Harnessing Technology to Support a Seamless Shopping Experience

The consumer has spoken and the message is clear: having a great physical store experience isn't sufficient; technology must be used to enhance the browsing experience in and out of store. Consumers are demanding seamless access to products through the channels that are most convenient to them. Increasingly, those channels are online and mobile. Therefore, it's no surprise that retailers are moving rapidly to adapt to these new purchasing behaviors, and it all begins with technology.

The nexus between powerful smartphones, integrated with mobile applications that generate data about consumer behavior and sensor-based technologies, is producing sweeping changes in the shopping experience. For many brands, the lines between physical stores and e-commerce are now blurred. The integration is underway and the atmosphere for shoppers is becoming one.

The process begins with accessing the most effective in-store capabilities and digital platforms with the goal of creating a superior shopping experience. If done right, a seamless shopping infrastructure will ultimately lead to deeper customer relationships, increased conversion, more useful data analytics and better supply chain economics. A sampling of the new technology-driven products that retailers are using to better connect with consumers and upgrade their business models include the following:

Mobile apps: Many brick-and-mortar retailers provide interactive maps that shoppers can view on smartphones to locate products, checkout counters, request assistance, check inventory and more. By adding location-based tools, retailers can immediately send coupons and promotions to shoppers based on what they're browsing in-store, the weather, current inventory and shopper history. Furthermore, price comparison apps help shoppers to determine if they're getting the best price, while product identification apps allow shoppers to take a picture of the product and learn more about it. In effect, these technologies empower consumers, while enabling retail stores to tap into the same digital marketing and engagement opportunities that online retailers have employed.

ID (RFID) chips: To create a shopping experience that's entertaining, helpful and data driven, some retailers are sewing radio frequency ID (RFID) chips into merchandise. As a result, when a shopper tries on footwear or clothing, the mirror displays additional information on the product, as well as related accessories and promotions. This interactive feature is intended to better engage the consumer and drive higher rates of conversion.

Smartphones: Retailers are now using smartphones to allow consumers to open accounts, earn points and interact seamlessly in obtaining information and making purchases. These tools deliver convenience and enhance customer loyalty, while improving a retailer's ability to gather consumer data. Some retailers and consumer goods companies are also using smartphones to offer additional information about their products. For instance, manufacturers are implementing technologies that provide details on the origin and freshness of food products. Smart packaging is evolving to more sophisticated interactive capabilities that help shoppers find products as they pass in-store sensors.

Social media: As consumers of all ages and demographics embrace social media and the channel becomes embedded in our digital interactions, evolving use patterns will shape the ways that shoppers find, purchase and rate products. Social shoppers not only swap product likes and deals with online friends, but they've also begun to seek the advice of digital influencers. As these influencers reach more potential shoppers, retail and consumer goods companies have launched initiatives to connect with them and provide products for evaluation.

Sensors and wearables: New technologies that combine sensor-enabled products and smartphones could create new business models for some consumer products companies. The recent popularity of sensor-based fitness devices is just one example of the potential. Other wearable technologies include medical sensors that remind users to take medications. As consumer and medical devices converge with mobile apps, the ways that individuals shop will very likely be transformed. Some retailers are also exploring the use of sensors to improve operating efficiencies. Applications include ensuring shelves are well stocked, confirming that store displays are ideally arranged, and identifying how consumers respond to promotions on a real-time basis.

Advances in technology are transforming consumers’ shopping experiences. As these advances merge, consumers are increasingly benefiting from rapid access to product information, pricing and availability, all in the palms of their hands. With consumers now in charge, it's imperative for retailers to evaluate these and other new tools and upgrade their models. It's all about creating a seamless shopping infrastructure. Those that get it right will ultimately benefit from deeper customer relationships, increased conversion and more efficient operations.

Scott Bauer is principal, U.S. retail and consumer, at PricewaterhouseCoopers (PwC), a multinational professional services firm.