Shopper Culture

Humanizing Retail Technology: Always Start with the Shopper

Technology has become an indispensable part of today’s modern retail environment and if used right, allows brands and retailers to ease or augment a shopper’s path to purchase. But to stay competitive, it seems that many stores are introducing tech with the objective of staying up to date, rather than for the benefits of their shoppers.

KPMG summarizes the allure of new retail opportunities: “The new retail world that we have been promised is here. The tools, strategies and technologies required to be successful in this new world are available. The toolbox for success is here, and it’s up to retailers to choose the right tools from the toolbox in order to grow their business.” When Walgreens introduced digital cooler doors that display and target ads based on facial recognition technology earlier this year, they sure dug deep into what is possible. But does it enable shoppers to a more seamless journey, rather than add to the visual noise while shopping?

The same applies to digital shelves, as just introduced by Kroger, displaying price, nutrition, video ads and encouraging shoppers to scan codes to access vouchers and offers. Great technology but does it address a an unmet need of the shopper?

A recent survey shows that shoppers are wary of technology without a clear perceived benefit for them. 58% of UK shoppers think that “emotion detection technology that adapts your shopping experience depending on your mood “is creepy”. The numbers are similar for facial recognition services that recognize preferences and targeted mobile ads based on proximity to stores. 

The Most Glamorous Milan Shopping Center Uses Family-Friendly Experiences to Attract BTS Shoppers

The CityLife Shopping District — opened at the end of last year — is the largest commercial area in Italy and one of Europe’s most extensive. It was designed by the famous Zaha Hadid Architects Studio and provides shoppers with a innovative shopping experience and environment.

This summer, it is tapping into the power of kid request and family experiences to attract shoppers during the summer (back-to-school shopping) months, when Italians typically empty towns to go on holiday. From July through mid September, when schools will re-open, the shopping district will be offering kids and their families the possibility to discover and interact with endangered species through National Geographic Photo Ark. It is an exhibition by the National Geographic photographer Joel Sartore that allows shoppers to experience the lives of endangered species. The experience is robust and interactive, giving shoppers a reason to come shopping and have some summer fun while they do it.

The Photo Ark is an augmented reality system that allows families and kids (and also Integer employees on lunch break) the chance to interact with the animals through AR. The augmented reality show is called Air, Land & Sea and allows shoppers to meet many different wild animals. The AR experience is still quite new in Italy, and this opportunity is attracting many visitors—the first weekend alone has seen the participation of 48,000 people.

The Interconnectivity of Our Smart World

“Related to items you’ve viewed...”

“You may also like…”

“Top picks for you…”

These are just a few of the phrases shoppers encounter when browsing the web as online retailers use data and technology to deliver a hyper-personalized shopping experience. Online retailers are also providing convenience through offerings like two-day shipping and one-click ordering. Shoppers are growing accustomed to this level of personalization and convenience.

As a result, brick-and-mortar retailers are working to meet shopper expectations by adding technology to their stores. For example:

• Walmart is testing robotic shopping carts that scan shopping lists and lead shoppers to the corresponding items.
• Lowe’s is using augmented reality to create an in-store navigation app.
• Fashion label Rebecca Minkoff is leveraging RFID and digital touch screens in its high-tech dressing rooms.

These tech-driven in-store innovations show no sign of slowing down as shoppers grow more receptive to technology. They also provide retailers with an opportunity to collect shopper data and use it to enhance the in-store shopping experience. As technology continues to make its way in-store, how will the shopping journey change?

To read more about this and the examples noted above, download our white paper, 10 Years in Shopper Culture, here. 

Image Source: Chain Store Age

NEW Issue of The Urbanist

The sharply-dressed mannequin in its first-day outfit. The pristine binders already organized with color-coded tabs. And the display placards, alphabetized and hung with care. This month's Urbanist is giving you a retail refresher course in back-to-school spirit. This issue includes:

 

- Shopping Under The Influence, Retailer incorporation of adult beverages

- Beat Your (Previous) Best, Nike's Unlimited Stadium

- Brick and Mortar Built with a Wall of Sound, the Sonos flagship Store experience

- World Trade Center: The Mall

 

Click here to read this issue or explore the website for past issues.

New Issue of The Urbanist

It's summer, which means that brands are firing up their most sultry retail innovations, and sweating for every consumer's attention. But like a fire hydrant turned into a makeshift water fountain, the Urbanist is here with a refreshing stream of retail knowledge. 

