pg. 1 Usablenet // In-Store Fact Sheet — June 2013 Transforming the in-store experience with mobile technology THE FUTURE OF SHOPPING Rapid customer adaption of technology is impacting the customer experience in the store. More than 10% of US mobile phone owners have used their phone to look up online product information while shopping in-store 1 . Customers enter a store with a “buy anywhere, fill anywhere” expectation, assuming a store will offer the same prices, product options, and services that are online. According to a recent Forrester report 34% of online shoppers want to view the physical item before purchasing 2 . Moreover, 23% of shoppers will travel to a store to avoid shipping costs. Risking the chance that the item isn’t carried in-store, many shoppers enjoy browsing products or speaking with a store associate before making their purchase decision. Digitization of the Store Technology is transforming customer behavior. Today’s consumer is shopping across desktop, mobile web, tablets, apps, and in the physical store, sharing on social networks, researching products, and comparing prices on all channels. Multiscreen, multichannel shopping means consumers expect retailers to use technology to improve the overall experience. In North America, nearly three quarters of shoppers have used self-checkout and over a quarter have used an in-store kiosk 3 . In response, retailers are embracing the next generation of in-store technologies to deliver a useful in-store customer experience. A few retailers have already begun implementing solutions to cater to new expectations and enable a true omni-channel approach by developing services, rethinking their commerce platforms and POS systems, and investing in the integration of systems. The benefits of using mobile technology in the store play out in the form of better customer service and engagement, enhanced support for store employees, increased operational efficiencies, and communicating innovation as part of the overall brand experience. Let’s take a look at brands that have adopted technologies in-store to seamlessly and effectively achieve business and customer goals. 1 Forrester North American Technographics Retail Online Survey, Q1 2011 US. 2 The Digitization of The In-Store Experience, 2012. 3 North American Technographics Retail Online Survey, Q1 2011.
Transcript
pg. 1Usablenet // In-Store Fact Sheet — June 2013
Transforming the in-store experience with mobile technologyThe FUTUre oF ShoppIngrapid customer adaption of technology is impacting the customer experience in the store. More
than 10% of US mobile phone owners have used their phone to look up online product information
while shopping in-store1. Customers enter a store with a “buy anywhere, fill anywhere” expectation,
assuming a store will offer the same prices, product options, and services that are online.
According to a recent Forrester report 34% of online shoppers want to view the physical item before purchasing2. Moreover, 23% of shoppers will travel to a store to avoid shipping costs. risking the chance that the item isn’t carried in-store, many shoppers enjoy browsing products or speaking with a store associate before making their purchase decision.
Digitization of the Store
Technology is transforming customer behavior. Today’s consumer is shopping across desktop, mobile web, tablets, apps, and in the physical store, sharing on social networks, researching products, and comparing prices on all channels. Multiscreen, multichannel shopping means consumers expect retailers to use technology to improve the overall experience. In north America, nearly three quarters of shoppers have used self-checkout and over a quarter have used an in-store kiosk3.
In response, retailers are embracing the next generation of in-store technologies to deliver a useful in-store customer experience. A few retailers have already begun implementing solutions to cater to new expectations and enable a true omni-channel approach by developing services, rethinking their commerce platforms and poS systems, and investing in the integration of systems. The benefits of using mobile technology in the store play out in the form of better customer service and engagement, enhanced support for store employees, increased operational efficiencies, and communicating innovation as part of the overall brand experience.
Let’s take a look at brands that have adopted technologies in-store to seamlessly and effectively achieve business and customer goals.
1 Forrester north American Technographics retail online Survey, Q1 2011 US.2 The Digitization of The In-Store experience, 2012.3 north American Technographics retail online Survey, Q1 2011.
34%
33%
31%
28%
23%
13%
11%
10%
10%
7%
5%
3%
4%
18-24 25-34 35-44 45-54AGE GROUP
55-64 65+
7% 7%10%
14%
22%Baby Boomers and Seniors are more likely to seek the assistance of a salesperson in-store.
