increased productivity. According to Gulf Business, companies can use the analytical capabilities of management systems to assess productivity factors, such as hours for shifts and tasks for particular groups of employees. Then, they can adjust their processes and change variables like the layout of their warehouse to make operations run more efficiently. Technology can also help employees to complete tasks more quickly and automate processes that workers previously had to perform manually.
  • Easier scheduling. Tools like mobile apps can be used to make it simpler for workers to schedule and track their hours. Managers can more easily see information about their employees' shift preferences and be notified if staff members have worked too many hours in a row without taking a break, the news source noted.
  • Access to information. By allowing store clerks to instantly look up product or inventory data, retail technology empowers employees to provide customers with the same kind of information they seek online. Instead of leaving customers to check the back store room, for example, clerks can immediately provide shoppers with accurate responses.
  • Mobility. Mobile POS systems and other technology give employees the ability to leave the cash register while still being accessible when customers want to make a purchase. In fact, they can even help to move sales along by reaching out to customers in the aisle. According to Business Wire, mobile POS is the top priority for retailers, ranking even higher than security in the January 2014 mPOS Tracker report.
  • Improved communication. Technology can help employees communicate and collaborate better. This can range from simple messaging services to innovative ideas, such as The Container Store's novel "Siri without a phone" employee communication system, as Retail Systems Research reported. The store implemented technology that allows workers to broadcast messages to specific coworkers, reducing the noise that typically attends walkie-talkie conversations.





Merchants want more comprehensive ecommerce software

As merchants expand their online retail marketing initiatives and strive for an integrated, multichannel approach, they need the right technology to support their operations. Ecommerce software can help, but many retailers are struggling to find the right solution. According to a recent Econsultancy study, retailers need full-functionality tools that integrate well with their existing retail management software. In addition to seeking the right systems, retailers are struggling to find people with the right skills to help them implement the technology.

Among the functionality that they need their ecommerce technology to provide, retailers identified the following priorities, as reported by the source:

  • Product management
  • Content management
  • Mobile support
  • SEO capabilities
  • High-quality search site functionality
  • Ability to scale

Emarketer estimated that ecommerce will account for $262.3 billion in sales in the coming year, Forbes magazine reported, so adapting a strong online strategy can significantly impact business outcomes. Merchants can turn to retail technology solutions that integrate store management systems with ecommerce tools. A consolidated system helps retailers provide consistent information and options to customers and streamlines their marketing initiatives. Pulling together data from all channels can also bolster analytical reporting and business intelligence. Overall, it's important for retailers to identify their needs and work with technology providers to choose the right solution.






‘Click and collect’ gains traction in U.S.

Click-and-collect services allow customers to order items online and then pick them up at a designated location or local store. In the United Kingdom, the 2013 holiday shopping season revealed the surging popularity of this option, particularly for urgent orders that could be held up by delivery. Click-and-collect programs haven't been as widely deployed in the U.S., but that could be changing.

Recently, Walmart decided to explore click-and-collect services for grocery items in Denver, Retail Solutions Online reported. Customers can place orders online and receive a notification when their items are ready to be picked up. From the parking lot, shoppers can call a store's number to have an employee bring their order to them. The click-and-collect option also makes it easy for customers to grab a few additional items at brick-and-mortar stores if they forgot to include them in their order. Retail customer trends show that shoppers prefer to pick up grocery items in stores rather than have them delivered, according to a Quail Digital survey.

Merchants are listening to customers' needs and tailoring their services to improve the shopping experience, Forbes noted, and this often includes using retail technology to integrate options across channels. Click-and-collect services provide the convenience of ecommerce while catering to consumer preferences.






‘Click and collect’ gains traction in U.S.

Click-and-collect services allow customers to order items online and then pick them up at a designated location or local store. In the United Kingdom, the 2013 holiday shopping season revealed the surging popularity of this option, particularly for urgent orders that could be held up by delivery. Click-and-collect programs haven't been as widely deployed in the U.S., but that could be changing.

Recently, Walmart decided to explore click-and-collect services for grocery items in Denver, Retail Solutions Online reported. Customers can place orders online and receive a notification when their items are ready to be picked up. From the parking lot, shoppers can call a store's number to have an employee bring their order to them. The click-and-collect option also makes it easy for customers to grab a few additional items at brick-and-mortar stores if they forgot to include them in their order. Retail customer trends show that shoppers prefer to pick up grocery items in stores rather than have them delivered, according to a Quail Digital survey.

Merchants are listening to customers' needs and tailoring their services to improve the shopping experience, Forbes noted, and this often includes using retail technology to integrate options across channels. Click-and-collect services provide the convenience of ecommerce while catering to consumer preferences.






How retail technology is enhancing the in-store experience

Online sales are booming, but retail technology isn't just for ecommerce. Retailers are taking advantage of exciting new devices and software to provide interesting shopping experiences and enhance their store operations. From convenience to novelty, these initiatives are aimed at assisting customers and drawing them back to the store time and again.