In this issue:

– New Numbers Game in Vegas: How MGM is evolving consumer data

– Sip Coffee, Stare at Art, Don't Buy The Cadillac: Cadillac's new showroom experience

– Coming Soon: The latest appliance innovations

– Public Displays of Detection: What's new in OOH advertising

– and more

Click here to read the latest issue

NEW Spring Edition of The Urbanist

This month's issue of The Urbanist discusses the latest shopping trends including:

— Big chains going small

— Car companies going off road

— Redoing retro

— The intel in store.

Click here to read this month's issue or explore past issues at urbanist.integer.com. And don't forget to follow The Urbanist on Twitter for even more urban retail news updates. @_The_Urbanist

Customer Satisfaction: Grocery Shopping vs. Internet Retail

The American Customer Satisfaction Index (ACSI) recently reported declines in customer satisfaction across five different retail industries. Of those, Supermarkets registered their lowest ACSI score in more than 10 years (73).  According to the report, grocery store shoppers were the most unsatisfied with checkout speed (72) and the quality of pharmacy services (76). 

The ACSI also reported that, despite falling a couple points, Internet Retail earned higher customer satisfaction scores than other retail industries. ACSI concluded that shoppers prefer online shopping compared to traditional in-store experiences. This might be an overstatement, because customers could be more satisfied with their online shopping experience vs. in-store experience because they have separate expectations of each.

Virtual Reality is Becoming a Consumer Reality

The highly anticipated Oculus Rift was officially released for pre-order this morning. The virtual reality headset is priced at $599 and will begin shipping in March of this year.

While this new gadget is largely purposed for gamers, its release also signifies that virtual reality is going mainstream. As the headset continues to gain momentum with larger audiences, it could very well become a popular tool for retailers to engage with their shoppers.

Branding at Retail: Now More Than Ever

This Thursday POPAI is hosting its West Coast Show, the only event that takes place on the West Coast to honor point-of-purchase activity. The event features The West Coast POP Show Awards, which includes a competition, showcase and awards ceremony featuring the most creative and dynamic POP and packaging executions sold, produced or marketed on the West Coast. 

The show also includes a panel conversation, titled "Branding at Retail: Now more than ever", moderated by Roberta Perry (Fresh Juice Global and Edwards Technologies, Inc.). Integer's Craig Elston will one of the panelists taking part, along side Stephen Bosch (Brand Truth, LLC), Pete Beck (IDL Worldwide) and Giovanna Dottore (Mattel Inc.). The panel promises to be a lively conversation on the role and effectiveness of branding in-store. 

If you cannot make the show, or to whet your appetite, here are a few recent posts on this topic from ShopperCulture.

Turning Limited Edition into Scarcity

Experiences Prosper Within The Digital Age

Experiences in Urban Retail

Reaching Shoppers While Shopping

According to Integer's I&S Behavioral Economics report, 80% of shoppers’ time in store is spent navigating the store, not considering or buying items. And according to POPAI 2012 Engagement Study, 76% of decisions are made in-store. Thirteen percent of shoppers enter the store without a list and over 70% of shoppers make impulse purchases. The 2014 American Pantry Surveys notes that 60% of consumers say sale prices are the #1 driver for at-the-shelf impulse purchases. So why do shoppers allocate so little time to product consideration and so much to store navigation? What is causing this time delay and frustration? How do you break through the noise? What if you used images and infographics as communication tactics? Studies show that people are spending less time in the aisles focused on products so communication should be quick and easy to process. 

Super Bowl Certainties and Changes

There are a few certainties on Super Bowl Sunday, great ads and great food. Many of this year's ads had the expected (guy) humor we expect but several took a different approach, appealing to a broader audience and choosing to pull on heartstrings and emotions rather than our funny bone. This is not the first year we have seen this, but it seemed that more were partaking. Are we beginning to see a shift in Super Bowl advertising? And how is this playing out across other channels?

In store, shoppers see a range of brands trying to get their attention for the "Big Game." From soda stacked in the shape of a football to sweepstakes, discounts and specialty baked goods, there is a lot to choose from. While shopping yesterday, I saw these usual suspects as I grabbed last minute items for the game. While I didn't see anything out of the ordinary I did get the sense that many brands were marketing to the Super Bowl goers and not specifically men or women.

