Technology is fundamentally changing shopper behaviour. The ever-present smartphone has reframed our expectations as shoppers: our online lives are always on and we expect the world of retail to follow suit. We want our shopping experiences to be instant, everywhere and personal, which means that we want to be able to shop right now, wherever we are – and we want to be recognised.
Tech is playing a bigger role in the retail experience, but retail brands can hardly expect technology alone to ride to the rescue in a world where physical retail is becoming less relevant to many. The desperate attempts by some retailers to bolt on beacons, adorn premises with QR codes and roll out apps will only produce a long list of fails. Why? Put simply: the customer doesn’t buy it.
New payment methods, in-store analytics, email marketing and mobile channels are all undoubtedly useful tools for brands, but ultimately don’t mean much to the consumer if they don’t make shopping more engaging, interesting and fulfilling.
The way they are used needs to be relevant to changing shopper behaviour and facilitate the change of experience the shopper now expects. Essentially, technology needs to add value to shoppers’ values.
The reality is that technology is now just the cost of staying in the game. What was game-changing last month is the new normal. Expectations constantly change and the competition copies your best practices, so you have to keep innovating to remain relevant to consumers.
But won’t technology give retailers more data on customers to help better understand them? They’ve been collecting it for many years and some still haven’t twigged that it’s not important in itself. Rather, it’s the insight that you take from it and how you apply that insight to improve the shopping experience that’s important.
Amazon uses data extremely well and many other retailers seek to reach that level of sophistication, but that’s not what the customer sees. They see a company that recognises them as an individual, with a history and with particular tastes. We call it customer experience. Customers call it great service and tell their friends and family about it. This is what has helped the company achieve phenomenal results, not the kit it deploys. Data is powerful, but insight is transformational.
There’s no doubt that tech will continue to play a greater role in changing the way we shop, but it has to serve a purpose that enhances the shopping experience. What hasn’t changed is the reaction to a bad experience. If you don’t deliver, shoppers will shift elsewhere. Technology has great potential to help retailers deliver great customer service, but at the moment it can still be a bit “computer says no”.
Other tools will become important too. Social acclimation is an area to keep an eye on. As we spend more of our time connected online, we will look for affirmation from friends on purchase decisions. Technology will facilitate this.
However, like all retail technology, it can’t be used in a “take it or leave it” way. If the customer doesn’t buy into it, then it has failed.
Peter Martin is managing partner, UK head of retail experience at Cheil UK
This advertisement feature is brought to you by the Marketing Agencies Association, sponsors of the Guardian Media Network’s Agencies hub
