Virtual In-Store Testing: Bridging the Gap Between Concept and Reality

Despite the rise of e-commerce, in-store shopping remains a vital part of the retail landscape. An analysis of omnichannel shoppers at Kroger stores shows this cohort still makes 83 percent of their visits in-store. Additionally, approximately 75 percent of omnichannel shoppers claim that they prefer to head to a store to purchase fresh produce, bakery items, deli/meat and seafood.

However, in an omnichannel world, where competitors are just a click away — even within a store — it's crucial for retailers and their brand partners to meticulously plan their in-store strategies and support them with robust data insights.

The Battle for Consumer Attention

Walking down a store aisle, shoppers are greeted by an array of colors and an assortment of products, each vying for their attention. Every step is an opportunity, influenced by the efforts of brands to secure a spot in their cart.

In today's competitive retail environment, retailers must be agile and deliberate in how they present products in stores. The way products are placed, priced, displayed and packaged can influence consumer behavior and overall category performance. As retailers focus on the shopping experience, a testing strategy that enables informed decisions is more important than ever.

What is Virtual In-Store Testing?

Virtual in-store testing is best understood in comparison to controlled store testing, which enables retailers and brands to refine their products and strategies in a real-world environment. It's impractical, however, to conduct numerous iterations of pricing, shelving, innovation, packaging, promotion and display tests in actual stores.

Enter virtual in-store testing — a simulated shopping trip that exposes consumers to different in-store scenarios. Shoppers, for instance, may be asked to pick up virtual products, examine the front and back of packages, add items to their cart, and review their entire basket, mirroring the experience of a typical shopping trip. After the virtual in-store shopping exercise, the shoppers complete a questionnaire to rate their experience. The benefit of virtual testing vs physically testing in-store include:

• faster time to insights;
• ability to test many concepts and narrow in on the best one;
• more cost effective;
• more geographically representative;
• measures behaviors and shopper perceptions of the changes;
• no stress placed on in-store operations; and
• can be completed any time of the year (i.e., no blackouts during critical retail periods).

Why Virtual In-Store Testing Does NOT Entirely Replace Controlled Store Testing

Although virtual in-store testing offers numerous advantages for assessing shopper reactions to changes and ideas in near-real environments, it's not a substitute for controlled store testing in all situations.

Virtual reality testing is most effective when integrated with other testing strategies as an additional layer of insights. For example, after identifying several potential test concepts, virtual in-store testing can act as a preliminary filter to prioritize the most promising ones and decide if they should be tested in a store setting or rolled out. By adopting a data- and insights-driven approach from start to finish, retailers can thoroughly evaluate changes before presenting them to customers in stores, ensuring the most successful outcomes.

Enhancing the Shopping Experience

In crafting the right shopping experience, it's essential for brands and retailers to be agile, deliberate and “test” their way to success. When implemented effectively, virtual in-store testing bridges the gap between rapid innovation cycles and controlled store testing, allowing retailers to experiment with multiple concepts faster and more cost effectively while still maintaining the rigor of data-driven decision-making — creating a more compelling and successful in-store environment.

Nolan Lowry is director of consumer research at 84.51°, a retail data science, insights and media company.