I wanted to see the item before I purchased it
I wanted the product immediately
I did not want to pay for shipping costs
It was more convenient for me to buy this product o�ine
I found the best price o�ine
It would be easier to return the product if purchased in-store
I redeemed a coupon in the store
I prefer buying products o�ine
I needed to talk to a salesperson about the product
The product was not available for sale online
I am not comfortable buying online
I knew that I could not be home to receive the delivery
73%61%
61%56%
4%41%
26%38%
23%24%
14%24%
7%19%
13%16%
Self-checkout at a retail store
In-store price scanning station
An electronic scanning device attached to a shopping cart
In-store computer kiosk
Rechargeable store-value payment cards
A handheld device (used by employee or yourself)
Touchless payment
None of the above
HAVE USED BEFORE
WOULD BE INTERESTED IN USING
Usablenet // In-Store Fact Sheet — June 2013pg. 2
Consumers Have Needs That Only the In-Store Experience Can Cater To
Consumers Show A Strong Interest In Using In-Store Technologies
Q: Thinking abouT producTs you researched online and purchased offline, why did you purchase ThaT producT offline?
Q: please indicaTe which of The following in-sTore Technologies you have used before or would be inTeresTed in using?
source: Forrester research, Inc.
base: 2,545 US online adults who have researched products online and purchased offline
source: north American Technographics retail online Benchmark recontact Survey, Q3 2011 (US)
source: Forrester research, Inc.
base: 4,731 US online adults
source: north American Technographics retail online Survey, Q1 2011 (US)
Creating an Endless Aisle
Maurices, the north American women’s retail chain owned by Ascena retail, found that many of their in-store customers had researched products online before shopping in the store. Store inventory and prices often varied depending on the store and promotions, and this information did not match what customers were finding on the brand’s website. Customer feedback confirmed that Maurices’ shoppers expected the same inventory and prices online and offline. Maurices was not able to fulfill this expectation as its existing store poS system was not connected to the ecommerce platform supporting the website. The retailer not only needed a way to offer online pricing in-store via its poS system, but it also needed the ability to access data from the CrM system for customer preference settings and shipping information.
Usablenet partnered with Maurices to create a solution which enabled key functionality from the web and integrate that with the existing poS system. Usablenet built services and integrated web accessible ApIs to connect Maurices’ existing poS system to the website and enable synchronized in-store and online promotions. Bringing together the data and logic from several sources such as the customer database, website and, fulfillment and the poS system, Usablenet created an online experience in the store that eliminates the constraints from legacy systems. now store associates can seamlessly access a web page to look up inventory, calculate promotional discounts to find the best possible deal for the customer. They can also special-order products for their customers on-location and arrange home shipping.
pg. 3Usablenet // In-Store Fact Sheet — June 2013
Streamlining Customer Service
Designed with the tire shopper in mind, the Canadian Tire kiosk experience provides decision support and assists in tire selection for a range of vehicles, rims and uses. The kiosk frees up store associates to service more customers, while creating efficiencies for customers who are uncertain of which product to buy.
By using the in-store kiosk, customers not only have the convenience of being able to browse, select and compare, and choose tires that match their vehicle, their lifestyle and their budget, but they can also have access to extensive product information that’s generally not available.
once the customer has finalized their tire selection, the results of the session can be emailed or sent to print. The system outputs a SKU which can be used by the sales associate to assist the customer with finding the product and completing the sale using the store poS system.
The kiosks are powered by Usablenet’s web services to deliver calculated product prices based on specific store location and inventory.
Building emotional connections with customers in the store
Aeropostale uses tablets as kiosks in-store to better service and connect with its young, fashion forward teen-age clients and the moms shopping on their behalf.
