Commentary

How mixed reality can help the brick-and-mortar keep up with Amazon

Mark Hardy, CEO of InContext, explains how a mixed reality strategy can help retailers boost shopper engagement and optimize the customer experience.

Photo by iStock.com

November 9, 2018

By Mark Hardy, CEO of InContext

Amazon may be the biggest threat to brick-and-mortar retailers right now, but it's far from catastrophic: only about 13 percent of all retail activity in the U.S. happens online. In fact, Amazon's moves in recent years toward establishing a presence in the physical world show that it sees brick-and-mortar as a key part of the future of retail.

What's really intriguing, though, is that these recent maneuvers also hint at how traditional retailers can stay competitive with the e-commerce giant: by offering stress-free returns, enabling in-store pickup for online orders, and getting store layout just right to optimize customer experience. And if you're daunted by the magnitude of those tasks, take heart: mixed reality solutions currently on the market can help with all three by simplifying the store layout quandaries they pose. Here's a look at how.

Make returns stress-free

Amazon's partnership with Kohl's lets online shoppers return items at physical Kohl's locations, eliminating one of the biggest headaches of shopping online. Brick-and-mortar retailers should take note: returns are now something online shoppers expect to be not only allowed but also easy.

While returns may be hard on the bottom line, they're something today's shoppers count on. You can make their buying decisions easier by offering a clear, simple return policy and displaying it in your store and on your website.

If and when customers come in for returns, train staff in how to handle the process so that the process is stress-free and customers are inspired to shop again. (More on making that a reality in a minute.)

Offer in-store pickup of online orders

Amazon's purchase of Whole Foods has enabled it to offer in-store pickup of internet orders, home delivery of groceries, and now curbside grocery pickup for Prime customers.

This is a move all brick-and-mortar retailers can and should learn from: give shoppers the option to make a purchase on your website and pick it up in your store. This offers a double win: your customers don't have to pay shipping, and you give them an excuse to come into your store. In a best-case scenario, they'll be inspired to make an additional purchase while they're there.

Maybe just as important here, though, is that offering this service will fulfill what's likely becoming an expectation they have of retailers, thanks to Amazon's precedent.

Get store layout just right

This is where mixed reality comes in.

One key to making returns and in-store pickup work is figuring out where to position these services within your physical store. You want to strike the balance between convenience (i.e., customers can zip in and get their purchase or make their return) and friction (i.e., customers are forced to walk past at least a little merchandise so they're inspired to keep shopping).

Getting that balance right can be tricky, but there are MR software solutions that make it easier. Here are two key strategies to try:

• Use MR to iterate on store layout: With software like ShopperMX, it's possible to create a digital version of your store and then let test customers engage with it using mixed reality headsets. Because you're free of the limitations of setting up a physical space, you can test several layouts quickly, determine which one works best, and make changes to your physical space. Iterating with MR is also much less expensive than altering with your floor plan in real time: rather than gambling on an untested setup, you can make changes that you know will strike the optimal balance of user-friendliness, clean traffic flow, and in-store browse time.
• Use MR to play with shelf placement: Once you invest in MR for your store, there's no reason to stop at optimizing the big-picture layout. Tweaking the placement of items on shelves can have a surprising impact on customers' purchase behavior. MR is also useful for determining the effectiveness of end caps and signage, both of which can subtly influence buying.

One key concept to keep in mind as you tap into the power of MR to maintain a competitive edge: the goal should not be to simply meet customers' expectations, but to actively delight them. In other words, aim to create an experience that goes above and beyond what they'd expect from a brick-and-mortar retailer. Many American shoppers genuinely want to support their local businesses; if you make doing so an experience they truly enjoy, you can expect repeat visits.

Brick-and-mortar is here to stay

Amazon's recent partnerships and acquisitions clearly illustrate that it sees brick-and-mortar as an important part of the future of retail. By cribbing key moves from its playbook with the help of MR applications, traditional retailers can stay competitive as shoppers embrace and come to expect hybrid shopping experiences.