Amazon recommendations are a huge driver of purchase so why not bring that into the physical retail? That’s what Mondelez is planning for 2015, using Kinect technology to identify shoppers based on facial features and then displaying personalized messages in-store. While this technology exists today, brands need to be very wary of how they leverage that data given the privacy implications.
Tag: retail
iBeacons Solve The Microlocation Problem
Location-based services have been in existence for quite some time, but that doesn’t mean there isn’t room for some serious improvements. If you want to share your location today, you can use GPS and wifi which work to a point, but certainly have their drawbacks. Just think about that time you stood paralyzed on the corner trying to decipher that blue dot on Apple maps before turning left or right. Well, a new feature rolling out in iOS 7 appears to solve that problem, and a few others.
Named iBeacon, Apple’s new feature will make use of Bluetooth Low Energy to send data to phones over short distances, approximately 10-50 ft in range. Using low cost energy emitters from companies like Estimote, companies will be able to deliver contextual data to phones within apps integrating iBeacon’s SDK. The result has many use cases, but the most groundbreaking being indoor mapping, which has been a tough nut to crack for retailers worldwide. Because of its improved location data, retailers will be able to identify where a shopper is, down to the aisle to guide them through the store. Beyond navigation, retailers will also be able to deliver hypertargeted offers and messaging. For instance, if a retailers sees that a shopper has been near the deli aisle too long, why not give them an offer for condiments. Take the big data and run with it. Other use cases range from mobile payments to more precise social check-ins.
Recent buzz around iBeacon has also pointed out its potential to supplant NFC and QR codes which have been used to forge a physical/digital connection albeit with less market penetration and greater cost. That said, tech like NFC will still have it’s unique capabilities as it provides connectivity at the product level, something that cannot be said from BLE.
Despite all of the tremendous benefits of iBeacons, privacy concerns cannot be overlooked which may explain why Apple has been conspicuously quiet about this feature in the iOS 7 announcements. The data accessible through this rollout would give developers a tremendous amount of data, like precisely how long you spent in the bathroom at JC Penney. As always, it is less about the data and more about how you use it, so let’s hope that marketers and app developers are smart about how they communicate this information with their users.
Retail Stores Plan Elaborate Ways To Track You
Big Brother Is Watching You Shop
Big brother is watching and everybody knows it – at least they found out after the Snowden leaks were presented earlier this summer. The public concern over privacy has made services like Euclid Analytics and RetailNext hot issues in the retail sphere. Retailers want to know as much as they can about customers, and these tracking services are getting increasingly effective at gathering a detailed set of data about consumers: where they walk, what they look at, how they feel. The magic is in the ability to consistently track consumers’ cell phones via wi-fi networks, and read their movements and body language with specialized cameras. The consumer experience can be enhanced by the advanced targeting these services make available, and offers can be made more effective based on the data. Some users will certainly be uncomfortable with the uncanny accuracy of a computer’s read on them, but others are likely to fully embrace the technology, participating in retail programs to enhance their experience, and maybe even get a personalized “hello” next time they enter the store.
4 Reasons I Only Shop Online
Last week, I took a nine-day road trip covering the west coast from San Diego to Seattle, a journey that shook up my everyday routine.
Beyond the gorgeous views and even more beautiful spring weather, while popping into a boutique on the trip, I was surprised to realize that it was the first physical store I’ve entered in quite some time (other than my local grocer).
I don’t believe I’m alone. Traditional shopping centers are on the midst of a tremendous decline. Andreesen Horowitz partner Jeff Jordan recently pointed out that “10% of the roughly 1,000 large malls in the US will fail within the next 10 years.” For a bit of fun, check out the Dead Malls blog, which beautifully epitomizes this trend.
But this change isn’t happening in a vacuum. I’ve given some thought to what’s driving this shift, and I believe it boils down to four simple elements:
1. PRICE: Things Cost Less
This is a no-brainer. The web enables a state of near-perfect information, so if a better price is to be had, it’s easy to find. Sites like Amazon and ShopStyle have been leading this shift for a while, though new services like Lyst allow shoppers to track the price fluctuations of individual items across retailers.
