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Retail’s Radical Evolution

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Rita Das

When I was growing up, shopping meant going from store to store in search of the perfect pair of jeans or a new favorite dress. I always had a mission: I was looking for something specific. And even in grocery stores, I loved just strolling the aisles to see which food items looked good and what new products were available.

That was then. Today, the abundance of new technology has fundamentally changed shopping. And not just the buying experience but customer expectations, too. Nearly everything imaginable can now be found and bought online, and – thanks to Amazon – consumers expect packages delivered within 48 hours or less. While I still enjoy grocery shopping in a physical store, shopping for clothes is a different story. The thought of walking around a retail store just no longer excites me.

But this change has caused me to think about the shopping experience overall. So I wanted to share two big trends I’m seeing.

Arrival of Augmented Reality

Augmented Reality (AR) has been “coming soon” to major global retailers but now it feels like it’s really and truly here.

Take Sephora for example. The makeup megastore has an app where customers can virtually try on various makeup products. I can’t tell you how awesome it is to not have to physically apply and remove makeup over and over until it’s right.

The Ikea Place app is similar. It allows customers to get a virtual view of Ikea furniture in their actual room, allowing customers to see how the pieces would fit in their home without any physical effort. Talk about easy!

Both of these apps are a great example of how catering to customer convenience (“try it with absolutely no physical effort”) is driving more brand loyalty. So without a doubt, expect more retailers to follow suit.

Let's get Phygital

In addition to new technology trends, I’m seeing more movement towards “phygital” experiences – that is, experiences that combine the physical and digital to create a holistic and memorable customer experience.

Take Amazon for example. Amazon has been in business as a pure play retailer since 1996. But over the past few years the company has expanded into actual brick & mortar locations with both physical bookstores and Amazon Go.

Last year I got my first taste of Amazon Go and was hooked. The experience was seamless. I walked in, picked up the items that I wanted, put them in my reusable bag, and simply left the store. No waiting in long lines to get a snack, no frustration, nothing. Using AI-powered tracking cameras, Amazon knows what you pick up and charges your Amazon account accordingly. This tracking allows Amazon to make data-driven decisions on what items need to be restocked, what items are best sellers, and more.

Amazon also brought their digital expertise to bear on the physical world with the acquisition of Whole Foods. Since Amazon has acquired it, consumers can now purchase items from Whole Foods online and have them delivered to their doorstep – a great example of this merging of online and off.

With the abundance of technology, it’s no surprise that consumers are expecting more from their favorite retailers. And as a consumer myself, I am nowadays more intrigued by the overall brand experience itself, rather than just strictly the product.

My takeaway: Successful retailers in the future will need to anticipate and provide an amazing customer experience across all channels, physical, digital and beyond.

Check out how CoreMedia can help merge your in store and digital experiences, so you can provide the customer experience your customers expect HERE.

Stage 1: Fragmented: Multiple Channels

You’re a digital dinosaur!

You have a beautiful website, but with fragmented digital experiences, you run the risk of extinction.

It’s time to evolve.

Your audiences want a seamless experience, no matter what's happening behind the scenes. When your experience is different or difficult, it’s important to start with the basics, such as cultivating a holistic approach to online digital experiences. Realign your teams, platforms, processes, goals, and metrics around a comprehensive view of the online experience. Focus on the end-to-end customer journey cutting across channels, desktop and mobile.

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Stage 2: Integrated: Multiple channels

You’re a fish!

Signs of exciting life are starting to form. Your DX is responsive and adaptive but it’s not quite personalized yet.

Keep swimming!

The integration of your brand content across every touchpoint (website, online store, social media, emails, apps, point of sale) creates immersive experiences. These flagship sites combine content-rich brand experiences with immediate conversion capabilities. Business teams and marketing are closely aligned. However, while the digital experience is responsive and adaptive, it’s not yet personalized.

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Stage 3: Instant: Global expansion

You’re a crocodile!

You’re taking it global. Speed and scalability are key and just like a crocodile, you’re fast…but you’re clumsy.

Oh snap!

In this stage, the online digital experience becomes completely dynamic. You need content that is global, yet relevant, with plenty of local insights: Who is the user? Are they using a mobile phone? Is it raining where they are? Is it snowing? If it is, maybe they need warm, waterproof boots. All of this contextualized information creates a better user experience. With one global orchestration, you’re able to adapt everything, in whatever country or language you choose – while keeping turnaround times low. So keep evolving.

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Stage 4: Dynamic: Real time personalization

You’re a lion!

You’re reaching more customers in more countries and languages than ever before, and now you’re finally hunting and collecting info with precision.

But you can do more to keep your brand roaring!

As you graduate to the Instant level, you’re able to rapidly update everything - not just in one language and for one country, but in 20 languages and for 100 countries. Speed and scalability are key, driven by the need to roll out global campaigns in all languages and all touchpoints and make updates in minutes or hours, not weeks. But there’s still more to do to reach nirvana.

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Stage 5: Immersive: Elevated experiences

You’re Captain Content!

You’ve done it! You have opposable thumbs AND you’re saving the world with your seamless, elevated customer experiences.

You're a superhero in the digital space.

Your digital world and your physical world are blending together in the most complementary way possible. When shoppers visit your store, they’ll be greeted with their pre-selected products. Language changes dynamically depending on country of origin – it's like the whole store was set up just for your one specific customer.

In this final stage, your customer experience is truly immersive and superior, and your flagship store merges your physical and digital world into one, with a truly personalized individual experience.

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