The impact of digital technology on the retail customer journey, and how it's helping to shape future experiences

Understanding your brand and the experience you offer customers is integral in ensuring long-term success

By Shelby Hautala

Intoday’s fast-paced digital era, technology has revolutionized the way consumers interact with businesses and has altered the consumer journey. The evolution of technology has brought significant changes throughout the retail industry such as personalization, seamless transactions and enhanced customer service. Looking to the future, technology holds limitless potential in retail and as it evolves retailers must learn to navigate, stay relevant and continue providing exceptional experiences to consumers. Lee Jackson, senior vice president at JLL Digital Solution Advisory, discusses in what ways technology is improving the consumer journey, challenges and how it will continue to evolve.

Technology and the Consumer Journey – in what ways does technology impact the consumer journey?

Consumers rely on technology to navigate their way through retail by finding products, new brands and to interact with retailers they use frequently. Retailers on the other hand dive into technology to provide exceptional customer service and experience online and in-store. Consumers today have access to the use of online shopping, mobile apps, virtual shopping assistants, augmented reality, chatbots, digital payment options, self-checkout system, personalized loyalty programs, and more. If retailers use technology properly it will elevate the consumer’s shopping journey, if not – the relationship between consumers and retail could be damaged.

“In the simplest fashion – technology impacts the customer every day,” says Jackson. “Technology shapes consumer experiences and behaviors by offering convenience, personalization and efficiency. Consumers can now shop online, use mobile apps, engage with augmented reality and receive targeted recommendations based on their preferences.”

The use of technology makes finding what consumers are looking for easy. All it takes today is a quick search on a mobile device and consumers have access to a variety of brands and products. Not only does easy access provide a seamless shopping experience – it increases brand awareness.

“I think in one way where technology has impacted the most is just from a discovery standpoint. You are able to explore, research and compare with digital tools in a way you have never been able to before. A customer journey used to start in simple places before we had mobile devices and even the internet. Before, people would open a newspaper or they would visit a physical store to find what they are looking for. Today, it is as simple as opening your browser and typing into a search platform what it is you are looking for and retailers know that is the start of a consumer journey.”

Jackson says with the use of technology, consumers can also search for reviews, alternatives, different price points and different brands. Mobile devices have also put the ability for consumers to shop out of their hands for “immediate gratification. Technology has played a meaningful role in helping to continue the drive of growth of retail sales in the marketplace.”

With technology – responsibility also comes into play. Retailers must take responsibility for what tools they decide to use and to use them effectively, accurately, to protect privacy and to help consumers navigate these tools without confusion. When used correctly, retailers can use the technology they have to intercept consumers faster and provide consumers with information and current offers though sponsored placement, SEO and SEM capabilities and mobile devices. This can help personalize the consumer’s journey and provide loyalty programs, perks, offers and promotions; however, without finding the right balance – retailers can accidentally overwhelm consumers.

Exhausting the Consumer: The Rise of Mass Marketing

Although consumers have easy access to retailers – it runs the risk of being exhausting.

Daily consumers are getting bombarded with emails, social media advertising, text messages, mobile applications and have to keep up with which loyalty program they are involved with. “I think there is fatigue that can come into place. Technology can exhaust or overwhelm the consumer if not implemented thoughtfully. Bombarding customers with excessive notifications or irrelevant ads can lead to information overload and dissatisfaction. It is important for retailers to find the right balance and ensure technology is used to enhance the customer experience rather than overwhelm them.”

With the screen time average of 13 hours per day, according to a survey conducted by Nielsen in 2021, unnecessary messages from brands can be excessive. Jackson advises brands to make sure what they are sending out is of value to the consumer, includes offers or promotions and is needed through a “balanced and thoughtful way.” Additionally, retailers should consider using technology to provide insights into customer journeys, provide personalized marketing, and to test and learn to ensure the brand is making the right choices.

When consumers are receiving notifications nonstop from brands, it might lose the personalized feel and Jackson says consumers can become lost and feel unrecognized by the brand.

“If you have to provide your information every single time you make a transaction, whether it is through an e-commerce experience or within a store – most people find it frustrating. Consumers might think ‘Why do you not know me? I have shopped here before’, so it can certainly be frustrating.”

Bottom line – brands should not be sending out mass amounts of information to consumers; unless it is necessary, has value and is relevant to consumers.

The Era of One-Size Fits All Approach

If everyone has different lifestyles, then why is everyone under the same marketing approach? With technology, retailers now have access to personalized information regarding what consumers are buying, what age they are, if they have children, where they are shopping from and more. Personalization is trending and retailers need to recognize how each shopper is unique and provide a more targeted approach.

