Learning to love mobile in age of enterprise apps
A disconnect between brick-and-mortar retailers and their mobile strategies could be hurting sales.
According to Adobe Digital Index, smartphones nearly doubled their share of total sales during the all-important holiday shopping season last year. And mobile commerce shows no signs of slowing down; they’re expected to hit a record high this year. By 2020, Forrester Research expects nearly half of all in-store sales to be influenced by digital channels.
Despite the growing importance of mobile, few in-store retailers are leveraging mobile devices to compete more effectively with online stores. What they don't realize is that the rise of mobile doesn't have to come at the expense of sales in brick-and-mortar stores. In fact, mobile devices can actually help drive shoppers into the physical store and improve their experience once they get there.
Just as mobile apps have aided shoppers in everything from price comparisons to checking inventory at their favorite stores, they also offer retailers an opportunity to increase productivity and enhance the in-store experience.
Consumers expect speed, convenience
With the ability to buy nearly anything with one click on a smartphone, consumers increasingly expect that everything involved in making a purchase should be simple and frictionless. Savvy retailers are already adopting mobile apps that help customers shop more efficiently and, as a result, buy more.
Take, for example, the rise of mobile check-out, first adopted on a large scale by Apple Stores and now increasingly popular with brands like Home Depot. Freed from their stations behind the register, employees can now handle check-out transactions anywhere on the floor, thus increasing personal interaction with shoppers.
According to Boston Retail Partners, the number of retailers planning to use mobile checkout will grow by nearly 300% in the next two years.
Mobile apps also have the capacity to heighten retail efficiency.
Outdoor sporting goods company REI, for example, introduced over five apps to aid employees in displaying merchandise. Armed with step-by-step visuals via tablets, two-thirds of sales associates reported gaining more time with actual customers. Individual store displays sprang up in weeks rather than months, and REI saved itself from having to send printed manuals to 140 stores. The ultimate win-win.
Apps can also help employees communicate with each other directly without having to broadcast conversations over a storewide paging systems. For example, a salesperson in the shoe department might message someone in inventory to pull a pair of boots for a customer, allowing the sales associate to remain with the customer and talk up the product.
How well do your employees know your products?
If a shopper walks into a store and knows more about a product than the person who works there, that's a problem.
Today, 74% of all purchases are made by consumers who used the web to pre-research the products they are considering. And smartphones are fast becoming the standard device shoppers use to research products and prices on the fly.
Retailers can get their employees up to speed with apps that index product data and make it searchable -- from warranty specs for appliances to sizing and care instructions for a knit sweater. Apps can be especially useful for larger brands with multiple store locations, ensuring everyone is up-to-date on the newest additions to the product line and the latest marketing campaigns and sales promotions.
Consider Barneys New York's "The Window" fashion publication. By adapting it for mobile, Barneys was able to increase both customer and employee engagement with their brand. Customers scroll through the app for more than five minutes every time they visit it.
Personalization is critical
Every retailer knows that a personalized message is better for sales than an impersonal pitch. Mobile apps utilizing customer analytics can help stores better understand how and where to apply personalization.
On the far cutting edge are beacons, Bluetooth-enabled devices that communicate with a shopper's smartphone within stores. When used in tandem with an enterprise app, beacons can push customer information to employees' devices, suggesting special promotions based on location, interests, and more. When a returning customer arrives, the app could even notify a sales associate or manager so that they can greet the person by name and offer assistance or deals.
Streamlining retail operations
In the age of online shopping behemoths like Amazon, retailers must be highly efficient in order to remain competitive on selection and prices.
According to a Harvard Business School study, companies lose on average 10% of their profits every year due to inaccurate inventory records. But not every business can afford expensive inventory management software systems. Apps make it possible to manage stock in a more cost-effective way.
Modern enterprises need company-specific solutions. How about an app that uses company data to create a customized product assortment for each local store according to customer demand and store attributes? It's on the way.
Management apps can help supervisors assess employee performance and show how often managers are communicating with their peers and employees. It's likely that where managers spend their time in stores has an effect on sales. Now, they'll be able to measure the impact.
Brick-and-mortar stores still have many advantages in today's retail environment. Despite the growth of online shopping, the bulk of consumer retail transactions still occur in physical stores. With smart mobile strategies, in-store retailers can cement those advantages and go head-to-head with online competitors.
Lahary Ravuri is group manager, product marketing and strategy with Adobe.