FEATURE FRICTIONLESS RETAIL: A QUICK GUIDE

STUART ARMSTRONG MANAGING DIRECTOR AAG CONSULTING

Stuart is well known in the retail tech and martech industries having headed up one of the more successful shopper engagement companies in the digital signage space, ComQi. During this time he also was a two-term elected president of the Digital Screenmedia Association. ComQi had a successful exit in 2018 being acquired by the global display giant, AUO.

By now, it is apparent that retail as we know it has irrevocably changed. Consumers will have multiple choices, and pain points revolving around time spent in store and waiting for cashiers to open up can be better managed. Consumers still want to support the retailers in their communities. But they will not sacrifice convenience for brand loyalty. They are looking for a positive shopping experience without spending more money or doing anything complicated.

It is now imperative to create a modern shopping environment for customers who want to shop wherever they can and get in and out with minimal stress and friction. Providing a frictionless experience is the best way to retain customers and attract new ones.

While frictionless commerce can deliver the best customer experience, it is important to understand which technologies and solutions best suit a business. It will differ from one company to another since all have diverse needs and budgets depending on foot traffic, products sold, square footage, employee structure, and unique attributes.

Various offerings incorporating frictionless solutions are gaining traction in the market, and each requires unique technologies and protocols. Some of the prominent ones are:

Scan and Go: One of the emerging frictionless offerings is scan and go, where consumers scan QR codes on the products they want to purchase. Every item they scan using their smartphone is seamlessly added to the cart. Once they finish shopping, they can pay online without waiting in line for checkouts. While this technology is incredibly powerful and enables consumers to shop more efficiently, it does require an investment in software and hardware to make the process seamless. But consumers that enjoy the convenience will demonstrate a strong loyalty to retailers that offer this technology because of how quickly it gets them in and out of the store.

Self-Service Kiosks: One common and historically deployed frictionless technology is the self-service kiosk, another way consumers can shop on the go. The kiosks allow customers to shop and scan their products directly instead of waiting for a cashier. Most kiosks also feature a touch-free payment terminal where customers can simply tap their card and pay without touching device.

Buy Online, Pick Up In-Store (BOPIS): Also known as curbside pickup, this combines the ease of ordering online with immediate pickup from a store. Salesforce reported that 57% of consumers ordered a product online to pick up at the store, demonstrating how pervasive this habit has become. It allows customers to skip the line and go straight to the check-out counter to pick up the products they have ordered online or via phone. This minimizes contact made between customers, retailers, delivery partners as well as consumers.

Frictionless Payments: As the world moves towards digital payments, it is increasingly likely that consumers will pay for purchases by credit cards, most of which have chips. Tap-topay and mobile payment are significantly gaining traction globally due to their benefits of minimal contact, negligible or no extra charge. They allow consumers to make minimal contact with high-traffic equipment such as credit card readers and keypads while in-store. Frictionless payments will only continue to grow in importance as consumers leave cash at home and want a simple way to pay once they’re ready to check out.

AR & VR for Immersive Shopping : Frictionless commerce also extends the showroom experience outside the physical establishment. Retailers are using augmented reality (AR) and virtual reality (VR) to create virtual trial rooms that enable shoppers to try on apparel, footwear, cosmetics, and more. These digital pop-up stores offer the advantage of an immersive in-store buying experience. Customers can try out products and get them delivered to their doorsteps without stepping out.

While frictionless commerce is still a work-in-progress for many retailers, it provides a real competitive advantage to those who move early and offer several, if not all, of the above options for consumers. Consumers will continue to show support for companies that prioritize their well-being and embrace technologies that get them in and out of physical stores as soon as possible.

Now is the time to invest in the right technology, solutions and operational support to benefit customers and employees equally. Doing so frees up employees to provide more meaningful services and reduces the clog at the end of experience for customers, who can shop and leave the store as soon as possible.

Frictionless retail is the future. To learn more about frictionless commerce, especially how it can help reduce labor costs and shrinkage and increase customer satisfaction and retention, please reach out to us at info@aag.consulting.