Sam Walton who invented modern retailing, placed a sign in his first Walmart store declaring: "Satisfaction Guaranteed". One of his 10 Rules for a Successful Business stated: "Exceed your customer's expectations". On another occasion Walton said that customers want a full package – best prices, best location, best service, best products range etc. New retailing is taking Walton's vision a step forward realizing that digital technology has a crucial role to play in modern retailing. We, the shoppers, will get better service, and be able to buy at the most competitive prices, equipped with necessary information, after consulting our friends or other buyers.

In this post I review a few retail trends which will have an impact on next year’s shoppers:

Digital Shopping Experience

Bob Greenberg in his article "Reinventing Retail" suggests that today's buyers expect the Amazon online shopping experience even when they walk around the aisles, i.e. price comparison, recommendations from friends and other buyers. The article offers some examples whereby technology makes offline shopping experience more dynamic, informative and fun:

Walmart has launched "Walmart Smart Network"- an in-store digital signage that displays content relevant to the buyers according to the store and to their location in the store. The buyers enjoy supportive information and the retailers get a real-time indication about the effectiveness of their sales policy. They can also easily manage hundreds of points of sale signs, from one central hub.

Stop&Shop network offers its customers Motorola's mobile scanners, with which they can scan the products while shopping,  keep a running check on their expenditures and receive information about special offers. Shoppers save time and money and networks improve their efficiency and also directly market products to loyal customers according to their shopping habits. Other networks have launched 'Smart Carts' which enable buyers to track their budget, receive updates on deals and search for items in the store.

CBS's short video on new digital buying experience

E-commerce to Offline and Offline to E-commerce

P&G and Amazon represent an interesting trend: brands with strong online presence can expand their boundaries to the 'real' world and offline businesses can create online touching points:

"P&G to Sell Directly to Customers on Web site" – This concept could put the company in direct competition with some of its biggest customers, major traditional retailers.  The site's leaders say it is a consumer research "lab" or only a sandbox from which retailers will benefit because they will get to share its findings on how shoppers respond online and in stores to digital ads, coupons, store promotions and other factors. However in my opinion evolvement of parallel marketing channels is unavoidable because many brands will wish to connect directly to their customers.

‘’Amazon reportedly to open off-line high street stores’’:  The Amazon spokesman declined any new "click and collect" concepts, but again brands should seek to expand their limits and create new touching points with customers. Offline-Online parameters are being blurred.

Collective Buying Power and Influencers

Groupon and Livingsocial present a powerful concept in social economy: collective buying in lifestyle categories such as restaurants, fashion, culture, spas and more. Both offer daily deals, which are realized if enough buyers join the group. Both are location based services.

Hautelook hosts private, limited-time sale events with today's top brands. An interesting aspect of Hautelook's activity is the ‘friend recruits friend’ mechanism. Our buying power is affected by our influencing power. Also Dubit offers a reward to its youth brand ambassadors: mention the brand in your lifestreams and get benefits. Recently, there were claims that in some cases children as young as seven had been offered the chance to become “mini-marketeers”. Yet there is no denying the fact that, differential pricing by influencing power is here to stay.

The startup ad.ly connects brands with twitter influencers. People with many followers are considered to be a highly effective media.  However as with any other media initiative it could backfire if not used wisely and creatively.

The Comeback of Lemonade Stands

Lemonade is a great example of a concept that was ahead of its time. Already in 2007 the startup developed an application allowing everyone to become a mini-marketeer. All you needed to do was to choose products you like, display them on your Facebook profile and share the revenues with the retailer.

The idea that each one of us is potentially a store or a small business is gaining momentum: Tinypay lets us open a lemonade stand in our Facebook, twitter or website. Square, enables everyone with an iPhone to accept payments.

Mobile Phones as Coupons and Adviser

The evolution of cut and show coupons is mobile and location based – Yowza, mobiQpons, Cellfire and Zavers enable the users to search for coupons on their mobile map. These services are likely to stimulate the spontaneity of on-the-go shoppers.

How often have you been in a situation when you were you in a close-to-buy situation but being uncertain, called a friend to ask for advice, product wise, price wise?  With RedLaser, AmazonMobile and ShopSavvy you can scan thousands of products and compare prices, with Fashism and BazaarVoice you will find reviews and rating of the products.

Summary

These new concepts: social shopping, real-time deals, pricing by influencing power, lemonade stands etc. are giving the retail industry a shot of adrenaline. Are we going to see offline kiosks with online top rated products? Will we receive a 5% discount for every 100 Facebook friends? Will we all become retailers of our favorite brands and products?  Whatever – "Satisfaction Guaranteed".

תגיות: retail • reviews