Not Just for Online Orders: Brick and Mortar Stores Leverage Mobile Devices
Prior to this holiday season, experts predicted that at least 40% of online sales would be made via consumers’ mobile devices. At this time last year, mobile smartphone and tablet sales were responsible for generating a collective $40 billion dollars from November through December 2018.
In today’s fast-paced world, that’s no surprise – the convenience makes these types of purchases a huge draw for consumers. Recently, we took a closer look at the different ways retail companies use technology to increase convenience for customers. But how do brick and mortar stores fare in the holiday hustle? The jury is still out on this past December, but last year’s numbers show an unfortunate drop of 7.5% in footfall for retail stores. So, in order to capitalize on the shoppers that do come in, retailers have to change tactics to meet them where they’re at – on their phones!
In a report by iVend Retail, 60% of consumers reported that they use their smartphones when shopping in brick and mortar stores, often motivated by a need to find the best price. That means that if you can offer customers the best price when they’re already in your store, you’ll have the advantage. But giving customers what they’re looking for in-store isn’t the only way to appeal to them via their mobiles. Retailers can use mobile phones to entice customers into stores, reward them for purchases, help them make informed purchasing decisions, and streamline payment once they’re ready to buy.
Why Retailers Are Going Mobile
Beacons
Beacon technology gives retailers the power to grab consumers’ attention before they’ve even decided to shop there. This technology allows mobile apps to use Bluetooth to read and act upon signals from the physical world. With this interesting new marketing approach, consumers can receive exclusive, one-way communications from retailers when their phone pings in a specific location. Passing by the Urban Outfitters in the mall? Maybe an exclusive offer or info on a relevant promotion thrown your way might entice you to stop inside.
Stores like Urban Outfitters, Macy’s, Rite Aid, and Target have seen success using beacon technology to drive traffic to their brick and mortar locations. Beacons are also useful to keep customers in the store. The technology allows retailers to send personalized discounts directly to patron’s mobile devices. These offers can also be tailored to a shopper’s location in the store. For example, when a customer lingers in one particular area, retailers can send additional recommendations on items they might like based on what they’re paying attention to.
In addition to giving exclusive offers to customers, beacon technology can be used to enhance in-store customer experience. Beacons can be used to guide lost customers through the store, using a retailer’s mobile application as if it were Google Maps. This lets retailers provide easy access to those illusive items with no need to tie up store employees on the floor. In a way, beacons allow retailers to automate customer service where it makes sense while simultaneously engaging, rewarding, and exciting consumers.
Beacon technology also provides retailers with an advantage when it comes to meeting changing customer demands. Research conducted by Boston Consulting Group found that, when done well, personalizing the customer experience can have significant benefits for retailers both big and small. Customers indicated that they are 110% more likely to add additional items to a purchase and 40% more likely to spend more than planned when their experience is highly personalized. Not only does a personalized experience prompt the customer to buy more, but they are also 20% more likely to recommend the brand to friends and family.
There are a lot of advantages to adopting beacon technology, but one great benefit to note – affordability. Compared to other cutting-edge technologies gaining notice in the retail space, beacons won’t break the bank. In fact, Product Mavens suggests that everything you need to set up and start seeing gains will only set you back about $100, with easy and quick installation an added bonus. Your customers will appreciate the ability to meet their needs without hiking prices.
Mobile Rewards
Tons of companies have adopted loyalty programs to reward customers that shop with them again and again. This is prevalent in the retail industry, but also increasingly popular in others like transportation and travel. As mentioned, customers often use their mobile device to compare prices to make sure they’re getting the best deal possible, whether it’s prior to making purchases online or done right there while waiting in line at the store. That means if you’re not offering other incentives via a loyalty program already, your business is competing on price alone.
Advantages to implementing a rewards program for your customers include reducing acquisition costs, retaining customers, and increasing referrals. It’s much more cost effective to encourage repeat buyers than to try and attract more customers and incentivizing additional purchases keeps customers coming back and feeling valued. And when a brand makes customers feel valued, those customers are more likely to report their great experience to friends and family. Not only that, but you can further encourage customers to refer others by offering deals to both parties when they get a friend to sign up.
