The National Retail Federations’ quarterly look at what shapes retail provides insight into the very latest trends and expectations among shoppers. The “Consumer View Winter 2019”offers little in the way of surprises, but underscores the fact that consumers are pushing retailers to raise the bar when it comes to offering immersive shopping experiences, free shipping and a growing array of fulfillment options. Here are three of the major insights revealed in the report:
“Retailtainment” on the rise– The retail experience is no longer exclusively focused on the in-store purchase of goods and services. Rather, retailers are expected to offer immersive customer experiences and events that offer consumers a meaningful interaction with the brand. According to the report, 46 percent of consumers attended at least one “retailtainment” event in the past year, with 66 percent of Millennials doing so. Retailers are getting creative with their experiences, offering anything from pop-up shops to private shopping events and product demonstrations. The primary prerequisites for offering successful events are having the right retail technology in place and also having the data/insight to understand your customers.
The basics are expected– “Baseline” expectations for retail are changing rapidly. To stay competitive in today’s market, retailers are expected to offer flexible returns, online purchasing, and speedy checkout – just to name a few. These “perks” are far from simple to deliver and require precision processes, cutting-edge retail technologies and flawless operations. If you don’t have these capabilities in place, you need to get there pronto!
More choice on logistics– As stores shift from brick and mortar to “phygital,” consumers demand more flexibility than ever with how they place and receive orders. For example, 75 percent of consumers expect free shopping on orders under $50. Half of shoppers are aware of BOPIS (Buy online pick up in store) and 65 percent of those who have used it say it improved their shopping experience. Retailers must be masters in logistics or partner with other companies to ensure effective and timely delivery and tracking.
Taking the next step
If you’re missing capabilities or critical technologies to “meet the minimum” like offering BOPIS or returns, start planning today. Here are some suggested next steps:
1. Identify gaps– Start by identifying gaps in your existing and desired capabilities. Evaluate if the challenge is related to process, technology, training or all three. Make a list of resources, technologies and next steps required to achieve the desired capabilities.
2. Prioritize critical technologies– Whether it’s RFID to better track inventory, front-end kiosks to streamline BOPIS traffic, or augmented reality to deliver a more immersive customer experience, technology integration is critical to the ability to deliver a satisfactory retail experience. Make a list and prioritize these critical technology integrations, making sure to evaluate applications and uses by different groups within the retail operation
3. Verify infrastructure– There is nothing more frustrating than deploying a new technology and then experiencing less-than-ideal results. In many cases, retailers spend immense amounts of time, effort and resources vetting, validating and implementing new technologies, but fail to assess their infrastructure’s ability to support their new technologies. Don’t thwart the success of your technology project by failing to assess infrastructure.
It’s an exciting new world and consumers are excited to try new things and interact with retail brands that offer meaningful, relevant products and services. Are you offering a retail customer experience that makes you competitive in today’s environment?
