BEFRIENDING NEW TECHS: HOW TO MAKE DIGITAL DEVICES WORK FOR YOUR STORE

26 March 2016

Will tech-studded in-store experience prove to be an antidote to sagging sales figures? In the world dominated by digital devices, Internet of Things and gadget-obsessed Millenials, retailers resort to cutting-edge technologies in a bid to stay in the game.

Does it mean that any tech will do? Sadly, it is not that easy. Innovative solutions only work out if they satisfy yet unmet needs of consumers or, even better, provide them with new lifestyle gimmicks. The best scenario happens when a retailer gives clients a new tech to help them solve an old problem. There is no doubt that technology and digitization will hugely contribute to changing the retail landscape, including brick-and-mortar stores. However, they should be used within reasonable limits and adequately to circumstances.

Voice of the Customer

Looking at consumers' evolving shopping patterns, one has to conclude that the role of user-generated digital content as an effective marketing tool for both retailers and consumer products brands is likely to get reinforced in the future. Word-of-mouth, or whisper marketing, has come back in a revamped, digitized version, courtesy of social networks. Brands have been exploring ways to tap into the increased influence of shoppers’ product opinions by collecting and skillfully using the data gleaned from shopper-to-shopper online exchanges. Example: online consumer-to-consumer tool by L’Oreal Paris France. The cosmetics giant placed the tool on its website in a bid to boost shopper engagement and loyalty, identify product hits and misses, create more personalized marketing messages, and, ultimately, drive sales.

What's their itch? Finding customers' internal triggers

You do not always need to rely on advertisement to conquer the hearts and minds of millions. Facebook, Twitter and Google have attracted billions of followers without advertising. Retailers can learn from them: what makes these social networks so irresistible and addictive is their habit-forming nature that changes consumers everyday lives.

Facebook serves as a trigger to satisfy an emotional need, whether it helps overcome the feeling of boredom or loneliness or gives the sense of belonging. The formula seems pretty straightforward, yet it works wonders Trigger, action, reward and mystery - this is what retailers should bear in mind when they trying to find the way to keep consumers wanting more from their stores or product offering.

Source: http://www.forbes.com/sites/barbarathau/2016/02/26/retailers-running-scared-turn-to-technology-for-salvation/2/#7f84e73b22a8