8/30/2016
Bridging the Digital Gap
Kristine Lonergan
When it comes to the world of brick and mortar, things are no longer just straight forward “buy and sell” anymore. In the fast-paced, technologically-friendly consumer world, in order for a retailer to stand out now, it must incorporate some aspect of digital marketing to succeed. There are countless reasons and ways to do this, as highlighted below, however, the bottom line is to target the consumer personally and drive sales.
One way in which retailers have begun to incorporate digital into their stores is through the implementation of RFID tags. These tags, standing for Radio Frequency Identification, are powerful tools to allow the retailer to keep track of inventory and sell each SKU down to the last piece.
How Retailers Use RFID
Needless to say, RFID strengthens relations across all boards from vendors to consumers. In fact, the use of RFID tags have been utilized by companies like Macy’s and Lululemon’s within the past year, evidently having a positive increase on their sales, according to a recent Retail Week story. Sales associates can check product levels up to 24 times a year with no counting mistakes; in the past when done manually, a retailer was lucky to get two counts in a single year. Furthermore, RFID has led to more advanced in-store technology, such as touch screens that enable customers to send product information straight to their phone or to purchase on the spot without a sales associate.
This type of advanced RFID capability can be seen at both UGG and Decker’s shoe stores within the U.S. Each of these retailers have set up a touch screen with corresponding RFID reading mat that once a customer stands on it with the product of choice, the system reads the tag and displays the desired item on screen. The customer then can choose size info, color interest, etc. and eventually buy or link to an online site via text message, blending the physical and online shopping experience.
Capturing Data
Outside of RFID tags to help supplement customer experience, retailers are now implementing what’s known as “clienteling.” This is a way for retailers to get closer to customers and suggest products based on preferences.
This type of integration is huge for retailers for the following reasons:
- Clients are able to make personal connections with sales associates
- It allows for an easier shopping experience
- The ROI is invaluable
- The company is able to generate more information on their target demographic
One notable retailer that uses clienteling is Nordstrom. This company has a phenomenal reputation for its customer service and it all stems from a powerful database that houses information on its loyal shoppers to consistently make them feel special and remembered.
R&D
All of these changes on the retail front don’t come without R&D. In fact, in order to stay ahead of the game many top corporations have implemented what they reference to be “innovation labs” nationwide. These labs are hubs for ideas and brainstorm sessions on the future of digital within the retail landscape. Many of the companies that have innovation labs house them in the area of Silicon Valley, thousands of miles away from their headquarters. In doing so, they work near start-ups who may be on to the next big trend and invest in them to stay ahead of competition.
If you’re company isn’t large enough to set up an entire innovation lab, there’s the potential to set up an innovation team that can think outside the box on ways to incorporate new digital strategies into your store.
As the landscape of digital continues to change, brick-and-mortars will need to find ways to keep up with technology. Traditional shopping no longer suffices for the modern day consumer and the onset of buyer intelligence has posed a unique opportunity for physical stores to give real-time purchases with the integration of an online atmosphere. GP
Kristine Lonergan is vice president of sales & marketing at Golden State Growers in Pittstown, New Jersey. She can be reached at kristine@gardenstategrowers.com.