Rewards programs have existed for quite some time among retailers, but mobile rewards programs have changed the game. Major retailers like Dunkin’ Donuts and Domino’s Pizza have seen significant growth from going mobile with their rewards and loyalty programs. Making it mobile takes it directly to the customer, wherever they might be. That means it’s quick and easy to access and can even be fun. Members can track progress at any time and make purchasing decisions that make the most of their points. Set up and maintenance is also faster than rewards systems of the past – no more giving your name and phone number at checkout – so using it provides a much more seamless experience for both customers and store employees.
Another perk of taking loyalty programs mobile means the opportunity to gather more data on your customers. Retailers can learn more details of their customers’ buying habits, such as when they shop, what they buy, and which deals they prefer. They can then use this data to inform and improve the customer experience by giving shoppers more of what they want when they want it. There’s also the opportunity to gather feedback on the application itself, so retailers can use that to improve the user experience as well.
We’ve already mentioned the importance of personalization to a great customer experience, and mobile rewards programs offer another opportunity to customize the shopping experience. Like many online ecommerce brands today, a mobile rewards app lets retailers recommend other products that are relevant to that specific customer based on their purchase history right where they are probably looking – their phone screen. Recognizing life milestones like birthdays makes customers feel appreciated while offering related deals keeps them coming back regularly.
Payment & Inventory
If you’ve ever stopped to grab a latte at Starbucks, you’ve probably seen people flashing their phone screens to the cashier when it’s time to pay. Perhaps you’re even one of those people! In fact, 25% of people with smartphones in the U.S. use mobile payment applications at least once month. Not hard to believe; but what’s interesting is that despite millions of retailers accepting common platforms like Apple and Android Pay, consumers are more likely to be using apps dedicated to one specific retailer.
Accepting major mobile payment applications will soon become essential, but large retailers should also seriously consider creating their own branded solution. These apps are becoming increasingly popular among consumers because they have several advantages over traditional payment methods. We know that convenience is super important to a positive customer experience and going mobile when it comes to payment is a great example.
Ever lingered awkwardly after a purchase while trying to hurriedly stuff your change back into your wallet so as not to hold up others waiting in line? Mobile checkout options remove that frustration, getting you checked out and on your way fast. That fast check out also means that customers have less to lose and even less time to contemplate decisions, resulting in more opportunity for impulse buys. And if customers are also checking out faster, then retailers are increasing the capacity of customers they can serve in any given time frame.
Mobile payment apps also allow customers a greater sense of security, with payment information stored safely in the cloud instead of on the smartphone. Security is increasingly important to consumers, evidenced also by the rise in cryptocurrency and retailers accepting Bitcoin. Giving customers peace of mind when making transactions at your business goes a long way to help ensure they have a positive interaction they’d like to have again and again.
Going mobile for payment gives retailers the power to enhance the customer experience in ways that the average consumer might not even notice. Tracking products sold helps retailers understand customer demand and use the information to affect their inventory decisions and improve the day to day experience of in-store shoppers. If certain products are more popular during certain times of the year, retailers can prepare by increasing orders and having more of that product on-hand when the time comes. If you’ve ever driven across town to buy something only to find that it wasn’t available, it’s likely that you didn’t have the best time. Retailers that can predict consumer behaviors well can be ready to serve their customers in the way they expect, when they expect it, thereby creating a seamless shopping experience.
Making the Most of Mobile
Mobile technology allows retailers to take control of more of their customers’ experience when they’ve decided to buy. However, merely implementing a payment solution isn’t enough to really drive user adoption and encourage spending. Combining the benefits of mobile payment technology with the opportunity for customers to earn points, receive exclusive offers, and have a personalized experience is what it takes to make them download and use your application in the first place. A one-stop-shop for all of their needs at your store, easily accessible on their smartphone, is incredibly enticing to today’s modern consumer.
And while your customers might love the convenience and additional opportunities for saving, there are many additional ways retailers can continue to enhance their time in-store, starting with data collected from mobile applications. In our next installment, we’ll take a look at the many other ways that retail companies are following the data to a better customer experience.
Want to learn more? Contact Geneca to see if a mobile app is the way to go for your retail company!