January 6, 2020 / Technology

Data-Driven Retail

The integration of the omnichannel has led to a supercharge of tech-infused stores opening on the high street. Incorporating a seamless online and offline identity has led to store innovations that ingrain tech into the core values of the store, enabling brands to access to more data on shoppers.

Brands are harnessing this data instore, providing hyper-localised decision making, creating to more nuanced activations than ever.

Understanding consumer habits is imperative to providing an engaging experience for a shopper, helping brands understand the localised culture. 

As consumers have the opportunity to interact with brands more, whether it’s in-store, on social media, brands should be pushing the boundaries of relationships with customers, gaining meaningful insights to engage loyalty and nurture relationships.  A recent Forbes article argued the importance of a well-integrated CRM system to help identity habits of consumers and gauge intersections of interest.  

Nike pushes towards holistic personalisation, using consumer-driven data to restock the store bi-weekly, using buying patterns, browsing patterns and in-store events. This data then filters to determine trends that are happening on a city-wide and global level, fueling Nike’s interests consumer learning. 

Similarly, Matches.com retail space also uses customer data to focus on optimising fitting rooms. Shoppers can pull desired items to try on 90 minutes before entering the store and personal shoppers pick extra pieces for customers to trial based on their online activity (wish lists, abandoned baskets, purchase history).

Utilising data will also allow consumers to invest in ultra-personalised experiences and products.

56% of consumers are comfortable using a device or app in-store to determine products suited to them, we begin to see the power of investing in a fluid omnichannel.

Shiseido utilises their app in-store, cultivating consumer loyalty by offering tiered services in their Japanese flagship. With floors dedicated to loyal consumers, it incentivises consumers to keep coming back and nurtures relationships with devoted consumers. 

App powered flagship stores are also making waves in the retails sphere. Adidas, Samsung and Microsoft have all debuted new tech-infused flagship in London this year and in New York Puma and Apple have updated theirs, giving us a glimpse into how retail will evolve post-2020 and the importance of brands having a robust app that’s consumer-centric. 

Brands can no longer separate online and offline channels and should aim to use them to engage with consumers. Conversational platforms are becoming more relevant as Reddit starts to gain interest from brands. Facebook is also directing brands to use facebook groups as providing an online place for community to flourish. As AI evolves to begin to recognise emotions and language, we consider how this will develop to inform brand insight moving forward. 

Insights

  • Brands should be considering how technology can inform their retail narrative and story.
  • A building user-centric app that has fluid functionality both online and the store is imperative to capturing the ever-evolving habits of consumer behaviour. 
  • Data should be used to aid personalisation, discovery and functionality assisting consumer gratification.