Retailer, Adapt to the Changing Shopper!

“You can't stop the waves, but you can learn to surf.” ― Jon Kabat-Zinn

New technology and changing shopper behavior imposes new threats on retailers. Traditionally retailers have been looking for ways to combat those trends or mitigate their risks. That's a very defensive and re-active approach to what's going on in the market.

How about turning the threat into an opportunity and capitalizing on new trends. For example, brick and mortar retailers have always considered the online and mobile solutions as a threat. But slowly we are starting to see retailers actually take more of a pro-active approach and figure out how to use mobile and online shopper behaviors in their own favor in-store. Retailers like Best Buy have figured out ways to benefit from the showrooming shopper behavior and actually encourage shoppers to do what other retailers may be scared of. They figured out how physical stores can offer value that online/mobile cannot, and use the online/mobile behavior to drive their own sales in-store.

Have you seen other examples of retailers capitalizing on shopper and consumer trends that may have been perceived as a threat at first? Can you think of threats that no one has turned into an opportunity yet? Share it in comments!

Everyone's Getting In On The Action

The Super Bowl is not only one of the biggest sporting events of the year, but also one of the biggest retail events of the year. According to BIG Research, shoppers expect to spend, on average, $79 this year for Super Bowl related items. That is a $15 increase in spending compared to just 2 years ago. Perhaps there's just a rising price to watch or maybe it's due to greater game day marketing.

It's not just for soda, beer and food brands anymore. Brands of all kinds look for ways to draft off of the excitement and spending that surrounds the big day and digital platforms like Facebook and Instagram offer easy, quick ways to get in on the action. Just today I saw a sponsored Clorox post in my Facebook feed encouraging me to buy toilet bowl cleaner for the big game. I have also seen Uber get in on the action through a game day promotion that includes bar reservations and an Uber ride.

Using the big game in marketing materials definitely grabs shopper's attention, but do you think it's enough to change shopper habits or increase spending? Which brands are true fans and which are bandwagon fans?

Photo Source: Integer ShopPic^TM Library

White Paper: Digital Innovations Bring New Magic to Storefronts

By shifting the balance of power to connected consumers, digital innovation has changed retail forever. Far beyond the simple power to purchase, today’s shoppers can take advantage of the convenience of smartphones and the flexibility of online retailers to decide when, where and how they will transact, even going so far as to customize the merchandise itself. 

 

In view of digital’s rise, what attracts a customer to a physical store today? This question represents a game-changing opportunity for traditional retailers. Stores still offer several advantages that can now be leveraged to turn a shopping trip into an experience by introducing digital innovations. 

 

To read more about the changing retail landscape and how digital can impact the shopping experience click here to download the white paper written by Integer's Rebecca Walt, VP & Director of Digital at Retail, published in the January/February issue of The Hub Magazine (or find it on page 32 of the full digital magazine.)

 

Photo Source: courtesy of adidas, Wi\Sh Technology

"Beauty" Displays: How Can They Tell an Emotional Story?

In store, displays obviously play a fundamental role in “stop-hold-close.” For beauty, displays must do more. They must tell a seductive story to capture the shopper. Beyond the key visual, every element including graphics, materials, shapes and lighting are carefully thought out and combined to express the brand territory and personality. “God is in the detail” could be the mantra of any shopper marketer or designer when they conceive a display for Beauty brands.

On the “I love Dior” display, for example, the use of the black and gold colors, the subtle mix of sophisticated materials, the reinterpretation of the key visual with the curved shape and the glorification of the product by using a mirror, all contribute to building a story of absolute, sensual, and triumphant femininity with of course, a touch of luxurious and glamorous sophistication.

Kenzo Madly builds a story of ethereal and natural beauty for young women by glorifying the blue and the butterfly’s icons and applying them systematically on every retail tool to leave an unforgettable impression in shoppers’ minds.

Givenchy communicates the benefit of the hydra sparkling formula by immersing the consumer into a world of bubbles, water, light and transparency.

 

Implications: In store, beauty brands think brand story and brand experience. Their displays and retail tools are each built like a story for which emotional and sensorial triggers are key. For a beauty brand, the challenges are: beyond the key visual, how do we tell the story? How can we leverage the design to be more emotional and stimulate shoppers’ senses? When promoting multiple brands or products, how do we build a compelling story?

Photo source : http://luxemode.over-blog.com