By Chris Gilder
CEO and Founder
Meridian Zero Degrees

Identifying market trends has become, well, a “trendy” thing to do. All too often, though, when such movements are discussed in the self-service industry, there is rarely a clear answer to the question of “so what?”

Taking advantage of prevailing developments in any business can be a risky endeavor. Thus, I want to discuss three critical trends in the self-service marketplace and how to capitalize on these, or any, shifting technologies.

Mobile Integration – It's becoming a necessity in self-service to develop solutions with mobile integration in mind. According to new research from Pew’s Internet & American Life Project, more than 60-percent of Americans own a smartphone; that’s staggering! Nearly two-thirds of American consumers have a smart device at the ready.

This trend is only growing. And as consumers become increasingly dependent upon their mobile devices, self-service providers will have to be capable of deploying solutions that are mobile-integrated in order to remain competitive. This is what the market is demanding and will continue to demand.

Omnichannel – Mobile integration is crucial, but it's only part of the picture. Consumers, now more than ever, want the freedom to conduct a transaction at their leisure. Whether it is via a Web browser, on a tablet or personal computer, at a kiosk, at a brick-and-mortar store or through a combination of all of these, creating a seamless consumer experience is becoming vital to the marketing success of all companies.

As a self-service company, we at Meridian know we have to be in touch with this need and provide solutions that will work in an omnichannel landscape. In fact, there may be cases where self-service solution providers will have to lead the way, guiding companies to an understanding of the necessity of creating a consistent omnichannel experience for their customers. We must be equipped to lead as solutions providers.

Interfacing with New Technologies – Webopedia defines interface as "a boundary across which two independent systems meet and act on or communicate with each other." We're all familiar with user interfaces (UI) like the keyboard or the mouse and with graphical user interfaces (GUI) like Windows or iOS.

Moving forward, our industry will be increasingly shaped by interfacing with new technologies like Bluetooth, facial recognition, character recognition, and others. Understanding how these technologies benefit clients and end users is paramount to any self-service company’s success. Collaborating with partners that grasp these new interfacing technologies makes for widespread innovation; and with innovation comes thoughtful, managed solutions that are good for everyone.

Ideas plus analytics equal a win-win - Now that we know the critical trends shaping our industry, what’s next? How are we to gauge risk versus reward when it comes to capitalizing on trends that may, or may not, take hold in the self-service marketplace?

In my experience, there are two critical components needed to gauge risk versus reward.

First, there must be thoughtful and well-planned proofs of concept that lead to pilot projects. Second, there has to be a plan to collect and measure data. Without these components, a solution provider is no better than a pilot flying an airplane without navigation. There is no way for him to know what is up or down – no information guiding him to the place he needs to go.

Without measurable indicators as to what works and what doesn’t, there is no way to say to a company, "Here is a successful solution to your problem," because no one knows if it is or isn’t. When trying to capitalize on shifting trends, capturing empirical data is vital – it's vital to the self-service solution provider, to the success of its clients, and, ultimately, to the satisfaction of the end user. When we carefully plan proofs of concepts, deploy pilots and measure data, we create a win-win-win scenario instead of wasting time and resources for all parties.

Navigating the landscape of the self-service industry is not easy. None of us can predict the future. But, we don’t have to be soothsayers to be successful. Recognizing trends, testing well-planned ideas, measuring successes and failures with analytics – these are the means by which we can create a winning environment for all stakeholders. 

by Joe Holley
Frank Mayer & Associates, Inc.

Millennials are as large a demographic group as their Baby Boomer parents and their presence is already felt at retail. Their power to purchase and influence is on the rise.

Despite having lived through the Great Recession and carrying an average of $25,000 in student loan debt, Millennials’ $600 billion of spending is projected to increase to $1.4 trillion by 2020. The U.S. Chamber of Commerce is naturally interested in this economically powerful group and concludes they will “completely upend many of the established businesses, methods, and processes that have defined the U.S. Public and private sectors for decades.”

This generation is moving at a pace that legacy retailers are hard-pressed to keep up with. The physical store is still the focus of the vast majority of sales, but there is a plodding but undeniable “any channel” transformation being influenced by Millennials’ desire for shopping without boundaries.

Besides renovating disparate technology platforms, what are retailers doing to court this powerful, ascending generation? Their responses include changes to format, visual merchandising, product displays, digital signage, interactive shopping experiences, location-based mobile communication and targeted product offerings.

Take for example, Macy’s, which is incorporating many of these strategies. They’ve developed apps and installed Wi-Fi. They’re using Shopkick and testing iBeacon for location-based in-store offers. They’re integrating interactive technology into numerous departments to satisfy expectations for immediacy, access and engagement with fresh content. Localized product assortments catering to specific Millennial sub-segments are a part of their merchandising strategy. So committed to this target is Macy’s CEO Terry Lundgren that he has breakfast monthly with a group of Millennial employees to get their feedback.

