are you being served? the future of in-store experience

© copyright 2014 rickpalmerconsulting.com

| the future of in-store experience |

a rick palmer insight report

© copyright rickpalmerconsulting.com 2014


Changes in Consumer Behaviour

The rise of the connected shopper has permanently altered

the shopping experience. Online shopping has transformed

consumer purchasing behaviour, giving rise to cross-channel

shopping and far higher service level expectation, yet the in

store experience has altered remarkably little since the early

days of the shopkeeper.


Technology is driving the shift

85% of consumers are now digital shoppers, researching and

purchasing products using the Internet, with the average

connected shopper gathering information from 10 different

sources prior to each purchase.


Expectations are rising

The Internet provides consumers with a wealth of product

and brand information, allowing for highly-informed purchase

decisions to be formed prior to purchase. We are also

increasingly opting to share personal information with brands

in order to enjoy a personalized shopping experience.

AWAITING IMAGE


Bricks and mortar retailers are falling short

There exists a growing divide between customer expectation

and in store experience. We are becoming ever more reliant

on the high levels of service and personalization delivered

online. This has given rise to a growing discontent with the

level of service available in store.


“In this new reality, incremental adjustments to the store format will no longer be

sufficient. To survive, a radical rethink of the purpose of the store in the consumer

shopping journey is required.”


| defining the connected shopper |


The Digital Mass Market

By age, the “Digital Mass Market” (the 85% of us who use

technology to inform our purchase decisions) is dominated

by Generation Y (18-29 years of age), Generation X (30-39

years of age) males and females, and baby boomer females

(50-64 years of age).

GEN X30-39 M/F

BABYBOOMERS

50-64 F

GEN Y18-29 M/F

85%

Other15%


50 50♂♀There is an even 50/50 divide of men and women in the digital mass market


Mobile adoption is accelerating

Smartphone and tablet use, with its tactile input method and

always-on connectivity, has now reached a tipping point with

50% penetration amongst the digital mass market and

further growth projected year-on-year as smart mobile

device adoption increases.


Touchscreen devices are becoming ubiquitous

▪ 54% are currently using or would like to use digital

touchscreens in store

▪ 48% are currently using or would like to use a smartphone

to shop in store

▪ 47% are currently using or would like to use a tablet to

shop while at home


5Five facts about the connected shopper

1. They represent a very broad demographic and are growing in numbers year-on-year

2. They use tablets and PCs at home and smartphones and touchscreens when shopping

3. They demand access to a large amount of information to help inform their purchasing decisions

4. They increasingly expect a personalized service thanks to existing online shopping behaviours

5. They are frustrated with today’s bricks and mortar retail experience


| introducing the connected store |


“In a truly multichannel world, the purpose of the store changes from driving sales of the

product in store to being a brand and product showroom that drives revenues across all

channels”


Reinventing the store experience

The connected store should offer a seamless cross-channel

experience to the customer - personalized, information

abundant, inclusive and “touch and feel”.

It will provide a new purpose and meaning to the store; one

who’s aim is to delight and engage the customer in ways not

possible online.


5Five facts about tomorrow’s connected store

1. It will offer a personalized shopping experience

2. It will be information abundant, providing the shopper with access to in-depth product info

3. It will be entertaining. In store theatre will become ever more important

4. It will be connected. Wi-fi will be ubiquitous, providing super-fast Internet access

5. It will form part of a seamless, cross-channel brand vision


Brand Experience Destination

With the ability to deliver an unrivalled sense of occasion and

theatre, combined with the touch and feel experience of the

physical product, and the personal service offered by store

personnel, bricks and mortar stores have an opportunity to

deliver a retail experience that both complements and

enhances their relationship with the connected shopper.

BRAND


Technology as Enabler

The role of technology should be one of enabler, ensuring

shoppers the optimum cross-channel retail experience,

without over-complicating the purchase cycle.

Technology as dressing should be avoided and a strong focus

on ROI should be remain at the heart of all technology

implementation.

ROI


Connected Stores for Connected Shoppers

Digital shoppers want access to additional and supporting

content via their own devices as well as on store-provided

devices.

They also expect and value a personalized service and a

guided shopping experience, allowing them to browse and

select a broader range than the store can physically

showcase.


