Exploring the Reality of a Digitally Enabled Store

The role of the brick-and-mortar store of yesterday was simpler — put a product in the hand of the consumer. Stock the shelves. Accept payment. Transaction complete. Retailing used to be a much more straightforward concept before technology.

Today's customer journey has exploded across touchpoints, powered by technology, enabling purchases from around the globe to happen anytime, anywhere. Yet it isn't clear to what extent these innovations are trickling into real-world retail experiences.

My team recently conducted research around retail's physical environment to determine which brands are responding to the challenge of the new, connected consumer and the rapidly changing digital environment. For the second year, we evaluated the physical locations of over 70 U.S. and Canadian retailers across seven key criteria, gathering more than 500 points of data. Additionally, targeted consumer surveys were also issued about similar topics (after all, retail cannot exist without customers, right?).

Retailers that stood out from the crowd successfully enabled integrated technology seamlessly into their daily operations that customers could use and appreciate — and the brand could reap the returns. However, on balance, we found that digital technology hasn't truly reshaped a typical shopping experience in North America.

We were quite surprised to find that 70 percent of retailers had less than "basic interactivity" in their stores. And even among the 30 percent which offered interactive tools, the majority were narrow-point solutions such as kiosks or price scanners, as opposed to flexible solutions solving multiple needs.

If the goal of retail is to become fully integrated, fusing the physical with the digital, then the following assets are recommended to be incorporated into the retail environment:

Mobile Tools
It's not enough to say that a retailer is "going mobile"; retailers need to show that they're "thinking mobile." Many large-format stores provide a glimpse of this mind-set, with updated mobile apps featuring both new content and functions such as wayfinding (i.e., the ability to see your precise location on the store map within the brand's app); product barcode scanning; QR code scanners; and some experimentation in augmented reality. For instance, Macy's flagship store reveals your exact position on its floor plan. Chicago's CityTarget finds the precise spot of items on your wish list within its store. Gap offers a barcode scanner allowing a user to compare prices and read reviews from anywhere while browsing in-store.

Videos, Screen and Store Design
Among more digitally adept retailers, video and screen displays were much more integrated into store designs this year. Retailers are methodically using in-store presentations by placing a large screen adjacent to an endcap or important product area to draw attention (our researchers called this the "lighthouse effect"). These displays serve as beacons to attract customers, but they can also highlight product quality and innovation. Nautica's video zooms in specifically on buttons, stitching and sleeves to emphasize quality craftsmanship. Sometimes, the ceiling can be the key to enhance the intensity of the experience, as found in Victoria's Secret with digital displays.

Retail Exists in Multiple Channels
We should think of shopping as a steady stream of digitally enhanced, interactive and personalized experiences as opposed to fragmented opportunities. Technology must aid multiple steps of the journey, from discovery, consideration/exploration, sales and post-sales.

Consider the latest store from Verizon, which allows consumers to try products in-store and save their Verizon.com online shopping carts to continue shopping once they visit a physical store. The store itself is based around lifestyle zones, such as the "GetFit" zone that allows hands-on experience with the latest fitness tracker while the consumer is on an actual treadmill.

Making Digital Tools "for Me"
As noted earlier, nearly three-quarters of the retailers studied lacked a basic degree of interactivity. Virtual mirrors, shoe builders and body measurement tools enhance the shopping experience by making customers not just want to buy more, but also stay in the store longer and come back for additional purchases due to a more comprehensive, engaging experience.

In the not-so-distant future, narrow solutions will give way to sophisticated cross-channel immersive environments that enable retailers to see a customer all the way through their purchasing journey. New store designs and footprints will allow customers, sales associates and brands to connect and collaborate more. The physical store, which represents 90 percent of most retailers’ revenues, isn't going away. However, the process of reinventing the physical shopping experience will take some time. With the next wave of innovation upon us, the clock is ticking.

Hilding Anderson is the director of research and insights for SapientNitro, an interactive marketing, creative design and technology services agency.