There are numerous other examples of retail transformation in our latest whitepaper Succeeding with Millennials as well as a list of implications for marketing to Millennials that emerge from vast amounts of research being conducted on them:

• Embrace the multi-channel mindset by catering to expectations for relevancy and accessibility that are rooted in online experience.
• Create store environments that merge physical and digital elements.
• Create environments that are vibrant and dynamic.
• Balance deal-oriented incentives with exceptional experiences in order to win hearts and pocketbooks.
• Develop marketing and merchandising plans that incorporate multi-directional engagement.
• Incorporate opportunities for validating purchase decisions through peers and ratings/reviews.

I’m sure you have others to add.

Glen Young
Sr. Product Marketing Manager
Philips Signage Solutions

Can remote control apps damage your digital signage?

Smartphone technology continues to amaze with so many different features and functions. But the latest one is the one to be extremely wary of in certain situations. Among the most recent advancements coming from the smartphone is a TV remote changer app.  

This app can be downloaded into a smartphone, and all of a sudden, the person holding that smartphone has the power to remotely control a  TV just in case he or she misplaced the one usually found on the coffee table. Who knows? Maybe one of the kids may have picked it up for whatever reason.  

Not a bad app. Life is getting easier with apps like this one.  

However, there’s a downside to this TV remote control app, especially if a business has taken the low-cost route and is using a consumer TV and PC for its digital signage. There's lots of money saved there — but, boy oh boy, there are a multitude of pitfalls associated now with the smartphone remote control apps.  

Let's say it's a highly competitive business. Who's to say, anyone could stroll into a store, restaurant, fast food place, a small retail business or whatever business? With this new remote control app in their smartphone and a few quick strokes, a business's TV-based signage display could be turned off, switched to another channel, or the speaker volume, colors and contrast could be messed up.

It's one thing to take the low-cost route and incur a considerable number of potential problems associated with using consumer-grade TV screens and PCs for a commercial signage application. But it's another thing entirely to get sabotaged without knowing who or where the culprit is.  

Also, it could be that particular business or restaurant is one of the unlucky ones with a commercial signage that lacks a lock against others' remote control ability. But now, a business owner is placing himself in a position where almost anyone coming into the shop can sabotage all the sales efforts promoted on that signage, and the business owner wouldn't be not aware of it until after the damage is done. When I say damage, I’m talking about incurring glitches in the business operations by altering or jeopardizing your sales displays.

While it's a bit more expensive, it makes good business sense to not only upgrade to, or start out with, a commercial-grade digital signage display, installed professionally, as well as making sure to have the key feature of a remote control lock in that new signage or video wall installation.  

A business owner works long and hard to get the business to a healthy level. The last thing he or she wants is to be a candidate for competitive sabotage or a victim of a prankster who'll do damage to a place of business's signage just for kicks via that smartphone remote control app.

By Bill Bishop
Chief Architect
BrickMeetsClicks.com

Stuart Armstrong was pushing the boundaries of using POS data at IRI to understand shopping behavior when I first met him. Today he’s pushing the boundaries of using digital screens to communicate with shoppers inside stores at ComQi.* In between, he developed multi-channel marketing strategies for the consumer goods and retail industries.

I think he has important things to say about where we’re going with the technology-enhanced shopping experience, which changes in the retail environment are most transformative, and how retailers and brands are using interactive screens to build customer relationships.

You’ve spent a long time at the intersection of retail and communications media. How would you describe where we are today?

A lot of the things we’re doing today with omni-channel, big data, technology, millions of dollars, and many hours are taking us back to the future – back to something retailers used to know how to do very well. It’s taking us back to the intimacy of customer service that retailers used to offer.

Back in the day, Sam the grocer might stand on the sidewalk beside his nice-looking produce. When Mrs. Smith walked by with little Patty, he knew what she’d bought, what she liked and disliked, and even that what flavor of penny candy her daughter preferred. It was a great customer relationship. It was personal. He knew her needs and he met her needs. And she talked with her friends about Sam the grocer, the original social media.

Then we moved to the other end of the spectrum with individual consumers. Broadcast media came on the scene, and we went through a bubble. Brands and advertisers developed a theory of reach and frequency, and they built a whole economic structure around mass media: Bombard enough people with messages and the small percentage of individuals that responds will be enough.

Today, we’re trying to get back to the level of intimacy we used to have with individual customers. We may be using technology to get there, but in the end, retail is a high-touch story, not a high-tech story.  We’re using purchase histories and data analysis to re-establish relevance and recency. The more we can relate to consumers at a specific time with relevant information, the greater share of mind we gain and the greater the opportunity to influence purchases.

Which recent developments in retail strike you as most important?