2. SELECTION: Online Inventory Is (Relatively) Endless
Heading into a store, I frequently find that I’m not able to find a particular item — especially given the way “fast fashion” brands like H&M and Zara stock their shelves, with new products every week. I also happen to be a fairly average-sized female, so even when the merchandise is in-stock, it’s often the case that my size has been sold out. Shopping online gives me the best chance to find what I’m looking for — or to be surprised by something new.
3. PRECISION: There’s Little Opportunity for Miscommunication
Call me crazy, but nothing is more stressful for a Millennial like myself than needing to speak to a fallible human when a straightforward transaction could better be conducted by a machine. Ordering food is a great example of this scenario. Sites like Seamless, GrubHub and Delivery.com ensure the specifics of my order are clearly communicated to the restaurant and, as an added bonus, eliminate the need for cash.
4. CONVENIENCE: The Web Never Closes
In today’s connected world, we never really stop working, which can make it difficult to find the time to shop in “real life.” We rush home from the office to avoid eating dinner at 10 pm and run from errand to errand on the weekends, hardly leaving the time to relax — let alone leisurely browse the racks at a favorite retailer. Shopping online lets us use the short snippets of free time we do have to make a few purchases without the hassle of leaving the office or the sofa.
So how can brick-and-mortar stores compete?
Smart retailers will use new technology to bring the benefits of online shopping into the physical experience.
• PRICE: Make prices more competitive by delivering real-time offers through geolocated Passbook offers, Shopkick rewards or push notifications for loyal customers through detection of their mobile devices in-store.
• SELECTION: Extend inventory by allowing shoppers to use their smartphones to tap or scan a sample product to purchase a variety of other sizes and styles and have it delivered the next day (at no additional cost, of course!)
• PRECISION: Email receipts to customers for an easy-to-access record of their purchase, as well as simplicity in the case of product returns. (As an added bonus, apps like OneReceipt can scrape your email and conveniently gather your receipts in a single location.)
• CONVENIENCE: Create 24/7 shopping experiences outside the traditional store, whether on the windows of a shop, within out-of-home advertising Tesco-style, or in accessible pop-up locations.
Until then, good luck finding me at the mall.
Amscreen Uses Facial Detection In OOH
The future of Out of Home advertising may lie in facial tracking technology that can identify a consumer by age and gender and optimize the creative accordingly. Outdoor Screen company, Amscreen has teamed up with Quividi to do just that across it’s network of 6,000 screens which reach a monthly audience of 50 million. Thus far, the new measurement solution indicates that 94% of shoppers view the in-store signage making it the highest conversion rate in the sector. The tech could revolutionize performance metrics as well as offline targeting.
Five Missteps From JC Penney
JC Penney’s Ron Johnson was expected to save the major retailer as CEO, but 17 months later he’s out of a job. An insightful article from Time describes five major mishaps they made, most notably around their “fair and square” pricing model that eliminated discounts. In truth, it appears Johnson overlooked JCP’s core consumer who actually enjoyed the couponing game. The article is also quick to point out the lack of focus groups that could have prevented the oversight.
Kate Spade’s Aggressive In-store iPad Integration
In a world where shoppers can access limitless inventory and product information, Kate Spade needed to give shoppers a reason to come in-store. In response, the luxury retailers swapped out paper signs for iPads that display pricing and promotional information in select Tokyo locations. Beyond traditional displays, Kate Spade has incorporated product demos, inventory management, sharing functionality and more all geared at increasing dwell time in stores.
IPSOS Releases Showrooming Study
A new study from IPSOS and the IAB indicates showrooming leads to in-store sales. While 42% of consumers using mobile as a shopping tool made their purchase online, 30% made one in the store. For retailers, the key will be enabling product information and customer reviews in a controlled environment via a mobile app like shopkick or through digital signage. Don’t fight the phone guys, embrace it.
Google To Open U.S. Retail Stores
According to a report released today, Google plans to open retail stores across the United States in order to showcase its expanding line of physical products. The goal is to have the first flagship stores open for the holiday season in metropolitan areas. Google accelerated plans to open physical locations in order to appease customers unlikely to purchase expensive physical hardware, such as Google Glass, without first trying the device for free. Already, Google has Chrome mini-stores inside Best Buy in the U.S. and electronic shops in the U.K, but stand-alone flagship stores would bring Google’s image as a physical retailer to the fore, and win over more Android skeptics.
