Omnichannel

Convenience, personalization, and digitization continue to define the in-store retail experience

Bobby Marmahat, Raydiant CEO, explains that as the lines between e-commerce and in-store retail continue to shrink ever-thinner brick-and-mortar must retain its unique appeal, from smiling store attendants to design features that digital storefronts can't replicate.

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November 2, 2021 by Bobby Marhamat — CEO, Raydiant

Gaining the edge in retail is not as easy at it once was. Consumers can discover the best prices by doing nothing more than opening an app or visiting a few websites. Those who are willing to wait a few days can order virtually anything, from Bose headphones to Maine lobster tail, with a few clicks.

And yet, our State of the In-Store Experience 2021 report found 48% of shoppers still prefer to shop in-store when all other factors are equal. Obviously, brick-and-mortar retail provides something that digital commerce cannot. There is something about the experience of shopping in-store — whether it's the sense of community, the feelings that a specific store inspires, or the immediacy of purchase—that nearly half of shoppers still prefer.

Still, retailers would be foolhardy to dismiss e-commerce sales that are set to surpass the $4 trillion mark in 2021. Stagnation in brick-and-mortar retail is a certain recipe for bankruptcy, perhaps in as little as five years or less. Widespread closures accelerated by the pandemic showed how rapid retailers' descent can be.

As we have continuously monitored consumers' tastes and worked directly with thousands of retailers, we've homed in on three keys to continual retail growth: convenience, personalization, and digitization.

Convenience: A non-negotiable for time-strapped shoppers

Looking for an impossible task? Try finding a shopper who enjoys waiting in line to checkout, or who values the experience of wandering around a store, searching fruitlessly for the one item they intend to purchase.

Do certain shoppers enjoy casually perusing product offerings in a warm, stimulating retail environment? Of course. But shoppers should always have the choice of a leisurely retail experience versus a hyper-efficient one.

Shoppers told us that the speed and convenience of shopping online are the number one reason that they choose digital retailers over brick-and-mortar locations. Providing your shoppers convenience-driven features—in-app purchasing, curbside pickup, buy online, pickup in-store, self-checkout — is the only way to outpace online competitors.

Consumers today feel greater time constraints than shoppers of bygone eras. Many segments of the shopping public, particularly the hyper-busy such as parents and young professionals, are willing to pay more for convenience. They view the time that they spend waiting in line as an expensive time cost, as they could otherwise be spending that time working or having meaningful interactions with their children.

If your organization does not place the same value on shoppers' time that the shoppers themselves do, then you're willfully rejecting those who believe that time is money.

Personalization: Despite privacy concerns, shoppers want to feel recognized

Retail organizations are in a tough position when it comes to data privacy. As much as consumers demand ever-increasing convenience (which personal data undoubtedly helps deliver), shoppers have a general uneasiness about sharing — often involuntarily — their most personal tastes and habits.

75% of consumers have expressed concerns about the privacy of their in-store and online shopping histories. And yet, 42% of consumers have said a lack of personalization in their shopping experiences will drive them away from making a purchase.

Every retailer must decide what level of personalization effectively balances the scales of privacy and convenience. While consumers may be offput by a targeted, off-site advertisement derived from their interactions with your brand, that same customer may appreciate product suggestions based on their past buying habits.

Digitization, including data, is undeniably necessary to compete in retail today. If customers continually receive personalized discounts when they shop at your store, they'll eventually associate your brand with savings. However, customers are increasingly aware that retailers have substantial access to their purchasing habits, and you should not pretend otherwise.

Deloitte explains how robust, clearly-defined privacy policies can protect your organization from privacy-related PR nightmares. Such policies may also deliver your customers the peace of mind that they need, ensuring them that you are using their personal information to enhance the in-store experience, rather than for nefarious purposes.

Digitization: The in-store experience must be digital

Much of the charm of shopping in-store lies in the fact that stores are not digital. They're physical structures existing in the real world and populated by real people. In short, a brick-and-mortar store is not an app or a website — it's something far more.

And yet, you can't speak of effective in-store experiences without highlighting the importance of digitization. So much of what shoppers today crave, from convenience to immersion and personalization, is made possible with digital assistance.

Take self-checkout as an example. Our State of Self-Service Checkouts 2021 report found that 85% of consumers see self-checkout as a faster means of purchasing goods than cashier-led checkout, which shoppers associate with longer lines and wait times. This is just one example of how consumers see digitization of the in-store experience as a conduit of convenience.

There is a delicate balance with digitization. Tech, from digital signage offering useful product information to scannable QR codes that unlock discounts, should be seamless features of the broader shopping experience, not the main attraction.

To the extent that you can maintain the humanity of the in-store experience while providing real value through digitization, your organization will effectively blend old charms with new tastes.

Conclusion

The lines between e-commerce and in-store retail continue to shrink ever-thinner. Consumers are so convenience-minded that they're increasingly willing to give up their data if it allows them to find the products that they want more quickly. They don't mind racking up personalized discounts along the way, either.

Brick-and-mortar must retain its unique appeal, from smiling store attendants to design features that digital storefronts can't replicate. We know, though, that shoppers aren't willing to sacrifice significantly more time just to shop in a store. You must weave tech-driven conveniences into the in-store experience to deliver your customers a more efficient, personal shopping journey.

Digitization and personalization do not have to feel invasive. A digital product display here or a scannable discount code there can provide immense value to your customers in a way that preserves the brick-and-mortar ethos. Those who will dominate in-store retail in the next decade-plus will achieve a clever balance between increasing digitization and the timeless appeal that the in-store experience provides.

Bobby Marmahat is the CEO of Raydiant