Empowered Store Assistants

Store assistants should be empowered with the same high

level of information access as their customers. This should

be demonstrated through the effective use of in store

technology, such as store touch screens and mobile tablet

devices, providing a bridge between the customers own

access to knowledge and the personal service which can be

provided in store.


| technology |


Technology plays an integral role in serving the connected shopper

The following technologies are redefining the retail experience and should be considered

golden opportunities for companies willing to embrace this changing landscape now.


touch and gestural interaction


Touch and Gestural Interaction

New and highly engaging interaction methods are becoming

increasingly cheap to realise.

Today, a screen within reach that does not react to touch is

perceived as broken.

Additionally, gestural input is removing the need to touch the

screen completely, creating surprising and magical new ways

to interact with shoppers.

touch and gestural interaction


Touch touch and gestural interaction

Today, touchscreen technology is ubiquitous, thanks to the proliferation of smartphones and tablet computers. In fact, a

screen within reach that does not react to touch is perceived as broken. In addition to standard touchscreens, touchfilm

can touch-enable any flat surface, allowing for a¨far greater range of opportunities, such as interactive window display.

touchscreen touchfilmfor display for attraction


Touchless Visual Detection touch and gestural interaction

Devices such as Microsoft’s Kinect and Leap Motion have brought in an era of touchless interaction, allowing

customers to control visual displays (such as projections or onscreen content) using in-air gestures alone.

This ‘Minority Report’ interaction provides brands with arresting engagement opportunities.

leap motion

kinect


Holographics touch and gestural interaction

A truly magical presentation medium, holographic display is unrivalled in its ability to create theatre and magic in

window and product displays.

Used primarily as attraction media, holographics can also be employed to create stunning in store product display.

product display cabinet

in window


Transparent LCD touch and gestural interaction

Used to great effect in product display cases, transparent LCD allows for A/V content to “co-exist” with real

world products, creating stunning visual presentations.

Can be used both as attraction media and as a practical method for delivering rich content and product

information to the on site shopper.


computer vision


Computer Vision

Through the use of motion and depth-sensing cameras we

can now “see” the customer. This lends itself to a number of

powerful interactions and tracking opportunities, where

interactive presentation content, alongside valuable tracking

analytics, can be triggered by the presence of a customer.

computer vision


Display Media, Attraction Media, Analytics computer vision

Computer Vision can be used to initiate an interactive product or brand experience at the shelf or deployed as highly effective attraction media in window displays.

CV can detect physical proximity and other movement, as well as metrics such as height, motion, proximity, location, gender, skin tone and even apparel. This provides the retailer with numerous opportunities to deliver both a high impact and highly personalized experience to the shopper.

Through the measurement of environment and product interaction rates, retailers can also benefit from the study of consumer behaviour, helping to drive future learnings.

in display in window

store analytics


projection


Projection

When used in small spaces, such as product display,

(interactive) projection can be employed to enhance real-

world objects with additional contextual and/or informative

content.

Projection can also be employed to dramatic effect on large

architectural structures using 3D projection mapping, to

convert large scale objects into stunning AV presentations.

projection


Display Media & Attraction Media projection

For Display – projection can be used to produce theatre and interactive display at product display. When used in combination with computer vision, products can be made “interactive” through predetermined hotspots, triggering animation, sound or interactive content display.

For Attraction Media – projection is particularly effective when used to produce large format AV displays. Using 3D-mapping, projection can transform architectural objects, such as a shop front or entire building, into a fully animated, cinematic AV canvas.

for display for attraction


printed electronics


Printed Electronics

Electro-Conductive inks now allow for printing of fully

functional electronics directly on to packaging materials,

such as paper, plastic and glass.

When coupled with inductive shelving and wireless power,

printed electronics offer impressive on-packaging lighting

displays and interaction opportunities to attract and delight

shoppers, both in store and in window.

printed electronics


Display Media printed electronics

When printed directly on to packaging, printed electronics can produce impressive lighting effects, directly onto

product packaging. Thanks to the printable nature of the e-ink, complex images and text can be lit and

animated, bringing product packaging to life and producing stunning visual theatre in the store environment.


wireless interactivity (RFID / NFC)


Wireless Interactivity (RFID / NFC)

RFID can be employed to track location, trigger AV content,

lighting or touchscreen content, all at the point of customer

interaction with an RFID-tagged product.

