Always Wired: Why Retailers Should Offer Free Wi-Fi In-Store

Always Wired: Why Retailers Should Offer Free Wi-Fi In-Store
Tags: Consumer Behavior, Mobile Payments, Multichannel Retailing, Retail - Apparel
June 22, 2011

Mobile devices are the nexis of consumer purchasing power, as they now give consumers the ability to comparison shop, purchase, and share likes/dislikes from practically any location. Retailers who embrace and encourage mobile-shopping with free in-store Wi-Fi will compete more effectively for longer-term loyalty vs. those retailers who attempt to limit or block access.

Nordstrom is one of the smart-thinking retailers who is encouraging smartphone usage in-store. In order to accommodate customers who desire immediacy, Nordstrom installed Wi-Fi in its 187 retail stores in 28 states. By fall 2011, the company wants to equip its employees with handheld mobile devices. Nordstrom said mobile would change the shopping experience for customers and employees: Customers in dressing rooms would be able to text or call employees to get a different sized clothing item. Merchants would be able to know when a customer left and send a thank- you note for visiting or purchasing products. “We’re on this journey together,” Blake Nordstrom (president of the Nordstrom chain) said in a February, 2011 interview. “E-commerce is the subject the customer truly values. Reduce the complexity for the customer experience.”

How can retailers leverage Wi-Fi as a competitive advantage? First, your store’s Wi-Fi should be free. It goes without saying that retailers should be more concerned with making money from purchases vs. internet fees. Second, your store’s Wi-Fi should not block your competitors’ websites. Consumers are using their mobile devices to comparison shop; if you attempt to thwart customer behavior, your customers will leave your store to become your competitors’ customers. Third, your store’s Wi-Fi should be used as a promotional vehicle. As your consumers are already in-store, try to do what you can to motivate a purchase with fast-acting discounts, additional perks (e.g., free shipping), and consumer reviews.