The appearance of retail has evolved over the decades, the next chapter goes beyond just looks.
The size of the building, the way it’s organized, the offerings continually rotating, and technological advances. These are the WHATs and HOWs of retail, the new phase of retail emphasizes the WHY.
As consumer behavior continues to evolve, retailers must “skate where the puck is going.” The future of retail must focus on the WHY within this change of consumer needs, wants, and desires. To better understand this change, we must first start with how the expectation of the shopper is changing.
Shopper Expectation
Coming from the basic conditioning of departments, shoppers are used to translating their reason for shopping and segmenting it into departments. Whether you’re going on a trip or getting ready for an event, the reason behind the purchase must now fit into the model of the store’s categorization.
For the expectation of the shopper, this is an accepted burden that may still cause a low humming of frustration because the frustration isn’t unexpected; it simply just is.
As retail evolves, the expectations of shoppers will evolve as well. Just as Amazon single-handedly changed the expectations of delivery, the new era of retail will be focused on customization within retail for shoppers because of technology in the digital landscape that will continue to further the capabilities of customization.
Considering all of the above, we can see how a retailer needs to connect the dots of the reason for shopping with the expectation of customization.
Ironically, we see this done nicely when it’s time for major holidays or back-to-school shopping. The items all magically organize themselves into the reason that the shoppers are congregating. All the school supplies, Halloween treats, and costumes are gathered in one area under the central theme of the reason for shopping.
This is very standard and something we have all experienced because it is made possible by these agreed-upon reasons(holidays) to shop so they are predictable and apply to the majority of people.
Obviously, the jump to this kind of customization will entail a lot of digital integration such as AR and more.
Now if that is the long-term stage, then we can look at how a retailer could take advantage of both digital and brick-and-mortar to build toward this future and anticipate the expectation.
Reasonable Reasons
Retail brands won’t be able to create fully custom experiences for every single shopping situation just yet. There are many reasons why someone will shop and predictive algorithms can assist to an extent through shopping history and product suggestions.
I’ve also written how retailers can create subbrands for these reasons of shopping that focus on seasons, holidays, or specific situations as Target has done with its many private labels.
These are steps in the right direction, but there could be a simple answer that could be rolled out in the present that merges the digital and physical experiences.
Currently, the apps that Target, WalMart, Albertsons, Costco, etc. all have feel they are substitutes for the shopping experience. They want you to use the app before shopping. Similar to looking at a printed catalog before you either choose to purchase online or in-store.
For example, they send deals and encourage you to make a list or order.
I’ll actually use the apps to scan products while I’m shopping in-store and look up aisles. I use the app as a companion to my shopping experience as I’m shopping. This makes sense to me mostly because I grew up playing video games that had similar “companion” apps that supported the main gameplay.
I do see how Target has really tried to encourage this or even others to allow you to scan products, but I honestly never seen anyone doing this….
So imagine this type of organized experience, but every time you go shopping. We could have more of an integrated companion app that is there while you shop. The problem right now is that all of these apps are setup like another version of their website and address the shopping experience out of context. It assumed I’m home shopping, not that I’m at the physical store and ready to shop.
Although this context of shopping at home may be true, it doesn’t mean shopping with the app in the store isn’t true.
The app should be able to adapt and change based on my location and change the interface completely.
My experience of shopping in-store is very different than online shopping at home. This customization would benefit me as the shopper and bring the brand more information about my behavior and preferences. My needs and desires change based on the scenario of me shopping in-store vs online.
Customizable Companion
This simple first step will integrate the store experience with the power of digital by simply having an app that functions as a companion to the shopping experience.
This could be things like an interactive map showing me where my products are and what products near by I should check out. It could show me wait times for registers or even introduce some gamification for my shopping with easter eggs or AR surprises. The app could even let me know if there is a limited time special going on similar to the timeless “Blue Light Special” KMart became famous for. These little moments could be magical for shoppers and could simply be accomplished by the app being aware of the context of the shopping.
As the companion increases its bond and integrates into the life of the shopper, AI could help curate the shopping experience and further customize to best fit the shopper’s needs. This predictive model would help brands predict revenue and drive more sales that actually deliver more value for the buyers.
The customization of such companions could further as time and technology advances further, but I think you see my point that we can easily integrate a more seamless (and helpful) app solution for shoppers that predicts, meets, and exceeds shopper expectations.