Part 3 of 4

Until recently, 90% of all purchase decisions were made at the store shelf. Now, the moment of truth is no longer at the store shelf. It’s about buying anything, anytime, anywhere. According to a recent PriceGrabber Survey, 13% of consumers shop online. And of those who still shop in stores, over half also shop on-line or use their smartphones to shop in-store.

So what has changed? Not too many years ago, the sales process was linear. The shopper would view an ad, probably on TV or in a magazine, go to the store, compare options, choose the best option and buy the item. Now, the sales process is non-linear and cross-channel, creating the phenomena of Web-First for many shoppers. But this has resulted in a chaotic landscape of inter-connected channels. And today’s empowered consumer demands a seamless brand experience across all channels. They will only shop where they find it. This is causing a major business disruption for retailers, brand marketers and agencies alike and the rapid transition to omnichannel retailing.

The challenge now is to create a technologically enabled, compelling shopping moments that culminate in lasting, consumer-brand relationships.

To accomplish this, the brand and the retailer must develop an integrated plan built around ”A deep view of the customer at all stages of interaction.” This is OMNICHANNEL RETAILING and includes:

Mobile POS – A recent RIS survey found that 87% of retailer’s plan to deploy POS on a tablet over the next few years

Save the Sale transactions when products are not in stock or not carried in the store

Clientelling for uninterrupted relationship-building and on-going exchange with the customer

Business Analytics to allow associates to inform the shopper in-store of their purchase history, order status and product specs

Most retailers and brands are still driven by the 4P’s – Product, Price, Promotion and Place. Today, they must shift from the 4 P’s to the 4 C’s in the new omnichannel world:

Connections:  In an omnichannel world, retailers need to connect very early in the consumer journey, when they first start researching online. And the shopper expects to continue that connection in-store.

Choice: Store-based retailers must connect their virtual shelf to the store shelf to enable “seamless” shopping.

Convenience: Today’s time-starved consumers are expecting the convenience of shopping online in-store.  Also, they demand the convenience of ship to home, pickup in store or even pickup at another location.

Conversation: Shoppers are looking for conversation and connection with brands they value. Continuing the conversation AFTER the initial sale is critical for today’s brands and retailers.

Studies show that sales opportunities are lost when the consumer can’t get assistance or find a product. Products out-of-stock, products in-stock but not found, or items not carried in the store can reduce store sales by as much as 20%. Lack of sales associate availability can reduce store sales by up to six percent.

The best way to overcome these issues is through in-store Gaming Digital Destinations. This shifts the store’s focus away from simply making a sale to cultivating an immersive brand experience. It also connects physical space to the digital shoppers and brings a level of discovery, fun and education to the in-store experience.

Next article we will dig into the emotional connection of Gamification.

Part 2 of 4
    
Consumers today are more demanding and frustrated than ever with their in-store shopping experience.  And evoking a positive reaction to motivate a shopper to buy a product in a retail store is extremely difficult.

Independent research firms KRC & Vanson Bourne reported in a recent survey of 5,000 adults between the ages of 18 and 69, that there is an overwhelming agreement amongst shoppers that retail ads and promotions do not resonate. And the channels most likely to be LEAST APPEALING are ads through mobile apps, email, online and in-store. However, over three-quarters agree that they would be more likely to purchase from a retailer again if they provided offers targeted to their interests, wants or needs.

Furthermore, around half of those surveyed are prepared to share online preferences and shopping behavior in exchange for receiving ads or promotions that are more targeted to their personal interests and needs.

Almost all would be willing to share at least one piece of personal information if it means they receive more customized offers. And 78% of shoppers would be willing to share their email address.

To attract and converse with today’s “Digital Everywhere” shopper, the store must meet the consumer on their own turf by providing true ”Digital Destinations.” Digital Destinations are a well calibrated combination of psychological, emotional and social ingredients that engage the shopper’s persona, augment the retail store’s physical environment and enhance the brand’s image.  And at the heart of these digital engagements is “Gamification.” Gamification is the study of how games can be designed and used to engage shoppers and create a more stimulating, fun and persistent shopping experience.  For more than a century consumers have been exposed to games when they shopped.  These ranged from Green Stamps to redeeming a free gift for cereal box tops.

Gamification – A chance to win from genres of games, providing the psychological motivation to play and win

“Gaming Digital Destinations” are captivating, fun, bold engagements within the store that carry on beyond the four walls of the space to provide a truly omnichannel experience. At the same time, they create an entertaining experience that motivates the shopper to come back to the store to play again and again.

The Gaming Digital Destinations involve not only the larger screen experience but also the consumer’s mobile screen and the associate’s tablet. And it continues at home leveraging the relationship created at the Gaming Digital Destination.

Gamification relies on an understanding of human psychology to inspire and motivate shopping behavior. The key psychological, emotional and social ingredients of Gaming Digital Destinations include:

Emotional Drivers – Creating a connection with the consumer by triggering one or more of the eight psychological drivers: Self-Creation, Mastery, Dreaming, Security, Playtime, Sport, Sanctuary and Connection

Selfie-Sharing – Creating a two-way conversation between the brand and the digital shopper

Personalization – Using unique visual choices that align products with the distinctive persona

Using these key ingredients, the retailer and the brand can engage the digital shopper to have fun on their in-store Gaming Digital Destination and when the consumer leaves the store, continue that conversation on their pocket screen and home screen — anywhere, anytime.

Next week I will highlight Omni Channel and Gaming Digital Destinations.

A point of sale (POS) network is what you might expect: digital signage that consumers encounter close to a product or service for sale. These screens are usually comprised of in-store or retail digital signs. These are not ad-based networks but merchandising networks.  

It’s all about the shopper and “How can I help you buy something today?” Sometimes, they include screens placed on the end of an aisle, or end cap, near the deli in a grocery store. When in front of a point of sale (POS) network, the consumer has become a shopper. The mindset of a person who has deliberately entered a store is much more attuned to cues and opportunities related to their needs and the wares on sale at the particular store. They are now reachable with more direct offers about products – and particularly offers that now take into account their gender, age and income, for example. These viewers are shoppers. 

The power of this type of network is that the call to action is immediate; the screens are placed where consumers make their buying decisions. The content is attention grabbing, relevant to product and brand, while the consumer is focused on buying.

While retailers and brands have sometimes different goals, one huge trend that is in common is creating a digital experience -- or digital destination -- that is engaging, interactive, personal and connects bricks and mortar with the new digital consumer while in-store. Putting all these together creates real relevance for the content of a POS network because it can create an emotional response that drives desired behavior.