Last week, Target announced that their customers can now upload gift card balances to their mobile device, which can then be scanned and redeemed in-store. This represents the latest addition to Target’s suite of mobile programs that also allow their customers to view online product assortments, check product availability and store locations, manage their Target gift registry and lists, browse the weekly ad, and receive text and email notifications of promotions, all via their mobile phones.
The Target initiative is yet another sign of a heated retail technology arms race and raises important questions about how or even if the independent retailer can compete in the face of it. When you add in the developments that have taken place in other technologies such as radio frequency identification (RFID), near field communication, augmented reality, and QR code scanning, to name only a few, it’s daunting to say the least.
I’m frequently asked what minimum level of technology small and medium sized retailers need to survive. I’m not sure that trying to achieve a minimum threshold is a productive technology strategy. Instead I feel that the technology you bring into your business (extensive or minimal, expensive or affordable) should directly support the customer experience you’re setting out to create. In other words, the correct minimum level of technology is that which enables the desired customer experience.
Start with the Experience
There’s an impending “parting of the seas” taking place with respect to the nature of in-store experiences as we move into the future. It’s creating an ever widening gap between what I refer to as “fully automated” experiences on one side experiences and “fully animated” experiences on the other.
The fully automated experience will involve in-store systems that enable consumers to self-manage every aspect of their shopping venture, potentially without ever seeing store staff. Each element of the shopping experience will be self-serve, seamless, and efficient. In these environments technology is the hero and is merely supported by people.
The fully animated experience on the other hand will be a very human effort that goes well beyond simply providing service. Expertly trained staff will cater to customers in a very personal way, treating them to an intimate, enjoyable and engaging store experience. Sales associates take on the role of trusted advisers to consumers who are prepared to pay a premium for their expert advice and personal attention. In these environments people are the heroes and are merely supported by technology.Opinions are likely to vary greatly on this but here’s a short list of what I consider to be essential technologies that small and medium sized retailers should be leveraging to support a fully animated customer experience.These hand held devices can also be used to access important product specifications, pricing and other information a professional Sales Associate needs at their fingertips.
One is not inherently better than the other and there will be winners at both ends but very few successful players in the middle. Retailers will need to decide which kind of experience they’re setting out to design: fully automated or fully animated.
For many independents, the greatest opportunities to dominate in their market exist in creating an animated store experience, so the real question is what technology is required to support this kind of customer experience in a cost effective way.
1. Local Search: If customers can’t find the store, the in-store experience won’t matter at all. The future of search technology is undoubtedly location-specific, so at the very minimum, retailers should be making sure that their business is listed with free services like the Google Local Business Center. In just a few minutes key information about the business can be uploaded that will appear in local web search results. Listings can even include photos, video and coupons. Best of all, it costs nothing to create a listing.
2. Social Media and Networking: Just as websites became non-negotiable necessities for business, social media has redefined the terms of reference for retail marketing. I won’t belabor the point but all retailers should absolutely maintain a social presence. Blogging, Facebook, Twitter, Flickr, and YouTube are not only powerful tools to market one’s expertise and value but actively using them will also make a business rank higher in web searches. There are very few legitimate excuses for not leveraging these tools. If help is required in getting started, there’s no shortage of information and consulting support available.
3. Mobile-Optimized Website: The customer’s experience really begins from the minute they search your category on the internet. Increasingly, these searches are being done while consumers are on-the-go. How your website appears on a mobile device can make or break the customer’s decision to visit your location over a competitor’s store. So, in addition to having a modern, easily navigable website, it’s worth investing in formatting it to be visible and functional on the small screen. With the advent of programs such as dotMobi and other services, it’s a relatively simple and cost effective exercise to format your site for mobile browsing. Other programs such as Mofuse enable users to actually create a basic mobile websites that are pre-formatted to popular mobile device specs.
4. Portable Point of Sale: Long line-ups at the cash register don’t do much to support a great in-store experience. In fact, one of the most common complaints among customers is having to wait to pay for their merchandise. One way to alleviate this is to equip the store and perhaps even each sales associate with a portable point of sale device. Once reserved for major retailers, mobile POS programs and hardware are now within reach for most retailers, provided they have some basic system requirements. In fact, a system from Global Bay allows users to convert an iPod touch into a mobile POS unit that interfaces seamlessly with most point of sale systems to actually relieve inventory in real time with sales. Now customers can be checked out on the spot without lining up. This also allows the sales associate to remain with the customer throughout the entire sale, improving service levels and potentially growing the average transaction value.
5. Customer Relationship Management (CRM) Systems: The notion of the “typical” consumer has been eradicated. Increasingly, consumers are less homogenous demographically, more elusive and far more fickle in their preferences. Knowing who your customers are, understanding their unique needs, and maintaining a relationship with them between visits is more important than ever. A quality CRM system will allow you to collect, manage, and act on reliable customer data. With good information you can keep the business in sync with the flow of customers and the pattern of needs and demand. Furthermore, you can communicate relevant offers and value added information to the correct customer groups at the right time.
6. Mobile Marketing: In the past it took years or even decades for technologies to suitably scale down in cost and function for the small-medium sized business. This is no longer the case. In fact, mobile marketing, a comparatively new technology, is already available in various formats to small retail. SMS (text message) programs and even location-based couponing platforms that deliver offers to consumers who come within proximity of the store, are available to forward-thinking retailers who want to meet the needs of tech savvy customers.
End With the Experience
The right retail technology is not always the “shiny new object.” Whether you invest a few thousand dollars or a few million, the truest measure is the degree to which it supports a remarkable consumer experience that customers will share with others.