The ipad tablets are powered by a hybrid application with six core functionalities that engage the user with branded content and enable online shopping in the store. Customers can watch curated videos of seasonal styles and trends, view and shop looks in the Style guide. The outfit-builder allows customers to create complete outfits which they can then buy in-store or share on their social networks and with friends. Shoppers can find and buy items that are not available in-store, and complete their purchase online. payment has been streamlined with paypal. The app uses native functionality to power the ability to scan a bar code from a product and access more information such as user reviews.
The app features music functionality which is particularly successful in keeping teen shoppers engaged. Customers can browse various songs on the Aeropostale playlist and vote for the next song to play in the store. This feature has had tremendous impact on engagement and strengthening the connection between the brand and its millennial customers.
M&S is committed to delivering seamless cross-channel experiences for its customers and increase brand engagement overall. Marc Bolland, Chief executive of M&S describes this commitment as a “transformation of a traditional British retailer into an international, multi-channel retailer.” This strategy relies on innovation through new technology and bringing together online and offline channels into one synchronized, cohesive experience.
At the onset, M&S faced the challenge of how to expand inventory for stores that did not have the footprint to carry the full range of product available on the website. The retailer wanted to create an “endless aisle” experience for store shoppers and simultaneously support their store associates with access to the same or more information than what customers had access to online. In addition, the brand wanted to eliminate barriers to cross-channel shopping while enabling M&S customers to start shopping on one channel, and finish on another.
M&S partnered with Usablenet to develop a full suite of mobile and multi-channel applications. In addition to a mobile website and apps, Usablenet created and powered in-store kiosks, digital touch-screens (called Style online) and a tablet experience for store associates. The Store Associate tablet app makes it easier for associates to assist customers while they are browsing, shopping or completing special orders. The employee tablet app is a streamlined journey of the kiosk solution. (see below)
Style Online digital touchscreens have been installed in M&S flagship stores. The screens showcase the latest fashion trends M&S has to offer while connecting the store shopper to the wider range available online. The 46” screens have a flash application (developed by StartJg) on which the customer can build outfits, watch catwalk videos and browse products. From the basket a code is generated for the customer to purchase from the Browse & order point kiosk or with assistance from a store associate using their tablet.
The “Browse & Order Point” kiosk leverages Usablenet’s Agile Web Services. Using M&S’s website, ecommerce platform, CrM, as well as other content sources, Usablenet was able to create linking structures across M&S systems
to deliver a cohesive kiosk experience. Shoppers can browse content from the desktop site in addition to new content such as videos and interactive tools. Items can be scanned, taking the customer direct to the product so they do not have to spend time searching. The kiosk can output a Qr code, making it possible for shoppers to complete their purchase later or elsewhere in the store. purchases can be delivered to home or to any M&S store, which is a very popular feature!
The most significant multi-channel enabling functionality developed for M&S is “virtual basket” feature. The “virtual basket” is powered by a web-service which allows users to create a basket of M&S products and store it on their phone, or in their account (after log-in). Additionally, the basket of products, which is represented by a UrL, can be transformed into a 2-4 digit alpha numeric code or a Qr code. When the user wants to retrieve their basket, they can either enter the 2-4 digit code, or scan the Qr code at the kiosk or on the store associate tablet. This makes it possible for shoppers to seamlessly carry their basket over between channels, and check-out using any of these devices. Taken together, these digital interfaces and tools allow customers to shop on any channel and enable M&S to deliver on its multi-channel commitment.
Marks and Spencer has seen immense success as a result of its initiative to create deeper cross-channel engagement. Multichannel sales experienced 15% growth within weeks after the solutions were implemented, and revenues from multi-channel increased 16.6% from 2012 to 2013. “Customers shopping across more than one channel are worth more to us”, says Laura Wade-gery executive Director, Multi-channel e-commerce at M&S. “Multichannel is bringing more reach, more spend per customer and new points of entry to the brand.”
Conclusion
In-store experiences, whether customer facing or employee facing, offer a whole new means of customer engagement, the opportunity for stores to capture revenue, and uniting the online and brick and mortar into an omni-channel strategy. retailers need to develop solutions that meet their business and brand goals and live up to customer expectations.
