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ActivatingEngaged Shoppers from the Parking Lot to the Checkout

BOOSTING THE BOTTOM LINE WITH MOBILE-ENABLED SELLING

White Paper

ACTIVATING ENGAGED SHOPPERS FROM THE PARKING LOT TO THE CHECKOUT • 2

84% of shoppers have difficulty finding products on store shelves.

-Aisle411

Today’s shoppers are impatient when it comes to gathering product information, locating specific products and finalizing item pickup or delivery. Most (84%) U.S. shoppers have difficulty finding products on store shelves, and more than 20% of shoppers leave the store without fulfilling their full purchase intent, according to a national survey commissioned by Aisle411.

To better activate the brand-shopper relationship, smart retailers are implementing digital mobile tools that provide assisted selling capabilities. These innovative tools are completely changing the playing field by ensuring that product data is delivered quickly and that consumers complete their purchases.

Additionally, as the popularity of traditional advertising wanes, organizations are capitalizing on digital media to bolster brand awareness, increase their competitive edge, drive revenue and improve customer engagement. From digital signage software to interactive technology, these innovative tools are helping retailers assemble engaging content and deliver messaging to the right shoppers, at the right locations, at the right time.

This white paper will outline a consumer’s path to purchase —from the parking lot to the checkout counter — and the ways digital mobile strategies can positively impact the bottom line.

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1 Engaging with Shoppers Outside the Store

90% of mobile-equipped customers used their devices for pre-shopping activities.

-Google Shopper Marketing Council

Long gone are the days when the in-store experience was the only one that counted. Today, savvy retailers are engaging customers long before they step inside the four walls of a brick-and-mortar environment.

In fact, as many as 90% of mobile-equipped customers used their devices for pre-shopping activities, according to a recent study entitled Mobile In-Store Research: How In-Store Shoppers are Using Mobile Devices, conducted by the Google Shopper Marketing Council. The report also found that 52% of this group consulted their mobile devices for store-related shopping while on their way to the store; 45% did so one day or the night before the trip; and 37% also did so from two to seven days prior to in-store shopping.

The time is right for retailers to “not only search for moments of inspiration to sell to customers, but rather to put together a series of moments that takes the shopper on an entire journey from the very first moment they connect with a retailer,” noted Russell Young, Senior Vice President of Interactive and Mobile Experiences at STRATACACHE. “Whether it’s the moment a shopper begins browsing a retailer’s website or steps onto the parking lot, a retailer needs to start delighting them and creating a whole journey.”

Geo-fencing is one way many retailers are getting a head-start on offering customers incentives to enter a store. By geo-fencing a retail store in a mall, a marketer can deliver a digital coupon to a shopper’s smartphone via a mobile app as soon as he or she crosses a predetermined boundary. In fact, location-based marketing strategies such as geo-fencing

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and check-in services are becoming increasingly popular. As many as 114 million U.S. smartphone users employ check-in services, according to a recent Forrester Research survey. And, Forrester predicts that number will grow to 159 million by 2015.

But engaging shoppers outside the perimeters of a store using geo-fencing tools and check-in services is about more than nurturing a customer journey. More than half (55%) of smartphone owners have conducted an online price comparison during a brick-and-mortar shopping experience, according to a recent Empathica Consumer Insights Panel. Reaching out to consumers before they step foot in a store is an innovative way to combat showrooming — the practice of consumers using retail stores to shop for the best deals before purchasing from an e-tailer.

Consider these two specific examples:

• A pharmacy chain provides a mobile app that prompts shoppers to refill prescriptions or build shopping lists on their smartphones as they walk within a one-mile radius of a store location.

• A clothing retailer delivers real-time mobile alerts to customers about spe-cial sales events or loyalty programs while they’re shopping at a competi-tor’s store.

No wonder mobile geo-fencing is becoming a powerful weapon in the fight against showrooming.

“Many shoppers pull out their phones for a variety of tasks the moment they step foot in a store,” said Young. “But if they’re engaged with their mobile anyway, why not engage them in a way that’s relevant and fulfilling to them as a consumer and help steer their journey from parking lot to checkout?”

