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Retail Industry News

The value of in-store technology


Shopping is now being viewed as more of a social activity, but what does this mean for the highstreet?

The value of in-store technology


"81 of UK customers said that the physical stores were vital to the shopping experience."
Quiz



Recent statistics show that weekly bricks-and-mortar shoppers were up to 40% in 2015 and are expected to increase further to 44% in 2018.

But what does this mean for retailers do you ask? Well, physical retailers now have the opportunity to reduce their stock levels and use the space to create a more interactive experience — paving the way for more in-store tech. Together with QUIZ, retailers of maxi dresses and owner of seven digital-led stores across the UK, we take a look at the importance of having in-store tech:

How do instore visits encourage customer loyalty?

In-store technology is reported to improve a customer’s experience and brand perception. One study revealed that 46% of those surveyed said that a positive experience due to well-functioning technology increases their brand confidence.

Some retailers are recognising this too as one report suggested that 53% of retailers view investments in new automations and appliances in-store as vital to keep up with their competitor activity. It’s possible that having in-store technology in a physical shop can make a brand more attractive to customers, and potentially a better option over competitors. This highlights that not only is technology useful for those who enter the store, but it can also help increase in-store visits and improve brand loyalty.

What type of technology is available to us?

When technology first started becoming part of the retail industry, it was largely the internet and e-commerce that were making changes and, now, most brands are on-board with this. But, recent research still indicates that people value brick-and-mortar stores — in fact, 81% of UK customers said that the physical stores were vital to the shopping experience. So, when it comes to improving the high-street and implementing in-store technology, what should retailers be getting involved with?

In-store technology can also help staff become better informed and more helpful to the customer. One way to do this is by providing employees with handheld iPads or other smart tablets. This allows staff to find the answer to a query, check a product’s availability and place orders for the customer without having to use a fixed computer. This can improve the customer’s experience and help build a stronger brand-to-customer relationship.

Augmented reality is one type of technology we now have available to us. But what is this do you ask? This can help the customer with their purchase decision and help them visualise themselves with the product. Although this can be made available through an app, there are also ways to introduce it in-store. In a fashion store for example, a smart mirror can allow customers to dress themselves in different outfits without actually trying them on. Similarly, in a furniture store, visitors can upload a photo of their home and try out pieces of furniture to see if it would suit their rooms.

Research has discovered that kiosks powered by artificial intelligence (AI) are popular with customers. However, not all retailers are getting on board — 66% of those surveyed in one study said that they were yet to encounter artificial intelligence in-store. Do retailers realise the huge potential of this type of technology? In fact, 60% of consumers are attracted to the idea of using them to find products that they weren’t aware of before. As an example, in QUIZ’s digital stores, an in-store kiosk enables visitors to browse the full collection (even if some products aren’t available in-store) and order them to their homes or local store.

Technology’s not perfect

RetailWeek found that two thirds of those surveyed had experienced problems and breakdowns in-store with the technology. Unfortunately, this then affects sales — one third of customers said that they were unable to complete their transactions because of the technology difficulties.

Negative experiences like this can deter customers from revisiting the store and can make them leave the store with a negative opinion of the brand. Retailers must keep software and technologies updates and well-maintained to avoid issues like this. This can be frustrating and add time onto a customer’s visit which may result in a negative experience.

Similarly, if technology is difficult to use, this can deter customers from getting involved with it. This could make people feel excluded too — in-store tech should be simple to use, and visitors should be accompanied when using it if it’s more complex.

As we can see, in-store technology is becoming more important. Although customers are happy to shop online, they also enjoy shopping as a leisure activity and appreciate an interactive experience when doing so.

 

Sources

https://www.pwc.com/gx/en/industries/retail-consumer/consumer-insights-survey.html

https://www.forbes.com/sites/forbescommunicationscouncil/2017/06/20/the-future-of-retail-how-well-be-shopping-in-10-years/#21188bbe58a6

https://www.itproportal.com/features/consumers-love-in-store-technology-so-its-time-for-retailers-to-respond/

https://internetretailing.net/themes/themes/quiz-brings-digital-into-westfield-stratford-store-15243

https://www.fool.com/investing/2018/07/06/can-in-store-technology-slow-the-retail-apocalypse.aspx

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