Next level consumer connectivity in retail

In an environment where digital sales are set to double over the next 10 years, reaching an average of 20% to 25%, stores can no longer restrict themselves to playing a solely transactional part. They are going to have to boost their role as purveyors of an image - implying a radically different economic model.

In a new ecosystem that combines physical outlets and digital sales, economic pressures are forcing retailers to seek economical solutions to reinvest in stores. Robots – now affordable and offering substantial gains in terms of competitiveness – are one possible answer. At any rate, retailers need to offer an attractive customer experience, support for individual decisions, and convenience along the entire purchasing process. This means redefining customer relationships, in order to not lose either customers or margins.

Too many customers perceive numerous aspects of in-house shopping as annoying. They are dissatisfied with the alleged core competencies of in-store retailing, such consulting, presentation, convenience and payment processes.

In comparison, online shopping addresses the needs of the individual along the entire customer journey - from the purchase decision to customer loyalty. For the customer it translates to transparency in product information, comprehensive product availability, easy payment options, and optimized delivery concepts that allow for fast delivery of goods to flexible delivery times.

Three technologies are particularly suitable - with varying degrees of customer acceptability depending on cultural background - to remarkably improve the purchasing process in stationary shops.

1. Robots for entertainment and sales promotion
   Receivers or service robots that welcome the customer at the entrance, lead them to the product, and provide product information are now available at reasonable costs and will increasingly contribute to the increase in customer experience in the future.
2. "Augmented" or "Virtual Reality" to enhance the shopping experience and support decision-making
   In stationary shops the digital innovations expanding the real world allow a shopping experience beyond the simple product presentation in the store. They support the targeted customer approach and help to satisfy the customer's need for product information and evaluation.
3. Mobile payment systems to simplify the payment process
   The use of mobile payment systems, i.e. contactless payment with smartphones, allows the stationary retailer to increase the efficiency of the payment process at the cash desk, and to satisfy the customer's need for a simple and fast payment process.

The essential prerequisite for the success of digital assistants is their effective use. However, the benefits of increased efficiency and improved shopping services are still being countered by customers' concerns about a perceived intrusion into their privacy and data security concerns. In addition, customer satisfaction may drop rapidly, if technical expectations for the device are not met.

It should also be noted that the use of digital assistants is only suitable for certain product categories, e.g. mass market fashion or fast-moving consumer goods products with broad assortments, high complexity, high self-service levels, but also personalization needs. The basic prerequisite for the use of digital innovations is therefore that the dealer must know the requirements and expectations of the customer and the suitability of the respective product category.

The future looks bright, if – and only if – stationary retail manages to integrate and effectively use digital innovations to create a competitive advantage, i.e. a "tangible experience" and greater personal proximity compared to online shops.