IoE Is Changing The Retail Landscape. Here's How
In today’s digital world, customers expect a rich palette of retail experiences that provide ever-increasing value and convenience to retail organization. In a recent survey, Cisco revealed how customers, who want a convenient, contextually relevant shopping experience, are showing a preference for Internet of Everything (IoE), which in turn will help retailers capture the new digital consumer through IoE innovations fueled by mobility, video, and analytics.
According to Cisco, most shoppers want innovations that improve convenience and efficiency, extending beyond personalisation into hyper-relevance, which in turn, delivers value—such as greater savings, efficiency, or engagement—in real time throughout the shopping lifecycle
This according to the study can be done by using analytics that helps retailers track in-store patterns and use existing video technology to determine, for example, where shoppers are spending more time in the store and which shelves need restocking, information that can immediately be used to improve shoppers’ experience and drive better store performance.
When asked to identify primary areas for in store retail improvements, 39 percent of consumers identified the process of selecting and purchasing goods - for example, having the products they want in stock and an efficient checkout process. Digital consumers exhibit strong interest in IoE-enabled experiences, creating savings, efficiency and engagement
To help provide guidance to retailers on where and how to make their strategic innovation investments, Cisco tested 19 different shopping concepts with consumers in its survey. Together, these provide a snapshot of consumer receptivity to new IoE-enabled innovations in the shopping experience. These use cases are at the heart of the IoE value that is up for grabs for retailers in terms of revenue uplift and employee productivity. For an illustrative $20 billion retailer, these use cases drive a total gross annual value opportunity of $312 million and a 15.6 percent improvement in profitability.
Drive-Through Lane at Store (57 percent): Order products online from preferred retailers, and then pick them up in person using a drive-through lane at the store.
Same-Day Delivery (53 percent): Same-day delivery at home of orders placed online for a fee of $5 per delivery.
Secure Locker (40 percent): Pick up online shopping orders from a secure locker at a convenient location.
Augmented Reality Offers (73 percent): Use a smartphone to scan products for special customised offers and promotions in the store.
In-Store Guidance (63 percent): Use augmented reality apps to help locate items on their shopping list in the store.
Reviews (57 percent): Use augmented reality apps to receive information about products, such as online consumer reviews or ingredients.
Mobility Enabled Shopping
Smartphone and Tablet Apps Are Becoming the Norm: Nearly half of consumers are using smartphones to enhance their in-store experience. For example, 60 percent customers use smartphone Checkout to scan barcodes on items while shopping to track and pay at a self-service checkout. Fifty percent uses smart carts and a similar percentage uses mobile payment, says the study.
Interactive Digital Signage
The following digital signage including Checkout Wait Times (77 percent), targeted Offers (67 percent) and in-Store Maps (67 percent) which deals with information about the location of a product in the store are often used.
IoE is shaking up the competitive dynamics in nearly all industries, especially retail. Joseph Bradley, Vice President & Founder IoT / IoE Practice said that the opportunity ahead is tremendous. Of the $14.4 trillion in IoE value for the private sector, $1.5 trillion is there for retailers. The key to capturing this value is realizing that digital consumers aren’t static — they’re dynamic. And IoE’s connections between people process, data, and things now enable retailers to engage with customers on their terms — whether rushing through the airport to catch a flight or spending more time than usual in the shampoo aisle.”
Another Oracle study also shows how modern retailers are leading the shift to modern marketing and are ahead of their peers from other industries in key areas including investments in data management and behavior tracking technology as well as marketing integration. According to the study, 46 percent of retail organizations have intelligent targeting capabilities that provide real-time feedback and advanced insights to enhance customer engagements and increase marketing effectiveness. In contrast, only 31 percent of total respondents from other industries cited the same level of targeting ability.
“The retail industry has a long tradition of being customer-centric, and is leading the shift toward more customer-focused modern marketing practices. By embracing new data technologies and taking an integrated marketing approach, retailers are able to create a digital dialogue with their customers and deliver the right messages at the right time,” said Andrea Ward, vice president of marketing, Oracle Marketing Cloud.
Moreover, organizations that embrace IoE and other modern practices outperform their non-modern marketing peers and competitors on key business performance indicators including revenue growth, market leadership, and workplace excellence.
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