NFC can be employed to deliver content and links directly to

any NFC-enabled device, driving content delivery to

customers whilst retaining closer control over the customer

journey.

wireless interactivity (RFID / NFC)


Display Media & POS / Counter wireless interactivity (RFID / NFC)

RFID can be used to trigger both complementary content and theatre when the customer interacts with a product.

Similarly, NFC can be used to deliver complementary content to a customer’s own NFC-enabled device, or an in store device, providing fast, simple access to information based on proximity to a product.

Both technologies can also be employed at the counter, allowing supporting media to be displayed based on the customers product choice.

RFID tagged bottles trigger

On-screen content

NFC product drives shopper

to web URL

NFC social links


captive portal / passive analytics


captive portal / passive analytics

Captive Portal / Passive Analytics

Until now, the ability to track customer behaviour and

preferences has been confined largely to a brand’s website,

where tracking forms an essential part of the marketing

arsenal.

It is now possible to gain the same insight into store traffic,

providing retailers with data such as dwell times, bounce

rates, repeat visits and in-store positioning.


Captive Portal / Passive Analytics captive portal / passive analytics

In Store Tracking – Through the tracking of the unique signals emitted by consumers’ personal devices, granular data

can be extracted, including customer dwell times, store positioning, bounce rates and repeat visits. Powerful data which

can be used to refine the in store experience

Opt-In Targeting – By offering customers access to a captive Wi-fi portal, brands can further control the customer

journey by offering tailored content to each individual, based on demonstrated interest and build long-term relationships

via email communications.

in store tracking opt-in targeting


mobile payment


mobile payment

Mobile Payment

Decentralized POS removes transaction bottlenecks and

opens up the store to entirely new design concepts. Whether

through the use of sales staff POS devices, or via the

customers own device, mobile payment offers retailers

multiple benefits over the traditional POS counter.


Mobile Payment mobile payment

There are a number of sales staff POS systems available, providing fast, mobile payment alternatives for

customers. Additionally, companies like Square and iZettle are empowering consumer electronic devices. The

future of payment is undoubtedly mobile.

Soon, we will also be able to place orders remotely, and retailers will recognize us on store entry, without the

need to even take the device out of our pocket. Seamless, personal transaction and invisible retail technology is

becoming a reality.


augmented reality


augmented reality

Augmented Reality

Augmented Reality combines a live view of physical reality

(through a camera) with augmented (virtual) content, such

as video, sound, graphics and data.

It provides countless opportunities for brand engagement,

such as virtual product exploration (“try before you buy”

virtual wardrobes) as well as location finding opportunities to

provide directions to products in store and links to more

information online.


Augmented Reality augmented reality

At home - “Try before you buy” provides a highly engaging customer experience, allowing consumers to virtually experience a product from the comfort of their own homes.In Store - AR can be used to provide fast, contextual access to additional product information as well as ’magical’ brand experiences, such as magic mirrors.Attraction - By allowing potential customers to interact with the brand and its products from the highstreet, AR offers powerful engagement opportunities to drive in store visits.

at homeattraction

in store


| recommendations |


A Multichannel Retail Vision

A multichannel retail vision is required to deliver a seamless

experience across channels and to maintain and drive

competitive differentiation..

Online

In Store

On Mobile


A Seamless Cross-Channel Customer Experience

The same level of personalization, customization, access to

information and good service needs to be delivered both on

and offline.


A Suitable IT Infrastructure

A channel-agnostic, flexible IT infrastructure is required to

allow for easy integration of existing and emerging

applications, centred on the customer, not the channel.


Embrace Change

Retailers need to make change “normal” and embrace

continual assessment of the operating model in order to

determine if they are delivering effectively to the connected

shopper.


In Store Theatre

The bricks and mortar experience should centre on a sense

of occasion and theatre, provide the customer with the all-

important touch and feel opportunity and over-deliver

against the brand values of the company, whilst maintaining

a seamless, connected experience to the customer.


A Focus on ROI

In addition to the obvious experience benefits possible

through the successful implementation of technology, the

goal should be to create efficiencies, drive sales and deliver

valuable data to the marketing team.


thanks for reading!

rickpalmerconsulting.com

http://www.rickpalmerconsulting.com

http://www.rickpalmerconsulting.com

are you being served? the future of in-store experience

Marketing

store experience

connected store

store changes

store theatre

store personnel

store format

brand experience destination

mortar retail experience