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Energizing in-store ops

10/6/2016

The omnichannel retailing model is forcing brands to bridge the gap between physical and digital retailing. Add in the power of the Internet of Things, and this business transformation is finally within reach. From beacons that send out personalized promotions to frequent shoppers, to smart mirrors that allow customers to virtually “try on” clothing, IoT technologies are transforming the store experience.


If digitally savvy shoppers have taught retailers anything it’s that a traditional shopping experience isn’t enough to drive loyalty.


“As shoppers adopt more digital solutions that make their shopping experience more convenient, they are growing increasingly averse to friction during the shopping experience,” said Joe Jensen, VP and general manager of retail solutions division at Intel.


As consumers demand the ease of omnichannel at store-level, it is not surprising that in-store operations tend to be a top use case for IoT, according to the “2016 Retail Innovation Report,” from the Center for Advancing Retail & Technology. The easiest way for retailers to dip a toe in the IoT waters is to focus on using connected devices to streamline the in-store experience.


Ikea Canada used a pop-up store to test the strategy. Eliminating shopping carts and handheld baskets from the browsing experience, the Toronto pop-up, which opened for two weeks in May, encouraged shoppers to make “smarter” picking decisions.


Armed with an RFID-embedded wooden spoon, shoppers made merchandise choices by waving the utensil against RFID-enabled shelf readers. Upon completing their trip, shoppers returned the “smart spoon” to a dedicated digital sign that displayed their selections and gave them the option to complete the purchase, which were then shipped to their home.


However, where the rubber meets the road is using collected data to drive personalization. By analyzing the data that RFID tags collect throughout users’ store-level shopping trips, brands can analyze patterns to recognize customers and deliver targeted messages via SMS messages or mobile apps as they enter the store.


“Retailers of all sizes should focus on ‘hyper-personalization,’ or programs that target consumers on a one-to-one basis, rather than larger demographic segments,” according to CART.


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