According to a Motorola Solutions survey released in June 2012, reported by Marketing Charts, 75% of US retailers believe that developing a more engaging in-store customer experience is going to be critical to their business in the next 5 years. And, a significant proportion of retailers expect to adapt by providing personalized product details, based on previous behavior, to a shopper’s smartphone. In fact, retailers believe that 42% of sales will come from online, mobile, and social commerce sites in the next 5 years, says the report.
This is not an outrageous projection, says the report, given the meteoric growth of e-commerce. According to recent comScore figures, retail e-commerce’s 17% year-over-year growth in Q1 marked the 10th consecutive quarter of positive year-over-year growth and 6th consecutive quarter of double-digit growth rates.
The Future of Retail In Next 5 Years
The Future Needs
% of US Retail Respondents
Developing a more engaging in-store experience will be business critical
All transactions will be completed via mobile POS, self checkout at terminal, or on shoppers mobile device
Sales will come from online, mobile and commercial sites
Send coupons based on customer location in the store
Provide personalized product details to shopper’s smartphone based on previous behavior
Recognize customer in store with geofencing or presence technology
Source: Motorola Solutions, June 2012
With retailers expecting an improved retail experience, they will be investing in new technologies mainly to try and keep up their customer service as shopping channels proliferate. 51% of retailers will make their investments to improve their customer service. This aligns with results from an earlier Motorola Solutions survey, says the report, which found that among retailers who have or are planning to use mobile point of sale (POS) solutions, better customer service is by far their top goal.
Retailers appear to understand the need to customize the in-store experience to appeal to the modern shopper, yet a high proportion are unable to do so. Three-quarters of retailers said they don’t know when a specific customer is in the store, and 85% cannot customize a store visit. Additionally, 89% are unable to connect customers’ activities online with what they do in the store today.
When it comes to personalization techniques used by retailers, customers prefer to be acknowledged in-store rather than via digital channels, at least when shopping for specialty products, per findings from a RIS News and Cognizant survey of US and Canadian shoppers released in June 2012, according to the Marketing Charts report.
To find more information about the study by Motorola Solutions, please visit Marketing Charts here.