Better yet, many retailers are discovering geo-fencing’s ability to not only lure customers into stores and combat showrooming, but to enhance customer service by following up with shoppers as they exit a store. “Retailers want shoppers to leave with a strong take-away and a reason to come back,” Young added. “Geo-fencing is almost like printing a ‘thank you’ message on a customer’s receipt, but in a digital and innovative manner.”

“Geo-fencing is almost like printing a ‘thank you’ message on a customer’s receipt but in a digital and innovative manner.”

-Russell Young, STRATACACHE

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2 Providing Interactive Digital Tools Inside the StoreOnce a customer has set foot in a store, it’s imperative that a retailer take full advantage of this prime business opportunity. Digital media like translucent digital displays, interactive kiosks and embedded QR codes can help by capturing consumers at the point-of-decision and transforming them from evasive shoppers into loyal customers.

One home improvement retailer has taken this strategy to heart and greatly enhanced its in-store customer experience through the use of digital media. The retailer was looking to promote its latest products using immersive videos to generate incremental sales, raise awareness of specific products, encourage impulse buying, and increase basket size through cross-selling and up-selling.

However, managing, monitoring and updating targeted videos in-store for up to eight displays per store required more than just a standard television and DVD player. Rather, the home improvement retailer needed a complete digital media software solution — and fast. So the retailer turned to STRATACACHE for its ActiVia digital signage tool.

The retailer selected the STRATACACHE digital media software platform to power its 22-inch innovation endcaps for dynamic, targeted communication. The networked solution provides the scalability needed to manage all promotional

“Retailers need to make sure that when they’re placing technology in stores that it’s placed in a relevant location, that it provides an immediate value to the consumer and that it initiates a desire for them to want to engage with the digital technology.”

-Russell Young, STRATACACHE

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videos across different locations. As a result, videos and messaging can be easily updated across multiple locations, enabling the company to keep pace with the latest product launches and in-store promotions.

What’s more, the home improvement chain now has the flexibility to control messaging across multiple locations through a simple, Web-based management interface. And in addition to reinventing its in-store shopping experience for customers, the company has created an uptick in sales on products that were featured on the promotional videos.

These days, though, savvy retailers know the importance of installing mobile endcaps strategically in order to promote products at specific, high-traffic locations. Whether it’s a digital display that showcases high-definition, full-motion videos or a state-of-the-art kiosk, Young said that “retailers need to make sure that when they’re placing technology in stores that it’s placed in a relevant location, that it provides an immediate value to the consumer and that it initiates a desire for them to want to engage with the digital technology.”

For example, the home improvement retailer intentionally installed touchscreen displays in its appliance department to promote high-ticket items like washers and dryers. But Young says the same rule

applies whether customers are interacting with displays, cashing in digital coupons using their mobile phones or searching an online catalog.

“Retailers shouldn’t inspire a consumer around a particular product if they can’t fulfill the purchasing part,” warned Young. “Then they’re just getting them all fired up about a product while not being able to actually sell it to them. And that’s going to immediately send the customer to the competition.”

The good news is, solutions such as STRATACACHE’s Traffic Pattern Analysis tool can help pinpoint the optimal locations where digital signage would be most effective. Essentially, intelligent IP cameras analyze consumer patterns by counting patrons and tracking their flow and dwell time through particular areas. This data then provides retailers with valuable information to analyze digital signage placement for maximum impact.

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3 Tapping into the Benefits of Optimized Assisted/Guided SellingConsumers aren’t the only ones benefitting from today’s digital mobile tools. Optimized mobile technology is also empowering a growing number of store associates and managers to cross-sell and up-sell products and services.

“By now, we’re almost used to seeing sales associates running around with tablets because so many retailers have chosen to empower their associates with assisted selling tools,” said Young.

Consider, for example, Luxottica Group, a provider of premium, luxury and sports eyewear. Three of its retail brands — Sunglass Hut, LensCrafters and ILORI — deployed in-store tablets to help transform the shopping experience and bring new capabilities to its traditional systems.

