In-store experiences will increasingly come to depend upon digital technologies. We are moving quickly from untargeted ads seen by all to highly focused campaigns shown only to those in a very niche audience.
Trends which have over the last few years shaped digital advertising are mainly about utilising data to provide a personalised choice of ads to consumers, based on their purchase history, buying preferences and personal information.
How retailers are personalising the customer experience
Personalised Customer Innovations
In retail, the customer is key. They know best what they want. As a result, direct customer input can be highly effective in creating relevant, compelling and customised experiences in the retail environment.
Real-time interaction and showroom personalisation
Interaction in Real Time
Real time digital interaction has now become entirely possible with the invention of the smartphone and other new and innovative technologies, such as iBeacons. Providing the bridge for the gap which has developed between the in-store experience and shopping online, this is an important step. Retailers can use the information from online buying behaviours combined with location data. The opportunity for up-selling and cross-selling are huge as well as offering the chance to improve customer experience.
Showroom Personalisation
Browsing in-store or ‘showrooming’ has been considered a negative aspect of the retail experience until recently. However, retailers are slowly coming round to the idea that this is actually a positive one. A flagship store where customers can look at products before buying online later is likely to become the norm. The addition of in-store media, such as music from http://moodmedia.co.uk/in-store-media/, can be used to further enhance the experience.
In-store ad targeting and the role of data
Personalised Ads In-Store
Personalised video displays and ads can be displayed to individual shoppers through the use of new technologies like smart shelves. These can detect the customer and identify basic demographic information, including which products the customer is interested in, and then target ads accordingly. It’s a powerful way to increase sales in store and likely to become more and more popular over the coming few months and years.
Conclusion
Data links all of these trends together and as such remains a highly valuable asset. Without detailed information about the consumer, retailers would get lost in the overcrowded digital marketing industry. It is important that retailers maximise the use of in-store analytics to optimise design and improve the tangible retail experience.
Summary
This article looks at four ways retailers are using data and technology to personalise the in-store shopping experience. It covers direct customer input shaping retail environments, real-time interaction enabled by smartphones and iBeacons linking online and in-store behaviour, retailers embracing showrooming, and personalised video ads triggered by smart shelves. It concludes that data underpins all four trends and needs careful use through in-store analytics.
Questions this article raises
- How do smart shelves identify a shopper’s demographic without invading privacy?
- Does showrooming actually increase online sales, or does it just move footfall away from tills?
- What data privacy safeguards should retailers put in place before using this kind of personalisation?