High-tech brick-and-mortar
Contrary to concerns that ecommerce would make physical stores unsustainable, retailers are finding ways to bolster their sales using technology and an integrated, multi-channel marketing approach. In fact, a recent report by Accenture revealed that 88 percent of consumers research products online and then head to a store to make their purchase. While online advertising is important and influential, retailers can play on the strengths of their physical store locations to offer customers opportunities not possible through online channels.

Retailers are integrating technology into their brick-and-mortar operations in innovative ways. Here are a few examples:

  • North Face has introduced Watson, IBM's contextual computer that acts like a shopping assistant, in some of its stores, The Huffington Post explained. Shoppers can ask a kiosk questions and receive personalized answers that take shopping history, weather, location and other factors into consideration.
  • Sephora created a "fragrance finder" to help people match scents with products, drawing on a database of information and using Big Data analytics to assist customers in real time, the source reported.
  • Many retailers, such as Apple, are using mobile point of sale systems to provide convenient check-out options for shoppers. This technology also enables store clerks to better engage with customers, since they're able to assist people in the aisle and offer additional information about products.
  • Nordstrom Rack is tracking in-store shopping habits to drive major retail business intelligence initiatives. The news source added that the store is using analytics to make small – but powerful – adjustments to its store layout and other operations.
  • Ikea offers an in-store companion app to help customers navigate the store, according to the news source. Retail Wire also noted the growing range of opportunities that mobile apps offer for retail marketing. Merchants should focus on making the in-store experience more convenient and provide incentives to get consumers to install the app, the source suggested. For example, Walmart offers a "scan and go" app in some stores that saves shoppers time at the check out. 

Overall, retailers are thinking outside the box to revolutionize shopping experiences. The Huffington Post noted that the majority of customers will shop in-store if they're offered a memorable experience, according to research by Jack Morton Worldwide.






Poor mobile payment options lose sales

Retail customer trends point to the growing popularity of mobile devices for shopping and payment transactions. Smartphones and other gadgets are constantly on hand and connected to the Internet, which means they're increasingly the go-to devices for shoppers. Consumers use them to browse retail selections, make purchases from apps and mobile websites, look up additional product information and even make in-store payments. 

Research by Adyen revealed that payments on mobile devices increased by 55 percent in 2013, accounting for almost 20 percent of all transactions worldwide, Network World reported. The preference for mobile payments is only expected to rise, especially as innovative technology continues to provide additional convenient options for consumers.

For that reason, it's important for merchants to implement smooth payment processes for customers using mobile devices. In addition to security, shoppers are swayed by the convenience of the process. Sub-par technology and poor implementation can cost retailers sales as customers abandon their shopping carts and choose more accessible services. According to Jumio's 2013 mobile commerce analysis, retailers lost over a quarter of their mobile profits because customers had difficulty completing transactions on their gadgets. To capture these sales opportunities, retailers need to make sure their checkout pages and payment options are up to speed with the rest of their retail technology.






Ecommerce fuels retail opportunities in Brazil

The retail industry is driving economic development in Brazil, and merchants are now focusing on ecommerce opportunities in the South American nation. According to eMarketer, online sales in Brazil are expected to grow by 11.7 percent in 2014, amounting to $13.37 billion. Brazil's ecommerce market is the 10th largest in the world, the source added, fueled by 107.7 million Internet users.

Retail industry booming in Brazil
Consequently, online commerce in Brazil presents great opportunities for retailers and investors. Tiger Global Management, an investment firm located in New York, recently announced that it will invest around $520 million in B2W Companhia Digital, an online retailer in Brazil, The New York Times reported. The firm has invested in other Brazilian ecommerce companies, the source added, noting that the move indicates a renewed interest in online retail marketing opportunities in the country.

It's not just the ecommerce market that's gaining additional attention in Brazil. Apple just opened its first physical store location in the nation, Bloomberg reported. Not only does Apple want to increase its presence in one of the largest smartphone markets in the world, it will also help to fuel ecommerce by providing the population with high-quality devices. 

Innovative uses of retail technology
Although Brazil's economy shows strong growth, the market still presents a number of challenges, especially for international merchants. CNBC mentioned that store managers need to make sure their retail management software incorporates local norms, such as a preference for installment payments instead of credit and debit card transactions. 

"It's ingrained in our culture, especially among the new middle classes," Ricardo Rocha, a professor of finance at São Paulo's Insper business school, told the news source, referring to payment preferences. "It represents a huge challenge for foreign retailers."

However, retail technology provides opportunities for merchants to adapt to diverse market conditions, even communities that are typically a challenge for marketers. For example, Fast Company described a Brazilian retailer that uses ecommerce technology to make retail operations possible in slums. Magazine Luiza, a home furniture retailer, developed a system whereby customers can try out products in stores and then place their orders online. Instead of keeping inventory stocked in each store location, the source explained, the retailer simply provides a showroom to keep costs minimal. This enabled it to expand into low-income areas last year. The company makes use of social media, launching a campaign on Facebook to encourage people to open their own store locations and earn commissions by selling products.






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Countries

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Countries

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Customers

54000

Stores

159000

Points of Sale