Shifting Spend Shows Retailers’ Desire to Transform In-Store Experiences

After a few turbulent years, the stage has been set for retail’s in-store resurgence — fueled by technology.

According to Gartner, retailers are continuing to invest in technology to engage with customers in-store and online — and find new audiences in the process. This spending will focus on marketing and IT functions to target new generations of shoppers, meet rising expectations for personalization and security, and better manage operations across multichannel environments.

Studies also show that retail media is on the rise, with the U.S. in-store retail media spend forecast to increase by more than 30 percent this year. This signals that retailers are prioritizing in-store displays, exploring strategies to deliver the most impact. And, around the corner, artificial intelligence and emerging technology applications such as Internet of Things (IoT) and sensor-based selling.

The bottom line when it comes to customer experience, technology deployment, and display strategies in-store: Spending is back (or not slowing down), so stores need to focus on attracting, engaging and captivating increasingly eager consumers.

Self-Serve Retail Must Blend Physical and Digital Experiences ... Seamlessly

Humans are social beings. It’s one of the reasons in-store retail is seeing a resurgence amid our digital-centric lives. However, we’re all social in our own way. Retailers must remember that in-store doesn’t mean “traditional” in the sense of a cart, a counter, and a register.

Online influence has permeated the consumer buying experience. Nearly 70 percent of online shoppers will read between one and six customer reviews before they make a purchase decision. Consumers like to look at comparative products, and there remains an appetite to price match. In-store, this translates to an informed, consultative in-store experience that doesn’t necessarily involve a representative. Smartphones are influencing accessibility in-store, but the best retailers are finding new ways to deliver digital experience while keeping consumers immersed.

Retailers must ask themselves what information they can display to meet this consumer demand. When shopping, do consumers want to see other colors or options that aren’t in stock? Or comparative offerings? Or shipping dates? That information can now be displayed in real time. Similarly, retailers can leverage digital media players to show product reviews and customer feedback that might answer an important question consumers want answered.

IoT and Sensor Networks Drive Interactivity That's Changing What’s Demanded of Displays

Immersive experiences are becoming less of a “nice to have” and more of a “must have.” Right now, it's all about interactivity. Retailers need to pull people in, captivate them, and have them engage with products. One way this is being made possible is with “lift and learn” and “active” technologies that respond to consumer actions. This is where sensor-powered, IoT-enabled displays come in.

By engaging with a product, such as lifting it, sensors detect activity and trigger a series of actions. For example, it can display more information about that product or associated information about a brand that might influence buying decisions (such as sustainable packaging). All of this happens instantly as consumers touch and feel the product in front of them. Gesture-sensor capabilities are infused into the product experience, fundamentally changing how consumers engage with products on shelves.

Retail Leaders Are Strategically Blurring the Lines Between Advertising and Digital Experiences

Retailers have a choice to make when it comes to how best to use real estate. Do you advertise products, deals or sales that functionally attract customers, or design the most engaging shopping environment that emotionally captivates customers? Can you do both? Every environment is different. But one thing I'm confident in: retail display strategies center on optimizing advertising and experiences — and retailers that make the best use of real estate will win the day.

For example, Walmart and DICK’s Sporting Goods have made efforts to expand opportunities in-store for brands to reach consumers through digitally powered advertising. Retailers are piloting programs that use displays in new places. Furthermore, for brands looking to differentiate their products in-store, the idea of “top shelf” or “front and center” takes on new meaning. Rather than traditional aisles and shelving options, retailers are partnering with brands on digitally powered experiences across the entire store. This could mean an interactive product wall or booth or kiosk in which brands have the chance to both advertise and sell to consumers.

What Should Retailers Do Next?

Retailers should start thinking strategically about blurring the lines between physical and digital shopping experiences. That includes curating the right in-store footprint. They should also continue to prioritize investing in technologies that directly correlate to better experiences, and remain laser-focused on personalization, interactivity and engagement.

When done right, in-store retail truly has the power to move consumers and deliver engaging brand experiences.

Misty Chalk is vice president of sales, Americas at BrightSign, the global leader in digital signage players.