Someone who is 20 studying at school is going to need different marketing strategies compared to someone who is 30 with a family. If retailers use repetitive and generic advertising on consumers, people will again feel unrecognized and will eventually stop reading those mass emails and social media campaigns. Consumers may also avoid ads on social media, decrease their purchases, provide negative feedback about a brand to others and could move to a brand who recognizes their needs as an individual.

“A person who shops for one product may not be seeking another product. A sports fan might not want to look at arts and culture products, a mom of three may not have the same interests as a teenager or a young adult who is single and has a different lifestyle at that moment in life. So retailers really need to get segmented, personalized and thoughtful about how they are delivering messaging through digital channels and how they are engaging with consumers.”

Jackson says Retailers can do this through loyalty programs, perks, offers and promotions. Retailers can also align with consumers from a personal belief system or a culture standpoint: “There are a number of ways retailers can take care of that valuable relationship.”

To do this, Jackson provides multiple ways on how retailers can provide a more personalized experience. One way is for retailers to use sensor technology. This would allow retailers to detect live movement in stores, to see where people are going within stores, how long each consumer is staying and what products they are engaging with.

“From that point forward, retailers would be able to connect these dots through opportunities such as loyalty apps, real-time navigation through optin methods, promotions and offers. If the person gives you the right to communicate with them, you are able to understand what are the products consumers are engaging with within the store and use that information to help personalize the products that are being marketed to the consumer.”

The second way Jackson says is through retail media and digital screen networks.

Unlike the first concept, retailers would use the information it gathered from sensor technology and use it to provide a personalized in-store experience.

“A digital signage within premise.Taking the same concept, but understanding the time of day and how to advertise the products, how to bring forward promotions, how to connect and what you are displaying on the screen in-stores and personalize it to the individual. That is something that has been really growing in the marketplace as a retail technology solution.”

Building a series of technology methods is important, such as connecting loyalty programs, data capture at point of sale, connecting your omni channel between e-commerce and in-store so you can recognize each consumer no matter how they shop; therefore, providing an enhanced personalized experience, giving the consumer a reason to keep coming back.

Improving Technology to Boost Consumer Experience – And What Happens When You Don’t

“Retailers in Canada can improve their technology adoption by focusing on areas such as mobile payments, e-commerce integration, supply chain optimization and data-driven decision making. Technology can help retailers succeed by providing real-time inventory management, targeted marketing, personalized loyalty programs and enhanced customer service. It can also help identify areas of failure such as inefficient processes and gaps in the customer satisfaction, which can be addressed to improve overall performance.”

If retailers ignore necessary changes or fail to provide a seamless journey for consumers by not using technology correctly, Jackson says it could lead to a negative impact.

One way Jackson says some retailers fail at using technology, is data breaches as he has seen “a tremendous amount of headlines and many retailers and organizations have broken trust with the consumer.” Jackson says any negative experience with the brand, such as data breaches, consumers are unlikely to share with the retail – but will share with consumers and will move forward with another retailer that suits their needs better. Jackson suggests retailers need to test, test and test again to learn what works and what isn’t. “Poorly designed websites or mobile apps, technical glitches during the checkout process and inadequate customer support can lead to frustration and a loss of trust. It is important for retailers to invest in user-friendly technology, conduct testing and promptly address customer issues to maintain a positive relationship.”

The Astonishing Possibilities: Unlocking the Future of Technology

New technologies and innovations will continue to evolve and shape the retail landscape, which will provide exciting opportunities for both retailers and consumers. With the right tools, Jackson says retailers will be able to fully connect the online and in-store experience to provide a more personalized experience, have tailored marketing campaigns, personalized product recommendations and provide new experiences such as casherless stores and virtual realities.

“Technology will continue to evolve in retail driven by advancements in AI, machine learning, automation, the internet of things, and data analytics,” he asserts. “In the future, we can expect improved personalization, seamless integration of online and offline experiences, cashierless stores, virtual and augmented reality experiences and enhanced chain supply visibility. Additionally, sustainability and eco-friendly technologies are likely to play a more significant role in the retail sector. As an AI assistant, I would like to see technology being used ethically and inclusively, providing equal access and benefits to all consumers.”

Jackson also says he thinks the future of technology in retail will involve a “holistic customer convenience” so the consumer can do just about anything in or out of the store with their mobile device. This could include AI supporting product discovery and personalized chats.

“The biggest gap is many providers have not made the fundamental upgrades to their infrastructure to become true Omni. Retailers who solve these components and bring them all together for the customer will make it incredibly easy, convenient and it is adding significant value to the consumer’s experience and journey – that will be the retailers that win.”