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Innovators share ways to eliminate buying friction while boosting omnichannel presence

As technology evolves, retailers find it increasingly difficult to keep abreast of new and better ways to improve customer service and understand consumer needs. During the recent ShopTalk conference, attendees got a chance to learn how some lesser known players — and one well established national player — meet the challenge.

May 10, 2019 by Elliot Maras — Editor, Kiosk Marketplace & Vending Times

Much of the technology retailers are investing in today is designed to accomplish two goals: 1) remove friction in the buying experience, and 2) better understand customer needs.

Over the past several years, many retailers have reported on their progress in meeting these goals.

As technology evolves, however, retailers find it increasingly difficult to keep abreast of new and better ways to improve customer service and understand consumer needs. During the recent ShopTalk conference in Las Vegas, attendees got a chance to learn how some lesser known players — and one well established national player — are addressing the dual challenges in a session titled, "The Intelligent Store." Chris Walton, CEO of Red Archer Retail's Omni Talk blog, served as moderator.

Kelly Kowal of Farfetch tells Chris Walton about Farfetch's omnichannel initiative.

Farfetch, a fashion retailer, has been working on a solution to allow customers to use both online and in-store tools, said panelist Kelly Kowal, managing director of black and white at Farfetch. In realizing 85% of in-store customers are not digitally connected to retailers, management decided it needed to allow digital experiences in the store.

The goal was to use technology to connect fashion customers to design creators and offer access to products from more than 64 boutiques worldwide, Kowal said. Online channels give customers a more personalized experience that can enhance loyalty that could extend to the in-store experience, she said.

"They're thinking about your brand as an experience," Kowal said of today's omnichannel customer.

The company was encouraged by research form Bain Company indicating 92% of sales still occur in a physical store while 70% of affluent shoppers research online before making a purchase and 80% of users are willing to share data with companies they trust.

Farfetch wanted to include all the different tools — digital display, discounts, coupons and rewards, payments, POS, omnichannel engagement, inventory management, dressing room, associate, sensors, beacons, in-store POS financing and loyalty — in one connected solution. To this end, the company conducted an inventory of all the technologies, and discovered the field is very crowded and complex.

Kevin McKenzie of Macerich describes the BrandBox solution to Chris Walton.

Four pillars

Given these findings, Farfetch established its business on four pillars: 1) being customer centric, meaning having a focus on solving customer problems while anticipating future needs; 2) a "no channel" approach — being channel agnostic; 3) being open or modular — inviting the best retail startups to build on the platform; and 4) human interaction — empowering fashion advisors while providing customers control of their experience.

To recognize the customer, the company has explored apps, beacons, QR codes and virtual recognition. To measure product recognition, it has explored beacons, near field communication, visual recognition and low frequency Bluetooth.

To improve personalization, Farfetch has explored shared wish lists, recommendations and related items. To improve customization, it has explored feature tagging, component driven user interface and branding.

To make payments easier, the company has used credit cards, Apple Pay, WeChat Pay and service payments.

A turnkey physical store solution

Where Farfetch focuses on customer interaction, Macerich, a mall owner and operator, has sought ways to help online retailers gain a physical presence in reaching the consumer.

Macerich has developed a 500-square-foot, rectangular shaped turnkey retail solution to allow brands to have a physical store quickly. Panelist Kevin McKenzie, executive vice president and chief digital officer for the company, said Macerich came up with the concept after several brands made it known they needed help opening a physical store.

BrandBox allows a brand to have a physical store in weeks as opposed to months, McKenzie said. The company provides store design services, as well as data on foot traffic, customer dwell time, sales and in-store schedule management, according to the company's website. Many brands — such as the 40 Macerich partnered with in developing BrandBox — do not have real estate development teams to deal with brokers, lawyers and government permits, McKenzie said.

"It's effectively a big lab," McKenzie said for BrandBox, pointing to the movable walls that allow the brand to customize the layout.

The basic BrandBox includes planogramming tools, footfall counters, a Wi-Fi camera that gathers analytics and a security camera. Optional technology includes endless aisle kiosks, smart mirrors, digital storefront displays, interactive product displays, BLE beacons, a mobile POS, dynamic price tags, smart mirrors, and an RFID embedded stock room.

The model is designed to serve a 7-year period, McKenzie said.

Walmart continues its journey

Where Macerich and Farfetch are still in the early stages of their omnichannel initiatives, Walmart's journey has included a number of technology acquisitions, said panelist Anshu Bhardwaj, vice president product at Sam's Club.

Bhardwaj said Walmart has made a series of acquisitions to improve its omnichannel presence, a key one being Kosmix. In 2011, Walmart announced plans to acquire Kosmix, a technology platform that organizes content in social networks to connect people to relevant real time information, according to Walmart's website.

Bhardwaj said Kosmix became the foundation of Walmart Labs, which is dedicated to making both in-store and online shopping easier. Walmart Labs, in turn, has acquired several other technology companies.

Anshu Bhardwa of Sam's Club explains thee Sam's Club Now concept to Chris Walton.

One of the newer initiatives has been the Scan and Go app, which spares users from waiting in line to pay and allows them to update digital shopping lists, and instantly navigate store aisles with voice recognition to find a specific product category.

While the company has pulled back Scan and Go in Walmart stores, it continues to expand in Sam's Club and is part of the company's new high tech concept store, Sam's Club Now, in Dallas.

Customers who use Scan and Go become repeat users in under three months, Bhardwaj said.

"We try to stay away from technology for the sake of technology," she said.