There’s been a tsunami of change in the past 5 years. I think these three are important to recognize.

1. BYOD (bring your own device). Smartphones have spread far and wide in the last 5 years, and 40% of shoppers want to use their device while they are in the store – to compare prices, to scan QR codes, to look up alternatives. It’s changed the in-store experience, and now that people can shop anytime, anyplace, retailers and brands need to be present in the digital space as well.

2. The endless aisle concept. Retailers are trying to do more with less – offer more variety, greater selection, better experiences, but with less square footage. This means smaller on-site inventory and fewer back shelves. The endless aisle enables retailers to say “Sure, we can get that for you” and deliver fast.

3. The potential for technology and data to underpin greater levels of customer service. Frequent shopper programs have mostly delivered a sea of discounts. It degrades the brand and takes away the intimacy. There’s huge potential to use technology to improve customer service.

Powerful synergies arise from these developments. Check-in, for example, is a huge opportunity that touches on at least two of them. Say you go to the big electronics store to buy a smartphone and check in by swiping your device. And say check-in triggers the ability of the sales associate to call up your purchase history. The associate will understand your needs better, and you’re going to get much better service. Using technology and data to deliver customer service like this can bring retailers closer to the kind of relationship Sam the grocer had with his customers. Using it just to push promotions doesn’t create the same kind of intimacy or trust, and the more our customers trust us, the more information they will be willing to share.

What do these changes mean for product brands?

Brands are building stronger presence in stores using the “store within a store” concept. Fashion brands have done this for years in department stores, and CPG and cosmetics brands do it in grocery and drug stores mainly with displays, but brands are branching out into other venues now.

Remember that smartphone purchase? The last time I bought a smartphone, my sales associate walked me over to the manufacturer’s display and introduced me to Sally. “Sally will show you how to use your phone,” he said, and for the next 20 minutes Sally did exactly that. Sally works for the manufacturer, and she was servicing, not selling – but because she was servicing, she was selling.  (Sometimes brands are delivering this kind of service via kiosk or screen.)

Brands used to print and send out mass mailings and figure that ½ to 1 percent of people would trip over them and buy.  Now they’re starting to target stores where they have particular opportunities to grow sales and investing larger amounts of money in those locations. 
 
You talk about the importance of screen-rich environments. What do you mean?

Screen-rich environments are playing a big part in the increasingly interactive store shopping experience.

•     “Public screens” deliver one-to-many messages. You find these on the aisle, over the aisle, or even worked into the décor as part of the millwork; they don’t have to be a screen on a stick.  
•     “Private screens” deliver one-to-one messages and are the best vehicle for customer service. These are the mobile phone screens of individual shoppers, where they can download information and receive personalized offers, support or instruction.

Some screens can do double duty. My company recently helped roll out a digital price board in the automotive service sector that doubles as a “video on demand” screen. Remember Mrs. Smith? Imagine she comes in for an oil change and notices the price difference between synthetic and regular oil and asks about it. Her sales associate might or might not know the answer, but now he or she can use the same sign to show her a 90-second video that explains the difference. Now Mrs. Smith gets the answers she needs to make a decision from a credible source. This would be a powerful tool for many areas within grocery and drug store environments such as health/pharmacy, organics and even the wine department. By the way, it's important to note, that supporting sales in this manner has dramatic effects in increasing sales and trading up the purchase.

Finally, screens can now interact with each other – which means that Mrs. Smith can download the video explaining the difference between synthetic and regular oil to take home and discuss with her husband, and not just in English. If the household is Hispanic why not furnish the information in Spanish? Another example of delivering better customer service that results in increased sales and shopper loyalty.

Which retailers are doing the best job with screen interactivity?

Burberry’s High Street store in London is one of the best. They’ve created an entirely new shopping environment. They can even create a rainstorm to inspire shoppers to buy a raincoat.

There’s a similarly great use of digital screens in the Victoria Secret Harold Square store in New York that includes a 3-story video wall and screen synchronization following the shopper up and down the escalators. (In the interest of transparency, that’s our technology.)

What do you see on the horizon?

More wearables. Google Glass is a prototype, but heads-up display will evolve and wearables will become more common. And more augmented reality, where you can place your phone over a digital or static menu item and it will tell you about calories and nutritional value. Digital signage will serve up targeted content and mobile with will deliver a lot of the information people want without having to print it on a label or a menu or a shelf tag.

*ComQi is a global leader providing a cloud-based Shopper Engagement Technology that influences consumers at the point of decision, in-store, using all digital touch-points: digital signage, mobile, video, touch, web, and social networks. ComQi’s mission is to deliver an end-to-end solution that is tailored to engage consumers by optimizing communications and marketing strategies that provide the best ROI. Learn more about them at comqi.com, follow them on Twitter and Facebook, or visit their YouTube channel.