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GlobalShop 2012: 8 ways the smartphone can help your customers love you

Mobile technology is not the brick-and-mortar retailer's enemy.

March 2, 2012

Mobile technology is not the brick-and-mortar retailer's enemy

It's no secret that smartphones are tempting shoppers away from purchasing at brick-and-mortar locations. Consumers often use their phones inside stores for product research and price comparisons, often leavin the store, only to purchase via an online competitor.

Although "showrooming" is a major concern for retailers, they shouldn't view mobile technology as the enemy. In fact, the most successful brick-and-mortar retailers are teaching customers how their smartphones can enhance their overall shopping experience, Molly Garris, director of digital strategy and Arc Worldwide, said during a panel Friday at Global Shop in Las Vegas.

"So it's about finding ways retailers can plus up the shopping experience and use mobile to create that love," Garris said.

She and Bryan Galley, also of Worldwide, gave eight examples of how mobile technologies can lead to increased sales. They are:

• Help shoppers prepare.
• Invite them into the store.
• Show them around.
• Help them decide.
• Encourage them to share.
• Make transactions easier.
• Ensure satisfaction.
• Invite them back.

1. Help shoppers prepare

Shopping lists is one example of how consumers prepare to shop. It's obvious that shoppers are creating and storing lists on their phones, but some retailers, including Kroger, are giving customers even more options.

The grocer's app not only allows a customer to create lists, but it also locates deals and coupons and then allows her to load them on her Kroger loyalty card.

Target helps its customers by providing a holistic shopping experience. Whether customers log in to their Target accounts on their phones, tablets or computers, the log-in credentials are the same. They may start a list at work, for example, but then pull it up later on their iPhones, Garris said. The app also tells shoppers if the product they want is in stock and where to find it.

2. Invite them into the store.

The easiest way to invite a shopper to the store is to tell him where you are located; this has always been done with signs and billboards, but now retailers are using apps to give customers more than an invitation, Galley said.

Shopkick is a new app that not only shows customers all the stores around them, but also gives them incentives for entering. For example, American Eagle is a ShopKick partner, so when a user opens the app and walks into American Eagle, she earns points which lead to deals and coupons .

"It kind of gives them a little nudge," Garris said.

American Eagle even rewards customers for trying on clothes; they simply open the app and scan a sign posted in the fitting room for extra points.

"This is a new technology that is not only inviting her inside but is getting her closer to that purchase," Garris said.

GeoFencing is another way the smartphone can incentivize people to enter a store. Users opt into atext program that sends text messages to shoppers when they get within a certain distance of the stores. Retailers text special deals to customers, hoping to attract them to the store. Research is showing that 50 percent of users who receive the deals immediately go to the store, Garris said; 22 percent make a purchase.

"I think this is attributed to the fact that they're already out shopping; they're right in front of your location, so just being able to lure them in when they're already in that shopping mindset creates more opportunity," Garris said.

3. Show them around.

Large retailers may want to take note of one superstore's "Find It" app that allows shoppers to type in what they are looking for and will then direct them to the location.

"It tells them where the product is located in that specific store since we know your location," Garris said. "It's great for navigating superstores."

Aisle411 is another app that helps customers find products, but a retailer must partner with the company to get its maps into the system. Shoppers can also use the app to scan barcodes to read product reviews and find out about in-store discounts and promotions.

4. Help them decide.

Customers often seek advice about purchases, so the smartphone can be a tool to help them compare products in the store instead of simply looking them up on competing sites. For example, Best Buy, which provides QR codes on all its product tags, has an app that allows shoppers to hold their phones over the codes to get more info. The app can compare up to four products side by side, so customers can see the differences.

5. Encourage them to share

Consumers love to tell their friends about what purchases, deals and sales, so retailers should help them share those shopping experiences. While many customers already send photos of possible purchases to friends, there are mow apps that can help them along, Garris said. For example, Converse has an app that lets shoppers take a photo of shoes, see it in a variety of colors and styles and then instantly text it or send it to Facebook.

Sometimes it's not about sharing simply a product, however. Sometimes, it's the entire experience, Garris said. During the holiday season, Macy's created an augmented reality experience through an app that allowed shoppers to point their phones at a specific place on the floor that triggered characters to pop up.

"What moms would do is take a picture of her child with these little magical characters for a Christmas card template that she could share on Facebook," Garris said."When you see something magical like that you just naturally want to share it."

6. Make the transaction easier.

Express lines and self-service checkout systems have been making the check-out process easier for years, but retailers can take it a step further by going mobile, Galley said.

Employees equipped with iPod Touches in C Wonder, a new store in New York, can handle transactions from anywhere in the store. Customers no longer have to wait in line and can purchase a product whenever they're ready.

Mobile Payments falls into this category as well, but it's going to be up to retailers help educate their customers about how and why to embrace it, Garris said.

7. Make sure they're satisfied.

Retailers must help customers enjoy their purchases after they leave the store. For example, Home Depot's app gives customers tips on do-it-yourself projects, including "how to" videos.

Kroger has an app that gives its customers grilling tips and recipes when they buy a specific brand of charcoal.

"Your sending her home with an actual experience that goes along with the charcoal," Garris said. "What a good way to plus up that experience with charcoal."

8. Invite them back.

Retailers must find ways to follow up with shoppers to inspire them to return. One way Walgreens is doing that by sending text alerts to customers when it's time for them to refill their prescriptions. The customers then reply back with "refill" to start the process, and they receive another text when their order is ready for pick up.

The Walgreens app also provides flash sale deals that customers can only get by using the app and for a limited time, which also drives them back to the store.