From app to aisle: How technology will shape the retail customer experience of the future

By Mark Smith, CMO of Linq3

The retail industry is facing a seismic disruption. With the exponential growth of e-commerce, brick-and-mortar retailers feel the pressure to attract customers and differentiate themselves in a crowded space. Retailers must now meet consumers' heightened expectations and demands for convenience by delivering the speed and customization of the online experience in a physical store.

Though this growth can be intimidating, retailers can rest easy in the fact that these "disruptors" serve as opportunities to enhance the in-store customer experience, rather than supplant it. PwC's 2018 Global Consumer Insights Survey discovered an increase in weekly brick-and-mortar shopping over the past two years — specifically, 44 percent of respondents shop in a physical store weekly, compared to 40 percent in 2016.

Retailers are proactively taking measures to respond to shifting consumer desires. Immersive technology is redefining the in-store experience, creating new, digital options to coincide with onsite shopping and advancing the age of instant gratification and personalization.

So how can retailers leverage such technology to reinvent the customer experience, attract shoppers and, ultimately, increase the bottom line.

In-store experiences meet digitization

Consumers no longer shop in brick-or-mortar stores with the traditional expectations of finding and purchasing a product. Instead, consumers approach physical shopping as a complete experience.

From a more optimized layout and interactive store events to tailored customer service, retailers are taking opportunities to the next level – implementing digitization and mobilization store-wide. Above all, customers want convenience, and retailers can offer this by simply meeting customers where they're at. Take, for example, the growth of digital payments. PwC's survey also found that half of respondents use smartphones to complete payment at a brick-and-mortar store, either through customized advance orders, in-store apps or a mobile payment platform at checkout. Mobile technology allows consumers to shop and pay through a variety of methods, eliminating the hassle of cash or swiping a card.

Gamification also is an evolving way to engage customers and build brand loyalty. It seems there is an app or loyalty program for every retailer or restaurant imaginable. Hosting giveaways, allowing customers to purchase in advance through an app and sending personalized notifications based on past purchases are great ways to incentivize customers and keep them coming back for more.

And many retailers aren't going it alone. Retailers are teaming up with innovative technology "disruptors" to use new products to enhance the customer experience — such as joining with a gaming technology provider to fuel play-at-the-checkout lottery experiences. These partnerships spur creativity through technology and allow retailers to distinguish themselves and offer exclusive experiences that surpass their competition.

By harnessing technology to make loyalty and convenience possible, retailers can modify their store around today's consumers.

The age of personalization and instant gratification

Today's consumer wants more from retailers. Broader options, greater personalization and near instant gratification are now considered table stakes for a positive customer experience. Consider the success of Amazon, whose product tailoring and extensive catalog depth have accelerated its rise as an e-commerce giant.

And it's not just small retailers struggling to keep up with consumer demands. Even well-known, large retailers are feeling the pressure to adapt their strategies and offer a more customizable shopping experience.

With advanced marketing techniques, retailers can achieve this customized customer experience. Apps and email programs are good ways to collect data on customers' shopping habits and offer them strategic advertisements or promotions. Many retailers also utilize texting to engage customers on a more frequent and personalized level.

Today's consumer waits for no one. Retail operations shouldn't be the hold up.

Turning demands into opportunities

Consumers' retail demands show no signs of slowing down, but neither does the advancement of retail technology. By utilizing innovative technology, retailers can better anticipate and deliver on customers' desires.

Transforming the in-store experience through digitization and personalization can help continue to attract loyal customers and build a unique brand experience. Though investing in these technologies might have higher startup costs, once implemented, they can scale and grow with a retailer's business and customer base.

The more customers feel connected with a brand, the higher return on investment they can deliver. The in-store shopping experience is clearly changing, but it's not going away anytime soon. By delving into what customers want, retailers can use technology to drive loyalty, sales and, ultimately, a complete reinvention of the customer experience.