Unfortunately, Luxottica’s 3,100 stores weren’t prepared for the toll such an undertaking would have on its bandwidth capacity. During a pilot, the retailer discovered that it was taking as long as 90 seconds for single Web pages to load — a lag that was frustrating associates and shoppers alike.

It’s a conundrum many retailers face as they increase their use of rich-media and streaming video on the Web. To improve performance in stores and enhance application response times, Luxottica installed STRATACACHE’s

“STRATACACHE’s Retail Cache was fundamental in executing the associate and customer in-store experience.”

-Tom Schuetz, Luxottica

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By alleviating its network consumption with the STRATACACHE Retail Cache solution, Luxottica — parent company of Sunglass Hut — was able to increase response times on the tablet from 90 seconds of painstaking buffering to a mere 1 to 3 seconds.

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Retail Cache solution. This cache appliance provides local storage of remote Web or mobile content, applications, training materials, or media files — an extremely effective means for caching frequently used content accessed by consumers and store associates.

By alleviating its network consumption, Luxottica was able to deliver rich, engaging content at a much faster speed. In fact, response times on the tablet accelerated from 90 seconds of painstaking buffering to a mere 1 to 3 seconds.

“STRATACACHE’s Retail Cache was fundamental in executing the associate and customer in-store experience,” said Tom Schuetz, Senior Vice President and CTO of Luxottica.

That’s because the Retail Cache “better optimizes the available bandwidth that retailers have in store,” explained Young. The result is an innovative tool that “can support or cache everything from inventory lists to product catalogs on-site whether a shopper is accessing a site using their own mobile device or a sales associate is using a company-issued tablet. Either way, Retail Cache takes the frustration out of the interaction because Web pages can be downloaded immediately rather than taking over a minute to buffer.”

What’s more, rather than wait minutes to upload product information and images, sales associates can use customer profile data such as buying history and location to recommend products and services without stepping away from a consumer.

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ConclusionAs of May 2013, 56% of American adults have a smartphone, according to the Pew Internet project. For savvy retailers, that demographic represents a prime opportunity to drive sales, engage consumers and gain a competitive edge in a highly competitive marketplace.

But consumers’ smartphones should be more than just conduits for digital coupons and email blasts. Rather, savvy retailers are implementing digital mobile tools for a number of key reasons:

1. To engage with shoppers outside the store.

2. To provide interactive digital tools inside the store.

3. To tap into the benefits of optimized assisted/ guided selling.

A growing number of retailers are taking advantage of geo-fencing tools and check-in services to connect with customers from beyond a brick-and-mortar location. Another way retailers are leveraging mobile tools is through translucent digital displays, interactive kiosks and embedded QR codes — solutions that can help by capturing consumers at the point-of-decision. And finally, optimized assisted selling is helping to transform browsers into loyal customers, provided retailers use the necessary software tools to ensure proper bandwidth and speeds.

Together, retailers can win the customer engagement battle with optimized mobile solutions.

As of May 2013, 56% of American adults have a smartphone.

-Pew Internet project

A growing number of retailers are taking advantage of geo-fencing tools and check-in services to connect with customers from their smartphones outside the brick-and-mortar store.

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About STRATACACHESTRATACACHE is a privately-held provider of digital media solutions designed to help retailers and brands connect with consumers along the shopping journey. From digital signage to interactive media to in-store mobile engagement, STRATACACHE’s solutions captivate, engage, and activate shoppers. For more information, visit www.stratacache.com or follow us on Twitter @STRATACACHE.

About Retail TouchPointsRetail TouchPoints is an online publishing network for retail executives, with content focused on optimizing the customer experience across all channels. The Retail TouchPoints network is comprised of a weekly newsletter, insightful editorial blog, special reports, web seminars, exclusive benchmark research, and a content-rich web site featuring daily news updates and multi-media interviews at www.retailtouchpoints.com. The Retail TouchPoints team also interacts with social media communities via Facebook, Twitter and LinkedIn.

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