Smile payment or hyper-local targeting?
The purchasing process is changing, and the battle of offline and online retail has already become an omnichannel experience. People tend to buy faster, more profitable and more comfortable. But do they need payment by a smile, shop-robots, personalization in messengers and delivery by drones? Analysis of trends in 2019, which is promising, and that the bubble.
How long will the retail survive?
According to reports by the US Department of Commerce, in 2018, online retail grew by 300%, while retail trade has fallen by almost 50% since 2000. The company Shopify, predicts that in the next 3 years, 82% of sales will continue to occur in physical retail. A study by the British agency PushOn showed that more than 80% of buyers prefer to visit the store when it comes to expensive goods.
More than 50% of buyers expect retailers not just purchases, but omnichannel experience: a brand should not only be present in different channels but also create an integrated experience for buyers
This year,Forbes noted the growing popularity of the ROPO model (Research Online / Purchase Offline) - people are increasingly studying offers on the Internet, and then buy it at a retail outlet.
According to a study by Google and Ipsos, 75% of users are looking for information about a product online before buying in a store.
An example of effective semi-channel marketing is the experience of here online shoe seller who aggressively conducts the best shoes advertising on many digital channels, but is an add-on of Amazon on the Internet localization of adoption solutions for the purchase of the most diverse types of shoes, even for pickleball. Interestingly, 9 out of 10 buyers http://101boots.com/best-shoes-for-pickleball-review who started with an online search, ended up on the site of the online giant Internet store.
Buyers are offered to get acquainted in detail with the advantages of a certain shoe depending on their search queries. And for the act of buying the buyer is sent to the site of the giant.
Future technologies in traditional stores
According to analytical company Euclid, 38% of users (and 51% of millennials) would prefer to go to a regular store if the retailer uses innovative technologies. For example, there are no employees in the network of Chinese automated supermarkets BingoBox, and you can buy something there using a smartphone.
Similar Amazon stores do not even need to scan products. The application on the smartphone itself takes into account the goods as the buyer takes them from the shelves or returns to the place. But when all the products are already in the bag, you can simply leave the store and go home. Payment will pass automatically: no queues, scanning of goods and waiting for a check.
Startup Robomart has developed self-managed and fully self-contained grocery stores on wheels. Buyers only need to install the application, place an order and unlock the Robomart doors using the same application. This technology is 5 times cheaper than traditional product delivery and almost 65% of surveyed users said that they would be happy to place orders in this format.
A Swedish startup has developed mobile convenience stores Moby Mart, solar-powered without personnel and without cash registers. This store itself comes to the buyer - just use the application.
Shop without goods: not just shopping
Bright millennial, socialization and deep interaction with the brand are important for the modern millennial and, moreover, for the representative of the Z generation; therefore, large companies are experimenting with retail spaces, filling them according to the expectations of the audience.
The online clothing brand Frank And Oak has opened a barbershop and a coffee shop in its retail stores, and from time to time the team organizes parties for the visitors. Velo Cult, a bicycle sales network, sells craft beer in its stores and invites musicians for small shows.
The three-story concept store Samsung 837 in New York has a cinema, cultural center, art gallery, and cafe. Moreover, brand products in it can be tested, but to buy - only online.
Analysts believe that by 2020, a personalized approach can bring e-commerce brands more than 15% of profit growth (social networks, mobile applications, CRM programs, payment systems, etc.). But in modern retail, more unusual research tools are available.
For example, face recognition technology is already operating in a number of large networks in the world. According to Bloomberg, by 2021 the volume of the face recognition market will reach $ 6.84 billion, although two years ago it was half as much - about $ 3 billion.
The potential of face recognition in retail is much higher, although the legality of using biometric data raises a lot of debate. For example, Walmart decided to use technology to anonymously analyze customer behavior and emotions to improve the quality of service.
Chinese retailers scan faces and put them in a database with the consent of users. The network knows its purchase history and understands what can be offered to it this time. Now only 3% of retailers can identify a buyer when entering a physical store, but 72% plan to introduce such a function over the next 5 years.
There are other solutions. The Japanese Zozo suit independently reads the user's body parameters using sensors. The obtained data is used to order perfectly fitted clothes, created for a specific customer with all the features of the figure.
