The NRF Big Show always spotlights great speakers, the latest trends and advanced technologies; this year’s show was no exception. We had the privilege of attending several valuable sessions presented by some of the top leaders and thinkers in retail. Each had a distinct perspective and pearls of wisdom to share. However, the undertone of these presentations was the notion that successful retailing in 2019 requires a new way of thinking. The traditional approach of placing product on shelves and inviting customers in to fill their carts is a thing of the past. In fact, the most successful retailers are those that are thinking about nearly every aspect in a completely different way.
New thinking about the customer experience
As Brandless CEO Tina Sharkey aptly noted, “Our brand is not about any product we sell, it’s about the relationships that are created.” Technologies like AI, virtual reality and facial recognition all contribute to delivering a more meaningful, richer customer experience in-store that is ultra-personalized. Customers want to see recommendations of the products that are relevant to them – not just those you want to sell.
In addition, retailers need to think about the broader picture. The customer experience is not limited to in-store visits, but shoppers’ experience on your web or mobile site, their interaction with you on social media, and the experience they have in your parking lot or when they return an item. Customer experience is more like a “brand experience” where each interaction is pertinent, precise and personal, no matter when or where.
New thinking about the value of stores
Lee Peterson, EVP at WD Partners, noted that shopping is something we do at home now. If consumers are going to go to the trouble to visit the store, they want an experience. Stores are increasingly a destination where shoppers go seeking a unique feeling or experience that they associate with the brand.
The beauty of reimaging the in-store experience is that there is no single “right” way to do it. While beauty retailer Sephora, is using augmented reality in stores to allow consumers to virtually “try on” different looks and in-store areas where consumers are encouraged to try product, grocery giant Kroger, is using scan-and-pay technology that will eliminate the checkout line. There is more than one way to be successful; the important thing is to start creating a vision of what your brand offers in its physical locations.
New approaches to technology prioritization
At the NRF Show there were many predictions made about the priority technologies for 2019. However, in this age of reinventing retail, there is no standard list of technology priorities. Never before have retailers had so many technologies to choose from and never before have more aspects of retail required automation. The digital transformation involves everything from overhauling inventory management with RFID, to upgrading wireless infrastructure to support shoppers as well as a growing number of wireless devices, to virtual reality for in-store experience. The list is extensive and obviously impossible for retailers to deploy all at once. Retailers must think in new ways about prioritizing technology implementation. Rather than taking a “me too” approach, choosing technologies is a much more analytical exercise that requires a true strategy, ROI and business outcomes. Every technology and every technology investment must have a specific purpose, an impact on the retailer’s ability to deliver on their brand promise and advance the customer experience.
As you return from NRF and dig back into the daily challenges and decisions of operating a retail company, take time to take a new perspective on the tasks you are doing and how it will help you realize a new era in your retail store.