VR Looxidlabs is a device that can track a look and draw conclusions about a person's feelings. The intellectual system is designed to analyze consumer emotions during the search and purchase of goods.
AR: Shopping in Augmented Reality
The most famous case of the use of augmented reality is the IKEA Place application (allows you to “try on” furniture and other brand products right in the user’s interior). There is a search in the image: you can point the camera of the smartphone on the chest of drawers at a friend’s place, and artificial intelligence will prompt the model name and help you find it in the nearest store.
In the stores of the cosmetic brand Shiseido there are mirrors of augmented reality - with them, you can try makeup on yourself without applying cosmetics.
Volumental is a standalone scanner and mobile application for determining foot parameters, which is already working with New Balance, Bauer and Ecco. With the help of this technology, the buyer can create a 3D-model of his foot, and then - try on shoes virtually, simplifying the process of selection and remote order.
Payment systems: payment by smile
Juniper Research predicts that in 2019, mobile payment systems will use 2.1 billion users, which is 30% more than at the end of 2017. In 2018, Google Pay became the most popular system - it is used by 18.7% of those polled .
At Blackhawk Network, which works with payments, 76% of buyers call ease of payment one of the reasons why they remain loyal to the brand. And the Chinese retail giant Alibaba Group is working on Smile to Pay technology. She is being tested in Chinese restaurants of KFC: to debit funds from the Alipay wallet, it is enough to smile while placing an order at a self-service kiosk.
Delivery by drones and in closed cars
Experiments on improving retail today continue in the field of delivery. There are technologies that open doors and doors for cars to couriers. These innovations increase the credibility of retailers and build a new delivery format: the buyer is no longer needed when receiving the goods.
Companies also seek to increase the speed of delivery - for example, using drones. The Google Wing project is being tested in Australia, delivering medicine and food to home buyers. A Chinese retailer JD.com introduced a drone, which allows delivering an order weighing up to 50 kg within 7 minutes after registration.
Chatbots: AI will be a new UI
According to Oracle, 80% of brands plan to introduce chatbots until 2020 - this is an obvious trend in the retail world. At the same time, the Ubisend study says that only 35% of Internet users want to use chatbots of companies. The reason for this - the technology is still very young. Google Trends suggests that interest in this request only began to appear clearly in 2016. But its popularity is constantly growing, which means that it is possible to predict further positive dynamics.
The main directions of development are the improvement of artificial intelligence and the "humanization" of virtual assistants, which improves consumer interaction. For example, H&M's chatbot helps people make choices and build a basket. The creators of eBay's shopping assistant are now focused on developing customer service and managing online orders: for example, returns and paying for services using chatbots.
Messengers and hyper-local marketing
Obviously, the era of smartphones has greatly changed consumer behavior. Consumers are becoming more mobile and more often buying with smartphones. According to a recent Facebook survey, 70% of customers use a mobile device at least once during a store purchase. People compare prices, read grocery reviews, and share store photos with friends.
In the coming years, it is important for retailers to get as much data as possible about their customers in order to properly target, select comfortable channels and personalize the offer. It is curious that more than 50% of buyers would like to receive individual offers on the phone while they are in the store.
According to forecasts, by 2020 more than 50% of online search queries will be a voice. A year ago, Walmart, in conjunction with Google, launched voice shopping using the Google Home device and Google Express, 250 retail stores have already joined the service. The user can simply tell Google Assistant shopping list, without interrupting workflow or cooking breakfast. The order will be collected and delivered on schedule.
What prospects does voice search open to retail? According to Google, Google Express partners have already noted an increase in the shopping basket by an average of 30%.
The main problem for expanding the geography of voice search is the language barrier. This problem will be solved by large non-English speaking countries in specific international cases with a total cost of several billion US dollars.
Retail of the near future is omnichannel, technologized and personalized. He knows everything about his customer and understands how to use this knowledge. Technologies are able to bring retail business closer to customers. But the main rule is to go from their needs and implement solutions wisely, and not grasp superficially at the brilliant wrappers for the sake of wraps (bots, drones, robots, and other wow factors).
P.S. Let me know if this is interesting and I wouldn't torture the keyboard for anything.